S T A T E   O F   N E W   Y O R K
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                                  5915

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                              March 8, 2013
                               ___________

Introduced by M. of A. ORTIZ, ROBINSON -- Multi-Sponsored by -- M. of A.
  CLARK, HIKIND, RIVERA, WRIGHT -- read once and referred to the Commit-
  tee 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.
                                                           LBD09373-01-3

A. 5915                             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.