NY State Senate Bill 2015-S4771E

Archive: Last Bill Status Via A7610 - Signed by Governor

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Sep 26, 2016	signed chap.329
Sep 20, 2016	delivered to governor
Jun 08, 2016	returned to assembly passed senate 3rd reading cal.1489 substituted for s4771e
Jun 08, 2016	substituted by a7610e
Jun 07, 2016	ordered to third reading cal.1489 committee discharged and committed to rules
May 31, 2016	print number 4771e
May 31, 2016	amend and recommit to consumer protection
Feb 11, 2016	print number 4771d
Feb 11, 2016	amend (t) and recommit to consumer protection
Jan 06, 2016	referred to consumer protection
Jun 11, 2015	print number 4771c
Jun 11, 2015	amend and recommit to rules
Jun 09, 2015	reported and committed to rules
Jun 08, 2015	print number 4771b
Jun 08, 2015	amend and recommit to finance
Jun 03, 2015	print number 4771a
Jun 03, 2015	amend and recommit to finance
May 28, 2015	reported and committed to finance
Apr 15, 2015	referred to consumer protection

Votes

- Jun 8, 2016 - Floor Vote
  A7610
  
  60
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 8, 2016
      
      aye (60)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Avella
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Dilan
      
      Farley
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Martins
      
      Montgomery
      
      Murphy
      
      Nozzolio
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Perkins
      
      Persaud
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Venditto
      
      Young
      
      excused (3)
      
      Diaz
      
      Espaillat
      
      Panepinto
  Jun 7, 2016 - Rules Committee Vote
  S4771E
  
  24
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 7, 2016
      
      aye (24)
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Dilan
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Hassell-Thompson
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Perkins
      
      Robach
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      aye wr (1)
      
      Krueger
  Jun 9, 2015 - Finance Committee Vote
  S4771E
  
  27
  
  Aye
  
  3
  
  Nay
  
  6
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Finance Committee Vote: Jun 9, 2015
      
      aye (27)
      
      Bonacic
      
      Breslin
      
      Diaz
      
      Dilan
      
      Espaillat
      
      Farley
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Larkin
      
      Marcellino
      
      Montgomery
      
      Nozzolio
      
      O'Mara
      
      Parker
      
      Peralta
      
      Ranzenhofer
      
      Ritchie
      
      Robach
      
      Seward
      
      Squadron
      
      Stavisky
      
      Young
      
      nay (3)
      
      DeFrancisco
      
      Perkins
      
      Savino
      
      aye wr (6)
      
      Gallivan
      
      LaValle
      
      Little
      
      Martins
      
      Rivera
      
      Valesky
  May 28, 2015 - Consumer Protection Committee Vote
  S4771E
  
  10
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: May 28, 2015
      
      aye (10)
      
      Amedore
      
      Boyle
      
      Comrie
      
      Funke
      
      Latimer
      
      Marchione
      
      Peralta
      
      Robach
      
      Serrano
      
      Venditto
      
      aye wr (1)
      
      Savino

Bill Amendments

Original

E (Active)

2015-S4771 - Details

See Assembly Version of this Bill:: A7610
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L

2015-S4771 - Summary

Restricts fees on gift cards and gift certificates issued by merchants for goods and services; permits a service fee to be assessed after the twenty-fourth month.

2015-S4771 - Sponsor Memo

                                BILL NUMBER:S4771

TITLE OF BILL:  An act to amend the general business law, in relation
to prohibiting fees on gift cards and gift certificates

PURPOSE OR GENERAL IDEA OF BILL:

To eliminate fees on gift cards and gift certificates

SUMMARY OF SPECIFIC PROVISIONS:

Section one - amends the general business law to remove the ability
for fees to be assessed on gift cards or gift certificates sold in New
York state.

Section two sets forth the effective date

JUSTIFICATION:

There have been a number of complaints from consumers who purchase or
were given a gift card, and when they attempt to use it a couple of
years later, they find out that there is little to no money left to
spend due to exorbitant fees assessed on the card due to inactivity.
Current New York State law requires notice of expiration dates as well
as any fees that will be charged along with other terms and conditions
that must be clearly and conspicuously stated on the card, package, or

accompanying printed document. Fees are currently not allowed to be
assessed prior to the thirteenth month of dormancy, but New York State
does not specify how much of a fee can be assessed, offering consumers
little to no protection. Consumers purchase gift cards just like other
products sold that have no fees assessed after the initial purchase.
Businesses selling gift cards have already made the profit of selling
it, so there is no reason that a consumer should be penalized with
fees for not using it within a specific time frame. Twenty other
states have passed legislation preventing any fees on gift cards and
certificates, with some only allowing a fee at the time of purchase.
There is no reason a consumer who pays for a gift card in full should
lose their investment because of the amount of time passed before
spending the funds.

