All Roll Calls
Yes: 205 • No: 1
New YorkA 8042025-2026 Regular SessionHouseWALLET
Relates to consumer litigation funding
Sponsored By: William Magnarelli (Democratic)
Signed by Governor
CONSUMER AFFAIRS AND PROTECTIONCODESWAYS AND MEANSRULES
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 4 benefits, 0 costs, 2 mixed.
Capped charges for legal claim funding
Funding charges beyond the money received cannot exceed 25% of gross claim proceeds when you or your attorney attest to the final proceeds. Repayment must use dollar amounts set in advance based on time from funding through claim resolution—not a percentage of recovery. Companies cannot charge early repayment fees, and any such penalty is unenforceable. You can assign your right to possible claim proceeds to a funding company. Attorney liens and Medicare or other statutory liens tied to the claim take priority over the funder's lien; other liens follow existing law.
Claimants owe nothing after willful violations
A funding company that willfully breaks this law in your funding case loses all rights to collect the funded amount and charges. It also faces a civil penalty up to $5,000 per violation, payable to New York State. The New York Attorney General can recover that penalty through a civil lawsuit.
Clearer funding contracts and cancellation rights
The law covers funding up to $500,000 per transaction for people with pending legal claims who live or are domiciled in New York. It takes effect 180 days after enactment and leaves funding completed before then outside its requirements. Complete, plain-language contracts require your initials on every page and prominent first-page disclosures of funding, itemized one-time charges, maximum repayment, and amounts due for each 180-day period. Contracts must disclose all charges, cumulative amounts owed under multiple contracts with the same company, and repayment only from available claim proceeds, except for material breach or fraud. You can cancel without penalty by returning all money received within 10 business days after funding. Your attorney must sign an acknowledgment confirming disclosure review, a written contingency-fee agreement, payment through a trust or settlement fund, no referral compensation, and no tax, benefit, or financial advice about funding. Without that acknowledgment, the contract is void; it remains valid when a replacement attorney provides the acknowledgment. The signed contract must promptly reach your attorney.
Claimants gain control but face funding limits
Funding companies cannot control your claim or settlement, interfere with your attorney's judgment, or seek waivers of your remedies or jury-trial rights. Referral payments involving attorneys, law firms, medical providers, chiropractors, physical therapists, or their employees are banned, as is intentionally false or misleading advertising. Companies cannot steer you to particular attorneys or providers to obtain funding, though bar-association referral services are allowed. Companies cannot knowingly use funding proceeds to pay court costs, filing fees, or attorney fees. Funding an already-assigned claim requires prior funding to be paid or a written agreement between companies; simultaneous funding from multiple companies requires written consent from you and your attorney.
Claimants get privacy and conflict protections
Your retained attorney or law firm, and an attorney who referred you to retained counsel, cannot hold a financial interest in your funder. Your attorney needs your written consent before sharing privileged information with the funding company. Funding-related communications between your claim attorney and the company receive attorney-client privilege and work-product protection.
Funding companies face fees and oversight
Funding companies must register with New York's Department of State before doing business and use contract forms filed with it. The department reviews character and fitness; registration costs $500 initially and $200 every two years, with renewal by September 30. The state may require a bond up to $50,000, with an irrevocable letter of credit allowed instead. Companies applying in the 180-day transition window can operate while approval is pending. That window starts on the effective date or when applications become publicly available, whichever is later. Companies doing business in New York must report funding counts, total amounts, and annual percentages charged on repaid funding by January 31 each year. The department must publish the information within 90 days while keeping company and consumer names confidential.
Sponsors & Cosponsors
Sponsor
William Magnarelli
Democratic • House
Cosponsors
Al Taylor
Democratic • House
Albert A. Stirpe
House
Amanda Septimo
Democratic • House
Andrew Hevesi
Democratic • House
Chantel Jackson
Democratic • House
Chris Burdick
Democratic • House
Deborah Glick
Democratic • House
Erik Dilan
Democratic • House
George Alvarez
Democratic • House
Jaime R. Williams
Democratic • House
Jeffrey Dinowitz
Democratic • House
Jessica Gonzalez-Rojas
Democratic • House
Jo Anne Simon
Democratic • House
Judy Griffin
Democratic • House
Karines Reyes
Democratic • House
Latrice Walker
Democratic • House
Marianne Buttenschon
Democratic • House
MaryJane Shimsky
Democratic • House
Nader Sayegh
Democratic • House
Phil Steck
Democratic • House
Vivian Cook
Democratic • House
William Colton
Democratic • House
Roll Call Votes
Senate vote • 6/9/2025
FLOOR Vote
Yes: 62 • No: 0
House vote • 6/9/2025
Assembly floor vote
Yes: 143 • No: 1
Actions Timeline
APPROVAL MEMO.29
12/19/2025HouseSIGNED CHAP.645
12/19/2025HouseDELIVERED TO GOVERNOR
12/8/2025HouseRETURNED TO ASSEMBLY
6/9/2025SenatePASSED SENATE
6/9/2025Senate3RD READING CAL.316
6/9/2025SenateSUBSTITUTED FOR S1104A
6/9/2025SenateREFERRED TO RULES
6/9/2025SenateDELIVERED TO SENATE
6/9/2025HousePASSED ASSEMBLY
6/9/2025HouseORDERED TO THIRD READING RULES CAL.481
6/9/2025HouseRULES REPORT CAL.481
6/9/2025HouseREPORTED
6/9/2025HouseREPORTED REFERRED TO RULES
6/6/2025HouseREPORTED REFERRED TO WAYS AND MEANS
6/5/2025HousePRINT NUMBER 804C
5/13/2025HouseAMEND AND RECOMMIT TO CODES
5/13/2025HouseREPORTED REFERRED TO CODES
5/6/2025HousePRINT NUMBER 804B
3/27/2025HouseAMEND AND RECOMMIT TO CONSUMER AFFAIRS AND PROTECTION
3/27/2025HousePRINT NUMBER 804A
1/24/2025HouseAMEND AND RECOMMIT TO CONSUMER AFFAIRS AND PROTECTION
1/24/2025HouseREFERRED TO CONSUMER AFFAIRS AND PROTECTION
1/8/2025House
Bill Text
Amendment C
5/13/2025
Amendment B
3/27/2025
Amendment A
1/24/2025
Original
1/6/2025
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