US 2007 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources in United States

US 2007 Gift Cards and Gift Certificates Statutes and Recent Legislation Resources

Alaska
H.B. 49
Relates to credit memos, gift certificates, and gift cards, and to unclaimed property; and makes a violation of certain gift card prohibitions an unlawful trade practice.

S.B. 115
Relates to gift certificates and gift cards, and to unclaimed property; makes it a violation of certain gift card prohibitions an unlawful trade practice.

Arkansas
H.B. 1455
Signed by governor 3/16/07, Act 304
Regulates unfair and deceptive acts and practices in connection with gift cards; creates the Fair Gift Card Act.

S.B. 818
Requires certain disclosures on gift cards and gift certificates; provides penalties for failure to make required disclosures; provides for a miscellaneous fund for unclaimed gift cards and gift certificates.

California
S.B. 250
Signed by governor 10/13/07, Chapter 640
Allows any gift certificate with a cash value of less than $10 to be redeemed in cash, as defined, for its cash value, and excepts donated gift certificates from the described prohibitions. The bill also deletes the exception described for food product gift certificates, thereby prohibiting those gift certificates from containing an expiration date or service fee, unless issued for perishable food products.

Connecticut
H.B. 5739
Failed Joint Favorable deadline 3/26/07
Limits the sale of gift certificates redeemable for plastic or cosmetic surgery services to individuals who have an established patient relationship with the medical facility or entity providing the gift certificate.

S.B. 560
Failed Joint Favorable deadline 3/13/07
Prohibits retailers from charging a consumer a fee if the consumer does not cash in a gift card within a specified time period.

S.B. 1233
Failed Joint Favorable deadline 3/13/07
Prohibits retailers from charging a consumer a fee if the consumer does not use a gift card within a specified time period.

Delaware
H.B. 52
Substituted 6/13/07
Defines gift cards and gift certificates, prohibits fees against the value of the card of certificate for inactivity; exempts those certificates or cards which are given at no cost from application under this Act.

H.S. 1 for H.B. 52
Defines gift cards and gift certificates, requires that an expiration date appear on the front of the cards and prohibits fees against the value of the card or certificate for inactivity without a signed agreement by the merchant and purchaser. Certain certificates or cards including but not limited to those which are given at no cost are exempt from the provisions of this Act.

Florida
H.B. 1259
S.B. 1638
Signed by governor 6/28/07, Chapter 256
Defines terms “credit memo” and “gift certificate”; provides that a holder of an unredeemed gift certificate or credit memo is not required to report said certificate or memo as unclaimed property to DFS; provides that consideration paid for said certificate or memo is property of issuer, subject only to any rights of purchaser or owner and is not subject to claim made by any state acting on behalf of purchaser or owner.

H.B. 5011, Third Special Session
Laid on table 10/5/07
Amends provision relating to gift certificates and credit memos; amends definition.

S.B. 22, Third Special Session
Signed by governor 10/26/07, Chapter 334
Relates to the Department of Agriculture and Consumer Services; amends §501.95, F.S., relating to gift certificates and credit memos; limits application of prohibitions to purchased instruments; provides for enforcement by the department.

Hawaii
H.B. 936
To conference committee 4/16/07
Prohibits a gift certificate issuer from charging service fees for dormancy or inactivity within 24 months after date of issuance of the certificate. Requires disclosure of fees on electronic card or certificate.

S.B. 687
Prohibits a certificate issuer from charging service fees for dormancy or inactivity within six months after the date of issuance of the certificate. Requires disclosure of fees on an electronic card or certificate.

Illinois
H.B. 369
Signed by governor 8/28/07, Public Act 95-0525
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that no person shall sell a gift certificate that is subject to an expiration date or a fee. Provides that, on or after January 1, 2008, no person shall sell a gift certificate that is subject to (i) an expiration date earlier than five years after the date of issuance or (ii) a post-purchase fee. Provides that the face value of a gift certificate, issued on or after January 1, 2008, may not be reduced in value and the holder of a gift certificate may not be penalized in any way for non-use or untimely redemption of the gift certificate.

