Bill Text: NY A03458 | 2019-2020 | 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 14-0)

Status: (Introduced - Dead) 2020-01-08 - referred to governmental operations [A03458 Detail]

Download: New_York-2019-A03458-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          3458
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 29, 2019
                                       ___________
        Introduced  by  M.  of  A. DINOWITZ, WEINSTEIN, COOK, MAGNARELLI, SIMON,
          BLAKE, MOSLEY, ORTIZ, GOTTFRIED, OTIS, BICHOTTE,  STECK,  ABINANTI  --
          Multi-Sponsored  by -- M. of A. GLICK -- 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
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00770-01-9
        A. 3458                             2
     1  notice to its consumers or employees that it will cease enforcing  arbi-
     2  tration clauses in consumer or employment contracts.
     3    c.  A  person  "does  business  with  the state" when it or any of its
     4  subsidiaries or parent  entities  receives  state  funds  exceeding  one
     5  hundred  thousand  dollars in exchange for goods or services provided to
     6  the state or a third party. Persons  "doing  business  with  the  state"
     7  include, but are not limited to, persons performing public work on state
     8  contracts,  merchants  of  goods or services purchased by the state, and
     9  persons providing services  to  third  parties  in  exchange  for  funds
    10  provided directly from the state.
    11    d. Upon receiving information that a contractor is in violation of the
    12  provisions of this section, the state attorney general shall review such
    13  information  and  offer the contractor an opportunity to respond. If the
    14  attorney general finds that a violation has occurred, it shall take such
    15  action as may be appropriate and provided for by law, rule or  contract,
    16  including,  but  not limited to, imposing sanctions, seeking compliance,
    17  recovering damages or declaring the contractor in default.
    18    e. Before contracting with any vendor or contractor, the state  agency
    19  shall confirm that such contractor or vendor, or its parent entities and
    20  its  subsidiaries,  does  not  include  or enforce mandatory arbitration
    21  clauses with consumers or employees, and shall ensure, when appropriate,
    22  that a contract between the state agency and the contractor  includes  a
    23  provision  prohibiting  that  contractor,  its  parent  entities and its
    24  subsidiaries, from including or enforcing mandatory arbitration clauses.
    25    § 2. This act shall take effect immediately and shall apply  to  state
    26  contracts entered into on and after such date.