Gift Cards and Gift Certificates Legislation

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Gift Cards and Gift Certificates Statutes and Recent Legislation

Statutory Chart Last Updated: January 19, 2009

Legislation Last Updated: June 3, 2009

**PLEASE NOTE: The National Conference of State Legislatures is an organization serving state legislators and their staff. We cannot offer legal advice or assistance with individual cases, but we do try to answer questions on general topics. If you have questions regarding redeeming a gift card or gift certificate or a retailer's practices, please contact the Office of the Attorney General in your state.

NCSL Contact: Heather Morton, Denver (303) 364-7700

State Statutes | State Legislation

STATE STATUTES

State:	Definition of Gift Card/Gift Certificate:	Expiration Date Provision:	Fee Provision:	Escheat Provsion:
Alabama				Ala Code §35-12-72(a)(17) Gift certificates are presumed abandoned, other than those exempt under §35-12-73, three years after June 30 of the year in which the certificate was sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60 percent of the certificate's face value. Ala. Code §35-12-73(b)(1) A gift certificate, gift card, or in-store merchandise credit issued or maintained by any person engaged primarily in the business of selling tangible personal property at retail is exempt from reporting under this article.
Alaska	Alaska Stat. §34.45.760 "Gift certificate" means an obligation of a business association arising from a transaction between the business association and a consumer to provide goods or services at a future date; "gift certificate" includes a gift certificate, stored value card, gift card, on-line gift account, or other representation or evidence of the obligation of a business association.			Alaska Stat. §34.45.240 Gift certificate is presumed abandoned three years after is it unclaimed by the owner. Amount presumed abandoned is the price paid by the purchaser for the gift certificate.
Arizona	Ariz. Rev. Stat. Ann. §44-7401 "Gift card" means any gift certificate, gift card or electronic gift card or any other medium issued or sold after October 31, 2005 for which the issuer has received payment for the full face value or full banked dollar value of the card for the future purchase or delivery of goods or services.	Ariz. Rev. Stat. Ann. §44-7402 Must disclose expiration date.	Ariz. Rev. Stat. Ann. §44-7402 Must disclose amount of fee and when fee is incurred.	Ariz. Rev. Stat. Ann. §44-301(15) Gift certificates/cards are not considered property and not subject to escheat laws.
Arkansas	Ark. Stat. Ann. §4-88-702 "General use prepaid card" means a card or other electronic payment device issued by a bank or financial institution that is: (i) Usable at multiple, unaffiliated merchants or service providers or at automated teller machines; (ii) Issued in a requested amount whether or not that amount may be, at the option of the issuer, increased in value or reloaded if requested by the holder; (iii) Purchased or loaded on a prepaid basis; and (iv) Honored, upon presentation, by merchants for goods or services, or at automated teller machines. "Gift certificate" means a written promise that is: (i) Usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo; (ii) Issued in a specific amount and cannot be increased; (iii) Purchased on a prepaid basis in exchange for payment; and (iv) Honored upon presentation by the single merchant or affiliated group of merchants for goods or services. "Store gift card" means a plastic card or other electronic payment device that is: (i) Usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo; (ii) Issued in a specified amount and may or may not be increased in value or reloaded; (iii) Purchased on a prepaid basis in exchange for payment; and (iv) Honored upon presentation by the single merchant or affiliated group of merchants for goods or services. Ark. Stat. Ann. §4-88-704(3) The Act does not apply to "general use prepaid cards," "gift certificates," or "store gift cards" which are usable with multiple, unaffiliated sellers of goods or services and are issued by a financial institution under §4-88-702(3).	Ark. Stat. Ann. §4-88-703(a) and (c) A person shall not sell or issue a gift certificate, a store gift card, or a general use prepaid card that is subject to an expiration date earlier than two years from the date of issuance or sale of the gift certificate, store gift card, or general use prepaid card. Upon the expiration of the two year time period, a gift certificate, a store gift card, or a general use prepaid card may be subject to expiration if the following disclosures are printed clearly in a conspicuous place on the front or back of the gift certificate, the store gift card, or the general use prepaid card in at least 10-point type: The date on which the gift certificate, the store gift card, or the general use prepaid card expires.	Ark. Stat. Ann. §4-88-703(c) A dormancy fee, an inactivity charge or fee, or a service fee shall not be charged on a gift certificate, a store gift card, or a general use prepaid card before two years from the date of issuance or sale of the gift certificate, store gift card, or general use prepaid card. Upon the expiration of the two year time period, a gift certificate, a store gift card, or a general use prepaid card may be subject to a post-sale fee, including a service fee, a dormancy fee, an account maintenance fee, a cash out fee, a gift card replacement fee, an activation fee, or a reactivation fee, if the following disclosures are printed clearly in a conspicuous place on the front or back of the gift certificate, the store gift card, or the general use prepaid card in at least 10-point type: With respect to a post sale fee: (A) The amount of the fee; (B) The circumstances under which the fee will be imposed; (C) The frequency with which the fee will be imposed; and (D) Whether the fee is triggered by inactivity.	Ark. Stat. Ann. §18-28-201(13)(B) Gift certificates/gift cards, in-store merchandise credits, or layaway accounts issued or maintained by any person in the business of selling tangible personal property at retail are not considered property and not subject to escheat laws.
California	Cal. Civil Code §1749.45 Includes gift cards, but does not include any gift card usable with multiple sellers of goods or services, provided the expiration date, if any, is printed on the card. This exemption does not apply to a gift card usable only with affiliated sellers of goods or services.	Cal. Civil Code §1749.5 Expiration date prohibited.	Cal. Civil Code §1749.5 Dormancy fee allowed; all other fees prohibited.	Cal. Civ. Proc. Code §1520.5 Gift certificates purchased after 1997 are not subject to escheat. The escheat law does apply to any gift certificate that has an expiration date and that is given in exchange for money or any other thing of value.
Colorado				Colo. Rev. Stat. §38-13-108.4 Gift certificate redeemable in cash subject to escheat if unclaimed by owner by more than five years. Certificates issued for food, products, goods or services are not subject to escheat provisions.
Connecticut	Conn. Gen. Stat. §3-56a "Gift certificate" means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the owner of the record to the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information that is prefunded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored-value card or certificate, a store card, or a similar record or card, but "gift certificate" does not include prepaid calling cards or prepaid commercial mobile radio services, as defined in 47 C.F.R. §20.3	Conn. Gen. Stat. §42-460 Prohibits expiration dates.	Conn. Gen. Stat. §3-65c Prohibits service fees.	Conn. Gen. Stat. §3-73a Gift certificates do not escheat to the state.
Delaware				Del. Code Ann. tit. 12, §1197 et seq. If owner dies intestate, is missing for more than five years or abandons property the gift certificate/card reverts to the state. The period of dormancy shall be the shorter of five years or the expiration period, if any, of the gift certificate less one day.
District of Columbia				D.C. Code Ann. §41-101 et seq. Gift certificates held or owing in the ordinary course of the holder's business that have remained unclaimed by the owner for more than five years after becoming payable or distributable are presumed abandoned. If a gift certificate is redeemable for cash or merchandise, its value for purposes of this chapter shall be the amount paid by the purchaser.
Florida	Fla. Stat. §501.95 "Gift certificate" means a certificate, gift card, stored value card, or similar instrument issued in exchange for monetary consideration when the certificate, card, or similar instrument is redeemable for merchandise, food, or services regardless of whether any cash may be paid to the owner of the certificate, card, or instrument as part of the redemption transaction. "Credit memo" means a certificate, card, stored value card, or similar instrument issued in exchange for returned merchandise when the certificate, card, or similar instrument is redeemable for merchandise, food, or services regardless of whether any cash may be paid to the owner of the certificate, card, or instrument as part of the redemption transaction.	Fla. Stat. §501.95 A gift certificate or credit memo sold or issued for consideration in this state may not have an expiration date, expiration period. However, a gift certificate may have an expiration date of not less than three years if it is provided as a charitable contribution when no consideration is given to the issuer by the consumer, or not less than one year if it is provided as a benefit pursuant to an employee-incentive program, consumer-loyalty program, or promotional program when no consideration is given to the issuer by the consumer, and the expiration date is prominently disclosed in writing to the consumer at the time it is provided. In addition, a gift certificate may have an expiration date if it is provided as part of a larger package related to a convention, conference, vacation, or sporting or fine arts event having a limited duration so long as the majority of the value paid by the recipient is attributable to the convention, conference, vacation, or event. An issuer may honor a gift certificate that has expired on or before the effective date of this act.	Fla. Stat. §501.95 A gift certificate or credit memo sold or issued for consideration in this state may not have any type of postsale charge or fee imposed on the gift certificate or credit memo, including, but not limited to, service charges, dormancy fees, account maintenance fees, or cash-out fees. Does not apply to a gift certificate or credit memo sold or issued by a financial institution, as defined in s§655.005, or by a money transmitter, as defined in §560.103, if the gift certificate or credit memo is redeemable by multiple unaffiliated merchants.	Fla. Stat. §717.1045 An unredeemed gift certificate or credit memo as defined in §501.95 is not required to be reported as unclaimed property. The consideration paid for an unredeemed gift certificate or credit memo is the property of the issuer of the unredeemed gift certificate or credit memo. An unredeemed gift certificate or credit memo is subject only to any rights of a purchaser or owner thereof and is not subject to a claim made by any state acting on behalf of a purchaser or owner. It is the intent of the Legislature that this section apply to the custodial holding of unredeemed gift certificates and credit memos. However, a gift certificate or credit memo described in §501.95(2)(b) shall be reported as unclaimed property. The consideration paid for such a gift certificate or credit memo is the property of the owner of the gift certificate or credit memo.
Georgia	Ga. Code §10-1-393(b)(33)(B) 'General use gift card' means a plastic card or other electronic payment device which is usable at multiple, unaffiliated merchants or service providers; is issued in an amount which amount may or may not be, at the option of the issuer, increased in value or reloaded if requested by the holder; is purchased or loaded on a prepaid basis by a consumer; and is honored upon presentation by merchants for goods or services. 'Gift certificate' means a written promise that is usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo; is issued in a specified amount and cannot be increased in value on the face thereof; is purchased on a prepaid basis by a consumer in exchange for payment; and is honored upon presentation for goods or services by such single merchant or affiliated group of merchants that share the same name, mark, or logo. 'Store gift card' means a plastic card or other electronic payment device which is usable at a single merchant or an affiliated group of merchants that share the same name, mark, or logo; is issued in a specified amount and may or may not be increased in value or reloaded; is purchased on a prepaid basis by a consumer in exchange for payment; and is honored upon presentation for goods or services by such single merchant or affiliated group of merchants that share the same name, mark, or logo.	Ga. Code §10-1-393(b)(33)(A)(ii) An expiration date must be conspicuous.	Ga. Code §10-1-393(b)(33)(A)(ii) Amount of dormancy/non-use fees must be conspicuously printed.	Ga. Code §44-12-205 A gift certificate issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. The amount presumed abandoned is the price paid by the purchaser for the gift certificate.
Guam
Hawaii	Hawaii Rev. Stat. §481B-13(e) "Gift certificate" or "certificate" includes any electronic card with a banked dollar value where the issuer has received payment for the full banked dollar value for the future purchase or delivery of goods or services, any certificate where the issuer has received payment for the full face value of the certificate for future purchases 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, food, or services of at least an equal value.	Hawaii Rev. Stat. §481B-13 An expiration date must be greater than two years and conspicuous; if no expiration date, valid in perpetuity.	Hawaii Rev. Stat. §481B-13(a) Prohibits service fees.	Hawaii Rev. Stat. §523A-14 A gift certificate issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. The amount presumed abandoned is the price paid by the purchaser for the gift certificate.
Idaho				Idaho Code §14-501(10)(b) Gift certificates are considered "intangible property." Idaho Code §14-502(2)(b) Gift certificates with an expiration date prominently displayed on their face do not constitute abandoned property. Idaho Code §14-514 A gift certificate without an expiration date prominently displayed on its face issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. In the case of a gift certificate without an expiration date prominently displayed on its face, the amount presumed abandoned is the price paid by the purchaser for the gift certificate.
Illinois	Ill. Rev. Stat. ch. 815, §505/2SS(a) "Gift certificate" means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the holder of the record for the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information that is prefunded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored-value card or certificate, a store card or a similar record or card. For purposes of this act, any gift certificate usable with multiple sellers of goods or services is not included in the definition.	Ill. Rev. Stat. ch. 815, §505/2SS(b) On or after January 1, 2008, no person shall sell a gift certificate that is subject to an expiration date earlier than five years after the date of issuance.	Ill. Rev. Stat. ch. 815, §505/2SS(b) On or after January 1, 2008, no person shall sell a gift certificate that is subject to a post-purchase fee. Any gift certificate issued prior to January 1, 2008 that is subject to a fee must contain a statement clearly and conspicuously printed on the gift certificate stating whether there is a fee, the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift certificate, and at what point the fee will be charged. The statement may appear on the front or back of the gift certificate in a location where it is visible to any purchaser prior to the purchase. Ill. Rev. Stat. ch. 815, §505/2SS(c) 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 issued after January 1, 2008 may not be penalized in any way for non-use or untimely redemption of the gift certificate. Any gift certificate issued prior to January 1, 2008 that is subject to an expiration date must contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date. The statement may appear on the front or back of the gift certificate in a location where it is visible to any purchaser prior to the purchase. Does not apply to any gift certificate issued prior to January 1, 2008 that contains a toll free phone number and a statement clearly and conspicuously printed on the gift certificate stating that holders can call the toll free number to find out the balance on the gift certificate, if applicable, and the expiration date.	Ill. Rev. Stat. ch. 765, §1025/10.6 Only applies to gift certificates/cards with an expiration date or fees or if the card/certificate was issued before the 93^rd General Assembly (2003-2004). After property is abandoned, it reverts to the state.
