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Assembly Bill A8962

2017-2018 Legislative Session

Relates to a franchisee's right to choose their own processing services provider

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Archive: Last Bill Status - Stricken

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2017-A8962 (ACTIVE) - Details

See Senate Version of this Bill:
S5398
Law Section:
General Business Law
Laws Affected:
Amd §687, Gen Bus L

2017-A8962 (ACTIVE) - Summary

Relates to a franchisee's right to choose their own processing services provider.

2017-A8962 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8962
 
                           I N  A S S E M B L Y
 
                              January 9, 2018
                                ___________
 
 Introduced by M. of A. D'URSO -- read once and referred to the Committee
   on Economic Development
 
 AN  ACT to amend the general business law, in relation to a franchisee's
   right to choose their own processing services provider
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section  1.  Section  687  of  the  general business law is amended by
 adding a new subdivision 6 to read as follows:
   6. IT IS UNLAWFUL TO RESTRAIN A FRANCHISEE,  DIRECTLY  OR  INDIRECTLY,
 FROM  SOURCING  PROCESSING  SERVICES FOR ELECTRONIC CREDIT CARDS, CREDIT
 CARDS, CREDIT IDENTIFICATIONS, DEBIT  CARDS,  PRE-PAID  CARDS  OR  OTHER
 TRANSACTION  AUTHORIZATION  CARDS FROM PROCESS SERVICES PROVIDERS OF THE
 FRANCHISEE'S CHOOSING WHERE SUCH SERVICES ARE USED, OR COULD BE  REASON-
 ABLY ANTICIPATED TO BE USED, BY SUCH FRANCHISEE IN A  SUBSTANTIAL AMOUNT
 OF  ITS COMMERCIAL TRANSACTIONS. NOTWITHSTANDING ANYTHING IN THIS SUBDI-
 VISION, IT SHALL NOT BE A VIOLATION OF THIS SUBDIVISION FOR A FRANCHISOR
 TO PROMULGATE REASONABLE WRITTEN SPECIFIED STANDARDS AS  TO  THE  NATURE
 AND QUALITY FOR SUCH PROCESSING SERVICE PROVIDERS.
   § 2. This act shall take effect immediately.
 
 
 
 
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09306-01-7

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