PRIOR LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall have
become law.

2015-S4771 - Bill Text download pdf

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

                                  4771

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- 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  prohibiting
  fees on gift cards and gift certificates

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

  Section 1. Subdivisions 3 and 5 of section 396-i of the general  busi-
ness  law, as amended by chapter 507 of the laws of 2004, are amended to
read as follows:
  3. The terms and conditions of a gift certificate store  credit  shall
be  clearly and conspicuously stated thereon. Terms and conditions shall
include the expiration date, [whether any fees are assessed against  the
balance  of the gift certificate, and whether a fee will be charged for]
AND PROCEDURE FOR the replacement of a gift certificate  that  is  lost,
stolen, or destroyed. Additional terms and conditions including, but not
be limited to, policies related to refunds, warranties, changes in terms
and  conditions,  assignment  and waiver shall be conspicuously printed:
(a) on the gift certificate; or (b) on an envelope or packaging contain-
ing the gift certificate, provided that a toll free telephone number  to
access  the  additional  terms  and  conditions  is  printed on the gift
certificate; or (c) on an accompanying printed document, provided that a
toll free telephone number to access the additional terms and conditions
is printed on the gift certificate.
  5. (a) No [retroactive] fees shall be assessed against a gift  certif-
icate.
  (b)  No  monthly service fees may be assessed against the balance of a
gift certificate [prior to the thirteenth month of dormancy].
  (c) For the purposes of this subdivision, "dormancy" shall  mean  non-
use  of a gift certificate. Use of a gift certificate shall include, but
not be limited to, adding value, or purchases.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law.

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

                                                           LBD10404-01-5

2015-S4771A - Details

See Assembly Version of this Bill:: A7610
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L

2015-S4771A - Summary

Restricts fees on gift cards and gift certificates issued by merchants for goods and services; permits a service fee to be assessed after the twenty-fourth month.

2015-S4771A - Bill Text download pdf

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

                                 4771--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  reported  favorably from said committee and committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the general business law,  in  relation  to  prohibiting
  fees on gift cards and gift certificates

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

  Section 1. Subdivisions 3 and 5 of section 396-i of the general  busi-
ness  law, as amended by chapter 507 of the laws of 2004, are amended to
read as follows:
  3. The terms and conditions of a gift certificate store  credit  shall
be  clearly and conspicuously stated thereon. Terms and conditions shall
include the expiration date, whether any fees are assessed  against  the
balance  of  the  gift  certificate, THE PROCEDURE FOR and whether a fee
will be charged for the replacement of a gift certificate that is  lost,
stolen,  or  destroyed, IF ANY.  Additional terms and conditions includ-
ing, but not be limited to, policies  related  to  refunds,  warranties,
changes in terms and conditions, assignment and waiver shall be conspic-
uously  printed:  (a)  on the gift certificate; or (b) on an envelope or
packaging containing the gift certificate, provided  that  a  toll  free
telephone number to access the additional terms and conditions is print-
ed  on the gift certificate; or (c) on an accompanying printed document,
provided that a toll free telephone  number  to  access  the  additional
terms and conditions is printed on the gift certificate.
  5.  (a) No [retroactive] fees shall be assessed against a gift certif-
icate THAT IS ONLY USABLE AT A SINGLE MERCHANT OR AN AFFILIATED GROUP OF
MERCHANTS THAT SHARE THE SAME NAME, MARK OR LOGO.
  (b) No monthly service fees may be assessed against the balance  of  a
gift  certificate  [prior  to],  EXCEPT  THAT GIFT CERTIFICATES THAT ARE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10404-07-5

S. 4771--A                          2

USABLE AT MULTIPLE, UNAFFILIATED  MERCHANTS  OR  SERVICE  PROVIDERS  MAY
ASSESS MONTHLY SERVICE FEES AFTER the thirteenth month of dormancy.
  (c)  For  the purposes of this subdivision, "dormancy" shall mean non-
use of a gift certificate. Use of a gift certificate shall include,  but
not be limited to, adding value, or purchases.
  S  2. Subdivision 3-a and 3-b of section 396-i of the general business
law, as amended by chapter 507 of the laws of 2004, are amended to  read
as follows:
  3-a.  The  requirements of subdivisions two-a [and], three AND FIVE of
this section shall not apply to a gift certificate that has no terms and
conditions.
  3-b. Subparagraph (i) of paragraph (a) of subdivision two-a  AND  FIVE
of this section shall not apply to gift certificates:
  (a)  sold  below  face  value or at a volume discount to employees, to
nonprofit and charitable organizations, or educational institutions  for
fundraising purposes; or
  (b)  distributed  to  a  consumer  or  employee pursuant to an awards,
rewards, loyalty, or promotional program without any consideration being
given in exchange for the gift certificate by the consumer or employee.
  S 3. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law  and  shall apply to gift certificates issued on or
after such date.