H.B. 3522
Amends the Consumer Fraud and Deceptive Business Practices Act. Applies to gift cards that meet these criteria: the card is purchased at a retail establishment on a prepaid basis in a certain dollar value; a unique account or code number is printed on the card; the account or code number printed on the card is not hidden by a coating that is removed after the card is purchased; the card is honored by one or more retail establishments and also by one or more online merchants for goods or services, and the amount of the purchase is deducted from the value of the card; and purchases may be made with the card through an online merchant by entering the account or code number printed on the card without any requirement that the card itself be presented. Provides that if a consumer who purchased a gift card from a retail establishment presents to the retail establishment the gift card and the purchase receipt indicating the original value of the gift card and informs the retail establishment that part or all of the dollar value of the gift card has been deducted but was not used by the purchaser or the intended recipient of the gift card, the retail establishment shall refund to the consumer the amount so deducted. Makes violation an unlawful practice within the meaning of the Act.

Indiana
H.B. 1124
Provides that a person that issues certain gift cards may not charge fees that reduce the value of the gift cards.

Iowa
H.S.B. 201
A study bill for an act relating to the issuance of gift cards and gift certificates, including providing for abandonment, establishing restrictions on fees and charges, prohibiting expiration dates and other restrictive terms, and making penalties applicable.

S.S.B. 1230
A study bill for an act relating to the issuance of gift cards and gift certificates, including providing for abandonment, establishing restrictions on fees and charges, prohibiting expiration dates and other restrictive terms, and making penalties applicable.

Kansas
H.B. 2179
Expands the Kansas Consumer Protection Act. Current law requires certain gift cards and gift certificates, issued on or after January 1, 2007, to have an expiration date of no less than five years. HB 2179 allows gift certificates and gift cards that are sold or distributed by non-profit organizations to be issued for less than five years as long as the expiration date appears on the front of the certificate or card. These types of certificates and cards must be used to promote civic improvements, including economic development.

Kentucky
H.B. 254
Amends KRS 367.890, relating to gift cards, to provide for record of issuance; prohibits various use restrictions; makes violation of this statute an unfair trade practice; provides for enforcement by county attorneys and the attorney general; amends KRS 393.020, relating to property subject to escheat, to include gift cards.

Maryland
H.B. 1080
Establishes the Maryland Education Fund; provides that after a specified time, the balance remaining on a gift certificate shall be presumed abandoned; requires a person that sells or issues a gift certificate in the state to remit to the Comptroller the remaining balance on certain gift certificates on or before a specified date each year.

H.B. 30, First Special Session
Establishes the Maryland Education Fund; provides that after a specified date, the balance remaining on a gift certificate shall be presumed abandoned; requires a person that sells or issues a gift certificate in the state to remit to the Comptroller the remaining balance on gift certificates on or before a specified date each year.

Massachusetts
H.B. 326
Relates to credit backed or bank issued gift cards.

H.B. 347
Eliminates surcharges on purchases of gift certificates.

S.B. 176
Relates to returning purchases made with a gift card.

S.B. 211
Accompanied a new draft, see S.B. 2345 9/27/07
Relates to providing updates to the gift certificate law.

S.B. 2345
Passed Senate 11/20/07
Provides updates to the gift certificate law.

S.B. 2419
Allows cash redemption of certain gift certificates.

Michigan
H.B. 4050
Passed House 11/28/07
Regulates and requires disclosures for gift cards and gift certificates.

H.B. 4317
Passed House 11/28/07
Prohibits expiration dates and other certain fees on gift cards and gift certificates.

H.B. 4680
Passed House 11/28/07
Prohibits fees and expiration dates on gift certificates.

