Bill Text: NY S04771 | 2015-2016 | General Assembly | Amended

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Bill Title: Restricts fees on gift cards and gift certificates issued by merchants for goods and services; permits a service fee to be assessed after the twenty-fourth month.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-06-08 - SUBSTITUTED BY A7610E [S04771 Detail]

Download: New_York-2015-S04771-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                         4771--E
                               2015-2016 Regular Sessions
                    IN SENATE
                                     April 15, 2015
                                       ___________
        Introduced  by  Sen.  FUNKE  -- 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 Finance -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said  committee  --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee -- reported favorably from said committee and  committed  to
          the  Committee on Rules -- committee discharged, bill amended, ordered
          reprinted as amended and recommitted to said committee --  recommitted
          to the Committee on Consumer Protection in accordance with Senate Rule
          6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
          amended and recommitted to said  committee  --  committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee
        AN ACT to amend the general business law,  in  relation  to  restricting
          fees on gift cards and gift certificates
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Subdivisions 3 and 5 of section 396-i of the general  busi-
     2  ness law, as amended by chapter 507 of the laws of 2004, are amended and
     3  a new subdivision 5-a is added to read as 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, if any.  Additional terms and conditions including,  but  not
    10  [be]  limited  to,  policies  related to refunds, warranties, changes in
    11  terms and conditions, the  procedure  for  the  replacement  of  a  gift
    12  certificate, if any, assignment and waiver shall be conspicuously print-
    13  ed:  (a)  on  the  gift  certificate; or (b) on an envelope or packaging
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10404-19-6
        S. 4771--E                          2
     1  containing the gift certificate, provided that  a  toll  free  telephone
     2  number  to  access the additional terms and conditions is printed on the
     3  gift certificate; or (c) on an accompanying [printed] document, provided
     4  that  a  toll  free  telephone number to access the additional terms and
     5  conditions is printed on the gift certificate.
     6    5. (a) No retroactive fees shall be assessed against  a  gift  certif-
     7  icate.
     8    (b)  No  monthly service fees may be assessed against the balance of a
     9  gift certificate prior to the [thirteenth] twenty-fifth month of dorman-
    10  cy.
    11    (c) A service fee may be assessed after  the  twenty-fourth  month  of
    12  dormancy provided that any such fee shall be waived and the gift certif-
    13  icate  replenished  to its value prior to such fees being assessed where
    14  the holder of such gift  certificate  presents  the  certificate  within
    15  three years of issue.
    16    (d)  For  the purposes of this subdivision, "dormancy" shall mean non-
    17  use of a gift certificate. Use of a gift certificate shall include,  but
    18  not be limited to, adding value, or purchases.
    19    5-a.  It  shall  be  unlawful  for  any person to sell or issue a gift
    20  certificate where the underlying funds are subject to an expiration date
    21  which is earlier than five years  after  the  date  on  which  the  gift
    22  certificate was issued, or the date on which funds were last loaded to a
    23  store  gift card. The terms of expiration shall be clearly and conspicu-
    24  ously stated on the gift certificate.
    25    § 2. Subdivision 3-b of section 396-i of the general business law,  as
    26  amended  by  chapter  507  of  the  laws  of 2004, is amended to read as
    27  follows:
    28    3-b. Subparagraph (i) of paragraph (a) of subdivision two-a and subdi-
    29  vision five-a of this section shall not apply to gift certificates:
    30    (a) sold below face value or at a volume  discount  to  employees,  to
    31  nonprofit  and charitable organizations, or educational institutions for
    32  fundraising purposes; or
    33    (b) distributed to a consumer  or  employee  pursuant  to  an  awards,
    34  rewards, loyalty, or promotional program without any consideration being
    35  given in exchange for the gift certificate by the consumer or employee.
    36    §  3.  This  act shall take effect on the ninetieth day after it shall
    37  have become a law and shall apply to  gift  certificates  issued  on  or
    38  after such date.