2015-S4771B - Details

See Assembly Version of this Bill:: A7610
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L

2015-S4771B - Summary

Restricts fees on gift cards and gift certificates issued by merchants for goods and services; permits a service fee to be assessed after the twenty-fourth month.

2015-S4771B - Sponsor Memo

                                BILL NUMBER:S4771B

TITLE OF BILL:  An act to amend the general business law, in relation
to prohibiting fees on gift cards and gift certificates

PURPOSE OR GENERAL IDEA OF BILL:

To eliminate fees on gift cards and gift certificates

SUMMARY OF SPECIFIC PROVISIONS:

Section one - amends the general business law to remove the ability
for fees to be assessed on gift cards or gift certificates sold in New
York state.

Section two sets forth the effective date

JUSTIFICATION:

There have been a number of complaints from consumers who purchase or
were given a gift card, and when they attempt to use it a couple of
years later, they find out that there is little to no money left to
spend due to exorbitant fees assessed on the card due to inactivity.
Current New York State law requires notice of expiration dates as well
as any fees that will be charged along with other terms and conditions
that must be clearly and conspicuously stated on the card, package, or

accompanying printed document. Fees are currently not allowed to be
assessed prior to the thirteenth month of dormancy, but New York State
does not specify how much of a fee can be assessed, offering consumers
little to no protection. Consumers purchase gift cards just like other
products sold that have no fees assessed after the initial purchase.
Businesses selling gift cards have already made the profit of selling
it, so there is no reason that a consumer should be penalized with
fees for not using it within a specific time frame. Twenty other
states have passed legislation preventing any fees on gift cards and
certificates, with some only allowing a fee at the time of purchase.
There is no reason a consumer who pays for a gift card in full should
lose their investment because of the amount of time passed before
spending the funds.

PRIOR LEGISLATIVE HISTORY:

New Bill

FISCAL IMPLICATIONS:

None

EFFECTIVE DATE:

This act shall take effect on the ninetieth day after it shall have
become law.

2015-S4771B - Bill Text download pdf

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

                                 4771--B

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  reported  favorably from said committee and committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend the general business law,  in  relation  to  prohibiting
  fees on gift cards and gift certificates

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

  Section 1. Subdivisions 3 and 5 of section 396-i of the general  busi-
ness  law, as amended by chapter 507 of the laws of 2004, are amended to
read as follows:
  3. The terms and conditions of a gift certificate store  credit  shall
be  clearly and conspicuously stated thereon. Terms and conditions shall
include the expiration date, whether any fees are assessed  against  the
balance  of  the  gift  certificate, THE PROCEDURE FOR and whether a fee
will be charged for the replacement of a gift certificate that is  lost,
stolen,  or  destroyed, IF ANY.  Additional terms and conditions includ-
ing, but not be limited to, policies  related  to  refunds,  warranties,
changes in terms and conditions, assignment and waiver shall be conspic-
uously  printed:  (a)  on the gift certificate; or (b) on an envelope or
packaging containing the gift certificate, provided  that  a  toll  free
telephone number to access the additional terms and conditions is print-
ed  on the gift certificate; or (c) on an accompanying printed document,
provided that a toll free telephone  number  to  access  the  additional
terms and conditions is printed on the gift certificate.
  5.  (a) [No retroactive] FOR GIFT CERTIFICATES THAT ARE ONLY USABLE AT
A SINGLE MERCHANT OR AN AFFILIATED GROUP OF  MERCHANTS  THAT  SHARE  THE
SAME  NAME,  MARK OR LOGO, NO fees shall be assessed against THE BALANCE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10404-08-5

S. 4771--B                          2

OF a gift certificate WITH THE EXCEPTION OF A FEE FOR THE REPLACEMENT OF
A GIFT CERTIFICATE THAT IS LOST, STOLEN OR DESTROYED.
  (b)  [No]  FOR GIFT CERTIFICATES THAT ARE USABLE AT MULTIPLE, UNAFFIL-
IATED MERCHANTS OR SERVICE PROVIDERS AND FOR GIFT  CERTIFICATES  DEFINED
IN  PARAGRAPHS  (A)  AND  (B) OF SUBDIVISION THREE-B OF THIS SECTION, NO
monthly service fees may be assessed  against  the  balance  of  a  gift
certificate  prior  to the thirteenth month of dormancy, AND NO RETROAC-
TIVE FEES SHALL BE ASSESSED AGAINST THE BALANCE OF A GIFT CERTIFICATE.
  (c) For the purposes of this subdivision, "dormancy" shall  mean  non-
use  of a gift certificate. Use of a gift certificate shall include, but
not be limited to, adding value, or purchases.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law  and  shall apply to gift certificates issued on or
after such date.