Indiana				Ind. Code §32-34-1-1 Gift certificates and gift cards are exempted from unclaimed property act.
Iowa	Iowa Code §537.1301(22) "Gift certificate" means a merchandise certificate conspicuously designated as a gift certificate, and purchased by a buyer for use by a person other than the buyer. Iowa Code §556.9 "Gift certificate" means a merchandise certificate or electronic gift card conspicuously designated as a gift certificate or electronic gift card, and generally purchased by a buyer for use by a person other than the buyer.		Iowa Code §556.9 No fee can be charged unless there is a contract.	Iowa Code §556.1 et seq. Gift certificates unclaimed by the owner three years after issuance are abandoned.
Kansas	Kan. Stat. Ann. §50,6108 "Gift card" means a tangible device, whereon is embedded or encoded in an electronic or other format a value issued in exchange for payment, which promises to provide to the bearer merchandise of equal value to the remaining balance of the device. "Gift card" does not include a prepaid bank card. "Gift certificate" means a written promise given in exchange for full or discounted payment, or without any money or other thing of value being given in exchange, to provide merchandise in a specified amount or of equal value to the bearer of the certificate. "Gift certificate" does not include a prepaid bank card. "Prepaid bank card" means a general use, prepaid card or other electronic payment device that is issued by a bank or other financial institution in a predenominated amount useable at multiple, unaffiliated merchants or at automated teller machines, or both.	Kan. Stat. Ann. §50,6108 On and after January 1, 2007, no person, firm, partnership, association or corporation shall sell a gift certificate or gift card to a purchaser containing an expiration date which is less than five years from the date of purchase. A gift certificate or gift card sold without an expiration date is valid until redeemed or replaced.	Kan. Stat. Ann. §50,6108 No fees may be charged against the balance of a gift card or gift certificate within 12 months from the date of issuance of the card.	Kan. Stat. Ann. §58-3934 Gift certificates are not specifically included.
Kentucky	Ky. Rev. Stat. §367.890(1) "Gift card," as used in this section, means a certificate, electronic card, or other medium issued by a merchant that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card, or other medium for goods, food, services, credit, or money of at least an equal value. "Gift card" includes any electronic card issued by a merchant with a monetary value where the issuer has received payment for the full monetary value for the future purchase or delivery of goods or services and any certificate issued by a merchant where the issuer has received payment for the full monetary face value of the certificate for the future purchase or delivery of goods and services. "Gift card" does not include a prepaid calling card used to make telephone calls, or a general-use, prepaid card or other electronic payment device that is issued by a bank or other financial institution that is usable at multiple, unaffiliated merchants, or at automated teller machines, or both, or a gift card issued by a merchant for a promotional program for which no separate monetary consideration is given.	Ky. Rev. Stat. §367.890 A gift card expiration date shall not be less than one year from the date of issuance. If no expiration date is printed on the front or back of the card, it is presumed valid until it is redeemed or replaced.	Ky. Rev. Stat. §367.890(3) No person or entity shall charge service charges or fees relative to that gift card, including dormancy fees, latency fees, or administrative fees, that have the effect of reducing the total amount for which the holder of the gift card may redeem the gift card until the expiration date on the card has expired.	Ky. Rev. Stat. §393.010 Gift certificates are not specifically included.
Louisiana	La. Rev. Stat. Ann. §51:1423(A) "Gift certificate" shall mean a writing identified as a gift certificate or gift card purchased by a buyer for use by a person not redeemable in cash and usable in its face amount in lieu of cash in exchange for goods or services supplied by the seller. A gift certificate or gift card shall include an electronic card with a banked dollar value, a merchandise credit, a certificate where the issuer has received payment for the full face value of 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, food, services, credit or money of at least an equal value.	La. Rev. Stat. Ann. §51:1423(B)(1) An expiration date must be more than five years and conspicuous. A gift certificate sold without an expiration date shall be valid until redeemed or replaced.	La. Rev. Stat. Ann. §51:1423(B)(2) Prohibits a service fee, including but not limited to a service fee for dormancy fee. However, nothing shall prevent the issuer from charging a one-time handling fee, which shall not exceed $1 per gift certificate.	La. Rev. Stat. Ann. §9:151 et seq. Gift certificate is presumed abandoned three years after December 31st of the year it was sold.
Maine	Me. Rev. Stat. Ann. tit. 33, §1952 "Gift obligation" means an obligation of a business association arising from a transaction between the business association and a consumer to provide goods or services at a future date. This includes, but is not limited to, a gift certificate, gift card, on-line gift account or other representation or evidence of the obligation. "Prefunded bank card" means a device issued by a financial organization that enables the holder to transfer the underlying funds to multiple merchants at the merchants' point-of-sale terminals. For purposes of this subsection, "underlying funds" means the funds received by the financial organization that issued the card in exchange for the issuance of the card. A prefunded bank card must provide value from multiple merchants. "Stored-value card" means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the owner of the record to the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information, that is prefunded and for which the value is decreased upon each use.	Me. Rev. Stat. Ann. tit. 33, §1953(G) A period of limitation may not be imposed on the owner's right to redeem the gift obligation or stored-value card. Me. Rev. Stat. Ann. tit. 33, §1953(G-1) A period of limitation may not be imposed on the owner's right to redeem the prefunded bank card.	Me. Rev. Stat. Ann. tit. 33, §1953(G) Prohibits fees or charges on gift obligations or stored-value cards, except that the issuer may charge a transaction fee for the initial issuance and for each occurrence of adding value to an existing gift obligation or stored-value card. These transaction fees must be disclosed in a separate writing prior to the initial issuance or referenced on the gift obligation or stored-value card. Me. Rev. Stat. Ann. tit. 33, §1956 A holder may deduct from property presumed abandoned a charge imposed by reason of the owner's failure to claim the property within a specified time only if there is a valid and enforceable written contract between the holder and the owner under which the holder may impose the charge and the holder regularly imposes the charge, which is not regularly reversed or otherwise canceled. The amount of the deduction is limited to an amount that is not unconscionable. Nothing in this section prevents the holder from deducting fees or charges in lieu of those fees or charges related to the owner's failure to claim the property within a specified period of time when such fees or charges are deducted from the property before the date the property is presumed abandoned.	Me. Rev. Stat. Ann. tit. 33, §1953(G) A gift obligation or stored-value card, two years after December 31st of the year in which the obligation or the most recent transaction involving the obligation or stored-value card occurred, whichever is later, including the initial issuance and any subsequent addition of value to the obligation or stored-value card. The amount unclaimed is 60 percent of the gift obligation's or stored-value card's face value. Me. Rev. Stat. Ann. tit. 33, §1953(G-1) A prefunded bank card, three years after December 31st of the year in which the obligation or the most recent activity involving the prefunded bank card occurred, whichever is later, including the initial issuance and any subsequent addition of value to the prefunded bank card.
Maryland	Md. Commercial Code Ann. §14-1319 "Gift certificate" means a device constructed of paper, plastic, or any other material that is: (i) sold or issued by a person for a cash value that can be used to purchase goods or services; or (ii) issued as a store credit for returned goods. Md. Commercial Code Ann. §14-1320 "Gift card" that (1) Is processed through a national credit or debit card service; and (2) May be used to purchase goods or services from multiple unaffiliated sellers of goods and services.	Md. Commercial Code Ann. §14-1319 A person may not sell or issue a gift certificate that, within four years after the date of purchase, is subject to expiration or a fee or charge of any kind. Md. Commercial Code Ann. §14-1320 A gift card may be subject to expiration, if disclosed as specified.	Md. Commercial Code Ann. §14-1319 A person may not sell or issue a gift certificate that, within four years after the date of purchase, is subject to expiration or a fee or charge of any kind. Md. Commercial Code Ann. §14-1320 A gift card may be subject to a postsale fee, including a service fee, dormancy fee, account maintenance fee, cash-out fee, gift card replacement fee, activation fee, or reactivation fee, if disclosed as specified.	Md. Commercial Code Ann. §17-101(m) Gift certificates are exempted from unclaimed property act.
Massachusetts	Mass. Gen. Laws Ann. ch. 255D, §1 2008 Chapter 58 "Gift certificate," a writing identified as a gift certificate purchased by a buyer for use by a person other than the buyer not redeemable in cash and usable in its face amount in lieu of cash in exchange for goods or services supplied by the seller. A gift certificate shall include 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, food, services, credit or money of at least an equal value. A gift certificate shall not include pre-paid calling arrangements, as defined in section 1 of chapter 64H, or any electronic card usable with multiple unaffiliated sellers of goods or services.	Mass. Gen. Laws. Ann. ch. 200A, §5D A gift certificate, as defined in section 1 of chapter 255D, sold or offered to be sold shall be valid for not less than seven years after its date of issuance. The date of issuance and the expiration date shall be clearly identified on its face, subject to section 75C of chapter 266, or, if an electronic card with a banked dollar value, clearly printed upon a sales receipt transferred to the purchaser of the electronic card upon the completed transaction, or otherwise made available to the purchaser or holder of the electronic card through means of an Internet site or a toll free information telephone line. A gift certificate not clearly marked with an expiration date or for which the expiration date is not otherwise made available as provided in this section shall be redeemable in perpetuity. Once an expiration date has been reached, the issuer of the gift certificate shall not be subject to section 7. Mass. Gen. Laws Ann. ch. 266, §75C Whoever sells or offers to sell a gift certificate as defined in section 1 of chapter 255D, which imposes a time limit of less than seven years within which such certificate may be redeemed, shall be punished by a fine of not more than $300. This section shall not apply when the purchaser of the gift certificate is not obligated to pay for it until the time of use. Whoever, after having sold a gift certificate refuses to redeem the certificate before it has reached the expiration date, shall be punished by a fine of not more than $300.	2008 Chapter 58 Mass. Gen. Laws Ann. ch. 266, §75D Whoever sells or offers to sell a gift certificate, as defined in section 1 of chapter 255D, which imposes dormancy fees, latency fees, administrative fees, periodic fees, service fees or other fees that have the effect of reducing the total value amount for which the holder may redeem such gift certificate, shall be punished by a fine of not more than $300 per violation. 2008 Chapter 58 Mass. Gen. Laws Ann. ch. 266, §75E Whoever sells or offers to sell a gift certificate, as defined in section 1 of chapter 255D, which imposes any fees or charges including, but not limited to, purchase fees, activation fees, renewal fees or cancellation fees, shall provide to consumers notice of any such fees, in writing, on the gift certificate, on the packaging of the gift certificate, or on both. Failure to print such notice shall be punished by a fine of not more than $300 per violation. 2008 Chapter 58 Mass. Gen. Laws Ann. ch. 266, §75F Whoever redeems a gift certificate, as defined in section 1 of chapter 255D and deducts a gratuity therefrom without the consent of the holder of the gift certificate, shall be punished by a fine of not more than $300 per violation.
Michigan	2008 Public Act 210 "Gift certificate" means a written promise or a gift card or other electronic payment device that meets all of the following: 1) Is usable at a single retailer, is usable at an affiliated group of retailers that share the same name, mark, or logo, or is usable at multiple, unaffiliated retailers or service providers. 2) Is issued in a specified amount. 3) May or may not be increased in value or reloaded. 4) Is purchased or loaded on a prepaid basis for the future purchase or delivery or goods or services. 5) Is honored upon presentation. "Gift certificate" does not include any of the following: (a) A general use, prepaid card or other electronic payment device that is issued or sponsored by a financial institution in a predetermined amount and is usable at multiple, unaffiliated retailers or at automated teller machines. As used in this subdivision, "financial institution" means a bank, bank and trust, national bank, savings bank, savings and loan association, credit union, or money transmitter organized under the laws of this state, another state, the District of Columbia, the United States, or any territory or protectorate of the United States and their respective subsidiaries, affiliates, or holding companies. (b) An electronic payment device linked to a deposit account. (c) A prepaid telephone calling card regulated under state or federal law or a card used in connection with prepaid wireless telephone service. (d) An electronic payment device used to access an account from which an individual may pay medical expenses, health care expenses, dependent care expenses, or similar expenses on a pretax basis under the internal revenue code, 26 USC 1 to 1789, or regulations adopted pursuant to the internal revenue code. (e) A prepaid discount card or program used to purchase identified goods or services at a price or percentage below the normal and customary price, if any expiration date of the prepaid discount card or program is clearly and conspicuously disclosed. (f) A payroll card or other electronic payment device linked to a deposit account and given in exchange for goods or services rendered. (g) A gift certificate sold below face value or at a volume discount to an employee, to a nonprofit or charitable organization, or to an educational institution for fund-raising purposes. (h) A gift certificate distributed to a consumer or employee pursuant to an awards, rewards, loyalty, or promotional program, if the consumer or employee is not required to give consideration for the gift certificate. (i) An electronic credit voucher issued by a person that holds a certificate issued under chapter 411 of title 49 of the United States Code, 49 USC 41101 to 41113, or a permit issued under chapter 413 of title 49 of the United States Code, 49 USC 41301 to 41313.	2008 Public Act 209 A person engaged in the retail sale of goods or services shall not sell a gift certificate to a consumer that expires within a period of less than five years.	2008 Public Act 211 A person engaged in the retail sale of goods and services shall not charge an inactivity fee or other service fee to a customer for the possession or use of a gift certificate. As used in this section, "service fee" does not include any fee charged to and paid by a consumer in connection with the sale of a gift certificate, unless the fee is deducted or debited from the face value of the gift certificate.	Mich. Comp. Laws §567.235 2008 Public Act 208 (1) Except as provided in subsection (4), a gift certificate, gift card, or credit memo is presumed abandoned if either of the following apply: (a) The certificate, card, or memo is not claimed or used for a period of five years after becoming payable or distributable. (b) The certificate, card, or memo was used or claimed one or more times without exhausting its full value, but subsequently was not claimed or used for an uninterrupted period of five years. (2) For purposes of subsection (1), a gift certificate or gift card is considered to have been claimed or used if there is any transaction processing activity on the gift certificate or gift card including, but not limited to, redeeming, refunding, or adding value to the certificate or card. Activity initiated by the issuer of the certificate or card, including, but not limited to, assessing inactivity fees or similar service fees, does not constitute transaction processing activity for purposes of this subsection. (3) In the case of a gift certificate or gift card, the owner is presumed to be a gift recipient of the gift certificate or gift card, and the amount presumed abandoned is the price paid by the purchaser for the gift certificate or gift card, less the total of any purchases or fees assessed against the certificate or card. In the case of a credit memo, the amount presumed abandoned is the amount credited to the recipient of the memo. (4) This act does not apply to a gift certificate as defined in section 3e of the Michigan consumer protection act, 1976 PA 331, MCL 445.903e, that is issued for retail goods or services by a person engaged in the retail sale of goods or services.
