NY State Senate Bill 2017-S1689

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to consumer protection
Jan 10, 2017	referred to consumer protection

2017-S1689 (ACTIVE) - Details

Current Committee:: Senate Consumer Protection
Law Section:: General Business Law
Laws Affected:: Rpld & add §396-i, Gen Bus L
Versions Introduced in 2015-2016 Legislative Session:: S6898

2017-S1689 (ACTIVE) - Summary

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.

2017-S1689 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1689

 TITLE OF BILL :

An act to amend the general business law, in relation to gift
certificates and gift cards; and to repeal certain provisions of such
law relating thereto

 PURPOSE :

To make it unlawful for any person or entity to sell a gift
certificate to a purchaser with an expiration date or a service fee,
unless the consumer is properly notified, and requires sellers to
redeem gift certificates with balances of ten dollars or less for cash
at the consumer's request.

 SUMMARY OF PROVISIONS :

Section 1 of this bill repeals section 396-i of the general business
law and a new section 396-i is added to regulate gift certificates and
gift cards. This section makes it unlawful for any person or entity to
sell a gift certificate to a purchaser with an expiration date or a
service fee, unless the consumer is properly notified, and requires
sellers to redeem gift certificates with balances of ten dollars or
less for cash at the consumer's request.

Section 2 of this bill states that this act shall take effect on the
ninetieth day after is shall have become a law and shall apply to gift
certificates and gift cards issued on or after such date.

 JUSTIFICATION :

Currently, under federal law, the Credit Card Accountability
Responsibility and Disclosure Act of 2009 (the CARD Act) provides
consumers several gift card protections, including limits on
expiration dates and service fees. For example, money on store-issued
and bank-issued gift cards cannot expire before five years from the
date of purchase or when money what last loaded onto the card.
Inactivity fees are prohibited unless cards have not been used in 12
months.

Cards with a network logo-such as Visa or Mastercard, are protected
under the CARD Act. Store-issued gift cards also have CARD Act
protections, but are subject to additional gift card protections under
state laws. Most states have adopted rules that give consumers
protections above and beyond CARD Act protections.

In New York-known as a "less restrictive state" expiration dates and
fees that will be charged along with other terms and conditions must
be clearly and conspicuously stated on the card, package, or
accompanying printed document. No dormancy fees can be charged before
the 13t month of inactivity and retailers are required to provide
store credit for gift cards.

This bill would enhance protections for consumers in ways many other
states have already done by prohibiting expiration dates and service
fees in certain situations, and would require retailers to provide
cash for gift cards when values drop below ten dollars.

 LEGISLATIVE HISTORY :

New Bill.

 FISCAL IMPLICATIONS :

To be determined.
 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after is shall have
become a law and shall apply to gift certificates and gift cards
issued on or after such date.

2017-S1689 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1689
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2017
                                ___________
 
 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:
 
   Section 1. Section 396-i of the general business law is REPEALED and a
 new section 396-i is added to read as follows:
   § 396-I. GIFT CERTIFICATES AND GIFT CARDS. 1. FOR THE PURPOSES OF THIS
 SECTION:
   (A)  THE  TERM  "GIFT  CERTIFICATE"  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 MERCHAN-
 DISE 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.
   2. IT IS UNLAWFUL FOR ANY PERSON OR ENTITY TO SELL A GIFT  CERTIFICATE
 OR GIFT CARD TO A PURCHASER THAT CONTAINS ANY OF THE FOLLOWING:
   (A) AN EXPIRATION DATE; OR
   (B)  A  SERVICE  FEE, INCLUDING, BUT NOT LIMITED TO, A SERVICE FEE FOR
 DORMANCY, EXCEPT AS PROVIDED IN SUBDIVISION SIX OF THIS SECTION.
   3. (A) ANY GIFT CERTIFICATE SOLD AFTER JANUARY FIRST,  NINETEEN  NINE-
 TY-SEVEN,  IS  REDEEMABLE  IN  CASH  FOR  ITS  CASH VALUE, OR SUBJECT TO
 REPLACEMENT WITH A NEW GIFT CERTIFICATE AT NO COST TO THE  PURCHASER  OR
 HOLDER.
   (B)  NOTWITHSTANDING  PARAGRAPH  (A)  OF  THIS  SUBDIVISION,  ANY GIFT
 CERTIFICATE WITH A CASH VALUE OF LESS THAN TEN DOLLARS IS REDEEMABLE  IN
 CASH FOR ITS CASH VALUE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD01227-01-7

