STATE OF NEW YORK
        ________________________________________________________________________

                                          9427

                   IN ASSEMBLY

                                     March 14, 2024
                                       ___________

        Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
          tee on Consumer Affairs and Protection

        AN ACT to amend the general  business  law,  in  relation  to  requiring
          service companies to obtain liability insurance coverage sufficient to
          cover  the value of property consigned to or deposited with such busi-
          ness by customers of the business

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section 1. The general business law is amended by adding a new section
     2  392-k to read as follows:
     3    §  392-k.  Insurance  requirement.  1. Except as otherwise required by
     4  law, every service company licensed to do business in this  state  shall
     5  obtain a minimum of one million dollars all risk or comprehensive gener-
     6  al  liability  insurance  coverage  and  such  additional amounts as are
     7  sufficient to cover the value of property consigned to or deposited with
     8  such business by customers of the business for cleaning, repair,  alter-
     9  ation or enhancement.
    10    2. A current written certificate or certificates of insurance shall be
    11  conspicuously  displayed  on  the premises of such service company in an
    12  area accessible to customers of the service company.
    13    3. Failure by a service company to keep such  all  risk  insurance  or
    14  comprehensive  general  liability  insurance  coverage in full force and
    15  effect, shall be grounds for the secretary of state to refuse  to  issue
    16  or  renew  a  license  or permit or to suspend or revoke such license or
    17  permit.
    18    4. All such insurance required by this section shall be issued  by  an
    19  insurer  authorized to do business in the state or otherwise be procured
    20  by an excess line  broker  duly  licensed  pursuant  to  the  applicable
    21  provisions of the insurance law.
    22    5.  As  used in this section "service company" means any business that
    23  takes someone's property into its care, including but not limited  to  a
    24  dry  cleaning  establishment,  repair  shop,  storage  center,  and auto
    25  mechanic shop.
    26    § 2. This act shall take effect on the ninetieth day  after  it  shall
    27  have become a law.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD14595-01-4