NY State Senate Bill 2019-S8780

Archive: Last Bill Status - In Assembly 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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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 23, 2020	referred to consumer affairs and protection delivered to assembly passed senate
Jul 22, 2020	ordered to third reading cal.961
Jul 20, 2020	reported and committed to rules
Jul 15, 2020	committee discharged and committed to consumer protection referred to rules

Votes

- Jul 23, 2020 - Floor Vote
  S8780
  
  59
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 23, 2020
      
      aye (59)
      
      Addabbo Jr.
      
      Akshar
      
      Amedore
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Felder
      
      Funke
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      LaValle
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      May
      
      Mayer
      
      Metzger
      
      Montgomery
      
      Myrie
      
      O'Mara
      
      Ortt
      
      Parker
      
      Persaud
      
      Ramos
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      nay (1)
      
      Jordan
  Jul 22, 2020 - Rules Committee Vote
  S8780
  
  17
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jul 22, 2020
      
      aye (17)
      
      Benjamin
      
      Breslin
      
      Comrie
      
      Gianaris
      
      Griffo
      
      Hoylman-Sigal
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Little
      
      Liu
      
      Martinez
      
      Parker
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      aye wr (2)
      
      LaValle
      
      Ortt
  Jul 20, 2020 - Consumer Protection Committee Vote
  S8780
  
  5
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Jul 20, 2020
      
      aye (5)
      
      Comrie
      
      Kavanagh
      
      Myrie
      
      Ramos
      
      Thomas
      
      aye wr (1)
      
      Tedisco

co-Sponsors

2019-S8780 (ACTIVE) - Details

Current Committee:: Assembly Consumer Affairs And Protection
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L
Versions Introduced in 2021-2022 Legislative Session:: S3467

2019-S8780 (ACTIVE) - Summary

Relates to fees for gift cards; limits the amount a merchant may charge for the gift card; and prohibits the expiration of such gift cards.

2019-S8780 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8780

SPONSOR: MAYER
 
TITLE OF BILL:

An act to amend the general business law, in relation to fees for gift
cards

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit fees and expiration dates on gift cards and gift certif-
icates and to provide that gift cards and gift certificates may be
redeemed in cash when the remaining value is less than five dollars.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 1, 3, 5 and 5-a of section 396-i of the
general business law and adds a new section 5-b to make clear that the
definition of "gift certificate" includes gift cards, remove references
to expiration date and fees, to prohibit the issuance of gift certif-
icates and gift cards that decline in value over time, to prohibit the

issuance of gift cards and gift certificates with expiration dates, and
to provide that gift certificates and gift cards with a remaining value
of less than five dollars may be redeemed for cash.

Section 2 sets an effective date of January 1, 2020.

 
JUSTIFICATION:

Many gift cards are sold with a variety of fees attached that can
significantly reduce their value. These include, but are not limited to,
activation fees paid at the time of purchase and dormancy fees for fail-
ing to use a gift card for a certain period of time. The Federal Credit
CARD Act of 2009 placed some restrictions on gift card fees by prohibit-
ing dormancy fees unless a gift card is dormant for at least twelve
months and by limiting the frequency of periodic fees to no more than
once a month. The CARD Act also prohibits expiration dates prior to five
years after issuance.

However, permitted fees on gift cards can still be substantial. Most
states have enacted laws to protect consumers by further limiting such
fees. New York lags behind other states in addressing this issue.  This
bill protects consumers from excessive fees on gift cards by prohibiting
all fees on gift cards and prohibiting gift cards that decline in value
over time. In addition, to further eliminate loss of value to consumers,
this bill prohibits expiration dates on gift cards and gift certificates
and allows for redemption when the remaining balance is less than five
dollars.

 
PRIOR LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect one year after it shall have become a law.

2019-S8780 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8780
 
                             I N  S E N A T E
 
                               July 15, 2020
                                ___________
 
 Introduced  by  Sen.  MAYER  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN ACT to amend the general business law, in relation to fees  for  gift
   cards
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 1, 3, 5, and  5-a  of  section  396-i  of  the
 general  business  law,  subdivision  1 as amended by chapter 170 of the
 laws of 2004 and subdivisions 3 and 5 as amended and subdivision 5-a  as
 added by chapter 329 of the laws of 2016, are amended and a new subdivi-
 sion 5-b is added to read as follows:
   1.  (A)  For  the  purposes of this section, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   (1) "gift certificate" shall mean a  [written  promise  or  electronic
 payment device] CERTIFICATE, ELECTRONIC CARD, OR OTHER PRE-FUNDED RECORD
 that:  (i)  is  usable  at  a  single merchant or an affiliated group of
 merchants that share the same name, mark,  or  logo,  or  is  usable  at
 multiple,  unaffiliated  merchants  or  service  providers;  and (ii) is
 issued in a specified amount; and (iii) may or may not be  increased  in
 value  or  reloaded;  and  (iv)  is purchased and/or loaded on a prepaid
 basis for the future purchase or delivery of any goods or services;  and
 (v) is honored upon presentation[.];
   (2) "OPEN LOOP GIFT CERTIFICATE" SHALL MEAN A GIFT CERTIFICATE REDEEM-
 ABLE AT MULTIPLE, UNAFFILIATED MERCHANTS OR SERVICE PROVIDERS; AND
   (3)  "PROMOTIONAL  GIFT  CERTIFICATE"  SHALL  MEAN  A GIFT CERTIFICATE
 ISSUED FOR NO CONSIDERATION WHICH INCLUDES ON  THE  FRONT  OF  THE  GIFT
 CERTIFICATE  (I)  A  STATEMENT  INDICATING  THAT  THE CARD IS ISSUED FOR
 PROMOTIONAL PURPOSES AND (II) THE EXPIRATION  DATE  FOR  THE  UNDERLYING
 FUNDS.
   (B)  Gift  certificate  shall not include an electronic payment device
 linked to a deposit account, or prepaid telephone  calling  cards  regu-
 lated under section ninety-two-f of the public service law. Gift certif-
 icate  also  shall not include flexible spending arrangements as defined
 in  Section  106(c)(2)  of  the  Internal  Revenue  Code,  26  U.S.C.  §
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD16939-02-0

