NY State Senate Bill 2023-S8479A

Senate Bill S8479A

Signed By Governor

2023-2024 Legislative Session

Requires payment card networks to use certain merchant category-codes for firearm dealers

download bill text pdf

Current Bill Status - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Oct 09, 2024	approval memo.10 signed chap.430 delivered to governor
Jun 07, 2024	returned to senate passed assembly
Jun 06, 2024	ordered to third reading rules cal.506 substituted for a9862a
Jun 04, 2024	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1710 committee discharged and committed to rules
May 15, 2024	print number 8479a
May 15, 2024	amend (t) and recommit to codes
May 14, 2024	reported and committed to codes
Feb 05, 2024	referred to consumer protection

Votes

- Jun 4, 2024 - Floor Vote
  S8479A
  
  45
  
  Aye
  
  16
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 4, 2024
      
      aye (45)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Brisport
      
      Brouk
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Krueger
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      May
      
      Mayer
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      Webb
      
      Weber
      
      nay (16)
      
      Ashby
      
      Borrello
      
      Gallivan
      
      Griffo
      
      Helming
      
      Lanza
      
      Mattera
      
      Murray
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Rolison
      
      Stec
      
      Tedisco
      
      Weik
      
      excused (1)
      
      Walczyk
  Jun 4, 2024 - Rules Committee Vote
  S8479A
  
  13
  
  Aye
  
  6
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 4, 2024
      
      aye (13)
      
      Addabbo Jr.
      
      Bailey
      
      Breslin
      
      Comrie
      
      Fernandez
      
      Gianaris
      
      Krueger
      
      Liu
      
      Mayer
      
      Parker
      
      Sepúlveda
      
      Stewart-Cousins
      
      Thomas
      
      nay (6)
      
      Gallivan
      
      Helming
      
      Lanza
      
      O'Mara
      
      Ortt
      
      Stec
      
      aye wr (1)
      
      Griffo
  May 14, 2024 - Consumer Protection Committee Vote
  S8479A
  
  5
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: May 14, 2024
      
      aye (5)
      
      Brouk
      
      Gonzalez
      
      Kavanagh
      
      Myrie
      
      Thomas
      
      aye wr (2)
      
      Canzoneri-Fitzpatrick
      
      Weber

Bill Amendments

Original

A (Active)

co-Sponsors

2023-S8479 - Details

See Assembly Version of this Bill:: A9862
Law Section:: General Business Law
Laws Affected:: Add Art 29-BBB §§529 & 529-a, Gen Bus L

2023-S8479 - Summary

Requires payment card networks to use certain merchant category-codes for firearm and ammunition dealers.

2023-S8479 - Sponsor Memo

                                 
BILL NUMBER: S8479

SPONSOR: MYRIE
 
TITLE OF BILL:

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

 
PURPOSE 0R GENERAL IDEA OF BILL:

THE CREATION OF A NEW MERCHANT CATEGORY CODE FOR GUN AND AMMUNITION
RETAIL BUSINESSES AND DEALERS TO ENABLE FINANCIAL INSTITUTIONS TO MONI-
TOR SUSPICIOUS PURCHASING PATTERNS.

 
SUMMARY OF PROVISIONS:

SECTION 1 AMENDS THE GENERAL BUSINESS LAW, ADDING NEW ARTICLE 29-BBB
WHICH DEFINES THE TERMS "CREDIT CARD", "DEBIT CARD", "PERSON", "ISSUER",
"HOLDER", "PROCESSOR", "PROCESSOR SERVICE", "SELLER", "DEALER OF AMMUNI-
TION", "DEALER OF FIREARMS", AND "FIREARM".

THIS SECTION REQUIRES CREDIT OR DEBIT CARD ISSUERS TO MAKE THE MERCHANT
CATEGORY CODE FOR FIREARMS AND AMMUNITION BUSINESSES ESTABLISHED BY THE
INTERNATIONAL ORGANIZATION FOR STANDARDIZATION ON OR BEFORE JULY 1,
2024; REQUIRES CREDIT OR DEBIT CARD PROCESSORS TO ASSIGN A MERCHANT
CATEGORY FOR DEALERS OF FIREARMS AND AMMUNITION ESTABLISHED BY THE
INTERNATIONAL ORGANIZATION FOR STANDARDIZATION ON OR BY MAY 1, 2025.

