Bill
Bill > A01227
NY A01227
Authorizes a lien against personal and real property of the owner of a commercial towing company for illegal and improper practices; creates personal liability for members of an LLC and certain corporate shareholders.
summary
Introduced
01/09/2025
01/09/2025
In Committee
01/09/2025
01/09/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 General Assembly
Bill Summary
AN ACT to amend the lien law, the general business law and the administrative code of the city of New York, in relation to liens against commercial towing companies for illegal and improper towing practices; to amend the civil practice law and rules, in relation to grounds for attachment; to amend the business corporation law, in relation to holding shareholders of non-publicly traded corporations personally liable for certain judgments; and to amend the limited liability company law, in relation to holding the ten members with the largest ownership interests in a company personally liable for certain judgments
AI Summary
This bill establishes comprehensive legal provisions targeting commercial towing companies that engage in illegal or improper towing practices. The legislation creates a robust lien mechanism that allows individuals to file claims against both the real and personal property of commercial towing companies for violations related to towing services. Specifically, the bill introduces new requirements such as mandating written invoices signed by both the towing company and vehicle owner before services are performed, and provides detailed procedures for filing and enforcing these liens within specified timeframes. Additionally, the bill creates personal liability for the ten largest shareholders of non-publicly traded corporations and the ten members with the largest ownership interests in limited liability companies, making them jointly and severally responsible for claims arising from illegal towing practices. The legislation also expands grounds for legal attachment and provides mechanisms for enforcing liens on both real and personal property, with specific provisions for extending or terminating liens. The bill aims to protect consumers by increasing transparency, accountability, and legal recourse against commercial towing companies that engage in unfair or deceptive practices, particularly in New York City, where many of the specific regulatory references are focused.
Committee Categories
Justice
Sponsors (7)
Jeffrey Dinowitz (D)*,
Michael Benedetto (D),
William Colton (D),
Vivian Cook (D),
Deborah Glick (D),
Dave McDonough (R),
Rebecca Seawright (D),
Last Action
referred to judiciary (on 01/09/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
Document Type | Source Location |
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State Bill Page | https://www.nysenate.gov/legislation/bills/2025/A1227 |
BillText | https://assembly.state.ny.us/leg/?default_fld=&bn=A01227&term=2025&Summary=Y&Actions=Y&Text=Y&Committee%26nbspVotes=Y&Floor%26nbspVotes=Y#A01227 |
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