Assembly Bill A8593

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
     S. 7748                                                  A. 8593
 
                       S E N A T E - A S S E M B L Y
 
                             January 10, 2022
                                ___________
 
 IN  SENATE -- Introduced by Sen. THOMAS -- read twice and ordered print-
   ed, and when printed to be committed  to  the  Committee  on  Consumer
   Protection
 
 IN  ASSEMBLY -- Introduced by M. of A. FALL -- read once and referred to
   the Committee on Consumer Affairs and Protection
 
 AN ACT to amend the  general  business  law,  in  relation  to  business
   consumer protection for point-of-sale equipment leases
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new article
 42 to read as follows:
 
                                ARTICLE 42
                        CREDIT CARD TERMINAL LEASES
 
 SECTION 1100. SOLICITATION; MATERIAL MISREPRESENTATION.
         1101. CREDIT CARD TERMINAL; LEASE PROVISIONS.
         1102. VIOLATIONS.
   § 1100. SOLICITATION; MATERIAL MISREPRESENTATION. 1. AS USED  IN  THIS
 ARTICLE,  "CREDIT  CARD  TERMINAL"  MEANS PHYSICAL EQUIPMENT USED AT THE
 POINT OF SALE TO ACCEPT PAYMENT BY A PAYMENT CARD,  INCLUDING  A  CREDIT
 CARD, DEBIT CARD, EBT CARD, PREPAID CARD, OR GIFT CARD.
   2.  A PERSON WHO SOLICITS A FINANCE LEASE FOR THE USE OF A CREDIT CARD
 TERMINAL SHALL ACCURATELY DISCLOSE, ORALLY AND IN WRITING:
   (A) THE NATURE AND SCOPE OF HIS OR HER RELATIONSHIP TO THE  PERSON  OR
 PERSONS  WHO  OWN,  LEASE, SERVICE, AND FINANCE THE CREDIT CARD TERMINAL
 AND TO THE PERSON OR PERSONS, IF KNOWN, WHO PROVIDE SERVICES RELATED  TO
 THE  CREDIT  CARD  TERMINAL, INCLUDING WHETHER HE OR SHE IS AN EMPLOYEE,
 INDEPENDENT CONTRACTOR, OR AGENT OF ONE OR MORE OF THOSE PERSONS; AND
   (B) THE TERMS OF A  FINANCE  LEASE  AND  WHETHER  ORAL  STATEMENTS  OR
 COMMITMENTS HE OR SHE MAKES TO THE PROSPECTIVE LESSEE WHILE SOLICITING A
 FINANCE  LEASE  ARE  INCLUDED  IN  THE  TERMS  OF  THE FINANCE LEASE AND
 ENFORCEABLE AGAINST A PARTY TO A FINANCE LEASE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11852-04-1
 S. 7748                             2                            A. 8593
 
