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A09862 Summary:

COSPNSRSimon, Thiele, Darling, Rosenthal L, Simone, Cunningham, Sayegh, Steck, Ramos, Shrestha, Ardila, Burgos, Sillitti, Meeks, Chandler-Waterman
Add Art 29-BBB §§529 & 529-a, Gen Bus L
Requires payment card networks to use certain merchant category-codes for firearm and ammunition dealers.
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A09862 Text:

                STATE OF NEW YORK
                   IN ASSEMBLY
                                     April 24, 2024
        Introduced  by  M.  of A. SOLAGES, SIMON, THIELE, DARLING, L. ROSENTHAL,
          SIMONE, CUNNINGHAM, SAYEGH, STECK, K. BROWN -- read once and  referred
          to  the  Committee  on  Consumer  Affairs  and Protection -- committee
          discharged, bill amended, ordered reprinted as amended and recommitted
          to said committee
        AN ACT to amend the general  business  law,  in  relation  to  requiring
          payment  card  networks  to  use  certain  merchant category-codes for
          firearm merchants
          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  29-BBB to read as follows:
     3                               ARTICLE 29-BBB
     4                           CREDIT AND DEBIT CARDS
     5  Section 529.   Definitions.
     6          529-a. Merchant category-codes.
     7    §  529. Definitions.  For  the purposes of this article, the following
     8  terms shall have the following meanings:
     9    1. "Merchant acquirer" means an entity that establishes a relationship
    10  with a merchant for the purposes of processing credit, debit, or prepaid
    11  transactions.
    12    2. "Payment card network" means an entity that provides services  that
    13  route transactions between participants on the network to conduct debit,
    14  credit, or prepaid transactions for the purpose of authorization, clear-
    15  ance, or settlement.
    16    3.  "Person" includes an individual, corporation, partnership or asso-
    17  ciation, two or more persons having a joint or common  interest  or  any
    18  other legal or commercial entity.
    19    4. "Issuer" means a person who issues a credit card or a debit card.
    20    § 529-a. Merchant category-codes. 1. For the purposes of this section,
    21  the following terms shall have the following meanings:
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 9862--A                          2
     1    (a)  "Dealer  of ammunition" means any person who engages in the busi-
     2  ness of purchasing, selling or keeping ammunition in this state.
     3    (b)  "Dealer  of  firearms" means a gunsmith or dealers in firearms in
     4  this state licensed pursuant to section 400.00 of  the  penal  law,  for
     5  which  the  highest  sales  value  is,  or  is  expected to be, from the
     6  combined sale in New York of firearms, firearm accessories,  or  ammuni-
     7  tion, as stated by the business to its merchant acquirer in the ordinary
     8  course of business.
     9    (c) "Firearm" has the same meaning as that term is defined in subdivi-
    10  sion three of section 265.00 of the penal law.
    11    2.  (a)  On  or  before November first, two thousand twenty-four, each
    12  payment card network shall make the merchant category-code for  firearms
    13  and  ammunition businesses established by the international organization
    14  for standardization on September ninth, two thousand twenty-two,  avail-
    15  able for merchant acquirers that provide payment services for dealers of
    16  ammunition or dealers of firearms.
    17    (b)  On  and  after May first, two thousand twenty-five, each merchant
    18  acquirer shall assign  to  each  dealer  of  ammunition  and  dealer  of
    19  firearms in this state the merchant category-code for firearms and ammu-
    20  nition  businesses  established  by  the  international organization for
    21  standardization on September ninth, two thousand twenty-two.
    22    3. Whenever there shall be a violation of this section,  the  attorney
    23  general  shall  give written notice to the person violating this section
    24  identifying the specific provisions of this section  that  are  or  were
    25  being  violated.  The  attorney  general shall not bring an action under
    26  this section where, within thirty days of receiving such written notice,
    27  the person cures the violation and provides the attorney general with  a
    28  written statement confirming the violation was cured, including support-
    29  ing documentation on how the violation was cured, and stating how inter-
    30  nal  policies were changed to prevent such violations in the future.  If
    31  the violations were not cured or proper written notice not  received  by
    32  the attorney general within thirty days of written notice being received
    33  by such person violating this section, an application may be made by the
    34  attorney general in the name of the people of the state of New York to a
    35  court or justice having jurisdiction by a special proceeding to issue an
    36  injunction, and upon notice to the defendant of not less than five days,
    37  to  enjoin  and  restrain  the continuance of such violations; and if it
    38  shall appear to the satisfaction  of  the  court  or  justice  that  the
    39  defendant  has,  in  fact,  violated  this section, an injunction may be
    40  issued by such court or justice, enjoining and restraining  any  further
    41  violation,  without  requiring  proof that any person has, in fact, been
    42  injured or damaged thereby. In any such proceeding, the court  may  make
    43  allowances  to  the  attorney  general  as  provided in paragraph six of
    44  subdivision (a) of section eighty-three hundred three of the civil prac-
    45  tice law and rules, and direct restitution.  Whenever  the  court  shall
    46  determine  that  a violation of this section has occurred, the court may
    47  impose a civil penalty of not more than ten thousand  dollars  for  each
    48  violation  and reasonable attorney's fees and costs incurred in investi-
    49  gating and bringing an action under this section. In connection with any
    50  such proposed application, the attorney general is  authorized  to  take
    51  proof  and  make  a  determination  of  the  relevant facts and to issue
    52  subpoenas in accordance with the civil practice law and rules.
    53    § 2. This act shall take effect immediately.
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