NY State Senate Bill 2021-S3467B

Archive: Last Bill Status - 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
Dec 10, 2021	approval memo.63 signed chap.668
Nov 29, 2021	delivered to governor
Jun 07, 2021	returned to senate passed assembly ordered to third reading rules cal.177 substituted for a4629c referred to consumer affairs and protection returned to assembly repassed senate
Jun 03, 2021	amended by restoring to previous print 3467b
Jun 01, 2021	amended on third reading 3467b
Jun 02, 2021	amended by restoring to previous print 3467a
Jun 01, 2021	vote reconsidered - restored to third reading returned to senate recalled from assembly
Apr 19, 2021	referred to consumer affairs and protection delivered to assembly passed senate
Mar 22, 2021	amended on third reading 3467a
Mar 04, 2021	advanced to third reading
Mar 03, 2021	2nd report cal.
Mar 02, 2021	1st report cal.488
Jan 29, 2021	referred to consumer protection

Votes

- Jun 7, 2021 - Floor Vote
  S3467B
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 7, 2021
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
  Apr 19, 2021 - Floor Vote
  S3467B
  
  63
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Apr 19, 2021
      
      aye (63)
      
      Addabbo Jr.
      
      Akshar
      
      Bailey
      
      Benjamin
      
      Biaggi
      
      Borrello
      
      Boyle
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Comrie
      
      Cooney
      
      Felder
      
      Gallivan
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Jordan
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martucci
      
      Mattera
      
      May
      
      Mayer
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rath III
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Weik
  Mar 2, 2021 - Consumer Protection Committee Vote
  S3467B
  
  7
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Mar 2, 2021
      
      aye (7)
      
      Gounardes
      
      Kavanagh
      
      Mattera
      
      Myrie
      
      Reichlin-Melnick
      
      Tedisco
      
      Thomas

Bill Amendments

Original

B (Active)

co-Sponsors

2021-S3467 - Details

See Assembly Version of this Bill:: A4629
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:: S8780

2021-S3467 - Summary

Relates to fees for gift cards; limits the amount a merchant may charge for the gift card; prohibits the expiration of such gift cards or certificates with the exception of promotional gift certificates in which such certificates may not expire earlier than 9 years after the date it was issued.

2021-S3467 - Sponsor Memo

                                
 
BILL NUMBER: S3467

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 on gift cards and gift certificates, limit gift card
and gift certificate expiration dates to no earlier than nine years
after issuance, 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, amend certain
references to expiration date and fees to prohibit the issuance of gift

certificates and gift cards that decline in value over time, to prohibit
the issuance of gift cards and gift certificates with expiration dates
sooner than nine years after issuance, and to provide that gift certif-
icates and gift cards with a remaining value of less than five dollars
may be redeemed for cash.

Section 2 sets an effective date.

 
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. New York
lags behind other states in further limiting such fees.

This bill protects consumers from excessive fees on gift cards by
prohibiting all fees on gift cards other than limited activation fees
and by prohibiting gift cards that decline in value over time. In addi-
tion, to further eliminate loss of value to consumers, this bill prohib-
its expiration dates on gift cards and gift certificates earlier than
nine years after issuance and allows for redemption when the remaining
balance is less than five dollars.

 
PRIOR LEGISLATIVE HISTORY:

2020: 58780 - Passed Senate

 
FISCAL IMPLICATIONS:

None to the state
 
EFFECTIVE DATE:
This act shall take effect one year after it shall have become a law.

2021-S3467 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3467
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sens.  MAYER, LIU -- 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 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-
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02680-03-1

 S. 3467                             2
 
 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.  §
 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 EXPIRATION DATE, IF ANY, THE ACTIVATION FEE, IF ANY,
 the procedure for the replacement of a gift certificate, if any, assign-
 ment and waiver shall be conspicuously printed: (a) on the gift  certif-
 icate;  or  (b)  on an envelope or packaging containing the gift certif-
 icate, 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

 S. 3467                             3
 
 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.
   5-a.  It  shall  be  unlawful  for  any person to sell or issue a gift
 certificate OTHER THAN A PROMOTIONAL GIFT CERTIFICATE where the underly-
 ing funds are subject to  an  expiration  date,  PROVIDED  THAT  A  GIFT
 CERTIFICATE  MAY  BE  SUBJECT TO AN EXPIRATION DATE which is NOT earlier
 than [five] THE LATER OF NINE 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 OF A GIFT CERTIFICATE, IF ANY,
 shall be clearly and conspicuously stated on  [the]  SUCH  gift  certif-
 icate.
   5-B. A GIFT CERTIFICATE, OTHER THAN AN OPEN LOOP GIFT CERTIFICATE OR A
 PROMOTIONAL  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.