2015-S4771C - Details

See Assembly Version of this Bill:: A7610
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L

2015-S4771C - Summary

Restricts fees on gift cards and gift certificates issued by merchants for goods and services; permits a service fee to be assessed after the twenty-fourth month.

2015-S4771C - Sponsor Memo

                                BILL NUMBER:S4771C

TITLE OF BILL:  An act to amend the general business law, in relation
to prohibiting fees on gift cards and gift certificates

PURPOSE OR GENERAL IDEA OF BILL: To eliminate fees on gift cards and
gift certificates

SUMMARY OF SPECIFIC PROVISIONS:

Section one - amends the general business law to remove the ability
for fees to be assessed on gift cards or gift certificates sold in New
York state. Specific provisions state:

5 (a) For gift certificates that are only useable at a single merchant
or an affiliated group of merchants that share the same name, mark or
logo, no fees shall be assessed against the balance of a gift
certificate with the exception of a fee for the replacement of a gift
certificate that is lost, stolen or destroyed.

(b) For gift certificates that are useable at multiple, unaffiliated
merchants or service providers and for gift certificates defined in
paragraphs (a) and (b) of subdivision three-b of this section, no
monthly service fees may be assessed against the balance of a gift
certificate prior to the thirteenth month of dormancy, and no
retroactive fees shall be assessed against the balance of a gift

certificate.

(c)For the purposes of this subdivision, "dormancy" shall mean non-use
of a gift certificate. Use of a gift certificate shall include, but
not be limited to, adding value, or purchases.

(d) The prohibition of dormancy fees provided for in this subdivision,
shall not apply to any card issued in the name of a retail food store
for purchases made at such retail food store. For purposes of this
paragraph, "retail food store" shall mean any establishment or chain
of establishments where food and food products are offered to the
consumer and intended for off premises consumption. The term does not
include establishments or chain of establishments which handle only
pre-packaged, non-potentially hazardous foods, roadside markets that
offer only fresh fruits and fresh vegetables for sale, food service
establishments as defined in section 500 of the Agriculture and
Markets Law, or food and beverage vending machines. The term also does
not include any retail food store, or chain of retail food stores,
where the sale of food and food products, personal care items, paper
products, baby care items, household cleaning products, do not
constitute more than sixty-five percent of their annual retail
inventory by either items sold or gross receipts received inventory be
either items sold or gross receipts received.

Section two sets forth the effective date

JUSTIFICATION:  There have been a number of complaints from consumers
who purchase or were given a gift card, and when they attempt to use
it a couple of years later, they find out that there is little to no
money left to spend due to exorbitant fees assessed on the card due to
inactivity.  Current New York State law requires notice of expiration


dates as well as any fees that will be charged along with other terms
and conditions that must be clearly and conspicuously stated on the
card, package, or accompanying printed document. Fees are currently
not allowed to be assessed prior to the thirteenth month of dormancy,
but New York State does not specify how much of a fee can be assessed,
offering consumers little to no protection. Consumers purchase gift
cards just like other products sold that have no fees assessed after
the initial purchase. Businesses selling gift cards have already made
the profit of selling it, so there is no reason that a consumer should
be penalized with fees for not using it within a specific time frame.
Twenty other states have passed legislation preventing any fees on
gift cards and certificates, with some only allowing a fee at the time
of purchase There is no reason a consumer who pays for a gift card in
full should lose their investment because of the amount of time passed
before spending the funds.

PRIOR LEGISLATIVE HISTORY: New Bill

FISCAL IMPLICATIONS:  None

EFFECTIVE DATE:  This act shall take effect on the ninetieth day after
it shall have become law and shall apply to gift certificates issued
on or after such date.

2015-S4771C - Bill Text download pdf

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

                                 4771--C

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  reported  favorably from said committee and committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- reported favorably from said committee and  committed  to
  the  Committee on Rules -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the general business law,  in  relation  to  prohibiting
  fees on gift cards and gift certificates

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

  Section 1. Subdivisions 3 and 5 of section 396-i of the general  busi-
ness  law, as amended by chapter 507 of the laws of 2004, are amended to
read as follows:
  3. The terms and conditions of a gift certificate store  credit  shall
be  clearly and conspicuously stated thereon. Terms and conditions shall
include the expiration date, whether any fees are assessed  against  the
balance  of  the  gift  certificate, THE PROCEDURE FOR and whether a fee
will be charged for the replacement of a gift certificate that is  lost,
stolen,  or  destroyed, IF ANY.  Additional terms and conditions includ-
ing, but not be limited to, policies  related  to  refunds,  warranties,
changes in terms and conditions, assignment and waiver shall be conspic-
uously  printed:  (a)  on the gift certificate; or (b) on an envelope or
packaging containing the gift certificate, provided  that  a  toll  free
telephone number to access the additional terms and conditions is print-
ed  on the gift certificate; or (c) on an accompanying printed document,
provided that a toll free telephone  number  to  access  the  additional
terms and conditions is printed on the gift certificate.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10404-13-5

