Bill Text: NY A01541 | 2009-2010 | General Assembly | Introduced

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Bill Title: An act to amend the general business law, in relation to requiring retailers to hold in escrow the value of gift certificates issued

Spectrum: Partisan Bill (Democrat 19-0)

Status: (Introduced - Dead) 2010-05-25 - held for consideration in consumer affairs and protection [A01541 Detail]

Download: New_York-2009-A01541-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         1541
                              2009-2010 Regular Sessions
                                 I N  A S S E M B L Y
                                      (PREFILED)
                                    January 7, 2009
                                      ___________
       Introduced  by  M.  of  A.  REILLY, MARKEY, JAFFEE, BENEDETTO, DelMONTE,
         TOWNS, ROSENTHAL, PEOPLES, MAISEL, J. RIVERA -- Multi-Sponsored by  --
         M.  of  A. BOYLAND, BROOK-KRASNY, GALEF, GLICK, GREENE, KOON, LUPARDO,
         MAYERSOHN, McENENY, WEISENBERG  --  read  once  and  referred  to  the
         Committee on Consumer Affairs and Protection
       AN  ACT  to  amend  the  general  business law, in relation to requiring
         retailers to hold in escrow the value of gift certificates issued
         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 section
    2  396-ii to read as follows:
    3    S 396-II. GIFT CERTIFICATE ESCROW ACCOUNT. 1. FOR THE PURPOSES OF THIS
    4  SECTION,  "GIFT CERTIFICATE" IS DEFINED BY SECTION THREE HUNDRED NINETY-
    5  SIX-I OF THIS ARTICLE.
    6    2. ANY PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR  CORPORATION  WHO  OR
    7  WHICH  ISSUES GIFT CERTIFICATES MUST DEPOSIT AND HOLD FUNDS EQUAL TO THE
    8  FACE VALUE OF SUCH ISSUED GIFT CERTIFICATE IN AN ESCROW ACCOUNT.
    9    3. UPON THE CLOSING OR BANKRUPTCY OF ANY  PERSON,  FIRM,  PARTNERSHIP,
   10  ASSOCIATION  OR  CORPORATION HAVING ISSUED GIFT CERTIFICATES, THE HOLDER
   11  OF A GIFT CERTIFICATE SHALL BE ENTITLED TO REIMBURSEMENT IN  THE  AMOUNT
   12  EQUAL  TO  THE FACE VALUE OF THE GIFT CERTIFICATE FROM THE FUNDS HELD IN
   13  ESCROW AS PRESCRIBED IN SUBDIVISION TWO OF THIS SECTION.
   14    4. THE TERMS AND CONDITIONS OF THE  GIFT  CERTIFICATE  ESCROW  ACCOUNT
   15  SHALL  BE  CLEARLY  AND  CONSPICUOUSLY STATED IN ACCORDANCE WITH SECTION
   16  THREE HUNDRED NINETY-SIX-I OF THIS ARTICLE. TERMS AND  CONDITIONS  SHALL
   17  INCLUDE  THE  EXISTENCE  OF  THE GIFT CERTIFICATE ESCROW ACCOUNT AND THE
   18  EVENTS UPON WHICH  A  HOLDER  OF  A  GIFT  CERTIFICATE  IS  ENTITLED  TO
   19  REIMBURSEMENT  FROM  SUCH  ACCOUNT AS PRESCRIBED IN SUBDIVISION THREE OF
   20  THIS SECTION.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD03747-01-9
       A. 1541                             2
    1    S 2. Subdivision 3 of section 396-i of the general  business  law,  as
    2  amended  by  chapter  507  of  the  laws  of 2004, is amended to read as
    3  follows:
    4    3.  The  terms and conditions of a gift certificate store credit shall
    5  be clearly and conspicuously stated thereon. Terms and conditions  shall
    6  include  the  expiration date, whether any fees are assessed against the
    7  balance of the gift certificate, and whether a fee will be  charged  for
    8  the  replacement  of  a  gift  certificate  that  is  lost,  stolen,  or
    9  destroyed. Additional terms and conditions including, but not be limited
   10  to, policies related to refunds, warranties, POLICIES  RELATING  TO  THE
   11  GIFT  CERTIFICATE  ESCROW  ACCOUNT,  changes  in  terms  and conditions,
   12  assignment and waiver shall be conspicuously printed: (a)  on  the  gift
   13  certificate;  or  (b)  on  an  envelope or packaging containing the gift
   14  certificate, provided that a toll free telephone number  to  access  the
   15  additional  terms  and conditions is printed on the gift certificate; or
   16  (c) on an accompanying printed document, provided that a toll free tele-
   17  phone number to access the additional terms and conditions is printed on
   18  the gift certificate.
   19    S 3. This act shall take effect on the sixtieth  day  after  it  shall
   20  have become a law.