New York S 3224: Relates to budget planning

Bill Text

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S03224 Summary:

BILL NOS03224 

&nbsp

SAME ASSAME AS A04328

&nbsp

SPONSORKAVANAGH

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Amd §§455 & 457, Gen Bus L

&nbsp

Clarifies certain provisions relating to the prohibition on budget planning; allows the attorney general to apply for an order enjoining or restraining commission or continuance of violations.

Go to top S03224 Actions:

BILL NOS03224 

&nbsp

01/24/2025REFERRED TO CONSUMER PROTECTION

01/07/2026REFERRED TO CONSUMER PROTECTION

Go to topS03224 Committee&nbspVotes:

Go to topS03224 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS03224 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 3224

 2025-2026 Regular Sessions

 IN SENATE

 January 24, 2025
 ___________

 Introduced by Sen. KAVANAGH -- read twice and ordered printed, and when
 printed to be committed to the Committee on Consumer Protection

 AN ACT to amend the general business law, in relation to budget planning

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

 1 Section 1. Section 455 of the general business law, as amended by
 2 chapter 629 of the laws of 2002, subdivision 1 as amended by chapter 456
 3 of the laws of 2006 and subdivision 4 as amended by chapter 549 of the
 4 laws of 2013, is amended to read as follows:
 5 § 455. Definitions. 1. (a) Budget planning, as used in this article,
 6 means the making of a contract between a person or entity engaged in the
 7 business of budget planning with a particular debtor whereby (i) the
 8 debtor agrees to pay a sum or sums of money in any manner or form and
 9 the person or entity engaged in the business of budget planning distrib-
 10 utes, or supervises, coordinates or controls the distribution of, or has
 11 a contractual relationship with another person or entity that distrib-
 12 utes, or supervises, coordinates or controls such distribution of, the
 13 same among certain specified creditors in accordance with a plan agreed
 14 upon and (ii) the debtor agrees to pay to such person or entity, or such
 15 other person or entity that distributes, or supervises, coordinates or
 16 controls such distribution of, a sum or sums of money, any valuable
 17 consideration for such services or for any other services rendered in
 18 connection therewith. A person or entity may be engaged in budget plan-
 19 ning regardless of whether they directly handle or supervise debtor
 20 funds for disbursement. Use of a third-party to hold and disburse
 21 debtor funds shall not exempt a person or entity from qualifying as a
 22 budget planner. Debt relief and debt settlement shall qualify as budget
 23 planning.
 24 (b) For the purposes of this article, a person or entity shall be
 25 considered as engaged in the business of budget planning in New York,
 26 and subject to this article and the licensing and other requirements of

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06948-01-5

 S. 3224 2

 1 article twelve-C of the banking law, if such person or entity [solicits
 2 budget planning business within this state and, in connection with such
 3 solicitation,] is located in New York or enters into a contract for
 4 budget planning with an individual then resident in this state.
 5 2. Person, as used in this article, shall not include a person admit-
 6 ted to practice law in this state, unless a principal purpose of such
 7 person's business is budget planning.
 8 3. Entity, as used in this article, shall not include a firm, partner-
 9 ship, professional corporation, or other organization, all of the
 10 members or principals of which are admitted to practice law in this
 11 state, unless a principal purpose of such entity's business is budget
 12 planning.
 13 4. Person or entity as used in this article shall not include a chari-
 14 table corporation as defined in paragraph (a) of section one hundred two
 15 (Definitions) of the not-for-profit corporation law of this state, or an
 16 entity incorporated in another state and having a similar not-for-profit
 17 status, licensed by the superintendent, to engage in the business of
 18 budget planning as defined in this section.
 19 5. Any attorn