S. 4771--C                          2

  5.  (a) [No retroactive] FOR GIFT CERTIFICATES THAT ARE ONLY USABLE AT
A SINGLE MERCHANT OR AN AFFILIATED GROUP OF  MERCHANTS  THAT  SHARE  THE
SAME  NAME,  MARK OR LOGO, NO fees shall be assessed against THE BALANCE
OF a gift certificate WITH THE EXCEPTION OF A FEE FOR THE REPLACEMENT OF
A GIFT CERTIFICATE THAT IS LOST, STOLEN OR DESTROYED.
  (b)  [No]  FOR GIFT CERTIFICATES THAT ARE USABLE AT MULTIPLE, UNAFFIL-
IATED MERCHANTS OR SERVICE PROVIDERS AND FOR GIFT  CERTIFICATES  DEFINED
IN  PARAGRAPHS  (A)  AND  (B) OF SUBDIVISION THREE-B OF THIS SECTION, NO
monthly service fees may be assessed  against  the  balance  of  a  gift
certificate  prior  to the thirteenth month of dormancy, AND NO RETROAC-
TIVE FEES SHALL BE ASSESSED AGAINST THE BALANCE OF A GIFT CERTIFICATE.
  (c) For the purposes of this subdivision, "dormancy" shall  mean  non-
use  of a gift certificate. Use of a gift certificate shall include, but
not be limited to, adding value, or purchases.
  (D) THE PROHIBITION OF DORMANCY FEES PROVIDED FOR IN THIS SUBDIVISION,
SHALL NOT APPLY TO ANY CARD ISSUED IN THE NAME OF A  RETAIL  FOOD  STORE
FOR PURCHASES MADE AT SUCH RETAIL FOOD STORE. FOR PURPOSES OF THIS PARA-
GRAPH,  "RETAIL  FOOD  STORE"  SHALL  MEAN ANY ESTABLISHMENT OR CHAIN OF
ESTABLISHMENTS, WHERE FOOD AND FOOD PRODUCTS ARE OFFERED TO THE CONSUMER
AND INTENDED FOR OFF-PREMISES CONSUMPTION. THE TERM DOES NOT INCLUDE ANY
ESTABLISHMENT, OR CHAIN OF ESTABLISHMENTS, WHICH HANDLE  ONLY  PRE-PACK-
AGED,  NON-POTENTIALLY HAZARDOUS FOODS, ROADSIDE MARKETS THAT OFFER ONLY
FRESH FRUITS AND FRESH VEGETABLES FOR SALE, FOOD SERVICE  ESTABLISHMENTS
AS  DEFINED  IN SECTION FIVE HUNDRED OF THE AGRICULTURE AND MARKETS LAW,
OR FOOD AND BEVERAGE VENDING MACHINES. THE TERM ALSO  DOES  NOT  INCLUDE
ANY RETAIL FOOD STORE, OR CHAIN OF RETAIL FOOD STORES, WHERE THE SALE OF
FOOD  AND  FOOD PRODUCTS, PERSONAL CARE ITEMS, PAPER PRODUCTS, BABY CARE
ITEMS, AND HOUSEHOLD CLEANING PRODUCTS,  DO  NOT  CONSTITUTE  MORE  THAN
SIXTY-FIVE PERCENT OF THEIR ANNUAL RETAIL INVENTORY BY EITHER ITEMS SOLD
OR GROSS RECEIPTS RECEIVED.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall apply to  gift  certificates  issued  on  or
after such date.

2015-S4771D - Details

See Assembly Version of this Bill:: A7610
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L

2015-S4771D - Summary

Restricts fees on gift cards and gift certificates issued by merchants for goods and services; permits a service fee to be assessed after the twenty-fourth month.

