These regulations are promulgated pursuant to General Business Law (“GBL”), Article 33-B, section 697-a, added by chapter 662 of the Laws of 2005 as amended by Chapter 706 of the Laws of 2006. They set forth the procedures for the operation of an alternative arbitration mechanism as required by GBL section 697-a(c). These regulations are designed to promote the independent, speedy, efficient and fair disposition of disputes concerning defective farm equipment.

The Attorney General shall appoint an Administrator or Administrators to a definite term not to exceed two years. The Attorney General shall consider the following criteria in the selection of an Administrator: capability, objectivity, non-affiliation with a supplier’s arbitration program, reliability, experience, financial stability, extent of geographic coverage, and fee structure.

To apply for arbitration, a consumer shall obtain, complete and submit the appropriate form to the Attorney General on a form prescribed and made available by the Attorney General. The consumer shall indicate on the form his/her choice of remedy (i.e., either refund or comparable replacement equipment), in the event the arbitrator rules in favor of the consumer. If the form is accepted by the Attorney General, he or she shall refer it to the Administrator for processing. The Attorney General shall prescribe a filing fee and an arbitration fee to be paid by the consumer and the supplier, respectively. Such notice shall also advise the consumer to pay the prescribed filing fee directly to the Administrator. The date the Administrator receives the prescribed filing fee shall be considered the “filing date.”

Each supplier of farm equipment sold to a New York consumer shall notify the Attorney General in writing, within 10 days after the effective date of these regulations, of the name, address and telephone number of the person designated to receive notices under the GBL Article 33-B Program. Such information shall be presumed correct unless updated by the supplier.

Within 5 days of the filing date, the Administrator shall send the supplier’s designee a notice that a Request for Arbitration has been filed by the consumer and that the supplier must remit the prescribed arbitration fee to the Administrator within 10 days from the date of mailing by the Administrator. The date the prescribed arbitration fee is received by the Administrator is considered the “commencement date.” Within 5 days of the commencement date, the Administrator shall send the supplier’s designee a copy of the consumer’s completed Request for Arbitration form along with a notice that it may respond in writing. Such response shall be send in triplicate, within 15 days of the commencement date, to the Administrator, who shall promptly forward one copy to the consumer.

After the commencement date, the Administrator shall assign an arbitrator to hear and decide the case. Notice of assignment shall be mailed to the arbitrator and the parties along with a copy of these regulations and GBL Article 33-B. The arbitrator assigned shall not have any bias, any financial or personal interest in the outcome of the hearing, or any current connection to the sale, distribution or manufacture of farm equipment. Arbitrators shall undergo training established by the Administrator and the Attorney General.

The arbitration shall be conducted as an oral hearing unless the consumer has requested, on the “Request for Arbitration” form, a hearing on documents only and both parties agree to a documents only hearing; provided, however, that the parties may mutually agree in writing to change the mode of hearing.

The consumer may respond in writing to the supplier’s submission within 25 days of the commencement date. Such response shall be sent in triplicate to the Administrator, who shall promptly forward a copy to the supplier.

An oral hearing, where appropriate, shall be scheduled no later than 35 days from the commencement date, unless a later date is agreed to by both parties. The Administrator shall notify both parties of the date, time and place of the hearing at least 8 days prior to its scheduled date. Hearings shall be scheduled to accommodate, where possible, time-of-day needs of the consumer and the supplier, including evening and weekend hours. Hearings shall also be scheduled to accommodate geographic needs of the consumer. Regular hearing sites shall be established at locations designated by the Administrator.

In unusual circumstances, a party may present its case by telephone, provided that adequate advance notice is given to the Administrator and to the other party. In such cases, the arbitrator and both parties shall be included and the party requesting the telephonic hearing shall pay all costs associated therewith.

Either party may make a request to reschedule the hearing. Upon a finding of good cause, the arbitrator may reschedule the hearing. In unusual circumstances, the arbitrator may reschedule the hearing at any time prior to its commencement.

A party, by application in writing to the Administrator, may request the arbitrator to direct the other party to produce any documents or information. The arbitrator shall, upon receiving such request, or on his or her own initiative, direct the production of documents or information which he or she believes will reasonably assist a party in presenting his or her case or assist the arbitrator in deciding the case. The arbitrator’s direction for the production of documents and information shall allow a reasonable time for the gathering and production of such documents and information. Upon failure of a party to comply with the arbitrator’s direction to produce documents and/or information, the arbitrator may draw a negative inference concerning any issue involving such documents or information.

At the request of either party or on his or her own initiative, the arbitrator, when she or he believes it appropriate, may subpoena any witnesses to appear or documents to be presented at the hearing.

Any party may be represented by counsel or assisted by any third party.

Any party wishing an interpreter shall make the necessary arrangements and assume the costs for such service.

The conduct of the hearing shall afford each party a full and equal opportunity to present his/her case. The arbitrator shall administer an oath or affirmation to each individual who testifies. Formal rules of evidence shall not apply; the parties may introduce any relevant evidence. The arbitrator may request additional evidence after closing the hearing. All such evidence shall be submitted to the Administrator for transmission to the arbitrator and the parties.

If the hearing is on documents only, all documents shall be submitted to the Administrator no later than 30 days from the commencement date. The arbitrator shall render a timely decision based on all documents submitted.

Upon the failure of a party to appear at an oral hearing, the arbitrator shall nevertheless conduct the hearing and render a timely decision based on the evidence presented and documents contained in the file. If neither party appears at the hearing, the arbitrator shall return the case to the Administrator who shall close it and so notify the parties.

A consumer may withdraw his/her request for arbitration at any time prior to decision.

The arbitrator shall render a decision within 40 days from the commencement date which shall be in writing on a form prescribed by the Administrator and approved by the Attorney General. In his/her decision, the arbitrator shall determine whether the consumer qualifies for relief pursuant to GBL section 697-a. If the arbitrator finds that the consumer qualifies, (s)he shall award the specific remedies prescribed by the statute. The decision shall specify the monetary award where applicable. The decision shall, where applicable, require that any action required by the supplier be completed within 30 days from the date the Administrator notifies the supplier of the decision. The Administrator shall review the decision for technical completeness and accuracy and advise the arbitrator of any suggested technical corrections. After review, the Administrator shall, within 45 days of the commencement date, mail a copy of the final decision to both parties, the arbitrator and the Attorney General.

The arbitrator’s decision is binding on both parties and is final, subject only to judicial review pursuant to CPLR, Article 75. The decision shall include a statement to this effect.

The Administrator shall keep all records pertaining to each arbitration for a period of at least two years and shall make the records of a particular arbitration available for inspection upon written request by a party to that arbitration, and shall make records of all arbitrations available to the Attorney General upon written request.

All communications between the parties and the arbitrator, other than at oral hearings, shall be directed to the Administrator.

Changes made to the last published rule do not necessitate revision to the previously published RIS, RFA and RAFA.

As a rule that requires a RFA, RAFA or JIS, this rule will be initially reviewed in the calendar year 2022, which is no later than the 3rd year after the year in which this rule is being adopted.

The agency received no public comment.