A3318

Assembly Bill 3318, an act to amend the General Business Law and sponsored by Assemblymember Dinowitz, was laid aside on the Senate floor at the request of Sen. Lanza.

The New York State Senate passed a bill requiring arbitration organizations to publicly disclose detailed information about consumer disputes, with a 39-23 vote on Calendar 411 (A3318). The measure, sponsored by Sen. Kavanagh, would require private arbitration organizations handling 50 or more consumer cases annually to report data including parties' identities, case outcomes, arbitrator fees, and disposition information. Kavanagh argued the bill creates necessary transparency and prevents conflicts of interest, citing successful implementation in Washington D.C., Maryland, and California over nearly two decades. However, opponents including Sen. Canzoneri-Fitzpatrick and Sen. Martins argued the bill imposes unnecessary regulatory burdens on financial services companies and arbitration organizations, potentially driving them out of New York State. They contended arbitration is a private dispute resolution process where parties have agreed to confidentiality and that existing oversight by organizations like the American Arbitration Association and FINRA is sufficient. The bill takes effect 180 days after enactment and applies to arbitrations commenced on or after January 1, 2027. Twenty-three senators, primarily Republicans, voted against the measure.