HB6969 93RD GENERAL ASSEMBLY

LRB093 15020 LCB 40591 b

93RD GENERAL ASSEMBLY
State of Illinois
2003 and 2004
HB6969

Introduced 02/09/04, by Sara Feigenholtz

SYNOPSIS AS INTRODUCED:

New Act

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

A BILL FOR

AN ACT concerning gift certificates.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Gift Certificate Act.

Section 5. Gift cards. As used in this Act, "gift certificate" includes gift cards, but does not include any gift card useable with multiple sellers of goods or services, provided the expiration date, if any, is printed on the card.

Section 10. Expiration dates.

(a) Beginning January 1, 2005, it shall be unlawful for any person or entity to sell a gift certificate containing an expiration date or a service fee for dormancy to a purchaser except as provided by this Act. Any gift certificate sold on or after that date shall be redeemable in cash for its cash value or subject to replacement with a new gift certificate at no cost to the purchaser or holder.

(b) A gift certificate sold without an expiration date is valid until redeemed or replaced.

(c) This Section shall not apply to any of the following gift certificates provided the expiration date appears in capital letters in at least 10-point font on the front of the gift certificate:

(1) Gift certificates that are distributed by the issuer to a consumer pursuant to an awards, loyalty, or promotional program without any money or other thing of value being given in exchange for the gift certificate by the consumer.

(2) Gift certificates that are sold below face value at a volume discount to employers or to nonprofit and charitable organizations for fundraising purposes if the expiration date on those gift certificates is not more than 30 days after the date of sale.

(3) Gift certificates that are issued for a food product.

Section 15. Dormancy fees. A dormancy fee may be applied to a gift card provided that all of the following are met:

(1) The remaining value of the gift card is $5 or less each time the fee is assessed.

(2) The fee does not exceed $1 per month.

(3) 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.

(4) The holder may reload or add value to the gift card.

(5) A statement is printed on the gift card in at least 10-point font stating the amount of the fee, how often the fee will occur, that the fee is triggered by inactivity of the gift card, and at what point the fee will be charged. The statement may appear on the front or back of the gift card, but shall appear in a location where it is visible to any purchaser prior to the purchase thereof.

Section 20. Refund. An issuer of a gift certificate may include a provision on the gift certificate that entitles the purchaser to a full refund of the amount that he or she paid for that gift certificate upon the occurrence of the following circumstances:

(1) The gift certificate is purchased as a gift for another person.

(2) The time in which the gift certificate may be redeemed is disclosed on the gift certificate.

(3) The holder of the gift certificate does not redeem the gift certificate within the time described in paragraph (2).

Section 25. Exemptions. Nothing in this Act prohibits or restricts fees associated with prepaid calling cards that are issued solely to provide an access number and authorization code for prepaid calling services.