Minnesota	Minn. Stat. §325G.53 "Gift certificate" means a tangible record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the owner of the record to the value shown in the record and includes, but is not limited to, a gift card, stored-value card, store card, or a similar record or card that contains a microprocessor chip, magnetic stripe, or other means for the storage of information, and for which the value is decreased upon each use. The provisions of this section shall not apply to gift certificates issued by a federally chartered or state-chartered bank, bank and trust, savings bank, savings association, or credit union, or by an operating subsidiary or other affiliate of any of them, and that can be used at multiple sellers of goods and services, provided that the issuer discloses any expiration date and fee associated with the gift certificate.	Minn. Stat. §325G.53 It is unlawful for any person or entity to sell a gift certificate that is subject to an expiration date.	Minn. Stat. §325G.53 It is unlawful for any person or entity to sell a gift certificate that is subject to a service fee of any kind, including, but not limited to, a service fee for dormancy.	Minn. Stat. §345.39 Gift certificates are exempted from definition of intangible property.
Mississippi				Miss. Code Ann. §89-12-14 Gift certificates unclaimed by the owner for five years is abandoned.
Missouri				Mo. Rev. Stat. §447.500 et seq. Gift certificates that are redeemable in merchandise only shall be reportable at a rate equal to 60 percent of their respective face value. The state treasurer shall reimburse the owner the full face value.
Montana	Mont. Code Ann. §30-14-102 "Gift certificate" means a record, including a gift card or stored value card, that is provided for paid consideration and that indicates a promise by the issuer or seller of the record that goods or services will be provided to the possessor of the record for the value that is shown on the record or contained within the record by means of a microprocessor chip, magnetic stripe, bar code, or other electronic information storage device. The consideration provided for the gift certificate must be made in advance. The value of the gift certificate is reduced by the amount spent with each use. A gift certificate is considered trust property of the possessor if the issuer or seller of the gift certificate declares bankruptcy after issuing or selling the gift certificate. The value represented by the gift certificate belongs to the possessor, to the extent provided by law, and not to the issuer or seller.	Mont. Code Ann. §30-14-108(1) A gift certificate is valid until redemption and does not terminate.	Mont. Code Ann. §30-14-108(3) A gift certificate may not be reduced in value by any fee, including a dormancy fee.	Mont. Code Ann. §70-9-803(g) A gift certificate is presumed abandoned three years after December 31 of the year in which the certificate was sold, but if redeemable in merchandise only, the amount abandoned is considered to be 60 percent of the certificate's face value. A gift certificate is not presumed abandoned if the gift certificate was sold by a person who in the past fiscal year sold no more than $200,000 in gift certificates, which amount must be adjusted by November of each year by the inflation factor defined in 15-30-101. The amount considered abandoned for a person who sells more than the amount that triggers presumption of abandonment is the value of gift certificates greater than that trigger.
Nebraska	Neb. Rev. Stat. §69-1301(d) General-use prepaid card means a plastic card or other electronic payment device usable with multiple, unaffiliated sellers of goods or services.	Neb. Rev. Stat. §69-1305.03 2008 L.B. 668 Gift cards/certificates subject to an expiration date shall have a statement clearly and conspicuously stating the expiration date. The statement may appear on the front or back of the gift certificate or gift card in a location where it is visible to a purchaser prior to the purchase. Excludes general-use prepaid cards.	Neb. Rev. Stat. §69-1305.03 2008 L.B. 668 A gift certificate or gift card subject to a fee shall contain a statement clearly and conspicuously printed on it stating whether there is a fee, the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift certificate or gift card, and when the fee will be assessed. The statement may appear on the front or back of the gift certificate or gift card in a location where it is visible to a purchaser prior to the purchase. Excludes general-use prepaid cards.	Neb. Rev. Stat. §69-1305.03 2008 L.B. 668 (a) A gift certificate or gift card which is not assessed any fees and does not have an expiration date shall not be presumed to be abandoned. (b) A gift certificate or gift card which contains an expiration date or requires any type of post-sale finance charge or fee which is unredeemed for a period of three years from the date of issuance shall be presumed abandoned. (c) A gift certificate or gift card issued prior to November 2, 2006, which contains an expiration date or requires any type of post-sale finance charge or fee and has not been redeemed shall not be presumed abandoned if the issuer's policy and practice as of July 1, 2006, is to waive all post-sale charges or fees and to honor such gift certificate or gift card, at no additional cost to the holder whenever presented at full face value or the value remaining after any applicable purchases, expiration date notwithstanding. A written notice of such policy and practice shall be posted conspicuously by July 1, 2006, in not smaller than 10-point type, at each site in all Nebraska locations at which the issuer distributes or redeems a gift certificate or gift card. (d) In the case of a gift certificate or gift card, the amount presumed abandoned is the face amount of the certificate or card itself, less the total amount of any applicable purchases and fees.
Nevada	Nev. Rev. Stat. §598.0921(3) “Gift certificate” means an instrument or a record evidencing a promise by the seller or issuer of the instrument or record to provide goods or services to the holder of the gift certificate for the value shown in, upon or ascribed to the instrument or record and for which the value shown in, upon or ascribed to the instrument or record is decreased in an amount equal to the value of goods or services provided by the issuer or seller to the holder. The term includes, without limitation, a gift card, certificate or similar instrument.	Nev. Rev. Stat. §598.0921(1)(a) Expiration date or toll-free phone number to inquire regarding the balance and expiration date must be conspicuous	Nev. Rev. Stat. §598.0921(1)(b) Requires that a gift certificate cannot have a service fee, unless each of the following is printed plainly and conspicuously on the front or back of the gift certificate in at least 10-point font and in such a manner that the print is readily visible to the buyer of the gift certificate before the buyer purchases the gift certificate: (1) The amount of the service fee; (2) The event or events that will cause the service fee to be imposed; (3) The frequency with which the service fee will be imposed; and (4) If the service fee will be imposed on the basis of inactivity, the duration of inactivity, which must not be less than three continuous years of nonuse, that will cause the service fee to be imposed. Nev. Rev. Stat. §598.0921(1)(c) Regardless of the notice provided, (1) A service fee or a combination of service fees cannot exceed a total of $1 per month; or (2) A service fee cannot commence or be imposed within the first 12 months after the issuance of the gift certificate.	Sixty percent of the unredeemed or uncharged value remaining on a gift certificate which is issued or sold in this state and which has an expiration date is presumed abandoned and subject to the provisions of this chapter on the expiration date. If a gift certificate is issued or sold in this state and the seller or issuer does not obtain and maintain in his records the name and address of the owner of the gift certificate, the address of the owner of the gift certificate shall be deemed to be the address of the office of the state treasurer in Carson City.
New Hampshire	N.H. Rev. Stat. Ann. §358-A:1 "Gift certificate" means a written promise given in exchange for payment to provide the bearer, upon presentation, goods or services in a specified amount.	N.H. Rev. Stat. Ann. §358-A:2 Expiration date prohibited for gift certificates valued at less than $100.	N.H. Rev. Stat. Ann. §358-A:2 Service fees on gift certificates prohibited.	N.H. Rev. Stat. Ann. §358-A:2 Gift certificates having a face value in excess of $100 shall expire when escheated to the state as abandoned property pursuant to RSA 471-C. N.H. Rev. Stat. Ann. §471-C:2 Intangible property unclaimed by the owner for five years is abandoned. N.H. Rev. Stat. Ann. §471-C:16 All gift certificates remitted to the state prior to January 1, 1998, and gift certificates that are properly determined to be reportable in any compliance audits initiated prior to January 1, 1998 and subsequently remitted, shall remain in the custody of the state unless and until returned to the owner.
New Jersey	N.J. Rev. Stat. §56:8-110(c) Gift card" means a tangible device, whereon is embedded or encoded in an electronic or other format a value issued in exchange for payment, which promises to provide to the bearer merchandise of equal value to the remaining balance of the device. "Gift certificate" means a written promise given in exchange for payment to provide merchandise in a specified amount or of equal value to the bearer of the certificate.	N.J. Rev. Stat. §56:8-110(a)(1) The expiration date of the card/certificate shall not be less than 24 months after the date of sale. Terms regarding expiration date must be disclosed as specified.	N.J. Rev. Stat. §56:8-110(a) No dormancy fee shall be assessed on a gift card/certificate within 24 months of the date of sale or within 24 months of the most recent activity or transaction. Fee shall not exceed $2 per month. Terms regarding fees must be disclosed as specified.	N.J. Rev. Stat. §46:30B-1 Gift certificates are not specifically included.
New Mexico	N.M. Stat. Ann. §57-12-26(A) "Gift certificate" means a 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. "Gift certificate" does not include gift certificates issued by banks, savings and loan associations and their affiliates and subsidiaries, licensed money transmitters or credit unions operating pursuant to the laws of the United States or New Mexico.	N.M. Stat. Ann. §57-12-26(B) A gift certificate shall not have an expiration date less than 60 months after the date upon which the gift certificate was issued If an expiration date is not conspicuously stated on a gift certificate, that gift certificate shall be presumed to have no expiration date and shall be valid until redeemed or replaced.	N.M. Stat. Ann. §57-12-26(C) An issuer of a gift certificate shall not charge a fee of any kind in relation to the sale, redemption or replacement of a gift certificate other than an initial charge not exceeding the face value of the gift certificate, nor may a gift certificate be reduced in value by any fee, including a service or dormancy fee.	N.M. Stat. Ann. §7-8A-1 et seq. Gift certificate is presumed abandoned three years after December 31st of the year it was sold. If redeemable in merchandise only, amount abandoned is 60 percent of the certificate’s face value.
New York	N.Y. Abandoned Property Law §103 "Gift certificate" shall mean a written promise or electronic payment device 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.	N.Y. General Business Law §396-i Expiration date must be conspicuously disclosed to purchaser as specified.	N.Y. General Business Law §396-i Any service fees must be conspicuously disclosed to purchaser; no service fee may be assessed before the 13th month after issuance.	N.Y. Abandoned Property Law §1315 Any unclaimed amount representing unredeemed gift certificates sold after December 31, 1983, including gift certificates for merchandise only in which case the face value of such certificate shall be deemed the amount deemed abandoned, and owing in this state after five years.
North Carolina	N.C. Gen. Stat. §66-67.5 "Gift card" means a record evidencing a promise, made for monetary consideration, by a seller or issuer that goods or services will be provided to the owner of the record to the value shown in the record. A gift card includes a 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, a gift certificate, a stored-value card or certificate, a store card. The provisions of this section shall not apply to gift cards that are issued by a financial institution or its operating subsidiary and that are usable at multiple unaffiliated sellers of goods or services.		N.C. Gen. Stat. §66-67.5 The seller or issuer of a gift card must conspicuously disclose any maintenance fee charges at the time of purchase. The disclosure must be visible on the gift card itself. No person, firm, or corporation engaged in commerce shall charge any maintenance fee on a gift card for one calendar year following the date of the purchase of the gift card.	N.C. Gen. Stat. §116B-53(c)(8) Any gift certificate or electronic gift card bearing an expiration date and remaining unredeemed or dormant for more than three years after the gift certificate or electronic gift card was sold is deemed abandoned. The amount abandoned is deemed to be 60 percent of the unredeemed portion of the face value of the gift certificate or the electronic gift card. N.C. Gen. Stat. §116B-54(b) A gift certificate or electronic gift card is not abandoned property when the gift certificate or electronic gift card: (1) Conspicuously states that the gift certificate or electronic gift card does not expire; (2) Bears no expiration date; or (3) States that a date of expiration printed on the gift certificate or electronic gift card is not applicable in North Carolina.
North Dakota	N.D. Cent. Code §51-29-01 "Gift certificate" means a record evidencing a promise, made for monetary consideration, by the seller or issuer of the record that goods or services will be provided to the owner of the record to the value shown in the record. The term includes a record that contains a microprocessor chip, magnetic strip, or other means of storage of information that is prefunded and for which the value is decreased upon each use; a gift card; an electronic gift card; an online gift account; a stored-value card; a store card; a prepaid telephone card; or a similar record or card. The term does not include a general-use prepaid card issued by a prepaid card issuer, including a plastic card or other electronic payment device that is usable at multiple, unaffiliated merchants or service providers or at an automatic teller machine, and purchased or loaded on a prepaid basis; a general-use prepaid card issued by a prepaid card issuer and purchased by a person that is not an individual; or a debit card linked to a deposit account.	N.D. Cent. Code §51-29-02 An expiration date must be more than six years after the date of purchase.	N.D. Cent. Code §51-29-02 Prohibits service fees.	N.D. Cent. Code §47-30.1-01 et seq. Gift certificates are not specifically included.
Ohio	Ohio Rev. Code Ann. §1349.61 "Gift card" means a certificate, electronic card, or other medium issued by a merchant that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card, or other medium for goods, food, services, credit, or money of at least an equal value, including any electronic card issued by a merchant with a monetary value where the issuer has received payment for the full monetary value for the future purchase or delivery of goods or services and any certificate issued by a merchant where the issuer has received payment for the full monetary face value of the certificate for the future purchase or delivery of goods and services.	Ohio Rev. Code Ann. §1349.61 Prohibits an expiration date less than two years after issuance. A gift card sold without an expiration date is valid until redeemed or replaced with new card.	Ohio Rev. Code Ann. §1349.61 Prohibits any fees charged less than two years after issuance.	Ohio Rev. Code Ann. §169.01(B)(2)(d) Gift certificates are exempted from unclaimed property fund.
