Bill Text: NY A08652 | 2019-2020 | General Assembly | Introduced

New York Assembly Bill 8652 (Prior Session Legislation)

NOTE: There are more recent revisions of this legislation. Read Latest Draft

Bill Title: Relates to fees for gift cards; limits the amount a merchant may charge for the gift card; and prohibits the expiration of such gift cards.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-14 - print number 8652a [A08652 Detail]

Download: New_York-2019-A08652-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________

                                          8652

                               2019-2020 Regular Sessions

                   IN ASSEMBLY

                                     October 2, 2019
                                       ___________

        Introduced by M. of A. WEPRIN -- read once and referred to the Committee
          on Consumer Affairs and Protection

        AN  ACT  to amend the general business law, in relation to fees for gift
          cards

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivisions  1,  3,  5,  and 5-a of section 396-i of the
     2  general business law, subdivision 1 as amended by  chapter  170  of  the
     3  laws  of 2004 and subdivisions 3 and 5 as amended and subdivision 5-a as
     4  added by chapter 329 of the laws of 2016, are amended and a new subdivi-
     5  sion 5-b is added to read as follows:
     6    1. For the purposes of this section, "gift certificate" shall  mean  a
     7  [written  promise  or electronic payment device that: (i) is usable at a
     8  single merchant or an affiliated group of merchants that share the  same
     9  name, mark, or logo, or is usable at multiple, unaffiliated merchants or
    10  service  providers;  and (ii) is issued in a specified amount; and (iii)
    11  may or may not be increased in value or reloaded; and (iv) is  purchased
    12  and/or  loaded on a prepaid basis for the future purchase or delivery of
    13  any goods or services; and (v) is  honored  upon  presentation]  certif-
    14  icate,  electronic  card,  or other pre-funded record that evidences the
    15  giving of consideration in exchange for the right to redeem such  record
    16  for  goods, services, credit, or money of at least an equal value to the
    17  amount shown on, embedded in, or associated with,  such  record.    Gift
    18  certificate  shall  not include an electronic payment device linked to a
    19  deposit account, or prepaid  telephone  calling  cards  regulated  under
    20  section  ninety-two-f  of  the public service law. Gift certificate also
    21  shall not include flexible spending arrangements as defined  in  Section
    22  106(c)(2)  of the Internal Revenue Code, 26 U.S.C. § 106(c)(2); flexible
    23  spending accounts subject to Section 125 of the Internal  Revenue  Code,
    24  26  U.S.C. § 125; Archer MSAs as defined in Section 220(d) of the Inter-
    25  nal Revenue Code, 26  U.S.C.  §  220(d);  dependent  care  reimbursement
    26  accounts  subject to Section 129 of the Internal Revenue Code, 26 U.S.C.
    27  § 129; health savings accounts subject to Section 223(d) of the Internal
    28  Revenue Code, 26 U.S.C. § 223(d), as amended  by  Section  1201  of  the

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11662-02-9

        A. 8652                             2

     1  Medicare  Prescription Drug, Improvement, and Modernization Act of 2003,
     2  Pub. L.  No. 108-173; or similar accounts from which, under the Internal
     3  Revenue Code and  its  implementing  regulations,  individuals  may  pay
     4  medical  expenses,  health  care  expenses,  dependent care expenses, or
     5  similar expenses on a pretax basis.  Gift  certificate  also  shall  not
     6  include  a  prepaid discount card or program used to purchase identified
     7  goods or services at a price or percentage below the normal and  custom-
     8  ary  price;  provided  that  [the]  any  expiration  date of the prepaid
     9  discount card or program is clearly and  conspicuously  disclosed.  Gift
    10  certificate  also  shall  not  include payroll cards or other electronic
    11  payment devices which are linked to a  deposit  account  and  which  are
    12  given in exchange for goods or services rendered.
    13    3.  The  terms and conditions of a gift certificate store credit shall
    14  be clearly and conspicuously stated thereon. Terms [and conditions shall
    15  include the expiration date, whether any fees are assessed  against  the
    16  balance  of  the gift certificate, and whether a fee will be charged for
    17  the  replacement  of  a  gift  certificate  that  is  lost,  stolen,  or
    18  destroyed,  if  any. Additional terms] and conditions including, but not
    19  limited to, policies related to refunds, warranties,  changes  in  terms
    20  and conditions, the procedure for the replacement of a gift certificate,
    21  if any, assignment and waiver shall be conspicuously printed: (a) on the
    22  gift certificate; or (b) on an envelope or packaging containing the gift
    23  certificate,  provided  that  a toll free telephone number to access the
    24  additional terms and conditions is printed on the gift  certificate;  or
    25  (c)  on  an  accompanying  document, provided that a toll free telephone
    26  number to access the additional terms and conditions is printed  on  the
    27  gift certificate.
    28    5.  (a) No person, firm, partnership, association or corporation shall
    29  charge or assess, or sell or issue any gift certificate subject to,  any
    30  activation  fee,  retroactive  [fees  shall  be  assessed against a gift
    31  certificate.
    32    (b) No monthly] fee, redemption fee, service  [fees  may  be  assessed
    33  against  the  balance  of  a  gift certificate prior to the twenty-fifth
    34  month of dormancy] fee, dormancy fee, latency fee,  administrative  fee,
    35  handling  fee, access fee, periodic fee, renewal fee, re-loading fee, or
    36  any other post-purchase fee of any kind.
    37    [(c) A service fee may be assessed after the  twenty-fourth  month  of
    38  dormancy provided that any such fee shall be waived and the gift certif-
    39  icate  replenished  to its value prior to such fees being assessed where
    40  the holder of such gift  certificate  presents  the  certificate  within
    41  three  years  of issue] (b) No person, firm, partnership, association or
    42  corporation shall sell a gift certificate  that  has  a  face  value  or
    43  balance that declines as a result of the passage of time or the dormancy
    44  of the gift certificate.
    45    [(d)]  (c) For the purposes of this subdivision, "dormancy" shall mean
    46  non-use of a gift certificate. Use of a gift certificate shall  include,
    47  but not be limited to, adding value, or purchases.
    48    5-a.  It  shall  be  unlawful  for  any person to sell or issue a gift
    49  certificate where the gift  certificate  or  the  underlying  funds  are
    50  subject  to  an  expiration date [which is earlier than five years after
    51  the date on which the gift certificate was issued, or the date on  which
    52  funds  were  last  loaded  to a store gift card. The terms of expiration
    53  shall be clearly and conspicuously stated on the gift certificate].
    54    5-b. A gift card with a remaining value of twenty dollars or less  may
    55  be redeemed for its cash value.
    56    § 2. This act shall take effect immediately.