S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7175
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 12, 2017
                                ___________
 
 Introduced  by  M.  of A. KAVANAGH, DINOWITZ, COOK, STECK, COLTON, GOTT-
   FRIED, HOOPER, ARROYO, GALEF,  PICHARDO,  MAYER,  SEAWRIGHT,  SIMOTAS,
   ABINANTI  --  Multi-Sponsored by -- M. of A. PERRY, SIMON -- read once
   and referred to the Committee on Consumer Affairs and Protection
 
 AN ACT to amend the general business law,  in  relation  to  arbitration
   organizations
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivision 1 of section 399-c of the general business  law
 is amended by adding a new paragraph e to read as follows:
   E.  THE  TERM  "ARBITRATION  ORGANIZATION"  SHALL MEAN AN ASSOCIATION,
 AGENCY, BOARD, COMMISSION, OR OTHER ENTITY THAT IS  NEUTRAL  AND  INITI-
 ATES,  SPONSORS, OR ADMINISTERS AN ARBITRATION PROCEEDING OR IS INVOLVED
 IN THE APPOINTMENT OF AN ARBITRATOR UNLESS SUCH INVOLVEMENT  IS  LIMITED
 TO A CONTRACTUAL RELATIONSHIP THAT AUTHORIZES THE USE OF ARBITRATION.
   §  2.  Section  399-c of the general business law is amended by adding
 three new subdivisions 3, 4 and 5 to read as follows:
   3. A. ANY PRIVATE ARBITRATION  ORGANIZATION  THAT  ADMINISTERS  OR  IS
 OTHERWISE  INVOLVED  IN FIFTY OR MORE CONSUMER ARBITRATIONS A YEAR SHALL
 COLLECT, PUBLISH AT LEAST QUARTERLY, AND MAKE AVAILABLE TO THE PUBLIC IN
 A COMPUTER-SEARCHABLE DATABASE  THAT  PERMITS  SEARCHING  WITH  MULTIPLE
 SEARCH TERMS IN THE SAME SEARCH, WHICH SHALL BE ACCESSIBLE AT THE INTER-
 NET  WEBSITE  OF  THE  PRIVATE  ARBITRATION ORGANIZATION, IF ANY, AND ON
 PAPER UPON REQUEST, ALL OF  THE  FOLLOWING  INFORMATION  REGARDING  EACH
 CONSUMER  ARBITRATION  IT HAS ADMINISTERED OR OTHERWISE BEEN INVOLVED IN
 WITHIN THE PRECEDING FIVE YEARS:
   (1) THE NAME OF THE NON-CONSUMER PARTY, IF THE NON-CONSUMER PARTY IS A
 CORPORATION OR OTHER BUSINESS ENTITY;
   (2) THE STATE AND ZIP CODE IN WHICH THE CONSUMER PARTY RESIDED AT  THE
 TIME OF ARBITRATION;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03177-01-7
              