S.B. 274
Prohibits expiration dates or fees on gift certificates and retail gift cards.

S.B. 387
Passed Senate 6/13/07
Amends the Michigan Consumer Protection Act to make it an unlawful trade practice for a person engaged in the retail sale of goods or services to do any of the following in connection with a gift certificate or gift card for retail goods or services: 1) Issue to a consumer a gift certificate or card that expired in less than five years. 2) Fail to disclose the expiration date by conspicuously printing it on the gift certificate or card, if the certificate or card had an expiration date. 3) Fail to honor a gift certificate or card after it was issued and before its expiration date, if any. 4) Charge an inactivity fee or other similar service fee if the consumer did not use a gift certificate or card. “Gift certificate or gift card” would not include a certificate or card issued or sponsored by a financial institution or usable at multiple sellers of goods or services. (Separate subsidiaries of the same parent entity or separate franchisees of the same franchisor would not be considered multiple sellers.)

S.B. 388
To Senate for concurrence 11/28/07
Amends the Uniform Unclaimed Property Act to specify that a gift certificate, gift card, or credit memo would be presumed abandoned if it were not claimed or used five years after becoming payable or distributable, or if it were partially used or claimed but subsequently not claimed or used for five years.

Minnesota
H.F. 512
S.F. 69
Signed by governor 5/21/07, Chapter 93
Prohibits expiration dates and service fees on gift certificates and gift cards.

H.F. 1136
S.F. 935
Requests Congress to limit fees and expiration dates associated with gift cards issued by federal banks.

Mississippi
H.B. 260
Died in committee 2/27/07
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. 2040
Died in committee 1/30/07
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 law; amends §75-24-5, Mississippi Code of 1972, to provide that violations of this act are subject to civil and criminal penalties under the consumer protection statutes.

Missouri
H.B. 299
Prohibits the use of expiration dates or service fees on gift certificates. Violations of the provisions of the bill will be considered unfair merchandising practices and be subject to penalties.

S.B. 76
Prohibits the use of expiration dates or service fees on gift certificates. Consumers are entitled to receive the remaining balance of a gift certificate in cash, provided they have used at least 50 percent of the original value of the certificate. Violations of the act shall be considered unfair marketing practices subject to certain unlawful merchandising practice penalties.

Montana
H.B. 430
Missed deadline for general bill transmittal 4/3/07
Establishes state equity in the value of abandoned gift certificates and stored value cards; revises and clarifies certain provisions of the consumer protection act related to gift certificates in order to provide conformity between that act and the uniform unclaimed property act; requires issuers of gift certificates and issuers of stored value cards to obtain the name and the address of the person entitled to the property; provides that the Department of Revenue, as administrator of the uniform unclaimed property act, is presumed the owner of a gift certificate or stored value card under certain conditions; requires that the amount of value of abandoned gift certificates and stored value cards acquired by the state be deposited in the affordable housing revolving loan account.

H.B. 755
Signed by governor 4/30/07, Chapter 331
Provides the Uniform Unclaimed Property Act does not apply to gift certificates.

S.B. 135
Missed deadline for general bill transmittal 2/28/07
Establishes state equity in the value of abandoned gift certificates and stored value cards; revises and clarifies certain provisions of the consumer protection act related to gift certificates in order to provide conformity between that act and the Uniform Unclaimed Property Act; requires issuers of gift certificates and issuers of stored value cards to obtain the name and the address of the person entitled to the property; provides that the Department of Revenue, as administrator of the Uniform Unclaimed Property Act, is presumed the owner of a gift certificate or stored value card under certain conditions.

Nebraska
L.B. 668
Eliminates provisions relating to gift cards and gift certificates as prescribed.

Nevada
A.B. 279
Signed by governor 5/23/07, Chapter 107
Prohibits an issuer from charging a service fee on the basis of inactivity if the inactivity is for less than three continuous years; requires a certain portion of the unused value of certain gift certificates to escheat to the state; provides for the use of the proceeds from abandoned gift certificates for educational purposes.

