US 2003 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources in United States

US 2003 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources

California
A.B. 1092
Chaptered by secretary of state 7/24/03, Chapter 116
Existing law prohibits the sale of any gift certificate that contains an expiration date, except as specified.  Prohibits the sale of any gift certificate that contains a service fee, except as specified.  For the purposes of these provisions, the bill would clarify that “gift certificate” includes gift cards, except for certain cards that may be used with multiple sellers of goods or services, as specified.  Provides that the provision above does not prevent an issuer of a gift certificate from including on any gift certificate that the purchaser is entitled to a full refund of the amount paid under specified circumstances, and would make a conforming change to a related provision.

Connecticut
H.B. 5328
Prohibits any person from (1) issuing gift certificates that contain an expiration date or (2) imposing dormancy, abandoned or unclaimed property, escheat, inactivity, or similar charges, fees, or penalties for not using the certificates.  Specifies that (1) a gift certificate is valid until redeemed or replaced and (2) an unredeemed gift certificate may not be presumed abandoned as it would normally be under the Connecticut’s escheats law.  Imposes a $500 fine per occurrence against any person who violates it and deems any failure to comply an unfair or deceptive trade practice.

H.B. 5330
Failed Joint Favorable deadline 3/25/03
Prohibits expiration dates and dormancy fees on gift certificates and gift cards.

H.B. 5814
Allows consumers to redeem a retail gift certificate for a minimum of three years from the date it is issued.

H.B. 6082
Prohibits expiration dates on gift certificates and gifts cards.

H.B. 6802, Special Session
Signed by governor 8/16/03, Public Act 03-1
Defines gift certificates and provides that no gift certificate shall be sold or issued with an expiration date or contain dormancy or inactivity fees.  Provides that gift certificates are still subject to escheat.  Requires any one who sells or issues a gift certificate to obtain the address of the owner of the gift certificate.

S.B. 121
Revises statutory provisions concerning unclaimed property and escheats by shortening the period for abandonment for certain types of property, specifically adding other types of property that is subject to abandonment and escheat to the state, prohibits expiration dates on gift certificates, prohibits dormancy fees and enhances the accounting and auditing authority of the treasurer.

S.B. 802
Provides clear notice to consumers of the expiration date of a gift card or gift certificate.

S.B. 803
Prohibits expiration dates on restaurant gift certificates.

S.B. 805
Failed Joint Favorable deadline 3/25/03
Requires any person or entity that sells gift certificates to transfer the value of any gift certificate that is not redeemed within two years of the date of purchase to the state treasurer.

S.B. 881
Provides clear notice to consumers of the expiration date of gift certificates and gift cards.

Illinois
H.B. 2914
Amends the Uniform Disposition of Unclaimed Property Act.  Provides that unclaimed property payable or distributable in the course of a demutualization of an insurance company is presumed abandoned five years after the earlier of the date of last contact with the policyholder or the date the property became payable or distributable.  Provides for an exemption from the Act for gift certificates and gift cards that contain an expiration date or expiration period issued by a nonprofit organization as defined under Section 501(c)(3) of the Internal Revenue Code.  Provides that a holder or any party with information about the owner is prohibited from charging a fee or service charge to an owner in order to prevent abandonment from being presumed.

S.B. 1096
Amends the Uniform Disposition of Unclaimed Property Act.  Provides that unclaimed property payable or distributable in the course of a demutualization of an insurance company is presumed abandoned five years after the earlier of the date of last contact with the policyholder or the date the property became payable or distributable.  Provides for an exemption from the Act for gift certificates and gift cards that contain an expiration date or expiration period issued by a nonprofit organization as defined under Section 501(c)(3) of the Internal Revenue Code.  Provides that a holder or any party with information about the owner is prohibited from charging a fee or service charge to an owner in order to prevent abandonment from being presumed

Indiana
S.B. 26
Signed by governor 4/30/03, Public Law 107
Provides that the unclaimed property act does not apply to gift certificates or gift cards.

Maine
L.D. 1479
Adds “face value” to the abandoned property laws definition section to resolve issues of interpretation.  Defines “gift obligation.”  Clarifies the abandonment period of a gift obligation and that the amount abandoned is the face value of the gift obligation.  Prohibits the imposition of a fee or charge on a gift obligation unless the fee or charge is contained in a written agreement at the time of purchase of the gift obligation.

