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A08697 Summary:

BILL NOA08697
 
SAME ASNo Same As
 
SPONSORTitone
 
COSPNSRGottfried, Abinanti, Simon, D'Urso, Galef, Pellegrino
 
MLTSPNSRWeinstein
 
Add 2801-h, Pub Health L
 
Relates to prohibiting mandatory arbitration clauses in contracts with residential health care facilities and residents of such facilities.
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A08697 Actions:

BILL NOA08697
 
10/05/2017referred to health
01/03/2018referred to health
01/17/2018reported referred to codes
02/13/2018reported
02/15/2018advanced to third reading cal.676
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A08697 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A8697
 
SPONSOR: Titone (MS)
  TITLE OF BILL: An act to amend the public health law, in relation to prohibiting mandatory arbitration clauses in contracts with residential health care facilities and residents of such facilities   PURPOSE OR GENERAL IDEA OF BILL: This bill would prohibit residential health care facilities from including mandatory arbitration agreements in contracts with their residents. It would protect residents and their families of residential health care facilities from being forced into potentially unfavorable arbitration.   SUMMARY OF PROVISIONS: Section 1 - Prohibits mandatory arbitration clauses from inclusion in contracts between residential health care facilities and their resi- dents. Defines "Mandatory arbitration clause" and "arbitration." Section 2 - Establishes the effective date.   DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE): N/A   JUSTIFICATION: "Forced arbitration" or "mandatory arbitration" clauses are fine-print terms included in contracts of adhesion - often contracts between an employee and their employer or a consumer and a merchant - that require the consumer or employee to give up their right to assert claims against the merchant or employer in court as a condition of obtaining or keeping their job or using the consumer goods or services. Some lesser-known victims of these forced arbitration contracts are residents of residential healthcare facilities. Typically, they are signed under stressful and emotional duress. The decision to admit yourself or a loved one into a long-term care facility is already an extremely difficult one; nursing home residents and their families shouldn't also be forced to sign away their fundamen- tal rights in order to access the long-term care they require. Too often, only after a resident has suffered an injury or death do families truly realize the impact of the arbitration agreements they were forced to sign. The only truly transparent arbitration agreement is one that is voluntarily signed, after a dispute has arisen. The arbitration process is secret; what is more, under both state and federal law, the right to vacate an arbitrator's decision is extremely limited. A consumer or employee cannot obtain relief on a challenge to an arbitrator's decision even when the arbitrator is clearly wrong on the facts or the law. This bill addresses mandatory arbitration clauses which are included in the terms of contracts between residential health care facilities and their residents These clauses prevent many of our country's most vulner- able individuals from seeking justice in a court of law, and instead funnel all types of legal claims, no matter how egregious, into a priva- tized dispute resolution system that is often biased toward the nursing home. As a result, victims and their families are frequently denied any accountability for clear instances of wrongdoing.   PRIOR LEGISLATIVE HISTORY: N/A   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None   EFFECTIVE DATE: This act shall take effect immediately.
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A08697 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          8697
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                     October 5, 2017
                                       ___________
 
        Introduced  by M. of A. TITONE, GOTTFRIED -- Multi-Sponsored by -- M. of
          A. WEINSTEIN -- read once and referred to the Committee on Health
 
        AN ACT to amend the public health law, in relation to prohibiting manda-
          tory arbitration clauses in contracts  with  residential  health  care
          facilities and residents of such facilities

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The public health law is amended by adding  a  new  section
     2  2801-h to read as follows:
     3    §  2801-h.  Mandatory  arbitration  clause  in residential health care
     4  facility contracts prohibited. 1.  No  contract  between  a  residential
     5  health  care  facility  and  a  resident  or  their representative shall
     6  contain a mandatory arbitration clause.
     7    2. Definitions. a. The term "mandatory arbitration clause" shall  mean
     8  a  term  or provision contained in a written contract between a residen-
     9  tial health care facility and a resident or  their  representative  that
    10  requires  the  parties to such contract to submit any controversy there-
    11  after arising under such contract to arbitration prior to the  commence-
    12  ment of any legal action to enforce the provisions of such contract.
    13    b.  The  term  "arbitration"  shall  mean the use of a decision making
    14  forum conducted by an arbitrator or  panel  of  arbitrators  within  the
    15  meaning  and  subject  to  the provisions of article seventy-five of the
    16  civil practice law and rules.
    17    § 2. This act shall take effect immediately.
 
 
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13380-01-7
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