| Chapter 043 |
| 2024 -- H 7509 SUBSTITUTE A Enacted 05/31/2024 |
| A N A C T |
| RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- UNFAIR SALES PRACTICES |
Introduced By: Representatives Finkelman, Shanley, Batista, Vella-Wilkinson, Perez, Noret, Dawson, O'Brien, Morales, and Cotter |
| Date Introduced: February 07, 2024 |
| It is enacted by the General Assembly as follows: |
| SECTION 1. Section 6-13-12 of the General Laws in Chapter 6-13 entitled "Unfair Sales |
| Practices" is hereby amended to read as follows: |
| 6-13-12. Sales of gift certificates. |
| (a) “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: (1) 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; (2) A gift card, an electronic |
| gift card, stored-value card or certificate; (3) A store card; (4) 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 (5) A similar record or card. Any person, firm, or corporation who or that sells gift |
| certificates for any product or merchandise sold by the person, firm, or corporation, shall be |
| required to record the sales and keep an accurate and complete record of each gift certificate sold. |
| The record shall include the date of sale; the full value of the certificate; the identification number |
| assigned by the retailer to the certificate; and the state in which the sale of the certificate took place. |
| The retailer shall further be required to give to the purchaser of gift certificates exceeding fifty |
| dollars ($50.00) a written and numbered receipt evidencing the sale of the certificate. It shall be |
| unlawful for any person, firm, or corporation of any kind to charge any surcharge or additional |
| monthly or annual service or maintenance fees on gift certificates or to limit the time for the |
| redemption of a gift certificate or to place an expiration date upon the gift certificate. No gift |
| certificate or any agreement with respect to such gift certificate may contain language suggesting |
| that an expiration date may apply to the gift certificate. Any person, firm, or corporation who or |
| that shall violate the provisions of this section shall be punished by a fine of not more than two |
| hundred dollars ($200). Due to the unlimited redemption period, the division of taxation shall not |
| escheat the funds paid for those unredeemed gift certificates. Any unused portion of a redeemed |
| gift certificate shall be afforded to the consumer by reissuing the gift certificate for the unused |
| amount or providing cash where the balance due the consumer is less than one dollar ($1.00). This |
| section shall not apply to the following: |
| (b)(i) Gift certificates that are distributed 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. Any restrictions or limitations that such gift certificates may be |
| subject to must be disclosed to the consumer, in writing, at the time the gift certificates are |
| distributed to the consumer. |
| (c)(ii) Prepaid wireless telephone service or prepaid wireless telephone card. “Prepaid |
| wireless telephone service” means wireless telephone service that is activated in advance by |
| payment for a finite dollar amount of service or for a finite set of minutes that terminate either upon |
| use by a customer and delivery by the wireless provider of an agreed-upon amount of service |
| corresponding to the total dollar amount paid in advance or within a certain period of time following |
| the initial purchase or activation, unless additional payments are made. |
| (d)(iii) Gift cards or prepaid or store value cards that are issued by state-chartered financial |
| institutions and credit unions or that are issued by third-party issuers usable at multiple, unaffiliated |
| merchants or service providers; provided that said financial institutions, credit unions, or third- |
| party issuers comply with the guidelines on disclosure and marketing as published by the office of |
| the comptroller of the currency. |
| (b) Institutions may refund any unused portion of gift certificates that are issued by a state- |
| chartered institution of higher education upon an individual's separation from the institution or |
| otherwise apply such funds against such individual's account at said institution;. ifIf such an |
| institution is unable to complete such a refund or application, the associated funds shall be treated |
| as abandoned after a period to two (2) years, and the institution shall escheat such funds to the |
| office of the general treasurer unclaimed property fund. |
| SECTION 2. This act shall take effect upon passage. |
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| LC004378/SUB A |
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