New Jersey

A.B. 2258
S.B. 1249
Incorporates prepaid bank cards, defined in the bill as a form of gift card, into the existing statutory provisions which regulate the expiration dates and dormancy fees for gift cards and gift certificates generally.  These prepaid bank cards include mall gift cards issued by third party banks or other financial institutions which are usable at multiple, unaffiliated merchants within a particular shopping mall.  By incorporating prepaid bank cards into the existing gift card and gift certificate statutory requirements, the bill: 1) prohibits the expiration of prepaid bank cards within 24 months immediately following the date of sale by the original purchaser of the card; 2) prohibits the charging of a dormancy fee against a prepaid bank card within 24 months immediately following the date of sale, and within 24 months immediately following the most recent activity or transaction in which the card is used; 3) limits the dormancy fee, when applicable, charged against a prepaid bank card to no more than $2.00 per month; and 4) requires appropriate disclosure of the above card expiration and dormancy fee provisions to prepaid bank card consumers.

A.B. 3866
Makes it an unlawful practice under the Consumer Fraud Act to sell certain products via an Internet auction. The bill targets those products typically stolen from retailers by shoplifting gangs and resold over the Internet. The bill makes it an unlawful practice for a person to sell a value loaded card via Internet auction unless the seller provides to the auctioneer, as well as the company’s general counsel, a written or electronic record of the purchase or acquisition of the value loaded card, including the serial number and amount of the value loaded card; the date of purchase of the value loaded card; and the name, address and phone number of the person from whom that value loaded card was purchased or acquired. If a person sells an aggregate of five or more value loaded cards in contemporaneous Internet auctions conducted by an Internet auctioneer, the Internet auctioneer has 24 hours to notify the retailer of the sale in writing or electronically. The auctioneer must give the retailer relevant information about the seller, including the sales history and all aliases and accounts used by the person. The bill requires Internet auctioneers to immediately terminate an Internet auction if they receive information providing a reasonable basis to conclude that the auction violates the bill’s provisions or that the merchandise is stolen. Internet auctioneers who affirmatively demonstrate that they have received the information required by the bill will not be deemed liable.

A.B. 3979
Passed Assembly 6/21/07
S.B. 2732
Makes it an unlawful practice to sell gift cards unless they are packaged or displayed in a manner that would prevent a person from viewing the gift card account number prior to purchasing the gift card.

New Mexico
H.B. 127
Signed by governor 4/2/07, Chapter 125
Regulates the sale and redemption of gift certificates, establishes penalties and amends a section of the unclaimed property act.

S.B. 1030
Passed Senate 3/8/07
Regulates the sale and redemption of gift certificates, establishes penalties and amends a section of the unclaimed property act. Gift certificate, in this section, means writing identified as a gift certificate that is not redeemable in cash and is usable in its face amount in lieu of cash in exchange for goods or services supplied by a seller, but does not include a gift certificate useable with multiple unaffiliated sellers or goods or services. “Gift certificate” includes an electronic card with a banked dollar value, a merchandise credit, a certificate where the issuer has received payment for the full face value for the future purchase or delivery of goods or services and any other medium that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card or other medium for goods or services of at least an equal value.

New York
A.B. 41
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. 3751
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. 5002
Requires that gift certificates, gift cards, or store credits have no expiration or diminution in value over time.

A.B. 5878
S.B. 4026
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. 8652
S.B. 5362
Prohibits the expiration of gift cards before five years from the date of purchase and prohibits decreasing the value of such cards for anything other than purchases.

North Carolina
S.B. 1517
Signed by governor 8/17/07, Chapter 363
Requires the conspicuous disclosure of any maintenance fees charged for gift cards and prohibits issuers of gift cards from charging maintenance fees for one year after the date of purchase.