 A. 7175                             2
 
   (3) THE TYPE OF DISPUTE INVOLVED, INCLUDING GOODS, BANKING, INSURANCE,
 HEALTH  CARE,  EMPLOYMENT, AND, IF IT INVOLVES EMPLOYMENT, THE AMOUNT OF
 THE EMPLOYEE'S ANNUAL WAGE DIVIDED INTO THE FOLLOWING RANGES: LESS  THAN
 ONE  HUNDRED  THOUSAND  DOLLARS,  ONE  HUNDRED  THOUSAND  DOLLARS TO TWO
 HUNDRED  FIFTY  THOUSAND  DOLLARS, INCLUSIVE, AND OVER TWO HUNDRED FIFTY
 THOUSAND DOLLARS;
   (4) WHETHER THE CONSUMER WAS THE PREVAILING PARTY;
   (5) ON HOW MANY OCCASIONS, IF ANY, THE NON-CONSUMER PARTY  HAS  PREVI-
 OUSLY  BEEN  A  PARTY IN AN ARBITRATION OR MEDIATION ADMINISTERED BY THE
 PRIVATE ARBITRATION ORGANIZATION;
   (6) WHETHER THE CONSUMER PARTY WAS REPRESENTED BY AN ATTORNEY AND,  IF
 SO,  THE IDENTIFYING INFORMATION FOR THAT ATTORNEY, INCLUDING THE ATTOR-
 NEY'S NAME, THE NAME OF THE ATTORNEY'S FIRM, AND THE CITY IN  WHICH  THE
 ATTORNEY'S OFFICE IS LOCATED;
   (7)  THE DATE THE PRIVATE ARBITRATION ORGANIZATION RECEIVED THE DEMAND
 FOR ARBITRATION, THE DATE THE ARBITRATOR WAS APPOINTED, AND THE DATE  OF
 DISPOSITION BY THE ARBITRATOR OR PRIVATE ARBITRATION ORGANIZATION;
   (8)  THE TYPE OF DISPOSITION OF THE DISPUTE, IF KNOWN, INCLUDING WITH-
 DRAWAL, ABANDONMENT, SETTLEMENT,  AWARD  AFTER  HEARING,  AWARD  WITHOUT
 HEARING, DEFAULT, OR DISMISSAL WITHOUT HEARING;
   (9)  THE  AMOUNT  OF THE CLAIM, THE AMOUNT OF ANY AWARD OR SETTLEMENT,
 AND ANY OTHER RELIEF GRANTED; AND
   (10) THE NAME OF THE ARBITRATOR, THE ARBITRATOR'S TOTAL  FEE  FOR  THE
 CASE,  AND  THE  PERCENTAGE  OF  THE  ARBITRATOR'S FEE ALLOCATED TO EACH
 PARTY.
   B. IF THE INFORMATION REQUIRED BY PARAGRAPH A OF THIS  SUBDIVISION  IS
 PROVIDED  BY THE PRIVATE ARBITRATION ORGANIZATION IN A COMPUTER-SEARCHA-
 BLE FORMAT AT THE ORGANIZATION'S INTERNET WEBSITE AND MAY BE  DOWNLOADED
 WITHOUT  ANY FEE, THE ORGANIZATION MAY CHARGE THE ACTUAL COST OF COPYING
 TO ANY PERSON WHO REQUESTS THE INFORMATION ON PAPER. IF THE  INFORMATION
 REQUIRED  BY  PARAGRAPH  A OF THIS SUBDIVISION IS NOT ACCESSIBLE THROUGH
 THE USE OF THE INTERNET, THE ORGANIZATION SHALL PROVIDE THAT INFORMATION
 WITHOUT CHARGE TO ANY PERSON WHO REQUESTS THE INFORMATION ON PAPER.
   C. THIS SUBDIVISION SHALL APPLY TO ANY CONSUMER ARBITRATION  COMMENCED
 ON OR AFTER JANUARY FIRST, TWO THOUSAND EIGHTEEN.
   D. THIS SUBDIVISION SHALL NOT APPLY TO ARBITRATIONS INVOLVING DISPUTES
 BETWEEN CONSUMERS.
   E.  THE  PROVISIONS  OF THIS SUBDIVISION SHALL NOT APPLY TO AGREEMENTS
 NEGOTIATED WITH ANY LABOR UNION THROUGH COLLECTIVE BARGAINING.
   4. A. NO PRIVATE ARBITRATION ORGANIZATION MAY  ADMINISTER  A  CONSUMER
 ARBITRATION TO BE CONDUCTED IN THIS STATE, OR PROVIDE ANY OTHER SERVICES
 RELATED TO A CONSUMER ARBITRATION, IF:
   (1)  THE  ORGANIZATION  HAS,  OR  WITHIN THE PRECEDING YEAR HAS HAD, A
 FINANCIAL INTEREST IN ANY PARTY OR ATTORNEY FOR A PARTY; OR
   (2) ANY PARTY OR ATTORNEY FOR A PARTY HAS,  OR  WITHIN  THE  PRECEDING
 YEAR  HAS HAD, ANY TYPE OF FINANCIAL INTEREST IN THE PRIVATE ARBITRATION
 ORGANIZATION.
   B. THIS SUBDIVISION SHALL OPERATE ONLY  PROSPECTIVELY  SO  AS  NOT  TO
 PROHIBIT  THE  ADMINISTRATION  OF  CONSUMER ARBITRATIONS ON THE BASIS OF
 FINANCIAL INTERESTS HELD PRIOR TO JANUARY FIRST, TWO THOUSAND EIGHTEEN.
   C. FOR THE PURPOSES OF THIS SUBDIVISION, THE TERM "FINANCIAL INTEREST"
 MEANS OWNERSHIP OF MORE THAN A ONE PERCENT LEGAL OR  EQUITABLE  INTEREST
 IN A PARTY, OR A LEGAL OR EQUITABLE INTEREST IN A PARTY OF A FAIR MARKET
 VALUE  IN EXCESS OF ONE THOUSAND FIVE HUNDRED DOLLARS, OR A RELATIONSHIP
 AS DIRECTOR, ADVISOR OR OTHER ACTIVE PARTICIPANT IN  THE  AFFAIRS  OF  A
 PARTY, EXCEPT AS FOLLOWS:

 A. 7175                             3
 
   (1) OWNERSHIP IN A MUTUAL OR COMMON INVESTMENT FUND THAT HOLDS SECURI-
 TIES  IS NOT A "FINANCIAL INTEREST" IN THOSE SECURITIES UNLESS THE ARBI-
 TRATOR PARTICIPATES IN THE MANAGEMENT OF THE FUND.
   (2)  AN OFFICE IN AN EDUCATIONAL, RELIGIOUS, CHARITABLE, FRATERNAL, OR
 CIVIC ORGANIZATION IS NOT A "FINANCIAL INTEREST" IN SECURITIES  HELD  BY
 THE ORGANIZATION.
   (3)  THE  PROPRIETARY INTEREST OF A POLICYHOLDER IN A MUTUAL INSURANCE
 ORGANIZATION, OR A DEPOSITOR IN A MUTUAL SAVINGS ASSOCIATION, OR A SIMI-
 LAR PROPRIETARY INTEREST, IS A "FINANCIAL INTEREST" IN THE  ORGANIZATION
 ONLY  IF  THE  OUTCOME  OF THE PROCEEDING COULD SUBSTANTIALLY AFFECT THE
 VALUE OF THE INTEREST.
   5. A.  WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN  APPLI-
 CATION  MAY BE MADE BY THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF
 THE STATE OF NEW YORK TO A COURT OR JUSTICE  HAVING  JURISDICTION  BY  A
 SPECIAL  PROCEEDING  TO  ISSUE  AN  INJUNCTION,  AND  UPON NOTICE TO THE
 DEFENDANT OF NOT LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTIN-
 UANCE OF SUCH VIOLATION; AND IF IT SHALL APPEAR TO THE  SATISFACTION  OF
 THE  COURT  OR  JUSTICE  THAT  THE DEFENDANT HAS, IN FACT, VIOLATED THIS
 SECTION, AN INJUNCTION MAY BE ISSUED BY SUCH COURT OR JUSTICE, ENJOINING
 AND RESTRAINING ANY FURTHER VIOLATION, WITHOUT REQUIRING PROOF THAT  ANY
 PERSON  HAS,  IN  FACT,  BEEN  INJURED  OR  DAMAGED THEREBY. IN ANY SUCH
 PROCEEDING, THE COURT MAY MAKE ALLOWANCES TO  THE  ATTORNEY  GENERAL  AS
 PROVIDED  IN  PARAGRAPH  SIX  OF SUBDIVISION (A) OF SECTION EIGHTY-THREE
 HUNDRED THREE OF THE CIVIL PRACTICE LAW AND RULES, AND  DIRECT  RESTITU-
 TION.    IN  CONNECTION WITH ANY SUCH PROPOSED APPLICATION, THE ATTORNEY
 GENERAL IS AUTHORIZED TO TAKE PROOF AND  MAKE  A  DETERMINATION  OF  THE
 RELEVANT FACTS AND TO ISSUE SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRAC-
 TICE LAW AND RULES.
   B. NOTWITHSTANDING ANY RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
 PURSUANT TO THIS SECTION, ANY PERSON WHO HAS BEEN INJURED BY REASON OF A
 VIOLATION  OF THIS SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO
 ENJOIN SUCH UNLAWFUL ACT, AN ACTION TO RECOVER HIS OR HER ACTUAL DAMAGES
 OR BOTH SUCH ACTIONS. THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES  TO
 A PREVAILING PLAINTIFF.
   C.    WHENEVER  THE  COURT  SHALL  DETERMINE  THAT A VIOLATION OF THIS
 SECTION HAS OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF  NOT  MORE
 THAN TWO THOUSAND DOLLARS FOR SUCH VIOLATION.
   D.  EACH  WRITTEN  CONTRACT OFFERED BY A NON-CONSUMER PARTY AND SUBSE-
 QUENTLY ENTERED INTO IN VIOLATION OF SUBDIVISION  TWO  OF  THIS  SECTION
 SHALL CONSTITUTE A SEPARATE VIOLATION.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.