Oklahoma	Okla. Stat. tit. 15, §796 "Gift card" means a plastic card or other electronic payment device which is: (a) issued in a predenominated amount or in an amount requested by the consumer, (b) usable to purchase goods and/or services only at a single merchant or group of merchants that are affiliated through common corporate ownership or control, and (c) purchased by a consumer on a prepaid basis in exchange for payment. "Gift certificate" means a written promise which is: (a) issued in a specified amount, indicated on its face, and cannot be increased in value, (b) usable to purchase goods and/or services only at a single merchant or group of merchants that are affiliated through common corporate ownership or control, and (c) purchased by a consumer on a prepaid basis in exchange for payment.	Okla. Stat. tit. 15, §797 Prohibits expiration dates less than 60 months from the date of purchase. A gift certificate/card sold without an expiration date is valid until redeemed or replaced.	Okla. Stat. tit. 15, §797 Service fees prohibited, unless the remaining value on the card/certificate is $5 or less each time the fee is assessed; the fee does not exceed $1 per month; there has been no activity for 24 consecutive months including, but not limited to, purchases, the adding of value, or balance inquiries; the holder may reload or add value to the card/certificate; and the fee is disclosed as specified.	Okla. Stat. tit. 60, §651 et seq. Gift certificates are not specifically included.
Oregon	Or. Rev. Stat. §646A.274 "Gift card" means a prefunded record evidencing a promise that the issuer will provide goods or services to the owner of the record in the amount shown in the record. 'Gift card' does not include any gift card usable with more than one seller of goods or services.	Or. Rev. Stat. §646A.278 Except as provided below, a person may not sell a gift card that has an expiration date. A person may sell a gift card that has an expiration date if: (1) The gift card bears, in at least 10-point type, the words 'EXPIRES ON' or 'EXPIRATION DATE' followed by the date on which the card expires; (2) The person sells the gift card at a cost below the face value of the card; and (3) The gift card does not expire until at least 30 days after the date of sale.	Or. Rev. Stat. §646A.276 A person may not sell a gift card that has a face value that declines as a result of the passage of time or the lack of use of the card; or that has a fee related to the card, including, but not limited to, an inactivity fee, a maintenance fee or a service fee.	Or. Rev. Stat. §98.302(8) Gift certificates are not specifically included.
Pennsylvania	Pa. Cons. Stat. tit. 72, §1301.1 "General use prepaid cards" shall mean cards issued only by a bank or other similarly regulated financial institutions, or by a licensed money transmitter and shall mean plastic cards or other electronic payment devices which are: (1) usable and honored upon presentation at multiple, unaffiliated merchants or service providers for goods or services or at automated teller machines (ATMs); and issued in a requested prepaid amount which amount may be, at the option of the issuer, increased in value or reloaded if requested by the holder. The term shall not include debit cards linked to a deposit account or prepaid telephone calling cards. "Gift card" shall mean plastic cards or other electronic payment devices which are: (I) usable and honored upon presentation at a single merchant or an affiliated group or merchants that share the same name, mark or logo, or usable at multiple, unaffiliated merchants or service providers for the future purchase or delivery of any goods or services; and (II) issued in a specified prepaid amount and may or may not be increased in value or reloaded. "Gift certificate" shall mean a written promise which is: usable and honored upon presentation at a single merchant or an affiliated group of merchants that share the same name, mark or logo, or usable at multiple, unaffiliated merchants or service providers for the future purchase or delivery of any goods or services; and(ii) issued in a specific prepaid amount and may or may not be increased in value or reloaded. "Qualified gift certificate" shall mean a gift certificate or gift card that does not contain any of the following: (i) An expiration date or a period of time after which it expires. (ii) Any type of postsale charge or fee, including, but not limited to, a service charge, dormancy fee, account maintenance fee, cash out fee, replacement card fee or activation or reactivation fee.			Pa. Cons. Stat. tit. 72, §1301 et seq. The following property held or owing by a business association is presumed abandoned and unclaimed: The consideration paid for a gift certificate or gift card which has remained unredeemed for two years or more after its redemption period has expired or for five years or more from the date of issuance if no redemption period is specified. The provisions of this clause shall not apply to a qualified gift certificate.
Puerto Rico
Rhode Island	R.I. Gen. Laws §6-13-12 "Gift certificate" means a record evidencing a promise, made for monetary consideration, by the seller or issuer for the record that goods or services will be provided to the owner of the record to the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic strip or other means of storage of information that is pre-funded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored-value card or certificate, a store card, prepaid long distance telephone service that is activated by a prepaid card that requires dialing an access number or an access code for each call in addition to dialing the phone number to which the user of the prepaid card seeks to connect, or a similar record or card.	R.I. Gen. Laws §6-13-12 Prohibits expiration dates.	R.I. Gen. Laws §6-13-12 2008 Chapter 251 It shall be unlawful for any person, firm, or corporation of any kind to charge any surcharge or additional monthly or annual service or maintenance fees on gift certificates.	R.I. Gen. Laws §6-13-12 Due to the unlimited redemption period, the division of taxation shall not escheat the funds paid for those unredeemed gift certificates. R.I. Gen. Laws §33-21.1-1 et seq. Pursuant to § 6-13-12, gift certificates shall not be presumed to be abandoned.
South Carolina	S.C. Code Ann. §39-1-55(A) "Gift certificate" means a certificate that is issued or sold by a person engaged in the business of offering goods or services for sale at retail and that entitles a recipient of the certificate to the delivery of goods or services from the person who issued or sold the certificate. This term includes a gift card used for the same purpose as a gift certificate.	S.C. Code Ann. §39-1-55(B) Gift certificates cannot expire before the first anniversary of the date the certificate was sold or issued, unless the expiration date is disclosed as specified.	S.C. Code Ann. §39-1-55(C) Prohibits any fees unless properly disclosed as specified.	S.C. Code Ann. §27-18-10 et seq. Gift certificates are not specifically included.
South Dakota				S.D. Codified Laws Ann. §43-41B-15 A gift certificate issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. The amount presumed abandoned is the price paid by the purchaser for the gift certificate.
Tennessee	Tenn. Code Ann. §47-18-127 Excludes gift certificates that are usable with multiple, unaffiliated sellers of goods or services.	Tenn. Code Ann. §47-18-127 Prohibits gift certificates from containing an expiration less than two years after issuance. If sold without an expiration date, a gift certificate is valid until redeemed or replaced with a new card.	Tenn. Code Ann. §47-18-127 Prohibits charging a fee to issue a gift certificate. Prohibits service charges less than two years after issuance.	Tenn. Code Ann. §66-29-135 A gift certificate issued in the ordinary course of an issuer's business is presumed abandoned if it remains unclaimed by the owner upon the earlier of: (1) The expiration date of the certificate; or (2) Two years from the date the certificate was issued. The amount presumed abandoned is the price paid by the purchaser for the gift certificate. If a gift certificate issued after December 31, 1996, is redeemable for merchandise only, then the amount presumed abandoned is 60 percent of the price paid by the purchaser for the certificate. A gift certificate issued after December 31, 1998, shall not be abandoned property and shall not be subject to this part if the issuer of the certificate does not impose a dormancy charge and when the gift certificate: (1) Conspicuously states that the gift certificate does not expire; (2) Bears no expiration date; or (3) States that a date of expiration printed on the gift certificate is not applicable in Tennessee. Property described above, without regard to any activity or inactivity within the past five years, shall also be presumed abandoned if the owner thereof is known to the holder to have died and left no one to take such property by will and no one to take such property by intestate succession.
Texas	Tex. Business & Commerce Code §35.42 "Stored value card" means a record that evidences a promise made for monetary consideration by the seller or issuer of the record that goods or services will be provided to the owner of the record in the value shown in the record, that is prefunded, and the value of which is reduced on redemption. The term includes a gift card or gift certificate.	Tex. Business & Commerce Code Ann. §35.42 Expiration date must be disclosed as specified.	Tex. Business & Commerce Code Ann. §35.42 May charge a handling fee, access fee, or replacement fee if disclosed as specified. Dormancy fees cannot be assessed until after the first anniversary of the card was sold or issued and the fee must be reasonable and disclosed as specified.	Tex. Property Code Ann. §72.1016 The stored value card is presumed abandoned to the extent of its unredeemed value on the earlier of: the card's expiration date; or three years after the card was issued, if the card is not used after it is issued, or the date the card was last used.
Utah		Utah Code Ann. §13-11-4(4)(a) A gift certificate, instrument, or other record that does not print an expiration date on the gift certificate or its packaging in accordance with Subsection (2)(v) does not expire. Does not apply to a gift certificate, instrument, or other record useable at multiple, unaffiliated sellers of goods or services if an expiration date is printed on the gift certificate, instrument, or other record. Utah Code Ann. §13-11-4(4)(a) A gift certificate, instrument, or other record that does not print an expiration date in accordance with Subsection (2)(v) does not expire.	Utah Code Ann. §13-11-4(2)(v) Makes it a violation of the Utah Consumer Sales Practices Act to issue a gift certificate that deducts a fee without disclosing the fee on the gift certificate or its packaging. Does not apply to a gift certificate, instrument, or other record useable at multiple, unaffiliated sellers of goods or services if an expiration date is printed on the gift certificate, instrument, or other record. Utah Code Ann. §13-11-4(4)(b) A gift certificate, instrument, or other record that does not include printed information concerning a fee to be charged and deducted from the balance of the gift certificate, instrument, or other record is not subject to the charging and deduction of the fee. Does not apply to a gift certificate, instrument, or other record useable at multiple, unaffiliated sellers of goods or services if an expiration date is printed on the gift certificate, instrument, or other record.	Utah Code Ann. §67-4a-211 A gift certificate greater than $25 that remains unreconsidered for more than five years after issuance is considered abandoned. The amount considered abandoned is the price paid for the certificate itself.
Vermont	Vt. Stat. Ann. tit. 8, §2701 "Gift certificate" means a record evidencing a promise made for consideration by the seller or issuer of the record that money, goods, or services will be provided to the holder of the record for the value shown in the record. A "gift certificate" includes, but is not limited to, a record that contains a microprocessor chip, magnetic strip, or other means for the storage of information that is prefunded and for which the value is decremented upon each use; a gift card; an electronic gift card; a stored-value card or certificate; a store card; or a similar record or card.	Vt. Stat. Ann. tit. 8, §2702 A gift certificate sold or offered to be sold shall be valid for not less than three years after its date of issuance. A gift certificate not clearly marked with an expiration date or for which the expiration date is not otherwise made available as provided in this section shall be deemed to have no expiration date.	Vt. Stat. Ann. tit. 8, §2703 Prohibits dormancy fees, latency fees, issuance fees, redemption fees, or any other administrative fees or service charges in connection with a gift certificate.	Vt. Stat. Ann. tit. 27, §1208 et seq. Gift certificates are not specifically included.
Virginia	Va. Code §59.1-530 "Gift certificate" or "certificate" means a certificate, electronic card, or other medium issued by a merchant that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card, or other medium for goods, food, services, credit, or money of at least an equal value, including any electronic card issued by a merchant with a banked dollar value where the issuer has received payment for the full banked dollar value for the future purchase, or delivery, of goods or services and any certificate issued by a merchant where the issuer has received payment for the full face value of the certificate for future purchases, or delivery, of goods or services.	Va. Code §59.1-531 Each gift certificate issued by a merchant in the Commonwealth that has an expiration date shall include either (i) a statement of the expiration date of the certificate or (ii) a telephone number or Internet address where the holder of the certificate may obtain information regarding the expiration date of the certificate.	Va. Code §59.1-531 Each gift certificate issued by a merchant in the Commonwealth that diminishes in value over time shall include a telephone number or Internet address where the holder of the certificate may obtain information regarding the diminution in the value of the certificate over time.	Va. Code §55-210.8:1 A gift certificate or credit balance issued in the ordinary course of the issuer's business that has remained unclaimed by the owner for more than five years after becoming payable is presumed abandoned, unless redeemable in merchandise, in services, or through future purchases.
Virgin Islands				V.I.C. tit. 28, §665 A gift certificate issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than five years after becoming payable or distributable is presumed abandoned. The amount presumed abandoned is the price paid by the purchaser for the gift certificate.
Washington	Wash. Rev. Code §19.240.010 "Gift card" means a record as described in subsection (5) of this section in the form of a card, or a stored value card or other physical medium, containing stored value primarily intended to be exchanged for consumer goods and services. "Gift certificate" means an instrument evidencing a promise by the seller or issuer of the record that consumer goods or services will be provided to the bearer of the record to the value or credit shown in the record and includes gift cards.	Wash. Rev. Code §19.240.020(1)(a) and §19.240.030 Expiration date is not allowed unless no money was paid for gift certificate or when certificate is valid for artistic or cultural organizations and disclosed to the user.	Wash. Rev. Code §19.240.040 Can enforce a dormancy or inactivity charge if: (1) disclosed as specified; (2) The remaining value of the gift card is $5 or less each time the charge is assessed; (3) The charge does not exceed $1 per month; (4) The charge can only be assessed when there has been no activity on the gift card for 24 consecutive months, including but not limited to, purchases, the adding of value, or balance inquiries; (5) The bearer may reload or add value to the gift card; and (6) After a dormancy or inactivity charge is assessed, the remaining value of the gift certificate is redeemable in cash on demand.	Wash. Rev. Code §63.29.140 A gift certificate or a credit memo issued in the ordinary course of an issuer's business which remains unclaimed by the owner for more than three years after becoming payable or distributable is presumed abandoned. The amount presumed abandoned is the price paid by the purchaser for the gift certificate.
West Virginia				W. Va. Code §36-8-2(a)(7) Gift certificate, three years after the thirty-first day of December of the year in which the certificate was sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60 percent of the certificate's face value.
Wisconsin				Wis. Stat. §177.01 et seq. Gift certificates are not specifically included.
Wyoming				Wyo. Stat. §34-24-114 A gift certificate in an amount greater than $100 that remains unredeemed for more than three years after issuance is deemed abandoned. The amount deemed abandoned is the price paid for the certificate itself.

