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Senate Bill S5398

2017-2018 Legislative Session

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

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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2017-S5398 (ACTIVE) - Details

Current Committee:
Senate Consumer Protection
Law Section:
General Business Law
Laws Affected:
Amd §687, Gen Bus L

2017-S5398 (ACTIVE) - Summary

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

2017-S5398 (ACTIVE) - Sponsor Memo

2017-S5398 (ACTIVE) - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5398
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              March 24, 2017
                                ___________
 
 Introduced  by  Sen.  ROBACH -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 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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