US 2004 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources in United States

US 2004 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources

Alaska
S.B. 231
Signed by governor 6/25/04, Chapter 90
Defines gift certificates.

Arizona
H.B. 2572
Regulates the sale of gift certificates, including gift cards.  Makes provisions for expiration dates, service fees and dormancy fees.

California
A.B. 656
Chaptered by secretary of state 8/30/04, Chapter 319
Existing law prohibits the sale of any gift certificate, as defined, that contains an expiration date or service fee, but creates an exception for a gift certificate with a provision that entitles the purchaser thereof to a full refund if the certificate is given to another person who fails to redeem the certificate within a specified time.  This bill revises and recasts that exception to instead provide that a gift certificate may be issued if each contributor is provided with a full refund if certain conditions are met, including a clear disclosure in writing of the time in which the recipient may redeem the certificate.

A.B. 2090
Effective January 1, 2004, existing law prohibits the sale of a gift certificate that imposes a service fee for dormancy.  Existing law prescribes an exception to that prohibition if specified criteria are met, including, but not limited to, a requirement that the fee not exceed $1 per month.  This bill deletes that exception.

Colorado
S.B. 160
Postponed indefinitely 2/10/04
Prohibits a person or entity from selling a gift certificate or gift card containing an expiration date. Requires that a gift certificate or gift card be redeemable for its cash value and that it remain valid until it is redeemed or replaced. Creates an exemption for certain gift certificates and gift cards that have an expiration date printed on the front, in capital letters in at least 10-point type, and that: are distributed to a consumer pursuant to an awards, loyalty, or promotional program when nothing of value is exchanged for the gift certificate or gift card by the consumer; or are sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fund-raising purposes. Prohibits an issuer of a gift certificate or gift card from charging any fees in connection with the issue of the gift certificate or card. Makes a violation of the limitations regarding gift certificates and gift cards a deceptive trade practice.

Connecticut
S.B. 93
Prevents the state acquiring the value of unredeemed gift certificates by repealing the provision that presumes that a gift certificate that is not redeemed within three years is abandoned, resulting in its escheat to the state.

S.B. 288
Provides that gift certificates do not escheat to the state.

Delaware
H.B. 351
Defines gift cards and gift certificates, prohibits fees against the value of the card or certificate for inactivity, but exempts those certificates or cards which are given at no cost from application under this Act.

Florida
H.B. 1053
Laid on table 4/14/04
S.B. 2570
Withdrawn from consideration 4/16/04
Provides that it is unlawful for any person or entity to sell a gift certificate that contains an expiration date or a service fee; provides general requirements regarding gift certificates; provides for applicability and construction of the act; authorizes fee; provides definitions.

Georgia
S.B. 443
Relates to unfair or deceptive practices in consumer transactions, so as to create the Gift Card Integrity Act of 2004; prohibits the imposition of nonuse, handling, dormancy, or maintenance fee on gift cards and gift certificates issued by merchants or persons acting on behalf of merchants.

S.B. 618
Creates the Gift Card Integrity Act of 2004; provides definitions; prohibits the imposition of nonuse, handling, dormancy, activation, or maintenance fees on gift cards and gift certificates issued by merchants or persons acting on behalf of merchants; provides for related matters.

Hawaii
H.B. 1736
Prohibits gift certificate issuers from charging service fees, including but not limited to dormancy fees.

H.B. 1996
Clarifies that gift certificates shall be honored for their full face value for the two-year period after the date of issuance of the certificate.

H.B. 2073
Requires that gift certificates have no expiration date; provides that a fee of $1 may be deducted from the value of a gift certificate every two years.

H.B. 2143
Signed by governor 6/21/04, Act 136
Expands the definition of gift certificate to reflect changes in retail industry technology; extends the minimum life of certificates to seven years; provides that consumers may obtain cash after utilizing 90 percent of the value of the certificate; prohibits service charges or dormancy fees; no longer requires issuers to report unclaimed amounts under the Unclaimed Property Act.