THIS SECTION EMPOWERS THE ATTORNEY GENERAL TO BRING ACTION ON BEHALF OF
THE PEOPLE OF THE STATE OF NEW YORK IF VIOLATIONS OF THIS ACT HAVE NOT
BEEN CURED 30 DAYS AFTER A WRITTEN NOTICE.

SECTION 2 PROVIDES THE EFFECTIVE DATE.

 
JUSTIFICATION:

NEARLY 45,000 AMERICANS WERE KILLED WITH GUNS IN 2021, AND THE COUNTRY
EXPERIENCES GUN VIOLENCE AT RATES EXCEPTIONALLY HIGHER THAN OUR PEER
NATIONS. SINCE 2009, THERE HAVE BEEN 279 MASS SHOOTINGS RESULTING IN
MORE THAN 1,500 GUN DEATHS; MEANWHILE, THE SHOOTERS IN SOME OF THE WORST
MASS SHOOTINGS IN RECENT MEMORY USED CREDIT CARDS TO MAKE THEIR ARSENAL
PURCHASES.. FOR EXAMPLE, IN A MATTER OF SIX WEEKS, THE SHOOTER WHO
KILLED 12 PEOPLE AT AN AURORA MOVIE THEATER CHARGED $11,000 WORTH OF
GUNS, AMMUNITION, AND BODY ARMOR-TO A MASTERCARD. SIMILARLY, THE KILLER
WHO MASSACRED 60 PEOPLE ON THE LAS VEGAS STRIP USED CREDIT CARDS TO
PURCHASE GUNS AND AMMUNITION TOTALING NEARLY $100,000 IN THE 12 MONTHS
BEFORE THE ATTACK. THE PULSE NIGHTCLUB SHOOTER RACKED UP $26,000 IN
CREDIT CARD CHARGES ON GUNS AND AMMUNITION IN LESS THAN TWO WEEKS
PRECEDING THE CARNAGE THAT KILLED 49 PEOPLE AND WOUNDED 53. AS A PRECAU-
TIONARY MEASURE, THE SHOOTER SEARCHED ONLINE TO LEARN WHETHER HIS
"UNUSUAL SPENDING" PATTERN COULD BE DETECTED BY THE CREDIT CARD COMPA-
NIES AND FLAGGED FOR LAW ENFORCEMENT. AFTER BEING REASSURED THAT HE NEED
NOT WORRY ABOUT DETECTION, HE COMPLETED HIS PURCHASES AND IRREVOCABLY
DAMAGED COUNTLESS FAMILIES AND THE ORLANDO COMMUNITY AS A WHOLE.

REPORTING FROM THE WALL STREET JOURNAL IN APRIL 2018 EXPLAINED HOW BANKS
AND CREDIT CARD COMPANIES COULD HELP LAW ENFORCEMENT PREEMPT SOME MASS
SHOOTINGS BY IDENTIFYING SUSPICIOUS GUN PURCHASES THROUGH THE IMPLEMEN-
TATION OF A NEW MCC. LATER THAT YEAR, A DEALBOOK INVESTIGATION INTO THE
FINANCING OF MASS SHOOTINGS CONTINUED AND ACCELERATED.

MCCS ARE FOUR-DIGIT CODES MAINTAINED BY THE INTERNATIONAL ORGANIZATION
FOR STANDARDIZATION (ISO), WHICH CLASSIFY MERCHANTS BY THE NATURE OF
THEIR BUSINESSES. FINANCIAL INSTITUTIONS AND PAYMENT NETWORKS, INCLUDING
MASTERCARD AND AMERICAN EXPRESS, USE THE ISO STANDARD TO ASSIGN MCCS TO
MERCHANTS IN ORDER TO DETERMINE INTERCHANGE RATES, ASSESS TRANSACTION
RISKS, AND GENERALLY CATEGORIZE PAYMENTS.  CURRENTLY, UNIQUE MCCS EXIST
FOR "WIG AND TOUPEE SHOPS" AND "ELECTRIC RAZOR SHOPS," BUT NONE EXIST
FOR FIREARMS DEALERS.

