S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8856
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 9, 2025
                                ___________
 
 Introduced by M. of A. DINOWITZ -- read once and referred to the Commit-
   tee on Consumer Affairs and Protection
 
 AN  ACT  to  amend the general business law, in relation to enacting the
   "mandatory arbitration and business licensing act (MABLA)"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title.  This  act  shall be known and cited as the
 "mandatory arbitration and business licensing act (MABLA)".
   § 2. The general business law is amended by adding a new section  398-
 ee to read as follows:
   §  398-EE. MANDATORY ARBITRATION AND BUSINESS LICENSING ACT. 1.  DEFI-
 NITIONS.
   (A) "PERSON" SHALL MEAN ANY NATURAL PERSON, PARTNERSHIP,  CORPORATION,
 ASSOCIATION OR ANY OTHER LEGAL ENTITY OR INDIVIDUAL.
   (B) "STATE" SHALL MEAN THE STATE OF NEW YORK AND ANY STATE DEPARTMENT,
 BOARD,  BUREAU,  DIVISION,  COMMISSION, COMMITTEE, PUBLIC BENEFIT CORPO-
 RATION, PUBLIC AUTHORITY, COUNCIL, OFFICE OR OTHER  GOVERNMENTAL  ENTITY
 PERFORMING A GOVERNMENTAL OR PROPRIETARY FUNCTION FOR THE STATE.
   (C)  "LOCAL  GOVERNMENT"  SHALL  MEAN ANY COUNTY, CITY, TOWN, VILLAGE,
 SCHOOL DISTRICT, BOARD OF COOPERATIVE EDUCATIONAL SERVICES, LOCAL PUBLIC
 BENEFIT CORPORATION OR OTHER MUNICIPAL CORPORATION OR POLITICAL SUBDIVI-
 SION OF THE STATE.
   (D) "CONSUMER" SHALL MEAN AN INDIVIDUAL PERSON RESIDING IN THIS  STATE
 OR PURCHASING CONSUMER GOODS OR SERVICES IN THIS STATE.
   (E)  "CONSUMER  GOODS  OR  SERVICES"  SHALL  MEAN  GOODS,  WARES, PAID
 MERCHANDISE OR SERVICES THE INTENDED USE OR BENEFIT OF WHICH IS INTENDED
 FOR THE PERSONAL, FAMILY OR HOUSEHOLD PURPOSES OR OTHER BENEFIT OF  SUCH
 CONSUMER,  INCLUDING  BUT NOT LIMITED TO SERVICES THE PROVISION OF WHICH
 REQUIRES THE PROVIDER TO HAVE A COVERED LICENSE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13149-01-5
 A. 8856                             2
 
              