co-Sponsors

2021-S3467A - Details

See Assembly Version of this Bill:: A4629
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:: S8780

2021-S3467A - Summary

2021-S3467A - Sponsor Memo

                                
 
BILL NUMBER: S3467A

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 on gift cards and gift certificates, limit gift card
and gift certificate expiration dates to no earlier than nine years
after issuance, 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, to prohibit the
issuance of gift certificates and gift cards that decline in value over

time, to prohibit fees on gift certificates and gift cards other than
one-time activation fees, to prohibit the issuance of gift certificates
and gift cards with expiration dates sooner than nine years after issu-
ance, 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.

 
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, including
dormancy fees, and also prohibited expiration dates prior to five years
after issuance.

However, permitted fees on gift cards can still be substantial. New York
lags behind other states in further limiting such fees.  This bill
protects consumers from excessive fees on gift cards by prohibiting all
fees on gift cards other than limited activation fees and by 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 earlier than nine years after
issuance and allows for redemption when the remaining balance is less
than five dollars.

 
PRIOR LEGISLATIVE HISTORY:

2020: S8780 - Passed Senate

 
FISCAL IMPLICATIONS:

None to the state

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

2021-S3467A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3467--A
     Cal. No. 488
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sens.  MAYER, LIU -- read twice and ordered printed, and
   when printed to be committed to the Committee on  Consumer  Protection
   -- reported favorably from said committee, ordered to first and second
   report,  ordered  to  a  third reading, amended and ordered reprinted,
   retaining its place in the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02680-05-1

 S. 3467--A                          2
 
 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.  §
 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 EXPIRATION DATE, IF ANY, THE ACTIVATION FEE, IF ANY,
 the procedure for the replacement of a gift certificate, if any, assign-
 ment and waiver shall be conspicuously printed: (a) on the gift  certif-
 icate;  or  (b)  on an envelope or packaging containing the gift certif-
 icate, 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  REASONABLY
 RELATED TO THE COST OF THE ISSUER ISSUING THE OPEN LOOP GIFT CERTIFICATE
 AND WHICH SHALL IN NO EVENT BE IN EXCESS OF NINE DOLLARS.
   [(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

 S. 3467--A                          3

 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.
   5-a.  It  shall  be  unlawful  for  any person to sell or issue a gift
 certificate OTHER THAN A PROMOTIONAL GIFT CERTIFICATE where the underly-
 ing funds are subject to  an  expiration  date,  PROVIDED  THAT  A  GIFT
 CERTIFICATE  MAY  BE  SUBJECT TO AN EXPIRATION DATE which is NOT earlier
 than [five] THE LATER OF NINE 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 OF A GIFT CERTIFICATE, IF ANY,
 shall be clearly and conspicuously stated on  [the]  SUCH  gift  certif-
 icate.
   5-B. A GIFT CERTIFICATE, OTHER THAN AN OPEN LOOP GIFT CERTIFICATE OR A
 PROMOTIONAL  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.

co-Sponsors

2021-S3467B (ACTIVE) - Details

See Assembly Version of this Bill:: A4629
Law Section:: General Business Law
Laws Affected:: Amd §396-i, Gen Bus L
Versions Introduced in 2019-2020 Legislative Session:: S8780

2021-S3467B (ACTIVE) - Summary

2021-S3467B (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S3467B

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 on gift cards and gift certificates, limit gift card
and gift certificate expiration dates to no earlier than nine years
after issuance, 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, to prohibit the
issuance of gift certificates and gift cards that decline in value over

time, to prohibit fees on gift certificates and gift cards other than
one-time activation fees, to prohibit the issuance of gift certificates
and gift cards with expiration dates sooner than nine years after issu-
ance, 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.

 
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, including
dormancy fees, and also prohibited expiration dates prior to five years
after issuance.

However, permitted fees on gift cards can still be substantial. New York
lags behind other states in further limiting such fees.  This bill
protects consumers from excessive fees on gift cards by prohibiting all
fees on gift cards other than limited activation fees and by 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 earlier than nine years after
issuance and allows for redemption when the remaining balance is less
than five dollars.

