S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6559
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 19, 2023
                                ___________
 
 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
 42 to read as follows:
                                ARTICLE 42
                        CREDIT CARD TERMINAL LEASES
 SECTION 1100. SOLICITATION; MATERIAL MISREPRESENTATION.
         1101. CREDIT CARD TERMINAL; LEASE PROVISIONS.
         1102. VIOLATIONS.
   § 1100. 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 IN WRITING PRIOR  TO  THE
 PRESENTATION OF A SPECIFIC OFFER FOR A FINANCE LEASE:
   (A)  THE  NATURE AND SCOPE OF HIS OR HER 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 HE OR SHE  IS  AN  EMPLOYEE,
 INDEPENDENT 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.
                                                            LBD02287-01-3
              

 A. 6559                             2
 
   §   1101.  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  AND
 MODEL  YEAR  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;  (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 TERMI-
 NAL FROM ANOTHER SOURCE; AND (H) A CAP ON THE TOTAL COST THE  LESSEE  IS
 REQUIRED  TO PAY TO USE THE CREDIT CARD TERMINAL, WHICH SHALL NOT EXCEED
 THREE HUNDRED PERCENT OF THE LESSOR'S ORIGINAL PURCHASE  PRICE  FOR  THE
 CREDIT CARD TERMINAL OR, IF THE LESSOR IS THE MANUFACTURER OF THE CREDIT
 CARD TERMINAL, ITS TOTAL COST TO MANUFACTURE.
   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;
   (C) THE PERSON TO WHOM THE  LESSEE  SHOULD  DELIVER  THE  CREDIT  CARD
 TERMINAL FOR RETURN OR REPAIR; AND
   (D)  THE  SALES  REPRESENTATIVE  OR OTHER PERSON ACTING WITH ACTUAL OR
 APPARENT AUTHORITY ON BEHALF OF THE LESSOR TO SOLICIT THE FINANCE LEASE.
   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 FORTY-FIVE DAYS AFTER THE LESSOR PROVIDES A COPY  OF  THE  EXECUTED
 FINANCE LEASE TO THE LESSEE.
   (C) IF THE LESSEE EXERCISES HIS OR HER 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
 A. 6559                             3
 
 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.
   (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.
   § 1102. 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.