THE CREATION OF A NEW MCC FOR GUN AND AMMUNITION RETAIL STORES WOULD BE
THE FIRST STEP TOWARDS FACILITATING THE COLLECTION OF VALUABLE FINANCIAL
DATA THAT COULD HELP LAW ENFORCEMENT IN COUNTERING THE FINANCING OF
TERRORISM EFFORTS. A NEW MCC CODE COULD MAKE IT EASIER FOR FINANCIAL
INSTITUTIONS TO MONITOR CERTAIN TYPES OF SUSPICIOUS ACTIVITIES INCLUDING
STRAW PURCHASES AND UNLAWFUL BULK PURCHASES THAT COULD BE USED IN THE
COMMISSION OF DOMESTIC TERRORIST ACTS OR GUN TRAFFICKING SCHEMES. SUCH
COORDINATION BETWEEN FINANCIAL INSTITUTIONS AND LAW ENFORCEMENT HAS BEEN
INSTRUMENTAL IN EFFORTS ACROSS THE FEDERAL GOVERNMENT TO IDENTIFY AND
PREVENT ILLICIT ACTIVITY.

 
PRIOR LEGISLATIVE HISTORY:

NEW BILL.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

NONE.

 
EFFECTIVE DATE:
THIS ACT SHALL TAKE EFFECT IMMEDIATELY.

2023-S8479 - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8479
 
                             I N  S E N A T E
 
                             February 5, 2024
                                ___________
 
 Introduced  by  Sen.  MYRIE  -- 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  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
 S. 8479                             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.

co-Sponsors

View additional co-sponsors

2023-S8479A (ACTIVE) - Details

See Assembly Version of this Bill:: A9862
Law Section:: General Business Law
Laws Affected:: Add Art 29-BBB §§529 & 529-a, Gen Bus L

2023-S8479A (ACTIVE) - Summary

Requires payment card networks to use certain merchant category-codes for firearm and ammunition dealers.

2023-S8479A (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S8479A

SPONSOR: MYRIE
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
payment card networks to use certain merchant category-codes for firearm
merchants

 
PURPOSE OR GENERAL IDEA OF BILL:

The creation of a new merchant category code for gun and ammunition
retail businesses and dealers to enable financial institutions to moni-
tor suspicious purchasing patterns.

 
SUMMARY OF PROVISIONS:

Section 1 amends the general business law, adding new article 29-BBB
which defines the terms "merchant acquirer", "payment card network",
"person", "issuer", "processor service", "seller", "dealer of ammuni-
tion", "dealer of firearms", and "firearm".

This section requires credit or debit card issuers to make the merchant
category code for firearms and ammunition businesses established by the
International Organization for Standardization on or before November 1,
2024; requires credit or debit card processors to assign a merchant
category for dealers of firearms and ammunition established by the
International Organization for Standardization on or by May 1, 2025.

This section empowers the Attorney General to bring action on behalf of
the people of the state of New York if violations of this act have not
been cured 30 days after a written notice.

Section 2 provides the effective date.

 
JUSTIFICATION:

Nearly 45,000 Americans were killed with guns in 2021, and the country
experiences gun violence at rates exceptionally higher than our peer
nations. Since 2009, there have been 279 mass shootings resulting in
more than 1,500 gun deaths; meanwhile, the shooters in some of the worst
mass shootings in recent memory used credit cards to make their arsenal
purchases.. For example, in a matter of six weeks, the shooter who
killed 12 people at an Aurora movie theater charged $11,000 worth of
guns, ammunition, and body armor-to a Mastercard. Similarly, the killer
who massacred 60 people on the Las Vegas strip used credit cards to
purchase guns and ammunition totaling nearly $100,000 in the 12 months
before the attack. The Pulse nightclub shooter racked up $26,000 in
credit card charges on guns and ammunition in less than two weeks
preceding the carnage that killed 49 people and wounded 53.  As a
precautionary measure, the shooter searched online to learn whether his
"unusual spending" pattern could be detected by the credit card compa-
nies and flagged for law enforcement. After being reassured that he need
not worry about detection, he completed his purchases and irrevocably
damaged countless families and the Orlando community as a whole.

Reporting from the Wall Street Journal in April 2018 explained how banks
and credit card companies could help law enforcement preempt some mass
shootings by identifying suspicious gun purchases through the implemen-
tation of a new MCC. Later that year, a Dealbook investigation into the
financing of mass shootings continued and accelerated.

MCCs are four-digit codes maintained by the International Organization
for Standardization (ISO), which classify merchants by the nature of
their businesses. Financial institutions and payment networks, including
MasterCard and American Express, use the ISO standard to assign MCCs to
merchants in order to determine interchange rates, assess transaction
risks, and generally categorize payments.  Currently, unique MCCs exist
for "wig and toupee shops" and "electric razor shops," but none exist
for firearms dealers.

