NY State Senate Bill 2025-S8126

Current Bill Status - In Senate Committee Consumer Protection 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 15, 2025	referred to consumer protection

2025-S8126 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Add §398-ee, Gen Bus L

2025-S8126 (ACTIVE) - Summary

Enacts the "mandatory arbitration & business licensing act"; provides that no state agency or local government shall issue or renew a covered license to any person that refuses to certify that such person will not, as the owner or operator of a business or provider of services in the state or a local government operating pursuant to such license; makes related provisions.

2025-S8126 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8126

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to enacting the
"mandatory arbitration and business licensing act (MABLA)"

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill prohibits the state and local governments from issuing busi-
ness licenses to transportation, food service, health care and firearms
companies that require employees or consumers to agree to a mandatory
arbitration clause to resolve disputes.

 
SUMMARY OF PROVISIONS:

Section one of the bill entitles the act as the "Mandatory Arbitration
And Business Licensing Act."

Section two of the bill:

*adds a new section 399-c of the general business law that prohibits the
state and local governments from issuing business licenses to transpor-
tation, food service, health care and firearms companies that require
employees or consumers to agree to a mandatory arbitration clause to
resolve disputes;

*lists exceptions to the above provision and states that nothing in this
act shall prevent the enforcement of any mandatory arbitration clause
nor render unenforceable any mandatory arbitration clause;

*empowers licensing agencies of the state and local governments to issue
regulations to effect the purposes of this act; and

*contains a severability clause.

Section three of the bill states that this act shall take effect imme-
diately and shall only apply to covered licenses issued or renewed after
the effective date of this legislation.

 
JUSTIFICATION:

New York should not issue business or operating licenses to businesses
that require consumers or employees to enter into mandatory arbitration
clauses when such clauses jeopardize the health and safety of New York-
ers. This is the case in regard to mandatory arbitration clauses
required by businesses that provide transportation, food services,
firearms, and health care services.

Mandatory arbitration clauses-often buried in employment and consumer
contracts in connection with transportation, food, and health care
services-jeopardize the health and safety of consumers and employees by
restricting access to the legal system, discouraging corporate account-
ability, and undermining public and employee safety standards.  These
clauses, which force consumers and employees to resolve disputes through
private arbitration rather than courts, disproportionately benefit
corporations at the expense of individuals, often leaving serious griev-
ances such as unsafe food, negligent medical care, hazardous transporta-
tion, and/or dangerous and unsanitary worksites unexposed and unad-
dressed.

When workers and consumers suffer harm due to negligent or illegal
corporate practices they should have the right to seek legal recourse
through the courts. Mandatory arbitration, however, strips them of this
right, often imposing prohibitive costs on filing an action, limiting
fact-finding even if an action is filed, and secret proceedings. Indeed,
such clauses typically deprive a consumer or employee of the right to
participate in or file a class action, sometimes the only practical way
for victims or whistleblowers to seek redress and alert the public or
the government to wrongdoing.

When companies know that they will not face public lawsuits, they have
less incentive to follow fair, safe, and legal business practices,
including, of course, by complying with licensing requirements related
to health and safety.

State licensing requirements in transportation, food service, firearms,
and health care exist to protect the heath and safety of the public. The
government has limited resources to police the tens of thousands of
companies in New York that obtain business licenses in these areas, and
has long relied on the civil justice system and open trials as a key
pillar of compliance and enforcement. Limiting business licenses to such
businesses that choose to subject themselves to the public scrutiny and
accountability provided by the civil justice system is imperative to
protect the health and safety of New Yorkers.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

N/a

 
EFFECTIVE DATE:
This act shall take effect immediately and shall only apply to covered
licenses issued or renewed after the effective date of this legislation.

2025-S8126 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8126
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                               May 15, 2025
                                ___________
 
 Introduced  by  Sen.  COMRIE -- 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  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
 S. 8126                             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.
 S. 8126                             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.

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Senate Bill S8126

Sponsored By

Current Bill Status - In Senate Committee Consumer Protection Committee

2025-S8126 (ACTIVE) - Details

2025-S8126 (ACTIVE) - Summary

2025-S8126 (ACTIVE) - Sponsor Memo

2025-S8126 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8126

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Sponsored By

Leroy Comrie

Current Bill Status - In Senate Committee Consumer Protection Committee

2025-S8126 (ACTIVE) - Details

2025-S8126 (ACTIVE) - Summary

2025-S8126 (ACTIVE) - Sponsor Memo

2025-S8126 (ACTIVE) - Bill Text download pdf

Comments