Gift Cards and Gift Certificates Legislation

Gift Cards and Gift Certificates Statutes and Recent Legislation

Last Updated: March 18, 2008

**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.

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

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.

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 §14-502(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. 266, §75C
A gift certificate expiration date must be at least seven years after issuance.

Mass. Gen. Laws. Ann. ch. 200A, §5D
An expiration date no less than seven years after issuance must be conspicuously displayed on the certificate/card.

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.

Mass. Gen. Laws. Ann. ch. 200A, §5D
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.

Michigan
Mich. Comp. Laws §567.235
A gift certificate issued in the ordinary course of an issuer's business that 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.

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
Gift cards/certificates subject to an expiration date shall have a statement clearly and conspicuously stating the expiration date. Excludes general-use prepaid cards.

Neb. Rev. Stat. §69-1305.03
Gift cards/certificates subject to any type of fee shall have printed on the card/certificate the terms of fees. 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
Prohibits service fees.

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.

STATE LEGISLATION

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.

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.

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
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
Passed House 3/4/08
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. 201
Relates 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.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. 1230
Relates 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. 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.

Maine
L.D. 2181
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
Passed House 11/28/07
Prohibits the following: (1) Refusing to accept a gift certificate in payment for goods and services used or bought for use primarily for personal, family, or household purposes, including goods or services advertised on sale or as part of a liquidation or closeout. This does not apply if the gift certificate has a legal expiration date and is presented for redemption after that date. (2) Restricting the holder of the certificate from using it consistent with its terms and conditions. (3) Altering any term or condition after the certificate is issued. (4) Failing to disclose any terms or conditions to a prospective purchaser. The bill specifies how these terms and conditions are to be disclosed. (5) Failing to disclose any terms or conditions by conspicuously printing them either on the certificate; on the envelope or packaging (if a toll-free number is on the certificate); or in a separate printed document (if a toll-free number is on the certificate). (6) Failing, in any advertisement or promotion, to disclose through a notice that the certificate has terms or conditions. (7) Refusing to apply a certificate or the balance of a certificate to the purchase price in cases where the purchase price of goods or services exceeds the value of the certificate or balance. The bill defines "terms and conditions" so that the phrase includes, but is not limited to, and expiration date or a fee charged for the replacement of a gift certificate that is lost, stolen, or destroyed. The term "gift certificate" would not include: a general use, prepaid card or other electronic payment device issue or sponsored by a financial institution in a predetermined amount and usable at multiple, unaffiliated retailers or at automated teller machines; an electronic payment device linked to a deposit account; a prepaid telephone calling card; an electronic payment device used to access an account from which an individual can pay medical expenses, health care expenses, dependent care expenses or similar expenses on a pre-tax basis under the federal Internal Revenue Code; a prepaid discount card or program used to purchase identified goods and services at a price or percentage below the normal and customary price, if any expiration date is clearly and conspicuously disclosed; a payroll card or other electronic payment device linked to a deposit account and given in exchange for goods or services rendered; 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; or a gift certificate distributed to a consumer or employee under an awards, rewards, loyalty, or promotional program, if there is no charge to the consumer or employee.

H.B. 4317
Passed House 11/28/07
Adds a new Section 3F which prohibits charging an inactivity fee or other service fee to a consumer for the possession or use of a gift certificate. The bill also amends Section 3 to include all the prohibitions in the three new sections (3E, 3F, and 3G) among the general list of unfair, unconscionable, or deceptive methods, acts, or practices in the conduct of trade that are unlawful under the act.

H.B. 4680
Passed House 11/28/07
Adds a new Section 3G which prohibits selling a gift certificate or gift card to a consumer that expires within a period of less than five years.

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

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.

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.

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
Link not available
Requires abandoned gift card balances to escheat to state.

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

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.

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

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. 7398
Prohibits any person, firm, or corporation from charging a surcharge of any kind relating to gift certificates and/or gift cards.

S.B. 2066
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. 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.

H.B. 2522
H.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
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.

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.