2015-S4771D - Sponsor Memo

                                 BILL NUMBER:  S4771D

 TITLE OF BILL :  An act to amend the general business law, in
relation to restricting fees on gift cards and gift certificates

 PURPOSE OR GENERAL IDEA OF BILL :

To restrict fees on gift cards and gift certificates

 SUMMARY OF SPECIFIC PROVISIONS :

Section one - amends the general business law to restrict the ability
for fees to be assessed on gift cards or gift certificates sold in New
York state prior to the twenty-fifth month of dormancy.  Provisions
include:

5 (a) Allows for no retroactive fees

(b) No monthly service fees assessed prior to the twenty-fifth month
of dormancy

(c) Allows a fee to be assessed after the twenty-fourth month of
dormancy, however if a holder presents the certificate within three
years of issuance, fees shall be waived and the certificate
replenished

(d) Defines "dormancy" 5-a addresses expiration

Section two sets forth the effective date

 JUSTIFICATION :

Current New York State law requires notice of expiration dates as well
as any fees that will be charged along with other terms and conditions
that must be clearly and conspicuously stated on the card, package, or
accompanying printed document. Fees are currently not allowed to be
assessed prior to the thirteenth month of dormancy, but New York State
does not specify how much of a fee can be assessed.  Consumers
purchase gift cards just like other products sold that have no fees
assessed after the initial purchase. Businesses that sell gift cards
have made the profit of selling it, and while they may incur a fee to
track and maintain information on certificates sold, a consumer should
not have to worry about losing the initial amount before having ample
opportunity to spend the value. Twenty other states have passed
legislation addressing the issue of fees on gift cards and
certificates, with some only allowing a fee at the time of Purchase.
Consumers purchasing gift certificates should be protected and ensured
the right to the services promised on the certificate within a
reasonable amount of time. This bill would address consumer concerns
while still providing flexibility for our small businesses.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become law and shall apply to gift certificates issued on or after
such date.

2015-S4771D - Bill Text download pdf

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

                                 4771--D

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  reported  favorably from said committee and committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- reported favorably from said committee and  committed  to
  the  Committee on Rules -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to the Committee on Consumer Protection in accordance with Senate Rule
  6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT to amend the general business law,  in  relation  to  restricting
  fees on gift cards and gift certificates

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

  Section 1. Subdivisions 3 and 5 of section 396-i of the general  busi-
ness law, as amended by chapter 507 of the laws of 2004, are amended and
a new subdivision 5-a is added to read as follows:
  3.  The  terms and conditions of a gift certificate store credit shall
be clearly and conspicuously stated thereon. Terms and conditions  shall
include  the  expiration date, whether any fees are assessed against the
balance of the gift certificate, THE PROCEDURE FOR  and  whether  a  fee
will  be charged for the replacement of a gift certificate that is lost,
stolen, or destroyed, IF ANY.  Additional terms and  conditions  includ-
ing,  but  not  be  limited to, policies related to refunds, warranties,
changes in terms and conditions, assignment and waiver shall be conspic-
uously printed: (a) on the gift certificate; or (b) on  an  envelope  or
packaging  containing  the  gift  certificate, provided that a toll free
telephone number to access the additional terms and conditions is print-
ed on the gift certificate; or (c) on an accompanying printed  document,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10404-14-6

S. 4771--D                          2

provided  that  a  toll  free  telephone number to access the additional
terms and conditions is printed on the gift certificate.
  5.  (a)  No  retroactive fees shall be assessed against a gift certif-
icate.
  (b) No monthly service fees may be assessed against the balance  of  a
gift certificate prior to the [thirteenth] TWENTY-FIFTH month of dorman-
cy.
  (c)  A  SERVICE  FEE  MAY BE ASSESSED AFTER THE TWENTY-FOURTH MONTH OF
DORMANCY PROVIDED THAT ANY SUCH FEE SHALL BE WAIVED AND THE GIFT CERTIF-
ICATE REPLENISHED TO ITS VALUE PRIOR TO SUCH FEES BEING  ASSESSED  WHERE
THE  HOLDER  OF  SUCH  GIFT  CERTIFICATE PRESENTS THE CERTIFICATE WITHIN
THREE YEARS OF ISSUE.
  (D) For the purposes of this subdivision, "dormancy" shall  mean  non-
use  of a gift certificate. Use of a gift certificate shall include, but
not be limited to, adding value, or purchases.
  5-A. IT SHALL BE UNLAWFUL FOR ANY PERSON  TO  SELL  OR  ISSUE  A  GIFT
CERTIFICATE  THAT IS SUBJECT TO AN EXPIRATION DATE WHICH IS EARLIER THAN
FIVE YEARS AFTER THE DATE ON WHICH THE GIFT CERTIFICATE WAS  ISSUED,  OR
THE DATE ON WHICH FUNDS WERE LAST LOADED TO A STORE GIFT CARD. THE TERMS
OF  EXPIRATION  SHALL  BE  CLEARLY  AND CONSPICUOUSLY STATED ON THE GIFT
CERTIFICATE.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have  become  a  law  and  shall apply to gift certificates issued on or
after such date.

