S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9862
 
                           I N  A S S E M B L Y
 
                              April 24, 2024
                                ___________
 
 Introduced  by M. of A. SOLAGES -- read once and referred to the Commit-
   tee on Consumer Affairs and Protection
 
 AN ACT to amend the general  business  law,  in  relation  to  requiring
   issuers  of  credit  and  debit cards 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:
 
   Section 1. The general business law is amended by adding a new article
 29-BBB to read as follows:
 
                              ARTICLE 29-BBB
                          CREDIT AND DEBIT CARDS
 
 SECTION 529.   DEFINITIONS.
         529-A. MERCHANT CATEGORY CODES.
   §  529. DEFINITIONS.  FOR  THE PURPOSES OF THIS ARTICLE, THE FOLLOWING
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   1. "CREDIT CARD" MEANS AND INCLUDES ANY  CREDIT  CARD,  CREDIT  PLATE,
 CHARGE  PLATE,  COURTESY  CARD,  OR  OTHER IDENTIFICATION CARD OR DEVICE
 ISSUED BY A PERSON TO ANOTHER PERSON WHICH MAY BE USED TO OBTAIN A  CASH
 ADVANCE OR A LOAN OR CREDIT OR TO PURCHASE OR LEASE PROPERTY OR SERVICES
 ON THE CREDIT OF THE ISSUER OR OF THE HOLDER.
   2.  "DEBIT CARD" MEANS A CARD, PLATE OR OTHER SIMILAR DEVICE ISSUED BY
 A PERSON TO ANOTHER PERSON WHICH MAY BE USED, WITHOUT A  PERSONAL  IDEN-
 TIFICATION NUMBER, CODE OR SIMILAR IDENTIFICATION NUMBER, TO PURCHASE OR
 LEASE PROPERTY OR SERVICES. THE TERM DOES NOT INCLUDE A CREDIT CARD OR A
 CHECK, DRAFT OR SIMILAR INSTRUMENT.
   3.  "PERSON" INCLUDES AN INDIVIDUAL, CORPORATION, PARTNERSHIP OR ASSO-
 CIATION, TWO OR MORE PERSONS HAVING A JOINT OR COMMON  INTEREST  OR  ANY
 OTHER LEGAL OR COMMERCIAL ENTITY.
   4. "ISSUER" MEANS A PERSON WHO ISSUES A CREDIT CARD OR A DEBIT CARD.
   5. "HOLDER" MEANS A PERSON TO WHOM SUCH A CREDIT CARD OR DEBIT CARD IS
 ISSUED OR WHO HAS AGREED WITH THE ISSUER TO PAY OBLIGATIONS ARISING FROM
 THE USE OF A CREDIT CARD OR DEBIT CARD ISSUED TO ANOTHER PERSON.
   6.  "PROCESSOR" MEANS A PERSON WHO FACILITATES THE USE OF CREDIT CARDS
 OR DEBIT CARDS BETWEEN A HOLDER AND A SELLER.
 
              

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD13704-01-3
 A. 9862                             2
 
