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A07610 Summary:

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A07610 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         7610--E
                                                                Cal. No. 302
 
                               2015-2016 Regular Sessions
 
                   IN ASSEMBLY
 
                                      May 20, 2015
                                       ___________
 
        Introduced  by  M.  of A. DINOWITZ, ABINANTI, GOTTFRIED, COLTON, CRESPO,
          GALEF, GUNTHER, SEPULVEDA, OTIS, HYNDMAN, SEAWRIGHT -- Multi-Sponsored
          by -- M. of A.  COOK, ENGLEBRIGHT, GLICK, HOOPER, RUSSELL,  WALKER  --
          read  once  and  referred  to  the  Committee  on Consumer Affairs and
          Protection -- reported and referred to the Committee on Rules -- Rules
          Committee discharged, bill amended, ordered reprinted as  amended  and
          recommitted  to  the Committee on Rules -- Rules Committee discharged,
          bill amended, ordered reprinted as  amended  and  recommitted  to  the
          Committee  on Rules -- passed by Assembly and delivered to the Senate,
          recalled from the Senate, vote  reconsidered,  bill  amended,  ordered
          reprinted,  retaining  its place on the special order of third reading
          -- advanced to a third reading, amended and ordered reprinted, retain-
          ing its place on the order of third reading -- again amended on  third
          reading,  ordered reprinted, retaining its place on the order of third
          reading
 
        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-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10404-20-6
        A. 7610--E                          2
 
     1  ed:  (a)  on  the  gift  certificate; or (b) on an envelope or packaging
     2  containing the gift certificate, provided that  a  toll  free  telephone
     3  number  to  access the additional terms and conditions is printed on the
     4  gift certificate; or (c) on an accompanying [printed] document, provided
     5  that  a  toll  free  telephone number to access the additional terms and
     6  conditions is printed on the gift certificate.
     7    5. (a) No retroactive fees shall be assessed against  a  gift  certif-
     8  icate.
     9    (b)  No  monthly service fees may be assessed against the balance of a
    10  gift certificate prior to the [thirteenth] twenty-fifth month of dorman-
    11  cy.
    12    (c) A service fee may be assessed after  the  twenty-fourth  month  of
    13  dormancy provided that any such fee shall be waived and the gift certif-
    14  icate  replenished  to its value prior to such fees being assessed where
    15  the holder of such gift  certificate  presents  the  certificate  within
    16  three years of issue.
    17    (d)  For  the purposes of this subdivision, "dormancy" shall mean non-
    18  use of a gift certificate. Use of a gift certificate shall include,  but
    19  not be limited to, adding value, or purchases.
    20    5-a.  It  shall  be  unlawful  for  any person to sell or issue a gift
    21  certificate where the underlying funds are subject to an expiration date
    22  which is earlier than five years  after  the  date  on  which  the  gift
    23  certificate was issued, or the date on which funds were last loaded to a
    24  store  gift card. The terms of expiration shall be clearly and conspicu-
    25  ously stated on the gift certificate.
    26    § 2. Subdivision 3-b of section 396-i of the general business law,  as
    27  amended  by  chapter  507  of  the  laws  of 2004, is amended to read as
    28  follows:
    29    3-b. Subparagraph (i) of paragraph (a) of subdivision two-a and subdi-
    30  vision five-a of this section shall not apply to gift certificates:
    31    (a) sold below face value or at a volume  discount  to  employees,  to
    32  nonprofit  and charitable organizations, or educational institutions for
    33  fundraising purposes; or
    34    (b) distributed to a consumer  or  employee  pursuant  to  an  awards,
    35  rewards, loyalty, or promotional program without any consideration being
    36  given in exchange for the gift certificate by the consumer or employee.
    37    §  3.  This  act shall take effect on the ninetieth day after it shall
    38  have become a law and shall apply to  gift  certificates  issued  on  or
    39  after such date.