2015-S4771E (ACTIVE) - Details

See Assembly Version of this Bill:: A7610
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L

2015-S4771E (ACTIVE) - Summary

Restricts fees on gift cards and gift certificates issued by merchants for goods and services; permits a service fee to be assessed after the twenty-fourth month.

2015-S4771E (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S4771E

 TITLE OF BILL :  An act to amend the general business law, in
relation to restricting fees on gift cards and gift certificates

 PURPOSE OR GENERAL IDEA OF BILL :

To restrict fees on gift cards and gift certificates

 SUMMARY OF SPECIFIC PROVISIONS :

Section one - amends the general business law to restrict the ability
for fees to be assessed on gift cards or gift certificates sold in New
York state prior to the twenty-fifth month of dormancy.  Provisions
include:

5 (a) Allows for no retroactive fees

(b) No monthly service fees assessed prior to the twenty-fifth month
of dormancy

(c) Allows a fee to be assessed after the twenty-fourth month of
dormancy, however if a holder presents the certificate within three
years of issuance, fees shall be waived and the certificate
replenished

(d) Defines "dormancy" 5-a addresses expiration

5-a Provides that no gift certificate where the underlying funds are
subject to an expiration date, shall expire earlier than five years
after the date on which it was issued.

Section two provides exemptions for promotional gift certificates

Section three sets forth the effective date

 JUSTIFICATION :

Current New York State law requires notice of expiration dates as well
as any fees that will be charged along with other terms and conditions
that must be clearly and conspicuously stated on the card, package, or
accompanying printed document. Fees are currently not allowed to be
assessed prior to the thirteenth month of dormancy, but New York State
does not specify how much of a fee can be assessed.  Consumers
purchase gift cards just like other products sold that have no fees
assessed after the initial purchase. Businesses that sell gift cards
have made the profit of selling it, and while they may incur a fee to
track and maintain information on certificates sold, a consumer should
not have to worry about losing the initial amount before having ample
opportunity to spend the value. Twenty other states have passed
legislation addressing the issue of fees on gift cards and
certificates, with some only allowing a fee at the time of purchase.
Consumers purchasing gift certificates should be protected and ensured
the right to the services promised on the certificate within a
reasonable amount of time. This bill would address consumer concerns
while still providing flexibility for our small businesses.

 PRIOR LEGISLATIVE HISTORY :

New Bill

 FISCAL IMPLICATIONS :

None

 EFFECTIVE DATE :
This act shall take effect on the ninetieth day after it shall have
become law and shall apply to gift certificates issued on or after
such date.

2015-S4771E (ACTIVE) - Bill Text download pdf

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

                                 4771--E

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                             April 15, 2015
                               ___________

Introduced  by  Sen.  FUNKE  -- read twice and ordered printed, and when
  printed to be committed to the Committee  on  Consumer  Protection  --
  reported  favorably from said committee and committed to the Committee
  on Finance -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee -- reported favorably from said committee and  committed  to
  the  Committee on Rules -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee --  recommitted
  to the Committee on Consumer Protection in accordance with Senate Rule
  6,  sec. 8 -- committee discharged, bill amended, ordered reprinted as
  amended and recommitted to said  committee  --  committee  discharged,
  bill  amended,  ordered  reprinted  as amended and recommitted to said
  committee

AN ACT to amend the general business law,  in  relation  to  restricting
  fees on gift cards and gift certificates

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

  Section 1. Subdivisions 3 and 5 of section 396-i of the general  busi-
ness law, as amended by chapter 507 of the laws of 2004, are amended and
a new subdivision 5-a is added to read as follows:
  3.  The  terms and conditions of a gift certificate store credit shall
be clearly and conspicuously stated thereon. Terms and conditions  shall
include  the  expiration date, whether any fees are assessed against the
balance of the gift certificate, and whether a fee will be  charged  for
the  replacement  of  a  gift  certificate  that  is  lost,  stolen,  or
destroyed, IF ANY.  Additional terms and conditions including,  but  not
[be]  limited  to,  policies  related to refunds, warranties, changes in
terms and conditions, THE  PROCEDURE  FOR  THE  REPLACEMENT  OF  A  GIFT
CERTIFICATE, IF ANY, assignment and waiver shall be conspicuously print-
ed:  (a)  on  the  gift  certificate; or (b) on an envelope or packaging

