Requires certain stores that accept credit or debit card payment to accept flexible benefit cards as a form of payment for eligible items; defines terms; establishes penalties for violations of such requirement to accept payment by flexible benefit card; requires the superintendent of financial services to provide education and outreach to covered stored to inform them of the such requirement.
STATE OF NEW YORK
________________________________________________________________________
9599
IN ASSEMBLY
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:
1 Section 1. The general business law is amended by adding a new article
2 38-C to read as follows:
3 ARTICLE 38-C
4 FLEXIBLE BENEFIT CARDS
5 Section 840. Definitions.
6 841. Acceptance of flexible benefit cards.
7 842. Enforcement.
8 843. Education and outreach.
9 § 840. Definitions. As used in this article, the following terms shall
10 have the following meanings:
11 1. "Covered store" means a retail store that primarily sells food for
12 off-site consumption or a retail store that includes a pharmacy.
13 2. "Eligible item" means a product that may be purchased with a flexi-
14 ble benefit card, as determined by the issuer of the flexible benefit
15 card.
16 3. "Flexible benefit card" means a card provided by a health insurance
17 provider to an insured member that may be used to purchase items covered
18 by the insured member's health insurance policy.
19 § 841. Acceptance of flexible benefit cards. Every covered store that
20 accepts credit or debit card payment shall accept flexible benefit cards
21 as a form of payment for eligible items.
22 § 842. Enforcement. Any person that violates the provisions of this
23 article or any rules or regulations promulgated pursuant thereto shall
24 be liable for a civil penalty of two hundred fifty dollars for a first
25 violation and five hundred dollars for any subsequent violation within
26 eighteen months of a previous violation; provided, however, that the
27 superintendent of financial services shall issue a warning instead of a
28 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
1 effective date of this article. For purposes of assessing penalties in
2 accordance with this section, all violations committed by the same
3 covered store on the same day shall count as one violation.
4 § 843. Education and outreach. The superintendent of financial
5 services shall provide outreach and education to covered stores to
6 inform such stores of the requirement to accept flexible benefit cards
7 pursuant to this article.
8 § 2. This act shall take effect on the two hundred seventieth day
9 after it shall have become a law. Effective immediately, the addition,
10 amendment and/or repeal of any rule or regulation necessary for the
11 implementation of this act on its effective date are authorized to be
12 made and completed on or before such effective date.
