Download this document in MS Word format


AutoFill Template

H.198

Introduced by   Representatives Keenan of St. Albans City, Young of Orwell, Pugh of S. Burlington, Reese of Pomfret and Shand of Weathersfield

Referred to Committee on

Date:

Subject:  Banking and insurance; gift certificates

Statement of purpose:  This bill proposes to limit expiration dates and prohibit fees on gift certificates, gift cards, and stored-value cards.

AN ACT RELATING TO GIFT CERTIFICATES

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  8 V.S.A. chapter 81 is added to read:

Chapter 81.  Gift Certificates

§ 2701.  DEFINITION

“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.  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; stored-value card or certificate; a store card; or a similar record or card.

§ 2702.  EXPIRATION DATE

A gift certificate sold or offered to be sold shall be valid for not less than five years after its date of issuance.  The date of issuance and the expiration date shall be clearly identified on its face, or, if an electronic card with a banked dollar value, clearly printed upon a sales receipt transferred to the purchaser of the electronic card upon the completed transaction, or otherwise made available to the purchaser or holder of the electronic card through means of an internet site or a toll free information telephone line.  A gift certificate not clearly marked with an expiration date or for which the expiration date is not otherwise made available as provided in this section shall be redeemable for a period not less than five years from the date of issuance.  Following the expiration date of the gift certificate, the unused portion of the gift certificate shall be returned to the holder or purchaser of the gift certificate, if requested; otherwise, the unused portion of the gift certificate shall be considered abandoned miscellaneous property under 27 V.S.A. § 1218.

§ 2703.  PROHIBITED FEES

(a)  Dormancy fees, latency fees, issuance fees, redemption fees, or any other administrative fees or service charges in connection with a gift certificate are prohibited.

(b)  Notwithstanding subsection (a) of this section, a money transmitter licensed under chapter 79 of this title may charge a one-time fee upon the issuance of a stored-value card equal to the lesser of:

(1)  five percent of the face amount purchased or added to the

stored-value card; or

(2)  $5.00.

§ 2704.  REDEMPTION OF GIFT CERTIFICATE FOR CASH

If the remaining value of a gift certificate is less than $5.00, the gift certificate must be redeemable in cash for its remaining value upon the demand of the holder of the gift certificate.

§ 2705.  BALANCE INQUIRY

The issuer of the gift certificate, at the holder’s request, shall inform the holder of the unused balance remaining on the gift certificate and the expiration date of the gift certificate.

§ 2706.  PENALTY

(a)  The commissioner may impose an administrative penalty of not more than $300.00 per violation upon any person who violates any provision of this chapter, any applicable rule, or any order issued by the commissioner, plus the state's costs and expenses for the investigation and prosecution of the matter, including attorney's fees.

(b)  The commissioner may order any person to make restitution to any person as a result of a violation of this chapter.  Additionally, a consumer may bring a private action for restitution because of a violation of this chapter.

(c)  Any gift certificate that contains any provision in violation of this chapter is contrary to public policy, and such provision is void and unenforceable against the holder of the gift certificate.

(d)  The powers vested in the commissioner by this chapter shall be in addition to any other powers of the commissioner to enforce any penalties, fines, or forfeitures authorized by law.

(e)  The powers vested in the commissioner by this chapter shall be in addition to any other powers or rights of consumers or the attorney general or others under any other applicable law or rule, including without limitation the Vermont Consumer Fraud Act and any applicable rules issued in connection therewith; provided that the commissioner's determinations concerning the interpretation and administration of the provisions of this chapter and any rules adopted thereunder shall carry a presumption of validity.

§ 2707.  EXEMPTION

The provisions of this chapter shall not apply to the following:

(1)  A gift certificate issued pursuant to an awards or loyalty program where no money or other thing of value is given in exchange for the gift certificate, provided that the expiration date is clearly and legibly disclosed on the gift certificate.

(2)  A gift certificate donated to a charitable organization and used for fund-raising activities of a charitable organization, without any money or other thing of value being given in exchange for the gift certificate by the charitable organization, provided that:

(A)  The expiration date is clearly and legibly printed on the front or the face of the gift certificate or printed on the back of the gift certificate in at least 10-point font; and

(B)  The expiration date is at least one year from the date the gift certificate is issued by the charitable organization.

(3)  Prepaid calling cards issued solely to provide an access number and authorization code for prepaid calling services.

(4)  A gift certificate for a food product, provided the expiration date is clearly and legibly printed on the front or the face of the gift certificate or printed on the back of the gift certificate in at least 10-point font.

(5)  A season pass.

§ 2708.  INVESTIGATIONS AND COMPLAINTS; POWERS OF

               COMMISSIONER

(a)  If the commissioner has reason to believe that any person has violated any of the provisions of this chapter, the commissioner may make such investigation as the commissioner shall deem necessary, and, to the extent necessary for this purpose, the commissioner’s authorized representative may examine such person and shall have the power to compel the production of all relevant books, records, and documents.

(b)  Any person may file with the commissioner a written complaint setting forth the details of any alleged violation of this chapter.

§ 2709.  RULES

The commissioner may adopt such rules as are necessary to carry out the purposes of this chapter.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us