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10404-19-6

S. 4771--E                          2

containing the gift certificate, provided that  a  toll  free  telephone
number  to  access the additional terms and conditions is printed on the
gift certificate; or (c) on an accompanying [printed] document, provided
that  a  toll  free  telephone number to access the additional terms and
conditions is printed on the gift certificate.
  5. (a) No retroactive fees shall be assessed against  a  gift  certif-
icate.
  (b)  No  monthly service fees may be assessed against the balance of a
gift certificate prior to the [thirteenth] TWENTY-FIFTH month of dorman-
cy.
  (c) A SERVICE FEE MAY BE ASSESSED AFTER  THE  TWENTY-FOURTH  MONTH  OF
DORMANCY PROVIDED THAT ANY SUCH FEE SHALL BE WAIVED AND THE GIFT CERTIF-
ICATE  REPLENISHED  TO ITS VALUE PRIOR TO SUCH FEES BEING ASSESSED WHERE
THE HOLDER OF SUCH GIFT  CERTIFICATE  PRESENTS  THE  CERTIFICATE  WITHIN
THREE YEARS OF ISSUE.
  (D)  For  the purposes of this subdivision, "dormancy" shall mean non-
use of a gift certificate. Use of a gift certificate shall include,  but
not be limited to, adding value, or purchases.
  5-A.  IT  SHALL  BE  UNLAWFUL  FOR  ANY PERSON TO SELL OR ISSUE A GIFT
CERTIFICATE WHERE THE UNDERLYING FUNDS ARE SUBJECT TO AN EXPIRATION DATE
WHICH IS EARLIER THAN FIVE YEARS  AFTER  THE  DATE  ON  WHICH  THE  GIFT
CERTIFICATE WAS ISSUED, OR THE DATE ON WHICH FUNDS WERE LAST LOADED TO A
STORE  GIFT CARD. THE TERMS OF EXPIRATION SHALL BE CLEARLY AND CONSPICU-
OUSLY STATED ON THE GIFT CERTIFICATE.
  S 2. Subdivision 3-b of section 396-i of the general business law,  as
amended  by  chapter  507  of  the  laws  of 2004, is amended to read as
follows:
  3-b. Subparagraph (i) of paragraph (a) of subdivision two-a AND SUBDI-
VISION FIVE-A of this section shall not apply to gift certificates:
  (a) sold below face value or at a volume  discount  to  employees,  to
nonprofit  and charitable organizations, or educational institutions for
fundraising purposes; or
  (b) distributed to a consumer  or  employee  pursuant  to  an  awards,
rewards, loyalty, or promotional program without any consideration being
given in exchange for the gift certificate by the consumer or employee.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law and shall apply to  gift  certificates  issued  on  or
after such date.

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Senate Bill S4771E

Sponsored By

Archive: Last Bill Status Via A7610 - Signed by Governor

Jun 8, 2016 - Floor Vote

Floor Vote: Jun 8, 2016

Jun 7, 2016 - Rules Committee Vote

Rules Committee Vote: Jun 7, 2016

Jun 9, 2015 - Finance Committee Vote

Finance Committee Vote: Jun 9, 2015

May 28, 2015 - Consumer Protection Committee Vote

Consumer Protection Committee Vote: May 28, 2015

Bill Amendments

2015-S4771 - Details

2015-S4771 - Summary

2015-S4771 - Sponsor Memo

2015-S4771 - Bill Text download pdf

2015-S4771A - Details

2015-S4771A - Summary

2015-S4771A - Bill Text download pdf

2015-S4771B - Details

2015-S4771B - Summary

2015-S4771B - Sponsor Memo

2015-S4771B - Bill Text download pdf

2015-S4771C - Details

2015-S4771C - Summary

2015-S4771C - Sponsor Memo

2015-S4771C - Bill Text download pdf

2015-S4771D - Details

2015-S4771D - Summary

2015-S4771D - Sponsor Memo

2015-S4771D - Bill Text download pdf

2015-S4771E (ACTIVE) - Details

2015-S4771E (ACTIVE) - Summary

2015-S4771E (ACTIVE) - Sponsor Memo

2015-S4771E (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S4771E

Share this bill

Sponsored By

Rich Funke

Archive: Last Bill Status Via A7610 - Signed by Governor

Bill Amendments

2015-S4771 - Details

2015-S4771 - Summary

2015-S4771 - Sponsor Memo

2015-S4771 - Bill Text download pdf

2015-S4771A - Details

2015-S4771A - Summary

2015-S4771A - Bill Text download pdf

2015-S4771B - Details

2015-S4771B - Summary

2015-S4771B - Sponsor Memo

2015-S4771B - Bill Text download pdf

2015-S4771C - Details

2015-S4771C - Summary

2015-S4771C - Sponsor Memo

2015-S4771C - Bill Text download pdf

2015-S4771D - Details

2015-S4771D - Summary

2015-S4771D - Sponsor Memo

2015-S4771D - Bill Text download pdf

2015-S4771E (ACTIVE) - Details

2015-S4771E (ACTIVE) - Summary

2015-S4771E (ACTIVE) - Sponsor Memo

2015-S4771E (ACTIVE) - Bill Text download pdf

Comments