S.B. 2140
Prohibits the issuance of gift certificates with expiration dates, except for gift certificates issued as donations to nonprofit organizations that shall expire not less than two years from their date of issuance. Prohibits the imposition of fees, charges, or penalties for dormancy, service, abandoned or unclaimed property, escheat, or inactivity for unredeemed gift certificates.

Illinois
H.B. 4353
Creates the Gift Certificate Act. Provides that it is unlawful for any person or entity to sell a gift certificate to a purchaser that contains an expiration date or a service fee including, but not limited to, a service fee for dormancy. Provides that any gift certificate sold after January 1, 2005, is redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder. Provides that a gift certificate sold without an expiration date is valid until redeemed or replaced. Makes exceptions to the prohibition of the service fee for dormancy. Exempts prepaid calling cards that are issued solely to provide an access number and authorization code for the prepaid calling service from the requirements of the Act.

H.B. 4614
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that no person shall sell or issue a gift certificate that is subject to an expiration date. Provides that no gift certificate or any agreement with respect to the gift certificate may contain language suggesting that an expiration date may apply. Provides that fees and penalties shall not be imposed for inactivity with respect to a gift certificate. Provides that the value of a gift certificate that is not redeemed within three years is presumed abandoned. Provides that any person who sells a gift certificate shall obtain the address of the owner of the gift certificate and maintain a record of such address. Provides that any person who sells a gift certificate subject to an expiration date shall be fined not more than $500 per occurrence. Defines gift certificate.

H.B. 5916
Amends the Uniform Disposition of Unclaimed Property Act. Provides that the Act applies to gift certificates and gift cards that contain any type of charge or fee including but not limited to service charges, dormancy fees, account maintenance fees, cash-out fees, replacement card fees, and activation or reactivation charges, unless specified exceptions apply.

H.B. 6969
Creates the Gift Certificate Act. Provides that, beginning January 1, 2005, it shall be unlawful for any person or entity to sell a gift certificate containing an expiration date or a service fee for dormancy, except as specified in the Act. Provides that any gift certificate sold shall be redeemable in cash for its cash value or subject to replacement with a new gift certificate. Makes a gift certificate without an expiration date valid until redeemed or replaced. Exempts prepaid calling cards from the provisions of the Act.

S.B. 2901
Signed by governor 8/17/04, Public Act 93-0945
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that no person shall sell or issue a gift certificate that is subject to an expiration date. Provides that no gift certificate or any agreement with respect to the gift certificate may contain language suggesting that an expiration date may apply. Provides that fees and penalties shall not be imposed for inactivity with respect to a gift certificate. Provides that any person who sells a gift certificate subject to an expiration date shall be fined not more than $500 per occurrence. Defines gift certificate.

Iowa
H.F. 2287
Prohibits sellers from selling gift certificates that contain an expiration date.  Provides that gift certificates sold with an expiration date shall be redeemable in cash or may be replaced at no cost to the buyer or holder.  If the gift certificate is distributed as an award or pursuant to a loyalty or promotional program or if the certificate is sold below face value for fundraising purposes or if the giftcertificate is one issued for a food product, the certificate may contain an expiration date if the expiration date is printed in capital letters in at least 10-point font on the front of the gift certificate.  Amends the definition of a gift certificate to include electronic gift cards.

H.F. 2306
Signed by governor 3/18/04
Amends the definition of “gift certificate” to include electronic gift cards with regard to disposition of unclaimed property. Prohibits an issuer of a gift card from deducting a fee from a gift card that is not presented for redemption in a timely manner where no valid contract exists to deduct the fee.

S.F. 2231
Withdrawn from further consideration 3/15/04
Amends the definition of “gift certificate” to include electronic gift cards with regard to disposition of unclaimed property.  Prohibits an issuer of a gift card from deducting a fee from a gift card that is not presented for redemption in a timely manner where no validcontract exists to deduct the fee.

Louisiana
H.B. 1509
Provides restrictions on gift certificates for which the issuer has received payment from the purchaser.