   7. "PROCESSOR SERVICE" MEANS THE CREDIT CARD  OR  DEBIT  CARD  FACILI-
 TATION SERVICE PROVIDED BY THE PROCESSOR.
   8.  "SELLER"  MEANS  ANY PERSON WHO HONORS CREDIT CARDS OR DEBIT CARDS
 WHICH MAY BE USED TO PURCHASE PROPERTY.
   § 529-A. MERCHANT CATEGORY CODES. 1. FOR THE PURPOSES OF THIS SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "DEALER OF AMMUNITION" MEANS ANY PERSON WHO ENGAGES IN  THE  BUSI-
 NESS OF PURCHASING, SELLING OR KEEPING AMMUNITION.
   (B)  "DEALER  OF  FIREARMS"  MEANS  A  GUNSMITH OR DEALERS IN FIREARMS
 LICENSED PURSUANT TO SECTION 400.00 OF THE PENAL LAW.
   (C) "FIREARM" HAS THE SAME MEANING AS THAT TERM IS DEFINED IN SUBDIVI-
 SION THREE OF SECTION 265.00 OF THE PENAL LAW.
   2. (A) ON OR BEFORE JULY FIRST, TWO THOUSAND TWENTY-FOUR, EACH  ISSUER
 SHALL  MAKE THE MERCHANT CATEGORY CODE FOR FIREARMS AND AMMUNITION BUSI-
 NESSES ESTABLISHED BY THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION
 ON SEPTEMBER NINTH, TWO THOUSAND TWENTY-TWO,  AVAILABLE  FOR  PROCESSORS
 WHICH  PROVIDE PROCESSOR SERVICES FOR SELLERS WHO ARE DEALERS OF AMMUNI-
 TION OR DEALERS OF FIREARMS.
   (B) ON AND AFTER MAY FIRST, TWO THOUSAND TWENTY-FIVE,  EACH  PROCESSOR
 SHALL  ASSIGN  TO  EACH  DEALER OF AMMUNITION AND DEALER OF FIREARMS THE
 MERCHANT CATEGORY CODE FOR FIREARMS  AND  AMMUNITION  BUSINESSES  ESTAB-
 LISHED  BY THE INTERNATIONAL ORGANIZATION FOR STANDARDIZATION ON SEPTEM-
 BER NINTH, TWO THOUSAND TWENTY-TWO.
   3. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION,  THE  ATTORNEY
 GENERAL  SHALL  GIVE WRITTEN NOTICE TO THE PERSON VIOLATING THIS SECTION
 IDENTIFYING THE SPECIFIC PROVISIONS OF THIS SECTION  THAT  ARE  OR  WERE
 BEING  VIOLATED.  THE  ATTORNEY  GENERAL SHALL NOT BRING AN ACTION UNDER
 THIS SECTION WHERE, WITHIN THIRTY DAYS OF RECEIVING SUCH WRITTEN NOTICE,
 THE PERSON CURES THE VIOLATION AND PROVIDES THE ATTORNEY GENERAL WITH  A
 WRITTEN STATEMENT CONFIRMING THE VIOLATION WAS CURED, INCLUDING SUPPORT-
 ING DOCUMENTATION ON HOW THE VIOLATION WAS CURED, AND STATING HOW INTER-
 NAL  POLICIES WERE CHANGED TO PREVENT SUCH VIOLATIONS IN THE FUTURE.  IF
 THE VIOLATIONS WERE NOT CURED OR PROPER WRITTEN NOTICE NOT  RECEIVED  BY
 THE ATTORNEY GENERAL WITHIN THIRTY DAYS OF WRITTEN NOTICE BEING RECEIVED
 BY SUCH PERSON VIOLATING THIS SECTION, AN APPLICATION MAY BE MADE BY THE
 ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE STATE OF NEW YORK TO A
 COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL PROCEEDING TO ISSUE AN
 INJUNCTION, AND UPON NOTICE TO THE DEFENDANT OF NOT LESS THAN FIVE DAYS,
 TO  ENJOIN  AND  RESTRAIN  THE CONTINUANCE OF SUCH VIOLATIONS; AND IF IT
 SHALL APPEAR TO THE SATISFACTION  OF  THE  COURT  OR  JUSTICE  THAT  THE
 DEFENDANT  HAS,  IN  FACT,  VIOLATED  THIS SECTION, AN INJUNCTION MAY BE
 ISSUED BY SUCH COURT OR JUSTICE, ENJOINING AND RESTRAINING  ANY  FURTHER
 VIOLATION,  WITHOUT  REQUIRING  PROOF THAT ANY PERSON HAS, IN FACT, BEEN
 INJURED OR DAMAGED THEREBY. IN ANY SUCH PROCEEDING, THE COURT  MAY  MAKE
 ALLOWANCES  TO  THE  ATTORNEY  GENERAL  AS  PROVIDED IN PARAGRAPH SIX OF
 SUBDIVISION (A) OF SECTION EIGHTY-THREE HUNDRED THREE OF THE CIVIL PRAC-
 TICE LAW AND RULES, AND DIRECT RESTITUTION.  WHENEVER  THE  COURT  SHALL
 DETERMINE  THAT  A VIOLATION OF THIS SECTION HAS OCCURRED, THE COURT MAY
 IMPOSE A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND  DOLLARS  FOR  EACH
 VIOLATION  AND REASONABLE ATTORNEY'S FEES AND COSTS INCURRED IN INVESTI-
 GATING AND BRINGING AN ACTION UNDER THIS SECTION. IN CONNECTION WITH ANY
 SUCH PROPOSED APPLICATION, THE ATTORNEY GENERAL IS  AUTHORIZED  TO  TAKE
 PROOF  AND  MAKE  A  DETERMINATION  OF  THE  RELEVANT FACTS AND TO ISSUE
 SUBPOENAS IN ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   § 2. This act shall take effect immediately.