**PLEASE NOTE: The National Conference of State Legislatures is an organization serving state legislators and their staff. We cannot offer legal advice or assistance with individual cases, but we do try to answer questions on general topics. If you have questions regarding redeeming a gift card or gift certificate or a retailer's practices, please contact the Office of the Attorney General in your state.

STATE LEGISLATION

2009 | 2008 | 2007 | 2006 | 2005

2009 Legislation

Alaska
H.B. 64
Relates to gift certificates and gift cards and to unclaimed property; and makes a violation of certain gift card prohibitions an unlawful trade practice.

Arizona
H.B. 2304
Link not available
Stipulates that any dollar amount on a retail gift card that is not used is presumed abandoned on the expiration date. Mandates that any property from an expired gift card that is presumed abandoned shall be distributed as follows three years after its expiration date: The first $25 to the issuer if the issuer has employees, an office or a retail place of business located in Arizona. The remaining monies to the General Fund.

Connecticut
S.B. 874
Failed Joint Favorable deadline 3/12/09
Exempts any electronic card usable with multiple unaffiliated sellers of goods or services from escheat provisions in the general statutes.

S.B. 892
Failed Joint Favorable deadline 3/10/09
Prohibits selling gift certificates with a dormancy charge or fee, escheat charge or fee, inactivity charge or fee or any similar charge, fee or penalty for inactivity. Requires any person selling or issuing a gift certificate to maintain a secured line of credit or hold in trust in a separate escrow account in an amount equal to the unredeemed value of all outstanding gift certificates issued or sold by such person.

S.B. 925
Establishes the Connecticut Retail Gift Card and Certificate Guaranty Fund, imposes an annual $25 fee to pay for the fund, and (3) authorizes the Department of Consumer Protection (DCP) to administer the fund and applications to it. Amends the definition of gift certificates to include a record evidencing a promise donated to a charitable organization; prohibits the sale of gift cards or certificates with dormancy, escheat, or inactivity charges, fees, or penalties; and requiress gift certificates not subject to state law to contain clear and conspicuous descriptions of any expirations, charges, fees, or penalties.

S.J.R. 14
Link not available
Calls upon the Congress of the United States to adopt legislation to prohibit any person or entity from charging consumers a fee for or related to a gift card, other than payment in an amount equal to the actual face value of such card.

S.J.R. 62
Link not available
Memorializes Congress to ban gift card fees.

Illinois
H.B. 339

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that the holder of a gift certificate issued on or after January 1, 2010 that has a balance of less than $10 must be given the option of receiving that balance in cash.

H.B. 3703

Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that any value remaining after the expiration date on a gift certificate issued by a nonprofit organization shall revert back to the nonprofit organization.

Indiana
H.B. 1122
Provides that a person may not issue a gift card that is subject to an expiration date or a fee.

H.B. 1529
Passed House 2/16/09
Provides that a person may not issue a gift card that is subject to an expiration date or a fee.

Kentucky
S.B. 85
Passed Senate 3/2/09
Amends KRS 367.890 relating to gift cards to remove the requirement that the gift card be issued by a merchant and to provide that gift cards issued with expiration dates are not subject to escheat.

Maryland
H.B. 126
Withdrawn 2/17/09
S.B. 418
Withdrawn 2/23/09
Provides that on a specified date the balance remaining on a gift certificate sold in the state shall be presumed to be abandoned; requires each issuer of gift certificates sold in the state to report to the comptroller specified information regarding gift certificate transactions in the state and to remit to the comptroller 70 percent of the remaining balances on specified gift certificates on or before March 1 of each year.

Massachusetts
H.B. 239
Amends the definitions of gift card and gift certificate. Provides that a person may not sell a gift card: (1) that has an expiration date; (2) that has a face value that declines as a result of the passage of time or the lack of use of the card; or (3) that has a fee. A gift card with a remaining value of $10 or less may be redeemed in cash for its cash value. The value paid by a purchaser of a gift card to the issuer of the gift card is trust property held by the issuer, or its successors in interest, as trustee for the benefit of the holder of the gift card.

H.B. 314
Amends the definition of a gift certificate to include a writing identified as a gift certificate or a credit backed or bank issued gift card, purchased by a buyer for use by a person other than the buyer not redeemable in cash and usable in its face amount in lieu of cash in exchange for goods or services supplied by the seller.

H.B. 3865
Provides that whoever sells gift certificates shall maintain a bank escrow account segregated from its other assets sufficient to reimburse holders of such certificates.

H.B. 3870
Provides that the commission shall assess a fee to be determined by him on all sellers of gift certificates in the commonwealth. Said fees shall be deposited in a bank escrow fund separate from all others assets of the seller. Said funds shall be used to reimburse holders of such certificates if the issue of the certificate goes out of business.

S.B. 126
Provides that all gift certificates and gift cards will retain the original value except for deduction occurring due to purchases using the card or certificate by the holder of the card.

Michigan
H.B. 4925
Revises the definition of gift certificate in the consumer protection act.

Mississippi
H.B. 420
Died in committee 2/3/09
Enacts the Mississippi Uniform Unclaimed Property Act; provides that gift certificates will be presumed abandoned three years after December 31^st of the year in which the certificate was sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60 percent of the certificate's face value.

S.B. 2363
Died in committee 2/3/09
Enacts the Mississippi Uniform Unclaimed Property Act; provides that gift certificates will be presumed abandoned three years after December 31^st of the year in which the certificate was sold, but if redeemable in merchandise only, the amount abandoned is deemed to be 60 percent of the certificate's face value.

Missouri
H.B. 198
Prohibits the use of expiration dates earlier than five years after the date of issuance or post-purchase fees on gift certificates sold in Missouri. Any gift certificate issued on or after August 28, 2009, will not reduce in value and the holder cannot be penalized in any way for non-use or untimely redemption. Violations of the provisions of the bill will be considered unfair merchandising practices and subject to penalties.

S.B. 371
Prohibits the use of expiration dates or service fees on gift certificates. Abandoned or unused gift certificates shall not be subject to state unclaimed property provisions and shall not become the property of the State Treasurer. Violations of the act shall be considered unfair marketing practices subject to certain unlawful merchandising practice penalties.

Nevada
S.B. 82
Sent to governor 5/29/09
Establishes procedures to allow law enforcement to identify funds associated with prepaid or stored value cards. This bill allows a peace officer to determine the name, personal information and amount of funds associated with a prepaid or stored value card in certain circumstances where there is probable cause to believe that the prepaid or stored value card is an instrumentality of a crime. Finally, this bill allows the attorney general or a state or local law enforcement agency to enter into a contract to carry out the provisions of this bill concerning the identification of funds.

New Jersey
A.B. 1261
Passed Assembly 3/13/08
S.B. 566
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. An unlawful practice under the Consumer Fraud Act is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. In addition, a violation can result in cease and desist orders issued by the attorney general, the assessment of punitive damages and the awarding of treble damages and costs to the injured party.

A.B. 2363
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. 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.

A.B 2449
S.B. 612
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. 2477
Provides that a gift certificate or gift card sold after the effective date of the bill will retain full unused value until presented in exchange for merchandise. Thus, this bill creates a gift certificate or gift card that never expires nor has a dormancy fee charged against it.

A.B. 2603
Requires abandoned gift card balances to escheat to state.

A.B. 3495
S.B. 2509
Provides that a gift certificate, prepaid bank card or gift card sold after the effective date of the bill will retain full unused value until presented in exchange for merchandise. Thus, this bill creates a gift certificate, prepaid bank card or gift card that never expires nor has a dormancy fee charged against it. Existing statutory provisions regulate the expiration dates and dormancy fees for gift cards and gift certificates generally. As currently provided by law, a gift card or gift certificate may contain certain conditions and limitations, which are disclosed to the purchaser at the time of purchase. Those conditions and limitations are as follows: (i) In no case shall a gift certificate or gift card expire within the 24 months immediately following the date of sale. (ii) No dormancy fee shall be charged against a gift certificate or a gift card within the 24 months immediately following the date of sale, nor shall one be charged within the 24 months immediately following the most recent activity or transaction in which the certificate or card was used. (iii) A dormancy fee charged against a gift certificate or gift card shall not exceed $2.00 per month.

S.B. 1087
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. 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.

New York
A.B. 1541
Requires retailers issuing gift certificates to hold the amount equal to the issued gift certificate in escrow to be paid out upon closing of such retailer.

A.B. 2567
Relates to gift certificates; deletes any references to the "dormancy" of gift certificates.

A.B. 5739
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. 6956
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. 7523
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. 7555
Requires that gift certificates, gift cards, or store credits have no expiration or diminution in value over time.

Pennsylvania
H.B. 206
Amends provisions regarding abandoned and unclaimed property; provides for definitions, for property subject to custody and control of the Commonwealth and for property held by business associations.

H.B. 207
Amends the definitions of "unfair methods of competition" and "unfair and deceptive acts or practices" to include selling or offering to sell, by a person engaged in the retail sale of goods or services, a gift certificate to a consumer that expires within a certain number of years, charging an inactivity or other service fee, refusing to accept the gift certificate under certain circumstances, restricting use of the gift certificate, altering terms after issuance and failing to adequately disclose terms and conditions in advertising.

Rhode Island
H.B. 5904
Requires issuers of gift certificates to deposit and hold funds used to purchase the gift certificate in escrow for one year or until the gift certificate is redeemed and restricts certain redemption terms in event of bankruptcy.

S.B. 291
Provides that no service or maintenance fees may be charged on gift cards and certificates less that two years old, and eliminates certain exceptions in the existing statute.

S.B. 859
Requires issuers of gift certificates to deposit and hold funds used to purchase the gift certificate in escrow for one year or until the gift certificate is redeemed and restricts certain redemption terms in event of bankruptcy.

South Carolina
S.B. 381
Amends the Code of Laws of South Carolina, 1976, by adding chapter 17 to title 27 so as to enact the "South Carolina Uniform Unclaimed Property Act of 2009"; and repeals chapter 18 of title 27 relating to unclaimed property.

Tennessee
H.B. 764
S.B. 1737
Requires gift certificates with a monetary value of less than $10.00 to be redeemable in cash for cash value.

H.B. 1612
S.B. 1119
Requires gift certificates with a monetary value of less than $10.00 to be redeemable in cash for cash value.

H.B. 1876
S.B. 1623
Signed by governor 5/21/09, Public Chapter 277
Excludes prepaid cards that are usable with multiple, unaffiliated merchants and/or ATM machines from the gift certificate statute.

Texas
H.B. 1007
Passed House 5/4/09
Amends the Business & Commerce Code to prohibit a person from issuing or selling a stored value card that expires after a certain date and specifies that a condition providing for the expiration of a stored value card is void. The bill makes conforming changes to this code and to the Property Code. The bill removes a specification that provisions for the sale or issuance of a stored value card do not apply to a card for which a seller does not charge a fee other than a fee related to the issuance and handling of a card. Amends the Property Code to require a holder of unclaimed value on a stored value card delivered to the comptroller of public accounts as abandoned property to honor the unclaimed value of the card and authorizes the holder to request, in a form prescribed by the comptroller, reimbursement from the comptroller in an amount equal to the value honored by the holder. The bill requires the comptroller to provide reimbursement to the holder in an amount equal to the value of such a card and requires the comptroller to adopt rules to administer this provision.