 
PRIOR LEGISLATIVE HISTORY:

2020: S8780 - Passed Senate

 
FISCAL IMPLICATIONS:

None to the state

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

2021-S3467B (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  3467--B
     Cal. No. 488
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 29, 2021
                                ___________
 
 Introduced  by  Sens.  MAYER, LIU -- read twice and ordered printed, and
   when printed to be committed to the Committee on  Consumer  Protection
   -- reported favorably from said committee, ordered to first and second
   report,  ordered  to  a  third reading, amended and ordered reprinted,
   retaining its place in the order of third reading -- passed by  Senate
   and  delivered  to the Assembly, recalled, vote reconsidered, restored
   to third reading, amended and ordered reprinted, retaining  its  place
   in the order of third reading
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02680-07-1

 S. 3467--B                          2
 
   (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 WHICH IS COVERED  BY  THE  EXCLUSION  SET
 FORTH  IN 15 U.S.C. § 1693I-1(A)(2)(D)(II), or prepaid telephone calling
 cards regulated under section ninety-two-f of the  public  service  law.
 Gift  certificate  also shall not include flexible spending arrangements
 as defined in Section 106(c)(2) of the Internal Revenue Code, 26  U.S.C.
 §  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 EXPIRATION DATE, IF ANY, THE ACTIVATION FEE, IF ANY,
 the procedure for the replacement of a gift certificate, if any, assign-
 ment and waiver shall be conspicuously printed: (a) on the gift  certif-
 icate;  or  (b)  on an envelope or packaging containing the gift certif-
 icate, 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  REASONABLY

 S. 3467--B                          3
 
 RELATED TO THE COST OF THE ISSUER ISSUING THE OPEN LOOP GIFT CERTIFICATE
 AND WHICH SHALL IN NO EVENT BE IN EXCESS OF NINE DOLLARS.
   [(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.
   5-a. It shall be unlawful for any person  to  sell  or  issue  a  gift
 certificate OTHER THAN A PROMOTIONAL GIFT CERTIFICATE where the underly-
 ing  funds  are  subject  to  an  expiration  date, PROVIDED THAT A GIFT
 CERTIFICATE MAY BE SUBJECT TO AN EXPIRATION DATE which  is  NOT  earlier
 than  [five]  THE  LATER  OF NINE 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 OF A GIFT CERTIFICATE, IF
 ANY, shall be clearly  and  conspicuously  stated  on  [the]  SUCH  gift
 certificate.
   5-B. A GIFT CERTIFICATE, OTHER THAN AN OPEN LOOP GIFT CERTIFICATE OR A
 PROMOTIONAL  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 S3467B

Sponsored By

Archive: Last Bill Status - Signed by Governor

Jun 7, 2021 - Floor Vote

Floor Vote: Jun 7, 2021

Apr 19, 2021 - Floor Vote

Floor Vote: Apr 19, 2021

Mar 2, 2021 - Consumer Protection Committee Vote

Consumer Protection Committee Vote: Mar 2, 2021

Bill Amendments

co-Sponsors

2021-S3467 - Details

2021-S3467 - Summary

2021-S3467 - Sponsor Memo

2021-S3467 - Bill Text download pdf

co-Sponsors

2021-S3467A - Details

2021-S3467A - Summary

2021-S3467A - Sponsor Memo

2021-S3467A - Bill Text download pdf

co-Sponsors

2021-S3467B (ACTIVE) - Details

2021-S3467B (ACTIVE) - Summary

2021-S3467B (ACTIVE) - Sponsor Memo

2021-S3467B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3467B

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Sponsored By

Shelley B. Mayer

Archive: Last Bill Status - Signed by Governor

Bill Amendments

co-Sponsors

John C. Liu

2021-S3467 - Details

2021-S3467 - Summary

2021-S3467 - Sponsor Memo

2021-S3467 - Bill Text download pdf

co-Sponsors

John C. Liu

2021-S3467A - Details

2021-S3467A - Summary

2021-S3467A - Sponsor Memo

2021-S3467A - Bill Text download pdf

co-Sponsors

John C. Liu

2021-S3467B (ACTIVE) - Details

2021-S3467B (ACTIVE) - Summary

2021-S3467B (ACTIVE) - Sponsor Memo

2021-S3467B (ACTIVE) - Bill Text download pdf

Comments