 S. 8780                             2
 
 106(c)(2);  flexible  spending  accounts  subject  to Section 125 of the
 Internal Revenue Code, 26 U.S.C.  §  125;  Archer  MSAs  as  defined  in
 Section 220(d) of the Internal Revenue Code, 26 U.S.C. § 220(d); depend-
 ent  care  reimbursement accounts subject to Section 129 of the Internal
 Revenue Code, 26 U.S.C.  §  129;  health  savings  accounts  subject  to
 Section  223(d)  of  the  Internal  Revenue Code, 26 U.S.C. § 223(d), as
 amended by Section 1201 of the Medicare Prescription Drug,  Improvement,
 and Modernization Act of 2003, Pub. L.  No. 108-173; or similar accounts
 from  which,  under the Internal Revenue Code and its implementing regu-
 lations, individuals may pay medical  expenses,  health  care  expenses,
 dependent  care  expenses,  or  similar expenses on a pretax basis. Gift
 certificate also shall not include a prepaid discount  card  or  program
 used  to  purchase identified goods or services at a price or percentage
 below the normal and customary price; provided that [the] ANY expiration
 date of the prepaid discount card or program is clearly and conspicuous-
 ly disclosed. Gift certificate also shall not include payroll  cards  or
 other  electronic  payment devices which are linked to a deposit account
 and which are given in exchange for goods or services rendered.
   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
 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 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 printed on the gift certificate; or
 (c) on an accompanying document, provided that  a  toll  free  telephone
 number  to  access the additional terms and conditions is printed on the
 gift certificate.
   5. (a) No PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR CORPORATION  SHALL
 CHARGE  OR ASSESS, OR SELL OR ISSUE ANY GIFT CERTIFICATE SUBJECT TO, ANY
 ACTIVATION FEE, retroactive [fees  shall  be  assessed  against  a  gift
 certificate.
   (b)  No  monthly]  FEE,  REDEMPTION FEE, service [fees may be assessed
 against the balance of a gift  certificate  prior  to  the  twenty-fifth
 month  of  dormancy] FEE, DORMANCY FEE, LATENCY FEE, ADMINISTRATIVE FEE,
 HANDLING FEE, ACCESS FEE, PERIODIC FEE, RENEWAL FEE, RE-LOADING FEE,  OR
 ANY  OTHER  FEE  OF  ANY  KIND, OTHER THAN AN OPEN LOOP GIFT CERTIFICATE
 SUBJECT TO AN INITIAL ONE-TIME ACTIVATION OR ISSUANCE FEE NOT IN  EXCESS
 OF  THE LESSER OF FOUR DOLLARS OR FIVE PERCENT OF THE FACE VALUE OF SUCH
 OPEN LOOP GIFT CERTIFICATE.
   [(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] (B) NO PERSON, FIRM, PARTNERSHIP, ASSOCIATION OR
 CORPORATION SHALL SELL A GIFT CERTIFICATE  THAT  HAS  A  FACE  VALUE  OR
 BALANCE THAT DECLINES AS A RESULT OF THE PASSAGE OF TIME OR THE DORMANCY
 OF THE GIFT CERTIFICATE.
   [(d)]  (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. 8780                             3
 
   5-a.  It  shall  be  unlawful  for  any person to sell or issue a gift
 certificate OTHER THAN A PROMOTIONAL GIFT  CERTIFICATE  where  THE  GIFT
 CERTIFICATE  OR  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].   THE TERMS OF  EXPIRATION  OF  A
 PROMOTIONAL GIFT CERTIFICATE, IF ANY, SHALL BE CLEARLY AND CONSPICUOUSLY
 STATED ON SUCH PROMOTIONAL GIFT CERTIFICATE.
   5-B.  A  GIFT  CERTIFICATE,  OTHER THAN AN OPEN LOOP GIFT CERTIFICATE,
 WITH A REMAINING VALUE OF LESS THAN FIVE DOLLARS MAY  BE  REDEEMED  UPON
 REQUEST FOR ITS CASH VALUE.
   §  2. This act shall take effect one year after it shall have become a
 law.

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Senate Bill S8780

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Jul 23, 2020 - Floor Vote

Floor Vote: Jul 23, 2020

Jul 22, 2020 - Rules Committee Vote

Rules Committee Vote: Jul 22, 2020

Jul 20, 2020 - Consumer Protection Committee Vote

Consumer Protection Committee Vote: Jul 20, 2020

co-Sponsors

2019-S8780 (ACTIVE) - Details

2019-S8780 (ACTIVE) - Summary

2019-S8780 (ACTIVE) - Sponsor Memo

2019-S8780 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S8780

Share this bill

Sponsored By

Shelley B. Mayer

Archive: Last Bill Status - In Assembly Committee

co-Sponsors

John C. Liu

2019-S8780 (ACTIVE) - Details

2019-S8780 (ACTIVE) - Summary

2019-S8780 (ACTIVE) - Sponsor Memo

2019-S8780 (ACTIVE) - Bill Text download pdf

Comments