H.B. 1771
Passed House 5/1/09
Prohibits retailers from assessing fees on a stored value card, including: a handling fee in connection with the issuance of or adding value to the card; an access fee for a card transaction conducted at an unmanned teller machine; a reissue or replacement charge; or a periodic fee or other charge that caused the unredeemed balance to decrease over time. Allows the comptroller to claim a gift card that did not expire as abandoned property.

H.B. 3155
Relates to the expiration and abandonment of stored value cards.

Utah
S.B. 270
Signed by governor 3/25/09, Chapter 343
Modifies the Unclaimed Property Act to address gift cards. Defines "gift card"; exempts a gift card, gift certificate, or credit memo from the Unclaimed Property Act.

Virginia
H.B. 1658
Passed House 1/30/09
Provides that campaign contributions made through a stored value card may never be accepted. The bill also defines the term "stored value card."

2008 Legislation

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.

Colorado
H.B. 1154
Postponed indefinitely 2/13/08
Makes it unlawful to sell via an internet auction A value-loaded card, unless the seller provides certain information to the auctioneer and the company’s general counsel; when a person who sells a total of five or more value-loaded cards in concurrent internet auctions conducted by an auctioneer, requires the auctioneer to notify the retailer of the sale in writing or electronically within 24 hours. Requires the auctioneer to give the retailer relevant information about the seller, including the sales history and all aliases and accounts used by the seller.

Florida
S.B. 324
Died in committee 5/2/08
Revises expiration dates for gift certificates. Clarifies the term "gift certificate" to exclude discount or promotional coupons or tickets to specified theme parks or entertainment complexes and permanent exhibitions or recreational activities within such theme parks or entertainment complexes.

Hawaii
H.B. 2591
To conference committee 4/14/08
Requires retailers to pay out in cash the balance of any gift card worth less than $5, if requested by the consumer.

Illinois
H.B. 4719
Provides that the holder of a gift certificate issued on or after January 1, 2009 that has a balance of less than $10 must be given the option of receiving that balance in cash.

Iowa
H.S.B. 797
Became H.F. 2700 4/24/08
The division enacts new Code §537.3312, under the consumer credit code, that provides that a seller or issuer of a gift certificate shall redeem the gift certificate at full value and shall not assess a fee with respect to the gift certificate, include an expiration date, or impose any condition on the ability of the owner to redeem the gift certificate. A violation of this new section is an unfair practice for purposes of consumer frauds and also subjects the violator to the penalty provision of Code §537.5201 under the consumer credit code. Amends Code §556.9, subsection 2, concerning gift certificates, to eliminate the ability of an issuer to deduct any charge from the value of the gift certificate under a written contract.

S.F. 2091
Became S.F. 2372 3/10/08
Relates to the issuance or redemption of gift certificates, establishing restrictions on fees and charges, prohibiting expiration dates; makes penalties applicable.

S.F. 2372
Relates to the issuance or redemption of gift certificates, establishing restrictions on fees and charges, prohibiting expiration dates; makes penalties applicable.

S.S.B. 3245
New Code §537.3312, under the consumer credit code, provides that a seller or issuer of a gift certificate shall redeem the gift certificate at full value and shall not assess a fee with respect to the gift certificate, include an expiration date, or impose any condition on the ability of the owner to redeem the gift certificate. The bill provides that a violation of this new section is an unfair practice for purposes of consumer frauds and also subjects the violator to the penalty provision of Code §537.5201 under the consumer credit code. Strikes Code §556.9, subsection 2, concerning gift certificates, which provided that an issuer of a gift certificate shall not deduct any charge from the value of the gift certificate unless a written contract exists which imposes such a charge.

Maine
L.D. 2181
Signed by governor 4/14/08, Chapter 696
Requires a merchant redeeming a gift obligation or stored-value card to refund a balance on the card of less than $5 to the consumer as long as the card is redeemed in person by the customer.

Maryland
H.B. 613
S.B. 998
Provides that after a specified date, the balance remaining on a gift certificate shall be presumed abandoned; requires a person that issues a gift certificate sold in the State to remit to the Comptroller a specified percentage of the remaining balance on the gift card on or before a specified date each year.

H.B. 1297
Prohibits a person in the state from selling or offering to sell, by means of an Internet auction, any food, drug or cosmetic product that is subject to expiration dating requirements, any infant formula or baby food, or more than five value loaded cards in a month; establishing penalties for a violation of the Act.

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
Provides for returning merchandise purchased with a gift card.

S.B. 2345
Signed by governor 3/3/08, Chapter 58
Provides updates to the gift certificate law.

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

Michigan
H.B. 4050
Signed by the governor 7/10/08, Public Act 210
Amends the Michigan Consumer Protection Act to prohibit a person engaged in the retail sale of goods or services from doing any of the following: Refusing to accept a gift certificate, except after an expiration date that was at least five years after the purchase date. Restricting the holder of a gift certificate from using it in a manner that was consistent with its terms and conditions. Altering terms or conditions of a gift certificate after it was issued. Failing to disclose the terms and conditions of a gift certificate or card, or failing to disclose that terms and conditions applied. Refusing to accept a gift certificate and apply it to a purchase if its value were less than the purchase price.

H.B. 4317
Signed by governor 7/10/08, Public Act 211
Amend the Michigan Consumer Protection Act to prohibit a person engaged in the retail sale of goods or services from charging an inactivity fee or other service fee for the possession or use of a gift certificate. "Service fee" would not include any fee charged to and paid by a consumer in connection with the sale of a gift certificate, unless the fee were deducted or debited from the face value of the gift certificate. In addition, the Act provides that unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade or commerce are unlawful, and contains a list of such practices. The attorney general may bring an action to enjoin a method, act, or practice that violates the Act.

H.B. 4680
Signed by governor 7/10/08, Public Act 209
Prohibits a person engaged in the retail sale of goods or services from selling to a consumer a gift certificate that expired within a period of less than five years.

S.B. 388
Signed by governor 7/10/08, Public Act 208
Amends the Uniform Unclaimed Property Act (MCL 567.222 et al.) to address when a gift certificate or gift card is considered abandoned property.

Mississippi
H.B. 788
Died in committee 2/19/08
Requires merchants to pay customers the full amount of the remaining balance on a gift card or certificate when the customer uses the card or certificate to purchase goods or services from the merchant within 90 days after the date of issuance of the card or certificate and the balance is $10 or less.

S.B. 2318
Died in committee 2/19/08
Makes unlawful the sale of a gift certificate that contains an expiration date or a service fee, with certain exceptions.

Missouri
H.B. 1494
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.

H.B. 1718
Prohibits the use of expiration dates earlier than five years after the date of issuance or post-purchase fees on gift certificates sold in Missouri. Any gift certificate issued after August 28, 2008, will not reduce in value and the holder cannot be penalized in any way for non-use or untimely redemption. Violations of the provisions of the bill will be considered unfair merchandising practices and be subject to penalties.

H.B. 1966
Prohibits the use of expiration dates earlier than five years after the date of issuance or post-purchase fees on gift certificates sold in Missouri. Any gift certificate issued after August 28, 2008, will not reduce in value and the holder cannot be penalized in any way for non-use or untimely redemption. Violations of the provisions of the bill will be considered unfair merchandising practices and be subject to penalties.

H.B. 2519
Prohibits any post-sale charge or fee on credit memos and gift certificates sold in Missouri. A gift certificate can have an expiration date of not less than three years if it is provided as a charitable contribution and no consideration is given to the issuer by the consumer or not less than one year if provided under an employee-incentive program, consumer-loyalty program, or promotional program that is disclosed in writing and no consideration is given to the issuer by the consumer. A gift certificate provided as part of a larger package for a convention, conference, vacation, sporting event, or fine arts event having a limited duration can have an expiration date if most of the value paid is for the convention, conference, vacation, or event. These provisions do not apply to a gift certificate or credit memo sold or issued by a financial institution or by a money transmitter if it is redeemable by multiple unaffiliated merchants.

Nebraska
L.B. 668
Signed by governor 3/10/08
Amends Nebraska law regarding gift cards and gift certificates to prohibit unredeemed gift cards which are over $100 in value and do not contain any post sale finance charges or fees, from being presumed abandoned after three years.

A.B. 2603
Requires abandoned gift card balances to escheat to state.

A.B. 2751
Withdrawn 6/23/08
Requires that the unclaimed or unused value of a gift card would, in time, escheat to the state and be deposited into the Property Tax Relief Fund. In doing so, it would dedicate these unclaimed funds to property tax relief for New Jersey residents, rather than allowing retail merchants to retain possession of them. The bill specifies that the unclaimed balance of a gift card would be presumed abandoned, and thereby escheat to the state, after the card is not used for more than seven years from the date of its purchase or the last transaction for which it was used. In addition, the bill requires merchants to exchange the unused value of a gift card for cash when it is used for a purchase and $5 or less remains on the card.

A.B. 3495
Provides that a gift certificate, prepaid bank card or gift card sold after the effective date of the bill will retain full unused value until presented in exchange for merchandise. Thus, this bill creates a gift certificate, prepaid bank card or gift card that never expires nor has a dormancy fee charged against it. Existing statutory provisions regulate the expiration dates and dormancy fees for gift cards and gift certificates generally. As currently provided by law, a gift card or gift certificate may contain certain conditions and limitations, which are disclosed to the purchaser at the time of purchase. Those conditions and limitations are as follows: (i) In no case shall a gift certificate or gift card expire within the 24 months immediately following the date of sale. (ii) No dormancy fee shall be charged against a gift certificate or a gift card within the 24 months immediately following the date of sale, nor shall one be charged within the 24 months immediately following the most recent activity or transaction in which the certificate or card was used. (iii) A dormancy fee charged against a gift certificate or gift card shall not exceed $2.00 per month.

New Mexico
S.B. 414
Specifies expiration date for gift certificates and amends the Uniform Unclaimed Property Act.

New York
A.B. 10641
Requires retailers issuing gift certificates to hold the amount equal to the issued gift certificate in escrow to be paid out upon closing of such retailer.

A.B. 11013
S.B. 8052
Relates to gift certificates; deletes any references to the "dormancy" of gift certificates.

A.B. 11034
S.B. 7891
Prohibits gift certificates and gift cards from having expiration dates, service fees, dormancy fees, retroactive fees or any other fee; establishes gift certificates or gift cards shall not include store credits of any kind which have been transferred in exchange for returned merchandise so long as such information is conspicuously stated by the store's terms and condition.

Pennsylvania
H.B. 2736
Provides that gift cards and gift certificates have the same meaning given to them under section 2 of the act of December 17, 1968 (P.L.1224, No.387), known as the "Unfair Trade Practices and Consumer Protection Law.

H.B. 2737
Amends the Unfair Trade Practices and Consumer Protection Act of 1968. Provides that it is an unfair or deceptive act or practice to sell a gift certificate to a consumer that expires within less than five years, charge an inactivity or other service fee, refuse to accept the gift certificate if the goods or services are for personal use or advertised on sale or pursuant to a liquidation or closeout, altering terms after issuance and failing to disclose terms in advertisements.

Rhode Island
H.B. 7398
Effective without governors signature 7/4/08, Chapter 251
Prohibits any person, firm, or corporation from charging a surcharge of any kind relating to gift certificates and/or gift cards.

S.B. 2066
Passed House in concurrence 6/21/08
Prohibits any person, firm, or corporation from charging a surcharge of any kind relating to gift certificates and/or gift cards.

South Dakota
H.B. 1258
Vetoed by governor 3/13/08
Requires that gift certificates conspicuously disclose information regarding fees and expiration dates

Tennessee
H.B. 2522
S.B. 3209
Allows gift certificates with a monetary value of less than $10 to be redeemed in cash.

H.B. 3897
Prohibits the diminution in value of gift cards and certificates.

H.B. 4023
S.B. 4038
Prohibits the diminution in value of gift cards and certificates.

Utah
S.J.R. 11
Adopted 3/13/08
Gives the Legislative Management Committee items of study it may assign to the appropriate interim committee, including a study treating expired gift certificates as unclaimed property.

Virginia
H.B. 329
Requires each gift certificate that is charged a fee for maintenance, service, or inactivity to include a telephone number or Internet address where the holder of the certificate may obtain information regarding such fees. The measure also requires that any gift certificate that has a limit on the time for redemption, other than an expiration date, to include a telephone number or Internet address where the holder of the certificate may obtain information regarding about such limit.

H.B. 859
Prohibits the issuer of a gift certificate from (i) charging, within the 12 months following the date of its issuance, a maintenance fee or inactivity fee on a gift certificate or (ii) issuing a gift certificate that, within the 24 months following the date of its issuance, automatically expires, diminishes in value, or otherwise becomes unredeemable. Merchants issuing gift certificates with a permissible maintenance fee or inactivity fee are required to disclose to the purchaser the terms pertaining to such a fee. If a gift certificate is issued with an expiration date or other time limit on its redemption, the issuer is required to provide a statement thereof. The required disclosures shall be provided prior to the completion of the certificate's purchase. Required information may be imprinted on the packaging material attached to the certificate at the time of sale. 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.