S.B. 295
Signed by governor 5/28/04, Act 69
Prohibits any person or entity to sell a gift certificate which contains an expiration date or which includes any service fee. A gift certificate sold without an expiration date is valid until redeemed or replaced.  Exempts the following gift certificates from the provisions of proposed law, provided the expiration date appears on the front of the gift certificate in 10-point type:  (1) Gift certificates distributed to a consumer pursuant to an awards, loyalty, or promotional program when no money or other thing of value has been given in exchange for the gift certificate by the consumer.  (2) Gift certificates that are sold below face value to nonprofit and charitable organizations for fundraising purposes as long as the expiration date on those gift certificates is no more than 30 days after the date of the sale.  Subjects the violator to any and all actions and penalties associated with the Unfair Trade Practices and Consumer Protection Law.

Maryland
H.B. 43
Prohibits a prepaid gift certificate from expiring before its redemption; provides specified exceptions to the prohibition; and provides for the application of the Act.

S.B. 173
Passed Senate 3/12/04
Prohibits a gift certificate or gift card from expiring before its use; and provides for the construction and application of the Act.

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

H.B. 3294
Ought not to pass report adopted 2/10/04
Relates to the issuance and redemption of gift certificates.

H.B. 4524
Link not available
Relates to credit-backed or bank-issued gift cards.

H.B. 4770
Relates to administrative fees on gift certificates.

S.B. 2204
Prohibits excessive fees on gift certificates and gift cards.

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.

H.B. 5822
Prohibits a retailer from failing to honor gift certificates.

Mississippi
H.B. 841
Died in committee 3/9/04
Prohibits the sales of gift certificates with expiration dates, service fees or dormancy fees; allows cash redemption or replacement of gift certificates; provides exceptions.

S.B. 2877
Died in committee 3/9/04
Makes unlawful the sale of a gift certificate that contains an expiration date or a service fee, with certain exceptions; provides for application of this section; provides that violations of this act are subject to civil and criminal penalties under the consumer protection statutes.

Missouri
H.B. 1411
Provides standards for any entity doing business in this state that issues gift certificates or offers promotional premiums, coupons, or sales agreements. Gift certificates must have an expiration date of at least one year from the date of purchase and must allow for a cash redemption of any amount not redeemed within one year of the expiration date. Promotional premiums, coupons, or sales agreements must have the expiration date printed on them and must allow for a cash redemption of any amount not redeemed within two years of the expiration date. Businesses offering gift certificates, promotional premiums, coupons, or sales agreements will be prohibited from imposing a maintenance fee or surcharge if the item is not redeemed within a specific time or if a cash refund is issued.

Nebraska
L.B. 1222
Renders void an expiration date of three years or less from the date of purchase on a gift certificate sold for money or other thing of value. A gift certificate containing such an expiration date would be redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder within such time period. This provision would not apply to the following gift certificates if the expiration date appears in capital letters in at least 10-point type on the front of the gift certificate: 1) A gift certificate distributed by the issuer to a consumer pursuant to an award or a promotional program without any money or thing of value being given in exchange for the gift certificate by the consumer; 2) A gift certificate sold below face value at a volume discount to an employer or to a nonprofit and charitable organization for fundraising purposes, if the expiration date on the gift certificate is 30 days or more after the date of sale; 3) A gift certificate for a food product.

New Hampshire
S.B. 461
Signed by governor 6/11/04, Chapter 228
Removes the requirement that gift certificates of $100 or more shall expire when escheated to the state as abandoned property.

New Jersey
A.B. 1079
Provides that a gift certificate issued by a retail merchandise establishment shall be redeemable at full face value in perpetuity.

A.B. 1959
Under the provisions of 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. This bill provides that such gift certificates shall be valid and redeemable at full face value until redeemed.