The creation of a new MCC for gun and ammunition retail stores would be
the first step towards facilitating the collection of valuable financial
data that could help law enforcement in countering the financing of
terrorism efforts. A new MCC code could make it easier for financial
institutions to monitor certain types of suspicious activities including
straw purchases and unlawful bulk purchases that could be used in the
commission of domestic terrorist acts or gun trafficking schemes. Such
coordination between financial institutions and law enforcement has been
instrumental in efforts across the Federal government to identify and
prevent illicit activity.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2023-S8479A (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8479--A
 
                             I N  S E N A T E
 
                             February 5, 2024
                                ___________
 
 Introduced by Sens. MYRIE, CLEARE, GOUNARDES, HARCKHAM -- read twice and
   ordered  printed, and when printed to be committed to the Committee on
   Consumer Protection -- reported  favorably  from  said  committee  and
   committed  to  the  Committee  on  Codes -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 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:
 
   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. "MERCHANT ACQUIRER" MEANS AN ENTITY THAT ESTABLISHES A RELATIONSHIP
 WITH A MERCHANT FOR THE PURPOSES OF PROCESSING CREDIT, DEBIT, OR PREPAID
 TRANSACTIONS.
   2.  "PAYMENT CARD NETWORK" MEANS AN ENTITY THAT PROVIDES SERVICES THAT
 ROUTE TRANSACTIONS BETWEEN PARTICIPANTS ON THE NETWORK TO CONDUCT DEBIT,
 CREDIT, OR PREPAID TRANSACTIONS FOR THE PURPOSE OF AUTHORIZATION, CLEAR-
 ANCE, OR SETTLEMENT.
   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.
   § 529-A. MERCHANT CATEGORY-CODES. 1. FOR THE PURPOSES OF THIS SECTION,
 THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD13704-02-4
 S. 8479--A                          2
 
   (A) "DEALER OF AMMUNITION" MEANS ANY PERSON WHO ENGAGES IN  THE  BUSI-
 NESS OF PURCHASING, SELLING OR KEEPING AMMUNITION IN THIS STATE.
   (B)  "DEALER  OF  FIREARMS" MEANS A GUNSMITH OR DEALERS IN FIREARMS IN
 THIS STATE LICENSED PURSUANT TO SECTION 400.00 OF  THE  PENAL  LAW,  FOR
 WHICH  THE  HIGHEST  SALES  VALUE  IS,  OR  IS  EXPECTED TO BE, FROM THE
 COMBINED SALE IN NEW YORK OF FIREARMS, FIREARM ACCESSORIES,  OR  AMMUNI-
 TION, AS STATED BY THE BUSINESS TO ITS MERCHANT ACQUIRER IN THE ORDINARY
 COURSE OF BUSINESS.
   (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 NOVEMBER FIRST, TWO THOUSAND TWENTY-FOUR, EACH
 PAYMENT CARD NETWORK SHALL MAKE THE MERCHANT CATEGORY-CODE FOR  FIREARMS
 AND  AMMUNITION BUSINESSES ESTABLISHED BY THE INTERNATIONAL ORGANIZATION
 FOR STANDARDIZATION ON SEPTEMBER NINTH, TWO THOUSAND TWENTY-TWO,  AVAIL-
 ABLE FOR MERCHANT ACQUIRERS THAT PROVIDE PAYMENT SERVICES FOR DEALERS OF
 AMMUNITION OR DEALERS OF FIREARMS.
   (B)  ON  AND  AFTER MAY FIRST, TWO THOUSAND TWENTY-FIVE, EACH MERCHANT
 ACQUIRER SHALL ASSIGN  TO  EACH  DEALER  OF  AMMUNITION  AND  DEALER  OF
 FIREARMS IN THIS STATE THE MERCHANT CATEGORY-CODE FOR FIREARMS AND AMMU-
 NITION  BUSINESSES  ESTABLISHED  BY  THE  INTERNATIONAL ORGANIZATION FOR
 STANDARDIZATION ON SEPTEMBER 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.

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Senate Bill S8479A

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Sponsored By

Current Bill Status - Signed by Governor

Bill Amendments

co-Sponsors

2023-S8479 - Details

2023-S8479 - Summary

2023-S8479 - Sponsor Memo

2023-S8479 - Bill Text download pdf

co-Sponsors

2023-S8479A (ACTIVE) - Details

2023-S8479A (ACTIVE) - Summary

2023-S8479A (ACTIVE) - Sponsor Memo

2023-S8479A (ACTIVE) - Bill Text download pdf

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