Maryland
H.B. 710
S.B. 375
Prohibits a gift certificate from expiring before redemption for the complete face value of the gift certificate; defines the term “gift certificate;” provides for the prospective application of the Act.

Massachusetts
H.B. 32
Relates to expiration dates for gift certificates.

H.B. 3294
Relates to the issuance and redemption of gift certificates.

H.B. 3729
Signed by governor 5/30/03, Chapter 18
Relates to expiration dates for gift certificates.

S.B. 1969
Signed by governor 3/31/03, Chapter 8
Relates to the expiration dates of gift certificates and certain other mediums of exchange.

Michigan
H.B. 4053
Prohibits a retailer from failing to honor a valid gift certificate when presented to the issuer by a consumer in payment for goods or services.  Defines the term “gift certificate” to mean a written certificate or electronic card memorializing a promise to provide goods and services in a specified amount or of equal value to the bearer of the certificate or card, given by a retailer in exchange for payment.  The act can be enforced by the attorney general, by local prosecutors, and through private legal actions, and the act provides for the imposition of temporary and permanent injunctions, the assessing of civil penalties, and the recovery of damages and attorneys’ fees.

H.B 4430
Excludes gift certificates, electronic gift cards, and credit memos from unclaimed property.

New Hampshire
H.B. 259
Signed by governor 6/30/03, Chapter 193
Defines and regulates the use of gift certificates under the consumer protection act.  Establishes a study committee relative to the regulation of gift certificates.

New Jersey
A.B. 3329
Under the provisions of P.L.2002, c.14 (C.56:8-110) a gift certificate issued by a retail merchandise establishment remains valid until the certificate is redeemed, unless conditions and limitations on redemption are disclosed to the purchaser and are conspicuously printed on the certificate.  Provides that such gift certificate shall be valid and redeemable at full face value until the certificate is redeemed, unless conditions and limitations on redemption are disclosed to the purchaser and are conspicuously printed on the certificate.

New York
A.B. 3479
S.B. 5841
Provides that gift certificates and store credits shall not contain expiration dates, except in limited circumstances where they are issued for promotional purposes without value being given by the consumer; makes certificates or credit with an expiration date redeemable in cash or replaceable by a certificate or credit without an expiration date.

A.B. 5113
Prohibits the sale of issuance of gift certificates to a consumer that contain an expiration date; not applicable to gift certificates issued for promotional purposes.

Ohio
S.B. 13
Prohibits a gift certificate having an expiration date.

Pennsylvania
H.B. 216
Prohibits the sale of gift certificates with expiration dates.

H.B. 2139
Prohibits the sale or issuance of certain gift certificates with expiration dates and the imposition of transaction, service or convenience fees; provides the attorney general certain powers and duties.

Rhode Island
H.B. 5065
Prevents any business, from placing an expiration date on a gift certificate sold in this state.

H.B. 5086
Prohibits administrative maintenance fees on gift cards.

H.B. 5217
Regulates the issuance of merchandise credit slips in the same manner as the sales of gift certificates by requiring that the merchant maintain certain records regarding their issuance and prohibits an expiration date for the use of the merchandise credit slip.

H.B. 5279
Prohibits any person, firm or corporation that sells gift certificates from setting a time limit for the redemption of a gift certificate or from placing an expiration date on the gift certificate.

H.B. 5910
Prevents any business, from placing an expiration date on a gift certificate sold in this state.

S.B. 976
Prevents any business, from placing an expiration date on a gift certificate sold in this state.

Tennessee
H.B. 1551
S.B. 1581
Signed by governor 5/8/03, Public Chapter 78
Decreases the time period an issuer must wait to presume gift certificate is abandoned property from more than five years to earlier of two years or certificate’s expiration date; prevents gift certificate issued after December 31, 1998, from being abandoned property if issuer does not impose dormancy charge and certificate expiration date is not effective or applicable.

Texas
H.B. 650
Prohibits the expiration of most gift certificates and gift cards before the second anniversary of the date on which the card was issued.  Requires businesses and card issuers to disclose certain types of information on or with a gift certificate or gift card.

H.B. 1588
Relates to the disclosure of the expiration or reduction in value of a gift certificate.

Utah
H.B. 207
Enacting clause struck 3/5/03
Modifies the Utah Consumer Sales Practices Act by prohibiting gift certificates that contain an expiration date within five years after the gift certificate is issued.