ELFA Remains Active in the States

With 9 states currently in session, your team at ELFA is working to review and, where needed, to address all legislation filed that impacts your interests. ELFA’s efforts are focused on identifying any and all measures that would wrongly infringe on the operations of ELFA members in the commercial sector, addressing those bills that require our attention and conversely promoting legislation that addresses industry needs. Of the 180,000 expected state legislative bills filed across the 50 states in 2020, ELFA estimates there will be in excess of 2,000 bills introduced this year that may impact our members’ interests.

The COVID-19 crisis threatens multiple and unprecedented special sessions in states across the country. The prospect of full and part-time legislatures in session late into the year along with the unprecedented spread of gubernatorial executive orders only creates additional uncertainty in these already uncertain times. Currently:  

• 9 state legislatures are in regular session
• 2 states are in special session
• 3 sessions were interrupted due to COVID-19
• 36 states are not in session 

New York Legislation Impacted by ELFA Amendment Passed and Sent to the Governor

On July 23, the New York Senate and Assembly passed and sent to the Governor New York Senate Bill 5470B / New York Assembly Bill 10118A, enhanced financial disclosure legislation significantly amended at the urging of ELFA to exempt from all requirements “a lease as defined in Section 2-A-103 of the Uniform Commercial Code.” 

These bills were introduced in March “to require greater transparency from commercial financing providers consistently across financing products” with emphasis on commercial financing disclosures for recipients that do not intend to use the financing primarily for personal, family or household purposes. 

Recent amendments include exempting individual transactions over $500,000 wherein § 802 Exemptions declares it shall not apply to, and shall not place any additional requirements or obligations upon, “(e) a lease as defined in section 2-A-103 of the uniform commercial code” and “(g) an individual commercial financing transaction in an amount over five hundred thousand dollars.” 

ELFA’s exemption language, which was sought over two years, was certainly not everything we asked for; it was, however, one of the few exemptions permitted and passed. ELFA would like to express our thanks for the collective input and guidance of the ELFA Legislative and Regulatory Subcommittee of the Legal Committee. Your insights on the revised scope of this legislation are welcomed in assessments sent to Scott Riehl, ELFA Vice President, State Government Relations.

New York Legislation Requiring Financial Licensing Filed 

New York Assembly Bill 10878 has been filed as legislation identical to New York Senate Bill 6688 that has been the topic of ongoing discussions with the sponsor and staff of the Senate Committee on Banks, State Sen. James Sanders (D-Rochdale Village, Far Rockaway). AB 10878 is sponsored by Assembly Committee on Banks member Assemblywoman Kimberly Jean-Pierre (D-Lindenhurst), who serves as Chairman of the Assembly Subcommittee on Lending in Underserved Communities. The exemptions listed in § 363-b of each bill are the same and do not include an exemption favorable to ELFA members. AB 10878 has been referred to the Assembly Committee on Banks and SB 6688 remains in the Senate Committee on Banks. ELFA is currently in discussions with the sponsors and committee staff, expressing our concerns and requesting critical changes to the legislation. Your views of this development can be shared with ELFA Vice President, State Government Relations, Scott Riehl.

ELFA Presents State and Local Resources for Critical Coronavirus Information 
To monitor the response of state and local governments to the coronavirus, ELFA’s state legislative tracking partners at Multistate Associates and Vertex have created helpful tools that provide our membership with the most state specific critical information available. Access these tools.
• State/Local Activity Dashboard - This resource from Multistate Associates provides a quick and easy reference to updates and information issued by state and key local agencies and policymakers.
• COVID-19 State Reopening Guide - As states announce plans for phased reopenings, the resource from Multistate Associates monitors each state’s degree of “openness” as determined by 11 factors.
• State Tax Filing Date Changes/Extensions - Vertex has created a resource showing states that have issued sales and use tax guidance in response to the COVID-19 crisis. 

Essential Business – Definition Dependent 

States and localities continue to take additional measures to limit the spread of COVID-19, including requiring residents to stay home and requiring non-essential businesses to close physical locations. Definitions of “essential” vary by state and locality. The Cybersecurity and Infrastructure Security Agency released guidance detailing which workers should be considered essential critical infrastructure workers by state and local governments. Some states have chosen to adopt this guidance themselves, while others have adopted it with modification. Others have adopted their own definitions. For more information on these orders and state-specific definitions of essential business, visit this link.


ELFA sends out email updates on state legislative and regulatory activity as it occurs. You can receive this information by sending complete contact information to ELFA Vice President, State Government Relations Scott Riehl.