Assembly Bill A9599

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9599
 
                           I N  A S S E M B L Y
 
                             January 21, 2026
                                ___________
 
 Introduced  by M. of A. HOOKS -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   certain retail stores to accept flexible benefit cards
 
   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
 38-C to read as follows:
                                ARTICLE 38-C
                          FLEXIBLE BENEFIT CARDS
 SECTION 840. DEFINITIONS.
         841. ACCEPTANCE OF FLEXIBLE BENEFIT CARDS.
         842. ENFORCEMENT.
         843. EDUCATION AND OUTREACH.
   § 840. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "COVERED STORE" MEANS A RETAIL STORE THAT PRIMARILY SELLS FOOD  FOR
 OFF-SITE CONSUMPTION OR A RETAIL STORE THAT INCLUDES A PHARMACY.
   2. "ELIGIBLE ITEM" MEANS A PRODUCT THAT MAY BE PURCHASED WITH A FLEXI-
 BLE  BENEFIT  CARD,  AS DETERMINED BY THE ISSUER OF THE FLEXIBLE BENEFIT
 CARD.
   3. "FLEXIBLE BENEFIT CARD" MEANS A CARD PROVIDED BY A HEALTH INSURANCE
 PROVIDER TO AN INSURED MEMBER THAT MAY BE USED TO PURCHASE ITEMS COVERED
 BY THE INSURED MEMBER'S HEALTH INSURANCE POLICY.
   § 841. ACCEPTANCE OF FLEXIBLE BENEFIT CARDS. EVERY COVERED STORE  THAT
 ACCEPTS CREDIT OR DEBIT CARD PAYMENT SHALL ACCEPT FLEXIBLE BENEFIT CARDS
 AS A FORM OF PAYMENT FOR ELIGIBLE ITEMS.
   § 842. ENFORCEMENT.  ANY  PERSON  THAT VIOLATES THE PROVISIONS OF THIS
 ARTICLE OR ANY RULES OR REGULATIONS PROMULGATED PURSUANT  THERETO  SHALL
 BE  LIABLE  FOR A CIVIL PENALTY OF TWO HUNDRED FIFTY DOLLARS FOR A FIRST
 VIOLATION AND FIVE HUNDRED DOLLARS FOR ANY SUBSEQUENT  VIOLATION  WITHIN
 EIGHTEEN  MONTHS  OF  A  PREVIOUS VIOLATION; PROVIDED, HOWEVER, THAT THE
 SUPERINTENDENT OF FINANCIAL SERVICES SHALL ISSUE A WARNING INSTEAD OF  A
 NOTICE OF VIOLATION FOR ANY VIOLATION THAT OCCURS WITHIN ONE YEAR OF THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14316-01-5
 A. 9599                             2
 
 EFFECTIVE  DATE  OF THIS ARTICLE. FOR PURPOSES OF ASSESSING PENALTIES IN
 ACCORDANCE WITH THIS SECTION,  ALL  VIOLATIONS  COMMITTED  BY  THE  SAME
 COVERED STORE ON THE SAME DAY SHALL COUNT AS ONE VIOLATION.
   § 843. EDUCATION   AND   OUTREACH.  THE  SUPERINTENDENT  OF  FINANCIAL
 SERVICES SHALL PROVIDE OUTREACH  AND  EDUCATION  TO  COVERED  STORES  TO
 INFORM  SUCH  STORES OF THE REQUIREMENT TO ACCEPT FLEXIBLE BENEFIT CARDS
 PURSUANT TO THIS ARTICLE.
   § 2. This act shall take effect on  the  two  hundred  seventieth  day
 after  it  shall have become a law. Effective immediately, the addition,
 amendment and/or repeal of any rule  or  regulation  necessary  for  the
 implementation  of  this  act on its effective date are authorized to be
 made and completed on or before such effective date.