S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6572
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 12, 2019
                                ___________
 
 Introduced  by M. of A. WEPRIN, ARROYO, WRIGHT, EPSTEIN, TAYLOR, EICHEN-
   STEIN, DeSTEFANO, SCHMITT, B. MILLER -- read once and referred to  the
   Committee on Consumer Affairs and 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 Section 396-i of the general business law is REPEALED and a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.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD10118-01-9

              

 A. 6572                             2
 
   (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.
   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.