   3. THE WRITTEN DISCLOSURE SHOULD BE IN NO LESS THAN TWELVE POINT FONT.
 THE DISCLOSURE SHOULD BE WRITTEN IN THE PRIMARY LANGUAGE USED TO  COMMU-
 NICATE  WITH  THE  PROSPECTIVE  LESSEE AND WORDED IN THE SAME OR SIMILAR
 LANGUAGE USED BY THE PERSON SOLICITING THE FINANCE LEASE.
   §   1101.  CREDIT  CARD  TERMINAL;  LEASE  PROVISIONS.  THE  FOLLOWING
 PROVISIONS APPLY TO A FINANCE LEASE FOR THE USE OF A CREDIT CARD  TERMI-
 NAL:
   1.  THE  FINANCE  LEASE  SHALL BE WRITTEN IN NO LESS THAN TWELVE POINT
 FONT, IN THE PRIMARY LANGUAGE USED TO COMMUNICATE WITH  THE  LESSEE  AND
 SHALL  BE  WORDED  IN  THE  SAME  OR SIMILAR LANGUAGE USED BY THE PERSON
 SOLICITING THE FINANCE LEASE.
   2. THE FINANCE LEASE SHALL SPECIFY:   (A) THE  TERMS;  (B)  THE  TOTAL
 PRICE; (C) THE TOTAL MONTHLY PAYMENT DUE, INCLUDING ANY RECURRING MONTH-
 LY  FEES  OR  CHARGES; (D) ANY OTHER PENALTIES, CHARGES, OR FEES AND THE
 CONDITIONS UNDER WHICH THEY MAY BE INCURRED; (E)  WHETHER  THE  CONSUMER
 HAS  THE  OPTION  TO  PURCHASE  THE CREDIT CARD TERMINAL, AND IF SO, THE
 PURCHASE PRICE AND TERMS; (F) IF THE LESSOR DOES NOT OFFER THE OPTION TO
 PURCHASE THE CREDIT CARD TERMINAL, A DISCLAIMER THAT THE LESSEE  MAY  BE
 ABLE TO PURCHASE THE SAME OR A SIMILAR CREDIT CARD TERMINAL FROM ANOTHER
 SOURCE; AND (G) A CAP ON THE TOTAL COST THE LESSEE IS REQUIRED TO PAY TO
 USE  THE  CREDIT  CARD  TERMINAL,  WHICH  SHALL NOT EXCEED THREE HUNDRED
 PERCENT OF THE LESSOR'S ORIGINAL PURCHASE  PRICE  FOR  THE  CREDIT  CARD
 TERMINAL OR, IF THE LESSOR IS THE MANUFACTURER OF THE CREDIT CARD TERMI-
 NAL, ITS TOTAL COST TO MANUFACTURE.
   3.  (A) IF THE LESSOR OF A CREDIT CARD TERMINAL OR AN AFFILIATED BUSI-
 NESS OFFERS TO DELIVER SERVICES FOR THE TERMINAL, INCLUDING CREDIT  CARD
 PROCESSING  SERVICES, THE DELIVERY OF SERVICES SHALL BE THE SUBJECT OF A
 SERVICE AGREEMENT BETWEEN THE SERVICE PROVIDER AND THE CONSUMER THAT  IS
 SEPARATE  FROM THE FINANCE LEASE. THE SERVICE AGREEMENT SHALL BE WRITTEN
 IN NO LESS THAN TWELVE POINT FONT,  IN  THE  PRIMARY  LANGUAGE  USED  TO
 COMMUNICATE  WITH  THE  LESSEE,  SHALL  BE WORDED IN THE SAME OR SIMILAR
 LANGUAGE USED BY THE PERSON SOLICITING THE SERVICE AGREEMENT  AND  SHALL
 SPECIFY:
 (I)  THE  TERMS GOVERNING THE DELIVERY OF SERVICES; (II) THE TOTAL PRICE
 FOR SUCH SERVICES; (III) THE TOTAL MONTHLY PAYMENT  DUE,  INCLUDING  ANY
 RECURRING  MONTHLY FEES OR CHARGES, FOR THE SERVICES; AND (IV) ANY OTHER
 PENALTIES, CHARGES, OR FEES AND THE CONDITIONS UNDER WHICH THEY  MAY  BE
 INCURRED.
   (B)  IF  THE  LESSOR  OR ITS AFFILIATED BUSINESS OFFERS A DISCOUNT FOR
 BUNDLING THE CREDIT CARD TERMINAL FINANCE LEASE  WITH  THE  DELIVERY  OF
 SERVICES, THE LESSOR SHALL SEPARATELY STATE IN THE FINANCE LEASE AND THE
 SERVICE AGREEMENT THAT INFORMATION REQUIRED IN SUBDIVISION TWO AND PARA-
 GRAPH  (A)  OF  THIS  SUBDIVISION FOR EACH BUNDLED AND UNBUNDLED PACKAGE
 OFFERED.
   4. THE FINANCE LEASE SHALL  CLEARLY  AND  CONSPICUOUSLY  IDENTIFY  THE
 LESSOR  OF THE CREDIT CARD TERMINAL AND THE NAME, MAILING ADDRESS, TELE-
 PHONE NUMBER, E-MAIL ADDRESS OR WEBSITE, AND RELATIONSHIP TO THE  LESSOR
 OF:
   (A) THE PERSON TO WHOM THE LESSEE IS REQUIRED TO MAKE PAYMENTS FOR THE
 CREDIT CARD TERMINAL;
   (B)  THE  PERSON  TO  WHOM THE LESSEE SHOULD CONTACT WITH QUESTIONS OR
 PROBLEMS CONCERNING THE CREDIT CARD TERMINAL;
   (C) THE PERSON TO WHOM THE  LESSEE  SHOULD  DELIVER  THE  CREDIT  CARD
 TERMINAL FOR RETURN OR REPAIR; AND
   (D)  THE  SALES  REPRESENTATIVE  OR OTHER PERSON ACTING WITH ACTUAL OR
 APPARENT AUTHORITY ON BEHALF OF THE LESSOR TO SOLICIT THE FINANCE LEASE.
 S. 7748                             3                            A. 8593
 