   (F) "CONSUMER DISPUTE" SHALL MEAN A DISPUTE ARISING OUT OF A  CONTRACT
 OR  AGREEMENT  BETWEEN A CONSUMER AND THE SELLER OR PROVIDER OF CONSUMER
 GOODS OR SERVICES.
   (G)  "COVERED  LICENSE"  SHALL  MEAN AN OCCUPATIONAL, PROFESSIONAL, OR
 BUSINESS LICENSE ISSUED BY THE STATE  OR  A  LOCAL  GOVERNMENT  THAT  IS
 NECESSARY  TO:  (I)  OWN,  OPERATE  OR PROVIDE SERVICES AS PART OF OR ON
 BEHALF OF: (A) A TRANSPORTATION NETWORK COMPANY AS  DEFINED  IN  SECTION
 ONE  THOUSAND SIX HUNDRED NINETY-ONE OF THE VEHICLE AND TRAFFIC LAW; (B)
 A TAXI OR FOR-HIRE VEHICLE OR COMMUTER  VAN  SERVICE;  (C)  A  PRIVATELY
 OPERATED  BUS  COMPANY,  OR (D) A RENTAL-CAR COMPANY OF ANY NATURE; (II)
 OWN OR OPERATE A RESTAURANT, STORE, OR BUSINESS  LOCATED  IN  THE  STATE
 THAT  SELLS FOOD OR LIQUOR TO NEW YORK RESIDENTS; (III) OWN OR OPERATE A
 BUSINESS LOCATED IN THE STATE  THAT  SELLS  FIREARMS;  OR  (IV)  PROVIDE
 MEDICAL,  DENTAL, CHIROPRACTIC, NURSING HOME SERVICES, OR PHARMACEUTICAL
 PRODUCTS OR PHARMACEUTICAL SERVICES.
   (H) "EMPLOYER" SHALL MEAN ANY EMPLOYER WITHIN THE STATE AND SHALL MEAN
 ANY SUCH PERSON, FIRM, PARTNERSHIP, INSTITUTION, CORPORATION, OR ASSOCI-
 ATION THAT EMPLOYS ONE OR MORE PERSONS.
   (I) "EMPLOYEE" SHALL MEAN AN INDIVIDUAL PERSON RESIDING OR EMPLOYED TO
 WORK IN THIS STATE FOR AN EMPLOYER.
   (J) "EMPLOYMENT DISPUTE" SHALL MEAN A DISPUTE BETWEEN AN EMPLOYER  AND
 EMPLOYEE ARISING OUT OF THE RELATIONSHIP OF EMPLOYER AND EMPLOYEE.
   (K)  "MANDATORY  ARBITRATION  CLAUSE"  SHALL  MEAN A TERM OR PROVISION
 CONTAINED IN A WRITTEN CONTRACT OR AGREEMENT THAT REQUIRES  THE  PARTIES
 TO SUCH CONTRACT OR AGREEMENT, OR RELATED NON-SIGNATORIES, AND/OR THIRD-
 PARTY BENEFICIARIES, TO SUBMIT ANY MATTER ARISING UNDER SUCH CONTRACT OR
 AGREEMENT  TO  ARBITRATION PRIOR TO THE COMMENCEMENT OF ANY LEGAL ACTION
 TO ENFORCE THE PROVISIONS OF SUCH CONTRACT AND  WHICH  FURTHER  PROVIDES
 LANGUAGE  TO  THE EFFECT THAT THE DECISION OF THE ARBITRATOR OR PANEL OF
 ARBITRATORS IN ITS APPLICATION TO THE CONSUMER PARTY SHALL BE FINAL  AND
 NOT SUBJECT TO COURT REVIEW.
   2. LICENSING REQUIREMENT. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGU-
 LATION,  NO  STATE AGENCY OR LOCAL GOVERNMENT SHALL, AFTER THE EFFECTIVE
 DATE OF THIS SECTION, ISSUE OR RENEW A COVERED  LICENSE  TO  ANY  PERSON
 THAT REFUSES TO CERTIFY THAT SUCH PERSON WILL NOT, AS THE OWNER OR OPER-
 ATOR  OF  A  BUSINESS  OR  PROVIDER  OF SERVICES IN THE STATE OR A LOCAL
 GOVERNMENT OPERATING PURSUANT TO SUCH LICENSE:
   (A) REQUIRE AN EMPLOYEE,  AS  A  CONDITION  OF  EMPLOYMENT,  CONTINUED
 EMPLOYMENT,  OR  THE RECEIPT OF ANY EMPLOYMENT-RELATED BENEFIT, TO ENTER
 INTO A MANDATORY ARBITRATION CLAUSE TO RESOLVE AN EMPLOYMENT DISPUTE; OR
   (B) REQUIRE A CONSUMER TO AGREE TO A MANDATORY ARBITRATION  CLAUSE  TO
 RESOLVE  A  CONSUMER  DISPUTE ARISING OUT OF A CONTRACT OR AGREEMENT FOR
 THE SALE OR PURCHASE OF CONSUMER GOODS OR SERVICES.
   3. EXCEPTIONS AND APPLICABILITY. (A) NOTHING  IN  THIS  SECTION  SHALL
 PREVENT  THE  ENFORCEMENT  OF ANY MANDATORY ARBITRATION CLAUSE OR AGREE-
 MENT, NOR RENDER  UNENFORCEABLE  ANY  MANDATORY  ARBITRATION  CLAUSE  OR
 AGREEMENT.
   (B) NOTHING IN THIS SECTION SHALL BE INTERPRETED TO ALLOW THE STATE OR
 A  LOCAL  GOVERNMENT  TO  INVALIDATE OR REVOKE ANY COVERED LICENSE OR TO
 ALLOW ANY STATE OR LOCAL GOVERNMENT AGENCY TO CANCEL OR  INVALIDATE  ANY
 COVERED  LICENSE  THAT  WAS  ISSUED  PRIOR TO THE EFFECTIVE DATE OF THIS
 SECTION.
   (C) NOTHING IN THIS SECTION SHALL BE INTERPRETED TO REQUIRE THE HOLDER
 OF A COVERED LICENSE TO RENEW SUCH LICENSE; PROVIDED  THAT  ANY  RENEWAL
 OTHERWISE  REQUIRED AFTER THE EFFECTIVE DATE OF THIS SECTION MUST COMPLY
 WITH THIS SECTION.
 A. 8856                             3
 
   (D) THIS SECTION SHALL NOT APPLY IN RELATION TO  ANY  MANDATORY  ARBI-
 TRATION  CLAUSE CONTAINED IN ANY CONTRACT NEGOTIATED BETWEEN AN EMPLOYER
 AND A LABOR UNION THROUGH COLLECTIVE BARGAINING.
   (E) THIS SECTION SHALL NOT APPLY TO ANY POST-DISPUTE SETTLEMENT AGREE-
 MENTS OR NEGOTIATED SEVERANCE AGREEMENTS.
   4.  REGULATIONS.  ANY  STATE  OR LOCAL GOVERNMENT DEPARTMENT OR AGENCY
 RESPONSIBLE FOR ISSUING OR RENEWING A COVERED LICENSE IS  AUTHORIZED  TO
 ADOPT  SUCH  RULES  AND  REGULATIONS  AS  IS NECESSARY TO EFFECTUATE THE
 PURPOSES OF THIS SECTION.
   § 3. If any provision of this article or the  application  thereof  to
 any  person  or  circumstance is held invalid, such invalidity shall not
 affect other provisions or applications of  this  article  that  can  be
 given  effect  without the invalid provision or application, and to this
 end the provisions of this article are declared to be severable.
   § 4. This act shall take effect immediately and shall  only  apply  to
 covered licenses issued or renewed after the effective date of this act.