senate Bill S4478

2019-2020 Legislative Session
download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee


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

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Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2020 referred to consumer protection
Mar 12, 2019 referred to consumer protection

Co-Sponsors

S4478 (ACTIVE) - Details

See Assembly Version of this Bill:
A6866
Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Add Art 39-H §§899-ccc - 899-ggg, Gen Bus L
Versions Introduced in Other Legislative Sessions:
2015-2016: S8006
2017-2018: S3911, A8653

S4478 (ACTIVE) - Summary

Establishes contract requirements for third party litigation financing which includes requiring contracts to contain a right of rescission, a written acknowledgement by the attorney retained, a clear outline of the scheduled fee structure and a no penalty provision.

S4478 (ACTIVE) - Sponsor Memo

S4478 (ACTIVE) - Bill Text download pdf


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

                                  4478

                       2019-2020 Regular Sessions

                            I N  S E N A T E

                             March 12, 2019
                               ___________

Introduced  by Sens. KAPLAN, ORTT -- read twice and ordered printed, and
  when printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in  relation  to  third  party
  litigation financing

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

  Section 1. The general business law is amended by adding a new article
39-H to read as follows:
                               ARTICLE 39-H
                    THIRD PARTY LITIGATION FINANCING
SECTION 899-CCC. DEFINITIONS.
        899-DDD. CONTRACT REQUIREMENTS.
        899-EEE. PROHIBITIONS.
        899-FFF. REGISTRATION.
        899-GGG. PENALTY FOR VIOLATION.
  § 899-CCC. DEFINITIONS. AS USED IN THIS ARTICLE, THE  FOLLOWING  TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  1. "CHARGES" SHALL MEAN THE AMOUNT OF MONEY TO BE PAID TO THE CONSUMER
LITIGATION  FUNDING  COMPANY THAT EXCEEDS THE FUNDED AMOUNT OF PRINCIPAL
LOAN.
  2. "CONSUMER LITIGATION FUNDING COMPANY" SHALL MEAN A PERSON OR ENTITY
THAT ENTERS INTO A CONSUMER LITIGATION FUNDING CONTRACT TO PROVIDE  NON-
RECOURSE  FUNDING  OF  NO  MORE  THAN FIVE HUNDRED THOUSAND DOLLARS TO A
CONSUMER.
  3. "CONSUMER LITIGATION FUNDING CONTRACT" SHALL  MEAN  A  CONTRACT  TO
PROVIDE  NON-RECOURSE  FUNDING  OF  NO  MORE  THAN FIVE HUNDRED THOUSAND
DOLLARS TO A CONSUMER ON THE CONTINGENT  RIGHT  TO  RECEIVE  THE  FUNDED
AMOUNT  AND  AGREED  UPON CHARGES OBTAINED IN THE EVENT OF A SETTLEMENT,
JUDGMENT OR AWARD.
  4. "FUNDED AMOUNT" SHALL MEAN THE AMOUNT  OF  MONEY  PROVIDED  TO  THE
CONSUMER IN CONSUMER LITIGATION FINANCING.

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

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