 S. 1689                             2
 
   4.  A  GIFT CERTIFICATE SOLD WITHOUT AN EXPIRATION DATE IS VALID UNTIL
 REDEEMED OR REPLACED.
   5.  THIS  SECTION  DOES NOT APPLY TO ANY OF THE FOLLOWING GIFT CERTIF-
 ICATES ISSUED ON OR AFTER JANUARY FIRST, NINETEEN HUNDRED  NINETY-EIGHT,
 PROVIDED  THE  EXPIRATION  DATE  APPEARS  IN CAPITAL LETTERS IN AT LEAST
 TEN-POINT FONT ON THE FRONT OF THE GIFT CERTIFICATE:
   (A) GIFT CERTIFICATES THAT ARE DISTRIBUTED BY THE ISSUER TO A CONSUMER
 PURSUANT TO AN AWARDS, LOYALTY, OR PROMOTIONAL PROGRAM WITHOUT ANY MONEY
 OR OTHER THING OF VALUE BEING GIVEN IN EXCHANGE FOR THE GIFT CERTIFICATE
 BY THE CONSUMER;
   (B) GIFT CERTIFICATES THAT ARE DONATED OR SOLD BELOW FACE VALUE  AT  A
 VOLUME  DISCOUNT  TO  EMPLOYERS OR TO NONPROFIT AND CHARITABLE ORGANIZA-
 TIONS FOR FUNDRAISING PURPOSES IF THE  EXPIRATION  DATE  ON  THOSE  GIFT
 CERTIFICATES IS NOT MORE THAN THIRTY DAYS AFTER THE DATE OF SALE; OR
   (C) GIFT CERTIFICATES THAT ARE ISSUED FOR PERISHABLE FOOD PRODUCTS.
   6.  PARAGRAPH  (B) OF SUBDIVISION THREE OF THIS SECTION DOES NOT APPLY
 TO A DORMANCY FEE ON A GIFT CARD THAT MEETS ALL OF THE FOLLOWING  CRITE-
 RIA:
   (A)  THE REMAINING VALUE OF THE GIFT CARD IS FIVE DOLLARS OR LESS EACH
 TIME THE FEE IS ASSESSED;
   (B) THE FEE DOES NOT EXCEED ONE DOLLAR PER MONTH;
   (C) THERE HAS BEEN NO  ACTIVITY  ON  THE  GIFT  CARD  FOR  TWENTY-FOUR
 CONSECUTIVE MONTHS, INCLUDING, BUT NOT LIMITED TO, PURCHASES, THE ADDING
 OF VALUE, OR BALANCE INQUIRIES; AND
   (D) THE HOLDER MAY RELOAD OR ADD VALUE TO THE GIFT CARD.
   7.  A STATEMENT IS PRINTED ON THE GIFT CARD IN AT LEAST TEN-POINT FONT
 STATING THE AMOUNT OF THE FEE, HOW OFTEN THE FEE WILL  OCCUR,  THAT  THE
 FEE  IS  TRIGGERED BY INACTIVITY OF THE GIFT CARD, AND AT WHAT POINT THE
 FEE WILL BE CHARGED. THE STATEMENT MAY APPEAR ON THE FRONT  OR  BACK  OF
 THE GIFT CARD, BUT SHALL APPEAR IN A LOCATION WHERE IT IS VISIBLE TO ANY
 PURCHASER PRIOR TO THE PURCHASE THEREOF.
   8.  AN  ISSUER  OF GIFT CERTIFICATES MAY ACCEPT FUNDS FROM ONE OR MORE
 CONTRIBUTORS TOWARD THE PURCHASE OF A GIFT CERTIFICATE INTENDED TO BE  A
 GIFT  FOR A RECIPIENT, PROVIDED THAT EACH CONTRIBUTOR IS PROVIDED WITH A
 FULL REFUND OF THE AMOUNT THAT HE OR SHE PAID TOWARD THE PURCHASE OF THE
 GIFT CERTIFICATE UPON THE OCCURRENCE OF ALL OF THE FOLLOWING:
   (A) THE FUNDS ARE CONTRIBUTED FOR THE PURPOSE OF BEING REDEEMED BY THE
 RECIPIENT BY PURCHASING A GIFT CERTIFICATE.
   (B) THE TIME IN WHICH THE RECIPIENT MAY REDEEM THE FUNDS BY PURCHASING
 A GIFT CERTIFICATE IS CLEARLY DISCLOSED IN WRITING TO  THE  CONTRIBUTORS
 AND THE RECIPIENT.
   (C)  THE RECIPIENT DOES NOT REDEEM THE FUNDS WITHIN THE TIME DESCRIBED
 IN PARAGRAPH (B) OF THIS SUBDIVISION.
   9. FOR PURPOSES OF THIS SECTION, "CASH" INCLUDES, BUT IS  NOT  LIMITED
 TO,  CURRENCY OR CHECK. IF ACCEPTED BY BOTH PARTIES, AN ELECTRONIC FUNDS
 TRANSFER OR AN APPLICATION OF THE BALANCE  TO  A  SUBSCRIBER'S  WIRELESS
 TELECOMMUNICATIONS ACCOUNT IS PERMISSIBLE.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law and shall apply to gift certificates  and  gift  cards
 issued on or after such date.

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Senate Bill S1689

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Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

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2017-S1689 (ACTIVE) - Details

2017-S1689 (ACTIVE) - Summary

2017-S1689 (ACTIVE) - Sponsor Memo

2017-S1689 (ACTIVE) - Bill Text download pdf

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Sponsored By

Tony Avella

Archive: Last Bill Status - In Senate Committee Consumer Protection Committee

Actions

2017-S1689 (ACTIVE) - Details

2017-S1689 (ACTIVE) - Summary

2017-S1689 (ACTIVE) - Sponsor Memo

2017-S1689 (ACTIVE) - Bill Text download pdf

Comments