S T A T E   O F   N E W   Y O R K
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                                  4062

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 1, 2011
                               ___________

Introduced by M. of A. ORTIZ, ROBINSON -- Multi-Sponsored by -- M. of A.
  CLARK,  HIKIND, HOOPER, J. RIVERA, WRIGHT -- read once and referred to
  the Committee on Consumer Affairs and Protection

AN ACT to amend the general business law, in relation to  the  sale  and
  use of gift certificates and gift cards

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The general business law is amended by adding a new section
399-j to read as follows:
  S 399-J. SALE AND USE OF GIFT CERTIFICATES AND GIFT CARDS. 1.    DEFI-
NITIONS.  FOR  PURPOSES  OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
  A. "GIFT CERTIFICATE" SHALL  MEAN  A  WRITING  IDENTIFIED  AS  A  GIFT
CERTIFICATE BY A CONSUMER FOR USE BY A CUSTOMER, WHETHER OR NOT REDEEMA-
BLE  FOR  CASH,  AND  USABLE FOR ITS FACE AMOUNT IN LIEU OF CASH FOR THE
EXCHANGE OF GOODS OR SERVICES SUPPLIED BY THE SELLER. GIFT  CERTIFICATES
SHALL INCLUDE ELECTRONIC OR MAGNETIC CARDS WITH A BANKED DOLLAR VALUE, A
MERCHANDISE  CREDIT, A CERTIFICATE WHERE THE ISSUER HAS RECEIVED PAYMENT
FOR THE FULL FACE VALUE FOR THE FUTURE PURCHASE OR DELIVERY OF GOODS  OR
SERVICES,  AND  ANY  OTHER MEDIUM THAT EVIDENCES THE GIVING OF CONSIDER-
ATION IN EXCHANGE FOR THE RIGHT TO REDEEM IT FOR GOODS OR SERVICES OF AT
LEAST AN EQUAL VALUE. PRE-PAID CALLING ARRANGEMENTS,  SUCH  AS  PRE-PAID
PHONE  CARDS,  ARE  NOT  CONSIDERED GIFT CERTIFICATES FOR THE PURPOSE OF
THIS SECTION.
  B. "ELECTRONIC GIFT CARD" OR "MAGNETIC GIFT CARD" SHALL  MEAN  A  CARD
WITH  A  BANKED  DOLLAR VALUE THAT MAY BE REDEEMED FOR GOODS OR SERVICES
WHEREBY THE DOLLAR AMOUNT OF THE CARD IS REDUCED ACCORDINGLY.
  2. DURATION OF GIFT CERTIFICATE. A. ANY GIFT CERTIFICATE ISSUED  TO  A
CONSUMER SHALL BE VALID AND REDEEMABLE FOR A MINIMUM OF SEVEN YEARS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04530-01-1

A. 4062                             2
              

  B.  ANY  GIFT  CERTIFICATE,  OTHER THAN AN ELECTRONIC OR MAGNETIC GIFT
CARD, THAT IS NOT CLEARLY MARKED WITH BOTH A DATE OF ISSUANCE AND A DATE
OF EXPIRATION SHALL BE VALID AND REDEEMABLE IN PERPETUITY.
  C. AN ELECTRONIC OR MAGNETIC GIFT CARD THAT IS NOT CLEARLY MARKED WITH
BOTH  A  DATE OF ISSUANCE AND A DATE OF EXPIRATION MUST HAVE THE DATE OF
ISSUANCE AND THE DATE OF EXPIRATION EITHER: (I)  CLEARLY  PRINTED  ON  A
SALES  RECEIPT,  GIVEN  TO THE CUSTOMER AT THE TIME OF THE SALE; OR (II)
AVAILABLE THROUGH A WEBSITE AND A TOLL-FREE TELEPHONE NUMBER  LISTED  ON
THE  CARD.  IF  THE  CUSTOMER DOES NOT RECEIVE A RECEIPT WITH RESPECTIVE
DATES PRINTED ON IT, OR SUCH DATES ARE NOT AVAILABLE THROUGH THE  INTER-
NET AND A TOLL-FREE TELEPHONE LINE, THEN THE ELECTRONIC OR MAGNETIC GIFT
CARD SHALL BE VALID AND REDEEMABLE IN PERPETUITY.
  D.  NO  GIFT  CERTIFICATE SHALL DIMINISH IN VALUE FOR ANY REASON OTHER
THAN FOR THE PURCHASE OF GOODS OR SERVICES BY THE CONSUMER.
  3. REDEMPTION OF REMAINDER OF A GIFT CERTIFICATE. IF  A  GIFT  CERTIF-
ICATE  HAS LESS THAN TEN PERCENT OF ITS ORIGINAL BALANCE REMAINING AFTER
A PURCHASE, THE MERCHANT MUST OFFER THE CUSTOMER A CHOICE OF HAVING  THE
REMAINING BALANCE RETURNED IN THE FORM OF CASH OR IN THE FORM OF ANOTHER
GIFT CERTIFICATE.
  4. FINES AND PENALTIES FOR FAILING TO REDEEM A VALID GIFT CERTIFICATE.
ANY  PERSON  WHO  HAS  BEEN  INJURED  BY REASON OF ANY VIOLATION OF THIS
SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
FUL ACT OR PRACTICE, AN ACTION TO RECOVER HIS ACTUAL  DAMAGES  OR  THREE
HUNDRED  DOLLARS,  WHICHEVER IS GREATER, OR BOTH SUCH ACTIONS. THE COURT
MAY, IN ITS DISCRETION, INCREASE THE AWARD OF DAMAGES TO AN  AMOUNT  NOT
TO EXCEED THREE TIMES THE ACTUAL DAMAGES UP TO TWO THOUSAND FIVE HUNDRED
DOLLARS,  IF  THE  COURT  FINDS  THE  DEFENDANT  WILLFULLY  OR KNOWINGLY
VIOLATED THIS SECTION. THE COURT MAY AWARD REASONABLE ATTORNEY'S FEES TO
A PREVAILING PLAINTIFF.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have  become a law and shall apply to all gift certificates issued on or
after such effective date.