North Dakota
S.B. 2355
Failed to pass Senate 2/7/07
Relates to the redemption of gift certificates.

Oklahoma
S.B. 1034
Passed Senate 3/6/07
Clarifies language in the Gift Certificate and Gift Card Disclosure Act.

Oregon
H.B. 2513
Signed by governor 7/16/07, Chapter 772
Prohibits a person from selling a gift card that expires or has face value that declines over time or with lack of use. Prohibits person from charging fee related to gift card. Creates exceptions. Makes violation of prohibition unlawful trade practice.

S.B. 460
Passed Senate 5/24/07
Provides that unused gift cards become abandoned property. Provides that if issuer of gift card does not have address for owner of gift card, value of gift card presumed abandoned is subject to custody of this state if purchase, issuance or last transaction by owner of gift card occurred in this state. Prohibits expiration dates for gift cards and certain fees related to gift cards. Provides that violation of prohibitions is unlawful trade practice.

Pennsylvania
H.B. 124
Further defines “unfair methods of competition” and “unfair or deceptive acts or practices” to include selling gift certificate with an expiration date or fees.

S.B. 928
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. Makes a repeal.

Rhode Island
H.B. 5105
Passed House 6/19/07
Prohibits any person, firm or corporation from charging a surcharge of any kind relating to gift certificates and or gift cards.

S.B. 125
Prohibits any person, firm or corporation from charging a surcharge of any kind relating to gift certificates and or gift cards.

Tennessee
H.B. 55
S.B. 249
Requires any retailer issuing a gift certificate to permit the recipient of the gift certificate to redeem 50 percent of the face value of the certificate in cash.

H.B. 1840
S.B. 1693
Concerns Consumer Protection; expands certain requirements for gift certificates by removing exemption for gift certificates usable with multiple, unaffiliated sellers of goods or services.

Utah
H.B. 261
Signed by governor 2/27/07, Chapter 19
Makes it a violation of Title 13, Chapter 11, Utah Consumer Sales Practices Act, to issue a gift certificate that has an expiration date or deducts a fee without disclosing the expiration date or fee on the gift certificate or its packaging; provides that a gift certificate that does not disclose an expiration date or fee neither expires nor is subject to a fee; and makes technical changes.

Virginia
H.B. 2552
Expands the existing provisions regarding gift certificate disclosures to prohibit the issuer of a gift certificate from charging a maintenance fee, service fee, inactivity fee, or other fee on the gift certificate. Gift certificate issuers are also prohibited from placing an expiration date or otherwise limiting the time for the redemption of a gift certificate and from issuing a gift certificate that diminishes in value over time unless the gift certificate was issued pursuant to an awards or loyalty program where no money or thing of value exchanged or was donated to a charitable organization. The definition of a gift certificate is expanded to include any record that contains a microprocessor chip, magnetic strip, or other storage medium that is prefunded and for which the value is adjusted upon each use. The definition also includes card-activated prepaid long distance telephone service. The measures apply to all issuers of gift certificates in the Commonwealth; currently, the gift certificate disclosure requirements apply only to merchants.

Wisconsin
A.B. 360
Regulates the sale of gift certificates, gift cards, or similar items (gift obligations). Under the bill, a seller of a gift obligation must provide to a purchaser at the point of sale a conspicuous disclosure of any expiration date that applies to the gift obligation and the terms and amount of any service charge that apply to the gift obligation. The disclosure requirements under the bill do not apply to a document that evidences a transaction in which the obligation to provide goods or services extends to more than one seller of goods or services or to a gift obligation sold by a charitable organization or educational institution. The bill specifies that the bill’s disclosure requirements are not satisfied by a disclosure made available by telephone, at a physical address, by mail, or on an Internet Web site, unless the gift obligation is purchased on the Internet. Under the bill, if the Department of Agriculture, Trade and Consumer Protection (DATCP) has reasonable cause to believe a person has violated the provisions of the bill, and the person has not committed a previous violation, DATCP must send the person a warning letter. If a person has already received a warning letter relating to a separate violation, DATCP may seek injunctive relief or a fine up to $250 per violation.