A.B. 3017
Provides that gift certificates shall be valid and redeemable at full face value for a period of 24 months following the date of purchase of a gift certificate.  Reimbursements and exchanges for a gift certificate shall take place no later than 24 months from the date of purchase of the certificate.  Mandates that the retail merchandise establishment issuing a gift certificate shall inform the purchaser on the gift certificate of the 24-month expiration date of the validity of that certificate. Requires a retail merchandise establishment to maintain a record of the transaction for the issuance of each such certificate for not less than 24 months following the date of sale, including the full face value of the gift certificate, and an identification number assigned by the retail merchandise establishment to the gift certificate.  Stipulates that a retail merchandise establishment issuing a gift certificate with a full face value of more than $50 shall issue to the purchaser of the certificate a written and numbered receipt indicating that sale.  Another provision of the bill is that a retail merchandise establishment shall issue a new gift certificate for any unused portion of a redeemed gift certificate, which shall be redeemable for up to 24 months from the date of purchase of the original gift certificate, except that where the balance due to the consumer is less than $5, the retail merchandise establishment shall provide cash to the consumer for the unused portion.

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.

A.B. 9317
Prohibits additional fees on gift certificates or gift cards; shall not apply to gift certificates or gift cards distributed to a consumer for promotional purposes.

A.B. 9329
S.B. 5842
Requires that gift certificates, gift cards, or store credits have no expiration or diminution in value over time.

A.B. 9331
S.B. 5896
Defines the term “gift certificate” and prohibits the imposition of retroactive or reactivation fees; requires notice of terms and conditions to be given at point of sale; provides for enforcement by the attorney general and a civil fine of up to $1000 for violations,

A.B. 9386
S.B. 5994
Prohibits the sale of gift certificates which contain an expiration date; prohibits the imposition of a surcharge on gift certificates, including a service fee for dormancy; makes enforcement provisions; and provides limited exceptions.

A.B. 9405
Prohibits reduction of value of gift certificate at any time during its term from its value at time of original issue.

A.B. 9439
Relates to the sale and use of gift certificates; requires that gift certificates last for at least seven years; requires that the date of issuance and the date of expiration of a gift certificate be either printed on the gift certificate, printed on a customer’s receipt, or available through an Internet and toll-free telephone service.

A.B. 9752
Prohibits the sale of gift certificates and gift cards that diminish in value due to dormancy; and prohibits surcharges and fees on gift certificates and gift cards.

A.B. 10333
Substituted 6/16/04
S.B. 6612
Signed by governor 7/20/04, Chapter 171
Provides that no retroactive fees shall be assessed against a gift certificate; also provides that no monthly service fees may be assessed against the balance of a gift certificate prior to the thirteenth month of dormancy.

A.B. 10334
Substituted 6/16/04
S.B. 6611
Signed by governor 7/20/04, Chapter 170
Requires the disclosure of the terms and conditions of a gift certificate to the purchaser at the time of purchase; defines “gift certificate.”

A.B. 11789
Substituted 8/11/04
S.B. 7708
Signed by governor 9/20/04, Chapter 507
Provides required disclosures and allowable fees assessed against unexpired gift certificates.

S.B. 5860
Establishes gift certificates and gift cards shall not contain service fees, including, but not limited to, a service fee for dormancy; establishes certain times a service fee for dormancy may be applied to a gift card; establishes gift certificates and gift cards shall be valid until presented in exchange for merchandise or service.

S.B. 6218
Provides that gift certificates, gift cards, and store credits shall have no expiration and prohibits the imposition of fees or charges thereon.

S.B. 7206
Provides that the value of a gift certificate may not be reduced by deduction of any service or dormancy charge, fee or any other such amount; defines “gift certificate” as a tangible or electronic record evidencing an issuer’s agreement to provide goods or services to the value shown in the record; provides there shall not be an expiration period or date.

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.

H.B. 2355
Prohibits the sale or issuance of certain gift certificates or gift cards with expiration dates, the imposition of transaction, service or convenience fees and the imposition of dormancy fees; provides the attorney general certain powers and duties; and repeals inconsistent statutes.

S.B. 1098
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. 7081
Prevents any business, from placing an expiration date on a gift certificate sold in this state.

H.B. 7090
Makes it unlawful to charge a service fee for redeeming a gift certificate.

