New York S 9368: Enacts the "New York property rehabilitation protection act"

Bill Text

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S09368 Summary:

BILL NOS09368 

&nbsp

SAME ASSAME AS A10176

&nbsp

SPONSORBAILEY

&nbsp

COSPNSRHELMING

&nbsp

MLTSPNSR

&nbsp

Add §3463, Ins L

&nbsp

Enacts the "New York property rehabilitation protection act" to provide protection against the use of assignment of benefit agreements by rehabilitation contractors in a fraudulent manner.

Go to top S09368 Actions:

BILL NOS09368 

&nbsp

03/05/2026REFERRED TO INSURANCE

05/18/2026REPORTED AND COMMITTED TO CONSUMER PROTECTION

Go to topS09368 Committee&nbspVotes:

Go to topS09368 Floor&nbspVotes:

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

Go to topS09368 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9368

 IN SENATE

 March 5, 2026
 ___________

 Introduced by Sen. BAILEY -- read twice and ordered printed, and when
 printed to be committed to the Committee on Insurance

 AN ACT to amend the insurance law, in relation to enacting the "New York
 property rehabilitation protection act"

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

 1 Section 1. This act shall be known and may be cited as the "New York
 2 property rehabilitation protection act".
 3 § 2. Legislative findings and determinations. 1. The legislature here-
 4 by finds and determines that it has become apparent that unscrupulous
 5 rehabilitation contractors have been using the mechanism of assignment
 6 of benefit agreements to defraud and take advantage of residential prop-
 7 erty owners and their insurance companies.
 8 2. The legislature further finds and determines that these unscrupu-
 9 lous rehabilitation contractors, who most often operate in the wake of
 10 natural disasters, fires, or other catastrophic events, have been found
 11 to use these assignment of benefit agreements, to sign up impacted home
 12 owners, for inadequate, inordinately expensive, insufficient or unreli-
 13 able home rehabilitation services, without appropriate consumer
 14 protections, express contractual provisions outlining what actual
 15 construction work will be performed and at what cost, based upon a frau-
 16 dulent and/or misleading promise that all costs of such services will be
 17 paid for by such home owners' insurance company.
 18 3. The legislature further finds and determines that these unscrupu-
 19 lous rehabilitation contractors, and their unreliable and often mislead-
 20 ing assignment of benefit agreements, can result in homeowners not
 21 receiving quality rehabilitation services, and/or ultimately becoming
 22 responsible for enormous rehabilitation costs, without the benefit of
 23 the necessary rehabilitation work.
 24 4. The legislature further finds and determines that this problem, of
 25 the misuse of such assignment of benefit agreements, has not only
 26 happened in New York, but in many other states as well, causing such
 27 other states to limit or preclude the execution of such assignment of

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14767-01-6

 S. 9368 2

 1 benefit agreements, and mandating consumer protection for such
 2 destressed homeowners.
 3 5. The legislature further finds and determines, that in order to
 4 provide consumer protection for such distressed homeowners in New York
 5 state, as well as their insurance companies that collect premiums to
 6 provide property insurance coverage for such homeowners, that similar
 7 limits and preclusions on the unscrupulous use of such assignment of
 8 benefit agreements, must become a part of New York state law, and that
 9 in order to accomplish such consumer protection, this New York property
 10 rehabilitation protection act is sought to be enacted to address limita-
 11 tions with respect to assignment of benefit agreements executed prior to
 12 January 1, 2027, and to expressly prohibit the use of such agreements
 13 after January 1, 2027.
 14 6. The legislature further finds and determines that this New York
 15 property rehabilitation protection act will bring New York state and its
 16 homeowners and insurers in conformance with similar protections and
 17 preclusions that have been enacted in other states, and that have
 18 provided such consumer protection to their home