A.B. 471
Regulates the sale and redemption of gift certificates, gift cards, and similar items (gift obligations). The bill prohibits the following: 1) failing to honor a valid gift obligation; 2) selling a gift obligation that is subject to an expiration date; 3) reducing the value of a gift obligation except for the sale price of goods or services provided to the bearer; and 4) reducing the value of a gift obligation as a condition of disclosing the value of the gift obligation. Under the bill, the prohibitions numbered 2 and 3, above, do not apply to a gift obligation given or sold for less than face value to a nonprofit organization or to a person who transfers the gift obligation to another primarily for the benefit of a nonprofit organization or to a gift obligation issued for no consideration. Also under the bill, if a person that owns a business intends to transfer ownership of the business or otherwise cease to operate the business, the person may not issue gift obligations that may be redeemed at the business, unless the intended transferee agrees to honor gift obligations issued by the person. The provisions of the bill do not apply to certain state chartered financial institutions to the extent that federal law preempts or prohibits the application of the provisions of the bill to certain federally chartered financial institutions. The Department of Agriculture, Trade and Consumer Protection or the district attorney, under the bill, may enforce the provisions of the bill by bringing an action for a forfeiture (civil penalty) of up to $10,000. Also, the bill creates a private right of action in which a person may recover the greater of twice the person’s pecuniary loss or $200 for each violation.

S.B. 191
Regulates the sale of gift certificates, gift cards, or similar items (gift obligations). Under the bill, a seller of a gift obligation must provide to a purchaser at the point of sale a conspicuous disclosure of any expiration date that applies to the gift obligation and the terms and amount of any service charge that apply to the gift obligation. The disclosure requirements under the bill do not apply to a document that evidences a transaction in which the obligation to provide goods or services extends to more than one seller of goods or services or to a gift obligation sold by a charitable organization or educational institution. The bill specifies that the bill’s disclosure requirements are not satisfied by a disclosure made available by telephone, at a physical address, by mail, or on an Internet Web site, unless the gift obligation is purchased on the Internet. Under the bill, if the Department of Agriculture, Trade and Consumer Protection (DATCP) has reasonable cause to believe a person has violated the provisions of the bill, and the person has not committed a previous violation, DATCP must send the person a warning letter. If a person has already received a warning letter relating to a separate violation, DATCP may seek injunctive relief or a fine up to $250 per violation.

S.B. 245
Regulates the sale and redemption of gift certificates, gift cards, and similar items (gift obligations). The bill prohibits the following: 1) failing to honor a valid gift obligation; 2) selling a gift obligation that is subject to an expiration date; 3) reducing the value of a gift obligation except for the sale price of goods or services provided to the bearer; and 4) reducing the value of a gift obligation as a condition of disclosing the value of the gift obligation. Under the bill, the prohibitions numbered 2 and 3, above, do not apply to a gift obligation given or sold for less than face value to a nonprofit organization or to a person who transfers the gift obligation to another primarily for the benefit of a nonprofit organization or to a gift obligation issued for no consideration. Also under the bill, if a person that owns a business intends to transfer ownership of the business or otherwise cease to operate the business, the person may not issue gift obligations that may be redeemed at the business, unless the intended transferee agrees to honor gift obligations issued by the person. The provisions of the bill do not apply to certain state chartered financial institutions to the extent that federal law preempts or prohibits the application of the provisions of the bill to certain federally chartered financial institutions. The Department of Agriculture, Trade and Consumer Protection or the district attorney, under the bill, may enforce the provisions of the bill by bringing an action for a forfeiture (civil penalty) of up to $10,000. Also, the bill creates a private right of action in which a person may recover the greater of twice the person’s pecuniary loss or $200 for each violation.