Bill Text: NY A09523 | 2015-2016 | General Assembly | Introduced

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Bill Title: Prohibits state agencies from entering into contracts with entities which enforce mandatory arbitration provisions in contracts with consumers and employees.

Spectrum: Partisan Bill (Democrat 18-0)

Status: (Introduced - Dead) 2016-03-10 - referred to governmental operations [A09523 Detail]

Download: New_York-2015-A09523-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          9523
                   IN ASSEMBLY
                                     March 10, 2016
                                       ___________
        Introduced  by M. of A. DINOWITZ, WEINSTEIN -- read once and referred to
          the Committee on Governmental Operations
        AN ACT to amend the state finance law, in relation to prohibiting  state
          agencies  from  entering  into  contracts  with entities which enforce
          mandatory arbitration clauses in contracts with consumers and  employ-
          ees
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 165 of the state finance law is amended by adding a
     2  new subdivision 9 to read as follows:
     3    9. Mandatory  arbitration clauses prohibited. a. For the  purposes  of
     4  this  subdivision  "mandatory  arbitration  clause" shall mean a term or
     5  provision contained in a written contract for the sale  or  purchase  of
     6  consumer goods which requires the parties to such contract to submit any
     7  controversy  thereafter arising under such contract to arbitration prior
     8  to the commencement of any legal action to  enforce  the  provisions  of
     9  such  contract  and  which  also further provides language to the effect
    10  that the decision of the arbitrator  or  panel  of  arbitrators  in  its
    11  application  to  the  consumer  party  shall be final and not subject to
    12  court review. This shall not include arbitration that is mandated  by  a
    13  collective  bargaining agreement between such vendor and employee and/or
    14  independent contractor.
    15    b. State agencies shall not contract or do business for the supply  of
    16  commodities,  services or construction with any contractor or vendor, or
    17  the parent company or any subsidiary of such contractor or  vendor,  who
    18  includes  and  enforces  mandatory arbitration clauses in contracts with
    19  its employees or consumers. Where mandatory arbitration clauses exist in
    20  any such contracts the contractor or vendor shall,  within  one  hundred
    21  eighty  days  before  doing  business with the state, provide reasonable
    22  notice to its consumers or employees that it will cease enforcing  arbi-
    23  tration clauses in consumer or employment contracts.
    24    c.  A  person  "does  business  with  the state" when it or any of its
    25  subsidiaries or parent  entities  receives  state  funds  exceeding  one
    26  hundred  thousand  dollars in exchange for goods or services provided to
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14089-03-6