H.B. 7133
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. 7424
Became effective without governor’s signature  7/9/04, Chapter 548
Places more specific record keeping requirements on the issuance of gift certificates and makes the redemption period limited.

H.B. 8406
Places more stringent record keeping requirements on the issuance of gift certificates, would broaden the definition of gift certificates, would prohibit any business from charging an additional fee and would prohibit any business from limiting the time within which a gift certificate may be redeemed.

H.B. 8713
Became effective without governor’s signature 8/11/04, Chapter 604
Expands the definition of a gift certificate, prohibits the issuer from charging additional fees on the gift certificate, and allows cards used for prepaid wireless telephone service to be exempt until January 1, 2006.

S.B. 2076
Prevents any business, from placing an expiration date on a gift certificate sold in this state.

S.B. 2209
Prevents any business from placing an expiration date on a gift certificate sold in this state.

S.B. 2407
Became effective without governor’s signature 7/9/04, Chapter 541
Expands the definition of a gift certificate and prohibit the issuer from charging additional fees on the gift certificate.

S.B. 2450
Prevents any business, from placing an expiration date on a gift certificate sold in this state.

South Carolina
H.B. 4688
Signed by governor 11/4/04
Provides that a person may not issue or sell a gift certificate which provides that the certificate expires before the first anniversary of the date on which the certificate is issued or sold, provides exceptions, and provides that a condition relating to the use of a gift certificate must be stated clearly on the certificate if the condition provides that the certificate decreases in value over a period of time or that a fee is charged against the balance of the certificate after a certain period of time.

Utah
H.B. 261
Enacting clause struck 3/3/04
Prohibits a gift certificate from containing an expiration date within five years after the gift certificate is issued.

Virginia
H.B. 256
Failed to pass House 2/11/04
Requires a supplier that sells gift cards or gift certificates to consumers to provide a disclosure of its policies related thereto to consumers by means of a sign placed in a conspicuous public area of the premises of the supplier, so as to be readily noticeable and readable by the consumer. The disclosure shall include the conditions, charges, or fees relating to the gift card or gift certificate, including but not limited to any expiration date, diminution in value over time, or up-front fees. Failure to provide the disclosure is a violation of the Virginia Consumer Protection Act.

Washington
H.B. 3036
Signed by governor 3/26/04, Chapter 168
S.B. 6675
Prohibits issuers of gift certificates and stored value cards, with a few exceptions, from including inactivity charges or expiration dates on the certificates. Exempts gift certificates and stored value cards from the Uniform Unclaimed Property Act.

S.B. 6482
Prohibits gift certificates, including gift cards and stored value cards, from having an expiration date, or any fee, service charge or inactivity charge. If a gift certificate is used, and there is unused value left, the issuer must make the remaining amount available to the consumer, in cash or gift certificate. If less than $5 is left, the remaining value must be redeemable in cash. A gift certificate may have an expiration date, if it shows the date in large capital letters on the front and if it is part of a promotional program, without money being given in exchange, or if it is part of a charitable fundraiser or issued for a “food product.”

Wisconsin
S.B. 459
Failed to pass pursuant to Senate Joint Resolution 1 3/31/04
Regulates the sale of gift certificates, gift cards, or similar items (gift obligation) if the gift obligation has an expiration date or is subject to a service charge.  Any expiration date, and the amount and terms of any service charge, must be disclosed conspicuously in writing to the purchaser, must be orally disclosed to the purchaser, and must be written on the gift obligation.  Requires the Department of Agriculture, Trade and Consumer Protection (DATCP) to promulgate a rule defining the term “conspicuous.” The rules must require that expiration dates be written in at least 10-point type size.  Requires DATCP to promulgate a rule setting forth the service charge terms that must be disclosed.  Authorizes DATCP to bring an action to enjoin persons from these restrictions. Persons who violate these laws are also subject to forfeitures (civil penalties) and criminal penalties. In addition, the bill does not preclude these violations from being prosecuted as unfair methods of competition, unfair tradepractices, or fraudulent representations under existing laws.  Allows an individual to bring a civil action for violation of these laws.