STATE OF NEW YORK
________________________________________________________________________
5398
2017-2018 Regular Sessions
IN SENATE
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:
1 Section 1. Section 687 of the general business law is amended by
2 adding a new subdivision 6 to read as follows:
3 6. It is unlawful to restrain a franchisee, directly or indirectly,
4 from sourcing processing services for electronic credit cards, credit
5 cards, credit identifications, debit cards, pre-paid cards or other
6 transaction authorization cards from process services providers of the
7 franchisee's choosing where such services are used, or could be reason-
8 ably anticipated to be used, by such franchisee in a substantial amount
9 of its commercial transactions. Notwithstanding anything in this subdi-
10 vision, it shall not be a violation of this subdivision for a franchisor
11 to promulgate reasonable written specified standards as to the nature
12 and quality for such processing service providers.
13 § 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
