STATE OF NEW YORK
        ________________________________________________________________________
                                          5398
                               2017-2018 Regular Sessions
                    IN SENATE
                                     March 24, 2017
                                       ___________
        Introduced  by  Sen.  ROBACH -- 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 a  franchisee's
          right to choose their own processing services provider
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Section 687 of the  general  business  law  is  amended  by
     2  adding a new subdivision 6 to read as follows:
     3    6.  It  is  unlawful to restrain a franchisee, directly or indirectly,
     4  from sourcing processing services for electronic  credit  cards,  credit
     5  cards,  credit  identifications,  debit  cards,  pre-paid cards or other
     6  transaction authorization cards from process services providers  of  the
     7  franchisee's  choosing where such services are used, or could be reason-
     8  ably anticipated to be used, by such franchisee in a  substantial amount
     9  of its commercial transactions. Notwithstanding anything in this  subdi-
    10  vision, it shall not be a violation of this subdivision for a franchisor
    11  to  promulgate  reasonable  written specified standards as to the nature
    12  and quality for such processing service providers.
    13    § 2. This act shall take effect immediately.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09306-01-7