senate Bill S7074A

2017-2018 Legislative Session

Increases the monetary exclusion on the requirement of plain language in consumer contracts

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Current Bill Status - Delivered to Governor


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

view actions (13)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Dec 18, 2018 delivered to governor
Jun 14, 2018 returned to senate
passed assembly
ordered to third reading cal.75
substituted for a1085a
Jun 11, 2018 referred to judiciary
delivered to assembly
passed senate
ordered to third reading cal.1669
committee discharged and committed to rules
May 29, 2018 print number 7074a
May 29, 2018 amend and recommit to judiciary
Jan 03, 2018 referred to judiciary

S7074 (ACTIVE) - Details

See Assembly Version of this Bill:
A1085
Law Section:
General Obligations Law
Laws Affected:
Amd §5-702, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2013-2014: S5206, A7777
2015-2016: S3135, S3155, A1152

S7074 (ACTIVE) - Summary

Increases the monetary exclusion on the requirement of plain language in consumer contracts.

S7074 (ACTIVE) - Sponsor Memo

S7074 (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  7074

                            I N  S E N A T E

                               (PREFILED)

                             January 3, 2018
                               ___________

Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
  printed to be committed to the Committee on Judiciary

AN ACT to amend the general obligations law, in relation to requirements
  for the use of plain language in consumer transactions

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. The closing paragraph of subdivision a of section 5-702 of
the general obligations law, as amended by chapter  1  of  the  laws  of
1994, is amended to read as follows:
  Any  creditor, seller or lessor who fails to comply with this subdivi-
sion shall be liable to a consumer who is a party to a written agreement
governed by this subdivision in an amount equal to  any  actual  damages
sustained plus a penalty of fifty dollars. The total class action penal-
ty  against  any  such  creditor,  seller or lessor shall not exceed ten
thousand dollars in any class action or series of class actions  arising
out  of  the  use  by a creditor, seller or lessor of an agreement which
fails to comply with this subdivision.  No action under this subdivision
may be brought after both parties to the agreement have fully  performed
their obligation under such agreement, nor shall any creditor, seller or
lessor  who  attempts  in  good faith to comply with this subdivision be
liable for such penalties. This subdivision shall not apply  to  a  good
faith  attempt  to describe the constant yield or other method of deter-
mining the lease charge and depreciation portions of  each  base  rental
payment  under  a lease of personal property. It also shall not apply to
agreements involving amounts in excess of  TWO  HUNDRED  fifty  thousand
dollars  nor  prohibit the use of words or phrases or forms of agreement
required by state or federal law, rule or regulation  or  by  a  govern-
mental instrumentality.
  § 2. This act shall take effect on the one hundred eightieth day after
it  shall have become a law and shall apply to any contract entered into
after such effective date.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

S7074A (ACTIVE) - Details

See Assembly Version of this Bill:
A1085
Law Section:
General Obligations Law
Laws Affected:
Amd §5-702, Gen Ob L
Versions Introduced in Other Legislative Sessions:
2013-2014: S5206, A7777
2015-2016: S3135, S3155, A1152

S7074A (ACTIVE) - Summary

Increases the monetary exclusion on the requirement of plain language in consumer contracts.

S7074A (ACTIVE) - Sponsor Memo

S7074A (ACTIVE) - Bill Text download pdf


                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 7074--A

                            I N  S E N A T E

                               (PREFILED)

                             January 3, 2018
                               ___________

Introduced  by Sen. KAVANAGH -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Judiciary  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the general obligations law, in relation to requirements
  for the use of plain language in consumer transactions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The closing paragraph of subdivision a of section 5-702  of
the  general  obligations  law,  as  amended by chapter 1 of the laws of
1994, is amended to read as follows:
  Any creditor, seller or lessor who fails to comply with this  subdivi-
sion shall be liable to a consumer who is a party to a written agreement
governed  by  this  subdivision in an amount equal to any actual damages
sustained plus a penalty of fifty dollars. The total class action penal-
ty against any such creditor, seller or  lessor  shall  not  exceed  ten
thousand  dollars in any class action or series of class actions arising
out of the use by a creditor, seller or lessor  of  an  agreement  which
fails to comply with this subdivision.  No action under this subdivision
may  be brought after both parties to the agreement have fully performed
their obligation under such agreement, nor shall any creditor, seller or
lessor who attempts in good faith to comply  with  this  subdivision  be
liable  for  such  penalties. This subdivision shall not apply to a good
faith attempt to describe the constant yield or other method  of  deter-
mining  the  lease  charge and depreciation portions of each base rental
payment under a lease of personal property. It also shall not  apply  to
agreements  involving  amounts in excess of [fifty] ONE HUNDRED thousand
dollars nor prohibit the use of words or phrases or forms  of  agreement
required  by  state  or  federal law, rule or regulation or by a govern-
mental instrumentality.
  § 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law and shall apply to any contract entered  into
after such effective date.

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