Senate Bill S3259

2023-2024 Legislative Session

Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators, and establishes prohibited arbitration agreements and provisions

download bill text pdf

Sponsored By

Current Bill Status - In Senate Committee Judiciary Committee


  • Introduced
    • In Committee Assembly
    • In Committee Senate
    • On Floor Calendar Assembly
    • On Floor Calendar Senate
    • Passed Assembly
    • Passed Senate
  • Delivered to Governor
  • Signed By Governor

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2023-S3259 (ACTIVE) - Details

See Assembly Version of this Bill:
A706
Current Committee:
Senate Judiciary
Law Section:
Civil Practice Law and Rules
Laws Affected:
Add Art 75 §7500, §§7505-a, 7517 & 7518, amd §§7501, 7506, 7507 & 7511, CPLR
Versions Introduced in Other Legislative Sessions:
2015-2016: A8191
2017-2018: A6983
2019-2020: S3684, A3265
2021-2022: S697, A1464

2023-S3259 (ACTIVE) - Summary

Requires employment and consumer dispute arbitrations to be submitted to neutral third party arbitrators; establishes prohibited arbitration agreements and provisions; requires disclosure of information by certain arbitrators.

2023-S3259 (ACTIVE) - Sponsor Memo

2023-S3259 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3259
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 30, 2023
                                ___________
 
 Introduced  by Sen. HOYLMAN-SIGAL -- read twice and ordered printed, and
   when printed to be committed to the Committee on Judiciary
 
 AN ACT to amend the civil practice law and rules, in relation  to  arbi-
   tration agreements
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. Article 75 of the civil practice law and rules  is  amended
 by adding a new section 7500 to read as follows:
   § 7500. DEFINITIONS. AS USED IN THIS ARTICLE:
   (A) "ARBITRATION" MEANS A FORM OF DISPUTE RESOLUTION THAT IS AN ALTER-
 NATIVE  TO  LITIGATION,  IN  WHICH  THE PARTIES AGREE TO BE BOUND BY THE
 DETERMINATION OF A NEUTRAL THIRD PARTY ARBITRATOR.
   (B) "NEUTRAL THIRD PARTY ARBITRATOR" MEANS AN ARBITRATOR OR  PANEL  OF
 ARBITRATORS  EACH  OF WHOM DOES NOT HAVE AN UNDISCLOSED KNOWN, DIRECT OR
 MATERIAL INTEREST, INCLUDING A FINANCIAL OR  PERSONAL  INTEREST  IN  THE
 OUTCOME  OF  THE  ARBITRATION  PROCEEDING,  OR A KNOWN, EXISTING OR PAST
 RELATIONSHIP WITH ANY OF THE PARTIES TO THE AGREEMENT  TO  ARBITRATE  OR
 THE ARBITRATION PROCEEDING, THEIR COUNSEL OR REPRESENTATIVES, A WITNESS,
 OR ANOTHER ARBITRATOR.
   (C)  "EMPLOYMENT"  MEANS  A  RELATIONSHIP  BETWEEN  AN EMPLOYER AND AN
 EMPLOYEE AS DEFINED IN SECTION THREE OF THE FAIR LABOR STANDARDS ACT  OF
 1938 (29 U.S.C. § 203).
   (D) "CONSUMER" MEANS A NATURAL PERSON RESIDING IN THIS STATE.
   (E)  "CONSUMER GOODS" MEANS GOODS, WARES, PAID MERCHANDISE OR SERVICES
 PURCHASED OR PAID FOR BY A CONSUMER, THE  INTENDED  USE  OR  BENEFIT  OF
 WHICH IS INTENDED FOR THE PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OF SUCH
 CONSUMER.
   §  2.  Section 7501 of the civil practice law and rules, as amended by
 chapter 532 of the laws of 1963, is amended to read as follows:
   § 7501. Effect of arbitration  agreement.    A  written  agreement  to
 submit any controversy thereafter arising or any existing controversy to
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00689-01-3
              

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