Bill Text: NY S00540 | 2023-2024 | General Assembly | Introduced
Bill Title: Enacts provisions relating to the lease of credit card terminals; requires disclosures; prohibits certain practices.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Engrossed) 2024-03-18 - referred to consumer affairs and protection [S00540 Detail]
Download: New_York-2023-S00540-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 540 2023-2024 Regular Sessions IN SENATE January 4, 2023 ___________ Introduced by Sens. THOMAS, COMRIE, MYRIE, PERSAUD, SEPULVEDA -- 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 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: 1 Section 1. The general business law is amended by adding a new article 2 42 to read as follows: 3 ARTICLE 42 4 CREDIT CARD TERMINAL LEASES 5 Section 1100. Solicitation; material misrepresentation. 6 1101. Credit card terminal; lease provisions. 7 1102. Violations. 8 § 1100. Solicitation; material misrepresentation. 1. As used in this 9 article, "credit card terminal" means physical equipment used at the 10 point of sale to accept payment by a payment card, including a credit 11 card, debit card, EBT card, prepaid card, or gift card. 12 2. A person who solicits a finance lease for the use of a credit card 13 terminal shall accurately disclose, orally and in writing prior to the 14 presentation of a specific offer for a finance lease: 15 (a) the nature and scope of his or her relationship to the person or 16 persons who own, lease, service, and finance the credit card terminal 17 and to the person or persons, if known, who provide services related to 18 the credit card terminal, including whether he or she is an employee, 19 independent contractor, or agent of one or more of those persons; and 20 (b) whether the person who solicits the finance lease has the authori- 21 ty to negotiate terms of a finance lease with a prospective lessee. 22 3. The written disclosure should be in no less than twelve point font. 23 The disclosure should be written in the primary language used to commu- EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD02287-01-3S. 540 2 1 nicate with the prospective lessee and worded in the same or similar 2 language used by the person soliciting the finance lease. 3 § 1101. Credit card terminal; lease provisions. The following 4 provisions apply to a finance lease for the use of a credit card termi- 5 nal: 6 1. The finance lease shall be written in no less than twelve point 7 font, in the primary language used to communicate with the lessee and 8 shall be worded in the same or similar language used by the person 9 soliciting the finance lease. 10 2. The finance lease shall specify: (a) the terms; (b) the total 11 price; (c) the total monthly payment due, including any recurring month- 12 ly fees or charges; (d) any other penalties, charges, or fees and the 13 conditions under which they may be incurred; (e) the make and model and 14 model year of the credit card terminal being leased; (f) whether the 15 lessee has the option to purchase the credit card terminal, and if so, 16 the purchase price and terms; (g) if the lessor does not offer the 17 option to purchase the credit card terminal, a disclaimer that the 18 lessee may be able to purchase the same or a similar credit card termi- 19 nal from another source; and (h) a cap on the total cost the lessee is 20 required to pay to use the credit card terminal, which shall not exceed 21 three hundred percent of the lessor's original purchase price for the 22 credit card terminal or, if the lessor is the manufacturer of the credit 23 card terminal, its total cost to manufacture. 24 3. (a) If the lessor of a credit card terminal or an affiliated busi- 25 ness also provides payment processing services for the terminal, includ- 26 ing credit card processing services, the delivery of such processing 27 services shall be the subject of a service agreement between the service 28 provider and the business that is separate from the finance lease. 29 (b) If the lessor or its affiliated business offers a discount for 30 bundling the credit card terminal finance lease with the delivery of 31 payment processing services, the lessor shall state that information in 32 the finance lease. 33 4. The finance lease shall clearly and conspicuously identify the 34 lessor of the credit card terminal and the name, mailing address, tele- 35 phone number, e-mail address or website, and relationship to the lessor 36 of: 37 (a) the person to whom the lessee is required to make payments for the 38 credit card terminal; 39 (b) the person to whom the lessee should contact with questions or 40 problems concerning the credit card terminal; 41 (c) the person to whom the lessee should deliver the credit card 42 terminal for return or repair; and 43 (d) the sales representative or other person acting with actual or 44 apparent authority on behalf of the lessor to solicit the finance lease. 45 5. If at any time the contact information provided to the lessee 46 changes, a notification of such change shall be provided to the lessee 47 within five business days. 48 6. (a) A lessor shall provide a copy of the executed finance lease to 49 the lessee and shall retain a written or electronic copy of such finance 50 lease and proof of delivery of the executed lease for not less than four 51 years after the lease terminates. 52 (b) A lessee shall have the right to cancel a finance lease not later 53 than forty-five days after the lessor provides a copy of the executed 54 finance lease to the lessee. 55 (c) If the lessee exercises his or her right to cancel: (i) the lessor 56 may retain any payments made by the lessee after the lessor delivered aS. 540 3 1 copy of the executed finance lease; and (ii) the lessor may impose a 2 reasonable cancellation fee, not to exceed the total monthly payment 3 amount specified in paragraph (c) of subdivision two of this section. A 4 lessee is not required to pay a cancellation fee if there is evidence of 5 fraud or illegality. 6 7. (a) If the judicial forum chosen by the parties to the lease is a 7 forum that would not otherwise have jurisdiction over the lessee, the 8 choice is not enforceable. 9 (b) A lessor shall not collect any charge or fee for business personal 10 property tax on the credit card terminal unless the tax is actually 11 imposed. 12 § 1102. Violations. Any person, firm, corporation or association or 13 agent or employee thereof who violates this article shall be liable for 14 a civil penalty of five thousand dollars for each violation. The attor- 15 ney general or the district attorney of any county may bring an action 16 in the name of the people of the state to restrain or prevent any 17 violation of this article or any continuance of any such violation. 18 § 2. The attorney general is authorized to promulgate any rule or 19 regulation necessary for the implementation of this act. 20 § 3. This act shall take effect immediately.
