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
In Committee
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)

Last Action

referred to judiciary (on 01/09/2025)

bill text


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