Wisconsin
A.B. 360
Failed to pass pursuant to Senate Joint Resolution 3/21/08
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
Failed to pass pursuant to Senate Joint Resolution 3/21/08
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
Failed to pass pursuant to Senate Joint Resolution 3/21/08
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
Failed to pass pursuant to Senate Joint Resolution 3/21/08
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.

2007 Legislation

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.

2006 Legislation

Connecticut
S.B. 503
Requires retailers holding closing-out sale licenses to (1) honor their gift cards and certificates, (2) allow gift card and certificate holders to redeem them for either consumer goods or their cash value, and (3) include in all advertisements a notice that gift cards and certificates may be redeemed before the store closes. Prohibits them from selling, offering to sell, or advertising the sale of gift cards or certificates after applying for a closing-out sale license.

Hawaii
H.B. 1980
Passed House 3/7/06
Exempts multi-use gift cards from definition of gift certificate.

H.B. 3084
Adds maintenance fees as a fee that is prohibited from being charged to dormant or inactive gift certificates.

S.B. 2096
Exempts multi-use gift cards from definition of gift certificate.

Illinois
H.B. 4205
Passed House 2/21/06
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 fee on or after January 1, 2007. Provides that the face value of a gift certificate may not 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. Deletes language requiring that a gift certificate subject to a fee or expiration date contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date or whether there is a fee.

S.B. 2196
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 the face value of a gift certificate 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. Deletes language requiring that a gift certificate subject to a fee or expiration date contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date or whether there is a fee.

S.B. 2451
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 the face value of a gift certificate 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. Deletes language requiring that a gift certificate subject to a fee or expiration date contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date or whether there is a fee.

Iowa
H.F. 600
Relates to the redemption, sale, and issuance of gift certificates. Provides a definition of "gift certificate" which includes a writing or instrument usable for the purchase of goods, property, or services sold or provided by the seller or issuer of the gift certificate. Provides that gift certificates shall be considered abandoned property under Code chapter 556 if the gift certificate is not redeemed within three years after the later of the date the gift certificate was purchased or issued or the date of the last transaction using the gift certificate. Abandoned property is required to be annually reported to the state treasurer who publishes a list of the abandoned property for public view. Provides, in new Code section 537.3312, that a gift certificate shall be redeemable for its full value and prohibits a seller, issuer, or holder of a gift certificate from assessing any fee or charge against the value of a gift certificate or selling or issuing a gift certificate with an expiration date. The bill also prohibits a seller, issuer, or holder from imposing any other term or condition that limits the ability of the owner to redeem the gift certificate for its full value, including the ability to receive cash for the unredeemed value of the gift certificate. A person who assesses a fee or charge, issues a gift certificate with an expiration date, or imposes any other term limiting the redemption of the certificate in violation of new Code section 537.3312 commits a consumer fraud under Code section 714.16 and may be subject to civil penalties and a civil action brought by the attorney general for damages incurred as a result of the violation. A person in violation of new Code section 537.3312 is also subject to a civil action brought by the injured consumer for penalties in an amount not less than $100 nor more than $1,000 per violation.

Kansas
H.B. 2658
Signed by governor 4/14/06, Chapter 116
Makes it a violation of the Kansas Consumer Protection Act from and after January 1, 2007, to sell a gift card or gift certificate containing an expiration date which is less than five years from the date of purchase. A gift certificate is defined to mean a written promise given in exchange for full or discounted payment or without any money or other thing of value being given in exchange to provide merchandise in a specified amount or of equal value to the bearer of the certificate. A prepaid bank card is defined to mean a general use, prepaid card or other electronic payment device that is issued by a bank or other financial institution in a predenominated amount useable at multiple, unaffiliated merchants or at automated teller machines, or both.

Kentucky
H.B. 259
Creates a new section of KRS Chapter 367 to define "gift card"; requires that gift cards shall not be sold without an expiration date that is at least one year from the date of purchase; prohibits any fees being assessed to deduct the value of the card before the expiration date; and provides that any fees to be assessed must be disclosed.

S.B. 49
Signed by governor 3/24/06, Chapter 28
Creates a new section of KRS Chapter 367 to provide minimum lengths of time for the expiration of gift cards issued by businesses or charitable organizations; limits service charges or fees that may have the effect of reducing the value of the card, and mandates that a gift card sold without an expiration date is valid until redeemed or replaced. Exempts a general-use, prepaid card or other electronic payment device that is issued by a bank or other financial institution that is usable at multiple, unaffiliated merchants, or at automated teller machines, or both, from the definition of a "gift card."

Massachusetts
H.B. 3715
Regulates credit backed or bank issued gift cards.

H.B. 3723
Relates to gift certificates.

H.B. 3824
Reinstitutes gift certificates, gift cards and general use prepaid cards as reportable abandoned property if unused three years from the date of issuance or last activity.

H.B. 5012
Prohibits excessive fees on gift certificates and gift cards.

S.B. 2214
Substituted by S.B. 2442 3/21/06
Regulates gift cards, gift certificates and electronic wage cards.

S.B. 2442
Passed Senate 3/22/06
Prohibits excessive fees on gift certificates and gift cards.

Michigan
S.B. 950
Regulates the sale of certain gift certificates by a person engaged in a trade or commerce under the Michigan Consumer Protection Act.

Minnesota
S.F. 3693
Requires a state employer that has an employee recognition program that awards gifts to its employees based on years of service must allow the employees the option of choosing a gift certificate of equivalent value from the Minnesota Historical Society for use in a historical society store or the online store. For the purposes of this section, "state employer" means any state department, office, board, commission, authority, legislative office, judicial office, and the Metropolitan Council.

Mississippi
H.B. 128
Died in committee 1/31/06
Prohibits the sales of gift certificates with expiration dates, service fees or dormancy fees; allows cash redemption or replacement of gift certificates; provide exceptions.

S.B. 2172
Died in committee 1/31/06
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; provides that violations of this act are subject to civil and criminal penalties under the consumer protection statutes.

Missouri
S.B. 685
Prohibits expiration dates or service fees for dormancy on gifts certificates issued by companies. Allows the consumer to receive the remaining balance of a gift certificate in cash, provided they have already used fifty percent of the original value of the certificate. Violations of the act shall be considered unfair marketing practices subject to the penalties outlined in Section 407.020, RSMo.

Nebraska
L.B. 173
Signed by governor 3/7/06
Relates to the Uniform Disposition of Unclaimed Property Act. Changes provisions regarding gift certificates.

New Jersey
A.B. 720
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. This bill provides that such gift certificates shall be valid and redeemable at full face value until redeemed.

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.

Ohio
S.B. 33
Signed by governor 4/17/06, Chapter 59
Prohibits the sale of a gift certificate that has an expiration date that is less than two years after the date the gift certificate is issued and prohibits service charges or fees having the effect of reducing the value of the gift certificate.

Oklahoma
H.B. 2635
Signed by governor 4/17/06, Chapter 59
Relates to the Gift Certificate and Gift Card Disclosure Act; adds definition and modifying exemptions.

Pennsylvania
H.B. 311
Relates to dormancy fees on a gift certificate or gift card.

H.B. 552
Signed by governor 11/9/06, Act 138
Defines gift card, gift certificate and qualified gift certificate. Provides for unclaimed property.

Tennessee
H.B. 132
S.B. 385
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. 1245
S.B. 831
Prohibits gift certificates from expiring unless expiration date is clearly stated on gift certificate; makes violations subject to Consumer Protection Act.

H.B. 1742
Signed by governor 6/20/06, Public Chapter 929
S.B. 2069
Specifies that a gift certificate exempt from the prohibition on gift certificates having an expiration date within two years of issuance are also exempt from the prohibition on service charges or fees being imposed on the gift certificates.

H.B. 2574
Signed by governor 5/5/06, Public Chapter 622
S.B. 2702
Prohibits sale of gift certificates that decrease in value or expire after a certain date.

H.B. 3279
S.B. 3680
Prohibits the sale of gift certificates with an expiration date after July 1, 2006, and the imposition of any fee associated with such gift certificates and requires the redemption of gift certificates for full cash value upon request.

West Virginia
S.B. 780
Passed Senate 3/1/06
Relates to gift certificates generally; defines terms; prohibits expiration dates on gift certificates of less than three years; states exceptions; limits imposition of various fees and charges which reduce the value of a gift certificate; and imposes penalties.

Wisconsin
A.B. 583
Failed to pass pursuant to Senate Joint Resolution 1 5/11/06
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; and 3) reducing the value of a gift obligation except for the sale price of goods or services provided to the bearer. Furthermore, when a person redeems a gift obligation and the resulting balance of the gift obligation is less than $5, the bill requires the person redeeming the gift obligation to refund the balance in cash, upon the request of the person redeeming the gift obligation. The bill also requires a merchant, upon presentation of a gift obligation, to disclose the date when the gift obligation was issued and the remaining balance. 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. 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 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. Violations may also constitute unfair competition or unfair trade practices.

S.B. 292
Failed to pass pursuant to Senate Joint Resolution 1 5/11/06
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; and 3) reducing the value of a gift obligation except for the sale price of goods or services provided to the bearer. Furthermore, when a person redeems a gift obligation and the resulting balance of the gift obligation is less than $5, the bill requires the person redeeming the gift obligation to refund the balance in cash, upon the request of the person redeeming the gift obligation. The bill also requires a merchant, upon presentation of a gift obligation, to disclose the date when the gift obligation was issued and the remaining balance. 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. 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 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. Violations may also constitute unfair competition or unfair trade practices.

S.B. 392
Failed to pass pursuant to Senate Joint Resolution 1 5/11/06
Regulates the sale of gift certificates, gift cards, or similar items (gift obligations). A seller of a gift obligation must conspicuously disclose to a purchaser 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 do not apply to a gift obligation that is valid at more than one seller of goods or services.

2005 Legislation

Alabama
H.B. 414
Prohibits the sale of any gift certificate that contains an expiration date or a service fee.

Alaska
H.B. 310
Relates to gift or credit certificates and making violations of certain gift or credit certificate requirements unlawful trade practices; and relating to unclaimed property.

Arizona
S.B. 1022
Prohibits service fees on gift cards.

S.B. 1299
Signed by governor 5/20/05, Chapter 315
Defines gift card as any gift certificate, gift card, electronic gift card or any other medium purchased from the issuer for the purpose of making future purchases or delivery of goods or services, and defines fee as that which is automatically deducted due to a period of nonuse or inactivity. Requires the expiration date and the amount and date of the fee of a gift card, that is subject to an expiration date and fee, be clearly and conspicuously disclosed: 1) To the consumer at time of purchase. 2) Via the means used to purchase the gift card if purchased electronically or by computer. 3) Verbally if purchased by telephone. Clarifies that outlined requirements do not apply to: 1) A gift card distributed to consumers as an award or promotional program in which the consumer does not exchange money or anything of value for the card. 2) A gift card sold below face value or donated to a nonprofit or charitable organization for fund raising purposes. 3) A prepaid phone card, a debit card or an electronic funds transfer card. Designates a penalty of up to $500 per violation. Contains a delayed effective date of October 31, 2005.

S.B. 1454
Relates to gift certificates and prohibitions regarding the sale of gift certificates.

California
A.B. 175
Passed Assembly 4/21/05
Enacts the Gift Cards Usable with Multiple Sellers of Goods or Services Disclosures Act to require that a gift card usable with those sellers clearly and conspicuously disclose its purchase price, any dormancy or regularly recurring maintenance or service fee, and the fee to obtain any remaining balance on that card, if applicable. Excepts from those requirements, any card that was distributed for free, as specified, and prepaid calling cards.

Colorado
H.B. 1144
Postponed indefinitely 2/5/05
Prohibits a person or entity from selling a gift certificate or gift card containing an expiration date. Creates an exemption for certain gift certificates and gift cards that have an expiration date of not less than five years after the issuance of the certificate or card, 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; Are sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes; or Are usable with multiple sellers of goods or services. Prohibits an issuer of a gift certificate or gift card from charging any fees in connection with the issuance of the gift certificate or gift card unless the fee is charged at the time of purchase of the certificate or card. Makes a violation of the limitations regarding gift certificates and gift cards a deceptive trade practice.

Connecticut
H.B. 5073
Failed Joint Favorable deadline 3/22/05
Prohibits gift certificates from escheating to the state.

H.B. 5139
Failed Joint Favorable deadline 3/22/05
Makes it an unfair trade practice to violate the state's gift card laws.

H.B. 6067
Tabled 4/19/05
Prohibits expiration dates on any gift card or gift certificate, including those gift cards and gift certificates that have already been purchased.

S.B. 83
Signed by governor 7/13/05, Public Act 05-273
Adds a gift certificate as property to a section of existing law that states that there may not be charged upon such property a dormancy charge or fee, abandoned property charge or fee, unclaimed property charge or fee, escheat charge of fee, inactivity charge or fee, or any similar charge of fee or penalty for inactivity with respect to the property.

S.B. 123
Signed by governor 7/1/05, Public Act 05-189
Provides that gift certificates that are not used within three years of issue do not escheat to the state.

S.B. 414
Failed Joint Favorable deadline 3/22/05
Provides that gift cards and gift certificates that are not redeemed shall not be presumed to be abandoned and shall not escheat to the state.

Georgia
S.B. 13
Signed by governor 5/9/05, Act 367
Relates to unfair or deceptive practices in consumer transactions; provides for Gift Card Integrity Act of 2005; provides for definitions; provides that the terms of gift certificates, store gift cards, and general use prepaid cards shall be disclosed at the time of purchase and through certain notifications.

