Assembly Bill A4459

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4459
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 4, 2025
                                ___________
 
 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
   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
 29-BBBB to read as follows:
                              ARTICLE 29-BBBB
                        CREDIT CARD TERMINAL LEASES
 SECTION 530.   SOLICITATION; MATERIAL MISREPRESENTATION.
         530-A. CREDIT CARD TERMINAL; LEASE PROVISIONS.
         530-B. VIOLATIONS.
   § 530. 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 PRIOR TO THE PRESENTATION
 OF A SPECIFIC OFFER FOR A FINANCE LEASE:
   (A) THE NATURE AND SCOPE OF SUCH PERSON'S 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 THEY ARE AN EMPLOYEE,  INDE-
 PENDENT CONTRACTOR, OR AGENT OF ONE OR MORE OF THOSE PERSONS; AND
   (B) WHETHER THE PERSON WHO SOLICITS THE FINANCE LEASE HAS THE AUTHORI-
 TY TO NEGOTIATE TERMS OF A FINANCE LEASE WITH A PROSPECTIVE LESSEE.
   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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08727-01-5
              

 A. 4459                             2
 
   §  530-A.  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) THE MAKE AND  MODEL  OF
 THE  CREDIT  CARD  TERMINAL BEING LEASED; (F) WHETHER THE LESSEE HAS THE
 OPTION TO PURCHASE THE CREDIT CARD TERMINAL, AND  IF  SO,  THE  PURCHASE
 PRICE  AND  TERMS;  AND  (G)  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.
   3.  (A) IF THE LESSOR OF A CREDIT CARD TERMINAL OR AN AFFILIATED BUSI-
 NESS ALSO PROVIDES PAYMENT PROCESSING SERVICES FOR THE TERMINAL, INCLUD-
 ING CREDIT CARD PROCESSING SERVICES, THE  DELIVERY  OF  SUCH  PROCESSING
 SERVICES SHALL BE THE SUBJECT OF A SERVICE AGREEMENT BETWEEN THE SERVICE
 PROVIDER AND THE BUSINESS THAT IS SEPARATE FROM THE FINANCE LEASE.
   (B)  IF  THE  LESSOR  OR ITS AFFILIATED BUSINESS OFFERS A DISCOUNT FOR
 BUNDLING THE CREDIT CARD TERMINAL FINANCE LEASE  WITH  THE  DELIVERY  OF
 PAYMENT  PROCESSING SERVICES, THE LESSOR SHALL STATE THAT INFORMATION IN
 THE FINANCE LEASE.
   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; AND
   (C) THE PERSON TO WHOM THE  LESSEE  SHOULD  DELIVER  THE  CREDIT  CARD
 TERMINAL FOR RETURN OR REPAIR.
   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 THREE DAYS AFTER THE LESSOR PROVIDES A COPY OF THE EXECUTED FINANCE
 LEASE TO THE LESSEE.
   (C)  IF  THE  LESSEE  EXERCISES SUCH LESSEE'S 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.
 A. 4459                             3
 
   (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.
   §  530-B. VIOLATIONS.  ANY PERSON, FIRM, CORPORATION OR ASSOCIATION OR
 AGENT OR EMPLOYEE THEREOF WHO VIOLATES THIS ARTICLE SHALL BE LIABLE  FOR
 A  CIVIL PENALTY OF FIVE THOUSAND DOLLARS FOR EACH VIOLATION. THE ATTOR-
 NEY GENERAL OR THE DISTRICT ATTORNEY OF ANY COUNTY MAY BRING  AN  ACTION
 IN  THE  NAME  OF  THE  PEOPLE  OF  THE STATE TO RESTRAIN OR PREVENT ANY
 VIOLATION OF THIS ARTICLE OR ANY CONTINUANCE OF ANY SUCH VIOLATION.
   § 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.