   5. IF AT ANY TIME THE  CONTACT  INFORMATION  PROVIDED  TO  THE  LESSEE
 CHANGES,  A  NOTIFICATION OF SUCH CHANGE SHALL BE PROVIDED TO THE LESSEE
 WITHIN FIVE BUSINESS DAYS.
   6.  (A) A LESSOR SHALL PROVIDE A COPY OF THE EXECUTED FINANCE LEASE TO
 THE LESSEE AND SHALL RETAIN A WRITTEN OR ELECTRONIC COPY OF SUCH FINANCE
 LEASE AND PROOF OF DELIVERY OF THE EXECUTED LEASE FOR NOT LESS THAN FOUR
 YEARS AFTER THE LEASE TERMINATES.
   (B) A LESSEE SHALL HAVE THE RIGHT TO CANCEL A FINANCE LEASE NOT  LATER
 THAN  FORTY-FIVE  DAYS  AFTER THE LESSOR PROVIDES A COPY OF THE EXECUTED
 FINANCE LEASE TO THE LESSEE.
   (C) IF THE LESSEE EXERCISES HIS OR HER RIGHT TO CANCEL: (I) THE LESSOR
 MAY RETAIN ANY PAYMENTS MADE BY THE LESSEE AFTER THE LESSOR DELIVERED  A
 COPY  OF  THE  EXECUTED  FINANCE LEASE; AND (II) THE LESSOR MAY IMPOSE A
 REASONABLE CANCELLATION FEE, NOT TO EXCEED THE   TOTAL  MONTHLY  PAYMENT
 AMOUNT  SPECIFIED IN PARAGRAPH (C) OF SUBDIVISION TWO OF THIS SECTION. A
 LESSEE IS NOT REQUIRED TO PAY A CANCELLATION FEE IF THERE IS EVIDENCE OF
 FRAUD OR ILLEGALITY.
   7. (A) IF THE JUDICIAL FORUM CHOSEN BY THE PARTIES TO THE LEASE  IS  A
 FORUM  THAT  WOULD  NOT OTHERWISE HAVE JURISDICTION OVER THE LESSEE, THE
 CHOICE IS NOT ENFORCEABLE.
   (B) A LESSOR SHALL NOT COLLECT ANY CHARGE OR FEE FOR BUSINESS PERSONAL
 PROPERTY TAX ON THE CREDIT CARD TERMINAL  UNLESS  THE  TAX  IS  ACTUALLY
 IMPOSED.
   § 1102. VIOLATIONS. A PERSON WHO VIOLATES THE PROVISIONS OF THIS ARTI-
 CLE  SHALL  BE  DEEMED  TO HAVE COMMITTED A DECEPTIVE ACT OR PRACTICE IN
 VIOLATION OF ARTICLE TWENTY-TWO-A OF THIS CHAPTER AND SHALL  BE  SUBJECT
 TO PENALTIES AS SET FORTH IN SUCH ARTICLE.
   §  2.  The  attorney  general  is authorized to promulgate any rule or
 regulation necessary for the implementation of this act.
   § 3. This act shall take effect immediately.