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New York Legislation Targets Commercial Financing

Spring 2020

New York Assembly Bill 10118 seeks to amend the financial services law to require designated providers that extend commercial financing to disclose certain information. Stakeholders sympathetic to ELFA believe our industry is exempted by “§ 702. Exemptions. This article shall not apply to and shall not place any additional requirements or obligations upon, any of the following: (e) a lease as defined in section 2-A-103 of the uniform commercial code.” ELFA requests more clarity.

Discussions with the office of the sponsor, Assemblyman Kenneth Zebrowski (D- Rockland County), Chair, Committee on Governmental Operations, has centered on lease transactions that were exempted in A10118 as introduced, but need to cover bank subsidiaries, affiliates and bank holding companies and collateral defined by Article 9.

Two states, California and New Jersey, that tackled finance disclosure/finance licensing have agreed on the importance of protecting commercial equipment lease transactions. Those states acknowledged nationwide consistency of commercial equipment lease finance contracts has been recognized by the Uniform Law Commission through compilation of the same legal structures adopted by New York as nonpartisan, well-conceived and offering well-drafted clarity. Articles 2A and 9 have provided balanced rights to lessors and lessees for decades in New York and around the country. ELFA is advocating that this acknowledgement continue with acceptance of modifications as counseled by ELFA.

ELFA Presents State and Local Resource 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 created a COVID-19 State and Local Policy Dashboard that provides a quick and easy reference to updates and information issued by state and key local agencies and policymakers (updated daily). This resource is updated hourly and is being used and monitored by state legislative leaders and business experts across the country.

This tool consists of four tabs. Toggle between the tabs in the top left-hand corner of the screen. The tabs are organized as follows:

  • Tab 1: Main state-level information and activity, such as links to health department COVID-19 websites, key contacts, state of emergency declarations, executive orders, changes to legislative sessions, travel restrictions and official Twitter accounts.
  • Tab 2: Additional state-level activity, such as limits on mass gatherings, school closures, mandatory curfews, restaurant and retail closures and more.
  • Tab 3: Main local-level information and activity, in the same format as Tab 1. The top 100 local jurisdictions by population will be added soon.
  • Tab 4: Additional local-level activity, in a similar format as Tab 2. 
COVID-19 Effects on State Budgets: A Taxing Concern
State governments will need to respond to the budgetary pressures created by the COVID-19 crisis and to better understand some of the more important implications. For more information, see the story below from The Hill.

States brace for massive budget gaps in coronavirus recession

The Hill
“State and local experts say the coming months will be a bloodbath for governments that are required by law to maintain balanced budgets. They will be forced to choose between steep and painful cuts to social programs that are already underfunded or tax hikes at a time when millions of people will be unemployed.”

State Legislatures in Session
●  32 states are currently in regular session
●  17 states are out of session
●  1 state is pre-filing (Arkansas)
State Map
With 32 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 will add to the uncertainty of this legislative session.

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 at sriehl@elfaonline.org.