S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4730
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 3, 2017
                                ___________
 
 Introduced by M. of A. WALTER -- read once and referred to the Committee
   on Consumer Affairs and Protection
 
 AN ACT to amend the general business law, in relation to service charges
   on 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
 396-ii to read as follows:
   § 396-II. GIFT CERTIFICATES AND GIFT CARDS. 1.  FOR  THE  PURPOSES  OF
 THIS SECTION:
   (A)  "GIFT  CERTIFICATES"  SHALL MEAN A WRITTEN PROMISE IN A SPECIFIED
 AMOUNT WHICH CANNOT BE INCREASED  IN  VALUE  ON  THE  FACE  THEREOF  AND
 PURCHASED  BY  A CONSUMER IN EXCHANGE FOR PAYMENT TO PROVIDE MERCHANDISE
 OR SERVICE IN A SPECIFIED AMOUNT OR OF EQUAL VALUE TO THE BEARER OF  THE
 CERTIFICATE.
   (B) "GIFT CARDS" SHALL MEAN A CARD WHICH MAY BE PURCHASED BY A CONSUM-
 ER IN EXCHANGE FOR PAYMENT TO PROVIDE MERCHANDISE OR SERVICE IN A SPECI-
 FIED AMOUNT OF EQUAL VALUE TO THE BEARER OF THE CARD.
   (C)  "DORMANCY" SHALL MEAN NON-USE OF A GIFT CERTIFICATE OR GIFT CARD.
 ADDING VALUE OR BALANCE INQUIRIES CONSTITUTES USE OF THE GIFT CARD.
   2. IT SHALL BE UNLAWFUL FOR ANY BUSINESS ENTITY,  INCLUDING,  BUT  NOT
 LIMITED TO, SOLE PROPRIETORSHIP, FIRM, COMPANY, PARTNERSHIP, ASSOCIATION
 OR  CORPORATION  TO  SELL  TO A CONSUMER GIFT CERTIFICATES OR GIFT CARDS
 THAT DIMINISH IN VALUE DUE TO DORMANCY AFTER SUCH  GIFT  CERTIFICATE  OR
 GIFT CARD IS PURCHASED.
   3.  NO  SURCHARGES  OR  FEES, INCLUDING, BUT NOT LIMITED TO, DORMANCY,
 ADMINISTRATIVE, SERVICE, RETROACTIVITY OR REACTIVATION SHALL BE ASSESSED
 AGAINST GIFT CERTIFICATES OR GIFT CARDS.
   4. THE TERMS AND CONDITIONS OF THE GIFT CERTIFICATE OR GIFT CARD SHALL
 BE CLEARLY AND CONSPICUOUSLY STATED THEREON. THE  TERMS  AND  CONDITIONS
 SHALL INCLUDE, BUT ARE NOT LIMITED TO, THE EXPIRATION DATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD04745-01-7

 A. 4730                             2
 
   5. WHENEVER THERE SHALL BE A VIOLATION OF THIS SECTION, AN APPLICATION
 MAY  BE  MADE  BY  THE ATTORNEY GENERAL IN THE NAME OF THE PEOPLE OF THE
 STATE OF NEW YORK TO A COURT OR JUSTICE HAVING JURISDICTION BY A SPECIAL
 PROCEEDING TO ISSUE AN INJUNCTION, AND UPON NOTICE TO THE  DEFENDANT  OF
 NOT  LESS THAN FIVE DAYS, TO ENJOIN AND RESTRAIN THE CONTINUANCE OF SUCH
 VIOLATION; AND IF IT SHALL APPEAR TO THE SATISFACTION OF  THE  COURT  OR
 JUSTICE  THAT  THE  DEFENDANT  HAS,  IN  FACT, VIOLATED THIS SECTION, AN
 INJUNCTION MAY BE  ISSUED  BY  SUCH  COURT  OR  JUSTICE,  ENJOINING  AND
 RESTRAINING  ANY  FURTHER  VIOLATION,  WITHOUT  REQUIRING PROOF THAT ANY
 PERSON HAS, IN FACT, BEEN  INJURED  OR  DAMAGED  THEREBY.  IN  ANY  SUCH
 PROCEEDING,  THE  COURT  MAY  MAKE ALLOWANCES TO THE ATTORNEY GENERAL AS
 PROVIDED IN PARAGRAPH SIX OF SUBDIVISION  (A)  OF  SECTION  EIGHTY-THREE
 HUNDRED  THREE  OF  THE CIVIL PRACTICE LAW AND RULES AND DIRECT RESTITU-
 TION. WHENEVER THE COURT  SHALL  DETERMINE  THAT  A  VIOLATION  OF  THIS
 SECTION  HAS  OCCURRED, THE COURT MAY IMPOSE A CIVIL PENALTY OF NOT MORE
 THAN ONE THOUSAND DOLLARS FOR SUCH VIOLATION.  IN  CONNECTION  WITH  ANY
 SUCH  APPLICATION,  THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE PROOF AND
 MAKE A DETERMINATION OF THE RELEVANT FACTS AND  TO  ISSUE  SUBPOENAS  IN
 ACCORDANCE WITH THE CIVIL PRACTICE LAW AND RULES.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.