BILL NUMBER: S8808
SPONSOR: COONEY
 
TITLE OF BILL:
An act to amend the financial services law, in relation to litigation
funding; to amend a chapter of the laws of 2025 amending the general
business law relating to consumer litigation funding, as proposed in
legislative bills numbers S. 1104-A and A. 804-C, relating to the legis-
lative intent and the effectiveness thereof; and to repeal article 39-H
of the general business law relating to customer litigation funding
 
PURPOSE:
This is a chapter amendment to L.2025, c.645, to amend the scope of
applicable contracts.
 
SUMMARY OF PROVISIONS:
This legislation amends the underlying chapter amendment by making
several technical amendments for clarity, redefining "charges" to refer
to anything paid pursuant to a litigation funding contract, adds
language to clarify the contact has to tell the consumer how and when
the consumer is obligated to pay plus a statement that the money may
constitute taxable income.
 
EXISTING LAW:
None.
 
JUSTIFICATION:
This legislation is a negotiated change to the underlying chapter.
 
LEGISLATIVE HISTORY:
Chapter amendment to Chapter 645 of the Laws of 2025. 5.1104-A and
A.804-C, both passed the Senate and Assembly, respectfully, in June
2025.
 
FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect on the same date and in the same manner as a
chapter of the laws of 2025 amending the financial services law, in
relation to litigation funding, as proposed in legislative bills numbers
S.1104-A and A.804-C, takes effect.