Illinois
H.B. 4111
Amends the Consumer Fraud and Deceptive Business Practices Act. Provides that no person shall: (1) refuse to honor a valid gift certificate; (2) reduce the value of a gift certificate, except when the holder of a gift certificate partially redeems the gift certificate as payment for goods or services; or (3) sell a gift certificate that is subject to an expiration date. Provides that upon the presentation of a gift certificate, the issuer shall disclose to the holder the date on which the gift certificate was issued and the remaining balance of the gift certificate. Deletes language requiring a gift certificate subject to an expiration date to contain a statement clearly and conspicuously printed on the gift certificate stating the expiration date.

Indiana
H.B. 1404
Provides that a gift certificate may not expire.

S.B. 38
Passed Senate 3/1/05
Provides that a gift certificate may not expire in less than 12 months or be reduced in value for delayed use or nonuse unless certain conditions are met.

S.R. 56
Urges the Legislative Council to direct an appropriate study committee to review issues regarding the issuance and use of gift certificates.

S.F. 273
Relates to the redemption, sale, and issuance of gift certificates. Provides a definition of "gift certificate" which includes a writing or instrument usable for the purchase of goods, property, or services sold or provided by the seller or issuer of the gift certificate. Provides that gift certificates shall be considered abandoned property under Code chapter 556 if the gift certificate is not redeemed within three years after the later of the date the gift certificate was purchased or issued or the date of the last transaction using the gift certificate. Abandoned property is required to be annually reported to the state treasurer who publishes a list of the abandoned property for public view. Provides, in new Code section 537.3312, that a gift certificate shall be redeemable for its full value and prohibits a seller, issuer, or holder of a gift certificate from assessing any fee or charge against the value of a gift certificate or selling or issuing a gift certificate with an expiration date. Prohibits a seller, issuer, or holder from imposing any other term or condition that limits the ability of the owner to redeem the gift certificate for its full value, including the ability to receive cash for the unredeemed value of the gift certificate. A person who assesses a fee or charge, issues a gift certificate with an expiration date, or imposes any other term limiting the redemption of the certificate in violation of new Code section 537.3312 commits a consumer fraud under Code section 714.16 and may be subject to civil penalties and a civil action brought by the attorney general for damages incurred as a result of the violation. A person in violation of new Code section 537.3312 is also subject to a civil action brought by the injured consumer for penalties in an amount not less than $100 nor more than $1,000 per violation.

Maine
L.D. 771
Prohibits an issuer from charging dormancy charges or other fees prior to the date that the gift obligation is presumed abandoned; after that, any dormancy charges or fees impose may not be unconscionable.

L.D. 772
Prohibits an issuer of gift certificates from placing an expiration date on a gift certificate.

L.D. 838
Exempts from the abandoned property reporting requirement gift obligations that do not have an expiration date or dormancy charges levied upon them and effectively exempts such gift obligations from the presumption of abandonment.

L.D. 1084
Signed by governor 6/9/05, Chapter 357
Prohibits an issuer from placing an expiration date on a gift obligation. Prohibits an issuer from charging dormancy charges or other fees, either before or after the start of the presumptive abandonment period. Presumes that the abandoned amount is the face value of the gift obligation, requiring the issuer to turn that amount over to the state treasurer as abandoned property.

Maryland
H.B. 551
Passed Senate 4/11/05
Prohibits a person from selling a gift certificate that is subject to expiration or specified fees or charges within three years after purchase; requires disclosure of terms and conditions of gift certificates in a specified manner; prohibits a change of terms or conditions after purchase; provides that a gift certificate sold in violation of the Act may be considered valid and may not be subject to expiration or any service fee.

H.B. 667
Prohibits a person from selling a gift certificate that contains an expiration date unless specified conditions are met; prohibits a person from selling a gift certificate that contains a service fee under specified circumstances; authorizes a seller of a gift certificate to assess a service fee for dormancy under specified circumstances; provides that a gift certificate sold in violation of the Act shall be considered valid and shall not be subject to an expiration date or service fee.

H.B. 1053
Authorizes a gift card or gift certificate to be subject to expiration or a service fee if specified disclosures are printed on the gift card or gift certificate; requires the seller of a gift card or gift certificate to give the purchaser a written statement of disclosures under specified circumstances; authorizes the seller of a gift card or gift certificate to give the purchaser a written statement of disclosures or to post a specified sign instead of printing the disclosures on the gift card or gift certificate.

S.B. 8
Signed by governor 5/26/05, Chapter 456
Prohibits a person from selling a gift certificate that contains an expiration date unless specified conditions are met; prohibits a person from selling a gift certificate that contains a service fee; provides that a gift certificate sold in violation of the Act shall be considered valid and may not be subject to an expiration date or service fee.

S.B. 301
Authorizes a gift card or gift certificate to be subject to expiration or a service fee if specified disclosures are printed on the gift card or gift certificate; requires the seller of a gift card or gift certificate to give the purchaser a written statement of disclosures under specified circumstances; authorizes the seller of a gift card or gift certificate to give the purchaser a written statement of disclosures or to post a specified sign instead of printing the disclosures on the gift card or gift certificate.

Massachusetts
H.B. 3715
Regulates credit backed or bank issued gift cards.

H.B. 3723
Relates to gift certificates.

H.B. 3824
Reinstitutes gift certificates, gift cards and general use prepaid cards as reportable abandoned property if unused three years from the date of issuance or last activity.

S.B. 222
Prohibits excessive fees on gift certificates and gift cards.

S.B. 2214
Regulates gift cards, gift certificates and electronic wage cards.

Michigan
H.B. 5236
Modifies application of unclaimed property act to gift certificates.

H.B. 5437
Regulates and requires disclosures for gift cards and gift certificates.

H.B. 5530
Prohibits fees and expiration dates on gift cards and gift certificates.

Minnesota
H.F. 28
S.F. 126
Relates to consumer protection; regulates gift certificates and gift cards.

H.F. 393
S.F. 200
Passed Senate 5/23/05
Prohibits expiration dates and service fees on gift certificates and gift cards.

H.F. 585
S.F. 219
Regulates gift certificates and gift cards; provides penalties and remedies.

H.F. 927
Relates to consumer protection; regulates gift certificates and gift cards; provides remedies.

Mississippi
H.B. 146
Died in committee 2/1/05
Prohibits the sales of gift certificates with expiration dates, service fees or dormancy fees; allows cash redemption or replacement of gift certificates; provides for exceptions.

S.B. 2660
Died in committee 2/1/05
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.

Montana
H.B. 295
Signed by governor 4/19/05, Chapter 291
Prohibits expiration dates on gift cards and gift certificates; associates ownership with the possessor of the card or certificate; limits fees; allows limited cash redemption.

S.B. 192
Missed deadline for general bill transmittal 3/1/05
Removes gift certificates from abandoned property if not used.

Nebraska
L.B. 173
Relates to the Uniform Disposition of Unclaimed Property Act. Changes provisions regarding gift certificates.

Nevada
A.B. 2
Prohibits issuance of gift card or gift certificate that contains expiration date.

A.B. 19
Signed by governor 6/10/05, Chapter 336
Prohibits issuance of gift certificate that contains expiration date and prohibits issuer of gift certificate from charging fee for inactivity to buyer or holder of gift certificate.

New Jersey
A.B. 1079
Passed Senate 6/25/05
S.B. 2187
Substituted 6/27/05
S.F. 2296
Combined with S.B. 2187 6/16/05
Provides that a gift certificate issued by a retail merchandise establishment shall be redeemable at full face value in perpetuity.

New York
A.B. 1643
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. 4391
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. 6681
Requires that gift certificates, gift cards, or store credits have no expiration or diminution in value over time.

A.B. 6776
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.

North Dakota
S.B. 2286
Failed to pass Senate 2/11/05
Creates and enacts a new section to chapter 51-07 of the North Dakota Century Code, relating to unfair trade practices and gift certificates; and provides a penalty.

S.B. 2335
Signed by governor 4/6/05, Chapter 51-29
Creates and enacts chapter 51-29 of the North Dakota Century Code, relating to gift certificate sales, expiration dates, and service or maintenance fees; amends and reenacts sections 47-30.1-01 and 47-30.1-14 of the North Dakota Century Code, relating to abandoned property under the Uniform Unclaimed Property Act; and provides a penalty.

Ohio
S.B. 33
Passed Senate 6/15/05
Prohibits the sale of a gift certificate that has an expiration date that is less than two years after the date the gift certificate is issued and prohibits service charges or fees having the effect of reducing the value of the gift certificate.

Oklahoma
H.B. 1986
Signed by governor 5/26/05
Enacts the Gift Certificate Disclosure Act; prohibits the sale of certain certificates; provides exceptions; allows multiple contributors for a gift certificate under certain circumstances; declares the value of certificates to be held in trust by the issuer; requires certificates to be honored for the value regardless of issuer bankruptcy; provides certain limitations of the Gift Certificate Disclosure Act.

Oregon
H.B. 2036
Prohibits a person from issuing gift card that expires or has cash value that declines over time or with lack of use. Prohibits a person from charging a fee related to a gift card. Creates exceptions. Makes violation of prohibition unlawful trade practice.

H.B. 2988
Prohibits person from issuing 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. 845
Provides that unused gift cards become abandoned property. Prohibits expiration dates for gift cards and prohibits certain fees related to gift cards. Provides that violation of these prohibitions is unlawful trade practice.

Pennsylvania
H.B. 311
Relates to dormancy fees on a gift certificate or gift card.

H.B. 552
Provides for escheated property and the proceeds of its sale. Defines gift card, gift certificate and qualified gift certificate.

H.B. 656
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. 676
Prohibits the sale of gift certificates and gift cards with expiration dates.

S.B. 515
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; and makes a repeal.

Rhode Island
H.B. 5027
Became law without governor's signature 7/8/05, Chapter 209
Expands the definition of a gift certificate and prohibits the issuer from charging additional fees on the gift certificate.

H.B. 5157
Deletes subsection (a) of 6-13-12 thereby allowing this section to apply to most general use prepaid cards.

H.B. 5471
Adds prepaid gift service cards to the protections provided to gift certificates.

H.B. 5770
Became law without governor’s signature 7/8/05, Chapter 202
Deletes all references with respect to gift certificates in connection with unclaimed intangible property and would also provide that gift certificates shall not be presumed to be abandoned.

H.B. 5777
Became law without governor’s signature 7/23/05, Chapter 439
Expands the definition of a gift certificate to include prepaid long distance telephone service cards; prohibits the issuer from charging additional fees on the gift certificate; allows the Division of Taxation to escheat funds paid for unredeemed gift certificates.

S.B. 136
Prohibits merchants from reducing the value of gift certificates, based solely on the passage of time, for a period of three years.

S.B. 455
Removes the confusion among businesses concerning their responsibility for reporting unclaimed property for nonredeemed gift certificates.

S.B. 456
Expands the definition of a gift certificate and prohibits the issuer from charging additional fees on the gift certificate.

S.B. 491
Became law without governor’s signature 7/7/2005, Chapter 194
Deletes all references with respect to gift certificates in connection with unclaimed intangible property and would also provide that gift certificates shall not be presumed to be abandoned.

Tennessee
H.B. 132
S.B. 385
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. 1245
S.B. 831
Prohibits gift certificates from expiring unless expiration date is clearly stated on gift certificate; makes violations subject to Consumer Protection Act.

Texas
H.B. 255
Laid on table 5/2/05
S.B. 446
Signed by governor 5/17/05, Chapter 81
Relates to the reduction in value of a stored value card; provides that the issuer of such card may impose or collect a periodic fee or other charge that causes the unredeemed balance of the card to decrease over time if the fee is reasonable, if not assessed until after the first anniversary of the date the card was sold or issued, and is disclosed to the holder of the card.

H.B. 1343
Relates to the expiration or reduction in value of a gift certificate or gift card.

H.B. 1691
Relates to the reduction in value of a gift card.

S.B. 192
Relates to the expiration of or a fee charged in relation to a gift certificate.

Vermont
H.B. 198
Signed by governor 6/2/05, Act 39
Proposes to limit expiration dates and prohibit fees on gift certificates, gift cards, and stored-value cards.

Virginia
H.B. 2218
Signed by governor 3/20/05, Chapter 303
S.B. 1241
Signed by governor 3/20/05, Chapter 269
Requires gift certificates issued by a merchant in Virginia to have permanently affixed to it either an expiration date for the certificate or electronic card or a telephone number or Internet address at which information about the certificate's expiration and any diminution in value over time may be obtained. A violation of the disclosure requirement is a prohibited practice under the Virginia Consumer Protection Act.

Wisconsin
A.B. 583
S.B. 292
Regulates the sale and redemption of gift certificates, gift cards, and similar items (gift obligations). Prohibits the following: (1) failing to honor a valid gift obligation; (2) selling a gift obligation that is subject to an expiration date; and (3) reducing the value of a gift obligation except for the sale price of goods or services provided to the bearer. Furthermore, when a gift obligation is redeemed and the resulting balance of the gift obligation is less than $5, the gift obligation redeemer is required to refund the balance in cash, upon the request of the person redeeming the gift obligation. Also requires a merchant, upon presentation of a gift obligation, to disclose the date when the gift obligation was issued and the remaining balance.

S.B. 392
Regulates the sale of gift certificates, gift cards, or similar items (gift obligations). A seller of a gift obligation must conspicuously disclose to a purchaser 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 do not apply to a gift obligation that is valid at more than one seller of goods or services.

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