Bill Text: NY S06898 | 2015-2016 | General Assembly | Introduced

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Bill Title: Relates to gift certificates and gift cards; prohibits expiration dates and dormancy service fees in certain instances; and requires retailers to redeem card balances of $10 or less for cash at consumer's request.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2016-03-04 - REFERRED TO CONSUMER PROTECTION [S06898 Detail]

Download: New_York-2015-S06898-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          6898
                    IN SENATE
                                      March 4, 2016
                                       ___________
        Introduced  by  Sen.  AVELLA -- 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  gift  certif-
          icates  and  gift  cards; and to repeal certain provisions of such law
          relating thereto
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Section 396-i of the general business law is REPEALED and a
     2  new section 396-i is added to read as follows:
     3    § 396-i. Gift certificates and gift cards. 1. For the purposes of this
     4  section:
     5    (a)  the  term  "gift  certificate"  shall mean a written promise in a
     6  specified amount which cannot be increased in value on the face  thereof
     7  and  purchased by a consumer in exchange for payment to provide merchan-
     8  dise or service in a specified amount or of equal value to the bearer of
     9  the certificate.
    10    (b) "gift cards" shall mean a card which may be purchased by a consum-
    11  er in exchange for payment to provide merchandise or service in a speci-
    12  fied amount of equal value to the bearer of the card.
    13    2. It is unlawful for any person or entity to sell a gift  certificate
    14  or gift card to a purchaser that contains any of the following:
    15    (a) An expiration date; or
    16    (b)  A  service  fee, including, but not limited to, a service fee for
    17  dormancy, except as provided in subdivision six of this section.
    18    3. (a) Any gift certificate sold after January first,  nineteen  nine-
    19  ty-seven,  is  redeemable  in  cash  for  its  cash value, or subject to
    20  replacement with a new gift certificate at no cost to the  purchaser  or
    21  holder.
    22    (b)  Notwithstanding  paragraph  (a)  of  this  subdivision,  any gift
    23  certificate with a cash value of less than ten dollars is redeemable  in
    24  cash for its cash value.
    25    4.  A  gift certificate sold without an expiration date is valid until
    26  redeemed or replaced.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13049-01-5