Assembly Actions -
Lowercase Senate Actions - UPPERCASE |
|
---|---|
Jan 03, 2018 |
referred to consumer protection |
Mar 24, 2017 |
referred to consumer protection |
Senate Bill S5398
2017-2018 Legislative Session
Sponsored By
(R, C, IP) Senate District
Archive: Last Bill Status - In Senate Committee Consumer Protection Committee
- Introduced
-
- In Committee Assembly
- In Committee Senate
-
- On Floor Calendar Assembly
- On Floor Calendar Senate
-
- Passed Assembly
- Passed Senate
- Delivered to Governor
- Signed By Governor
Actions
2017-S5398 (ACTIVE) - Details
- Current Committee:
- Senate Consumer Protection
- Law Section:
- General Business Law
- Laws Affected:
- Amd §687, Gen Bus L
2017-S5398 (ACTIVE) - Sponsor Memo
BILL NUMBER: S5398 TITLE OF BILL : An act to amend the general business law, in relation to a franchisee's right to choose their own processing services provider PURPOSE OR GENERAL IDEA OF BILL : This bill prevents a franchisor from restricting a franchisee of choosing their own credit card processor SUMMARY OF PROVISIONS : Section 1 adds a new subdivision to Section 687 of General Business Law to include a new prohibition on franchisors. Section 2 sets the effective date. JUSTIFICATION : Currently, corporate franchisors may require their franchisees to use master credit card processing accounts whose charges often exceed market rates. These charges prove to be a hardship for many small business owners who operate franchisees as their primary source of income. As a result, these charges are then shifted to the customer in rising costs to account for the higher fees. This legislation would
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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