2024 -- S 2511 | |
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LC005402 | |
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STATE OF RHODE ISLAND | |
IN GENERAL ASSEMBLY | |
JANUARY SESSION, A.D. 2024 | |
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A N A C T | |
RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- | |
UNFAIR SALES PRACTICES | |
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Introduced By: Senators LaMountain, and Burke | |
Date Introduced: March 01, 2024 | |
Referred To: Senate Commerce | |
It is enacted by the General Assembly as follows: | |
1 | SECTION 1. Section 6-13-12 of the General Laws in Chapter 6-13 entitled "Unfair Sales |
2 | Practices" is hereby amended to read as follows: |
3 | 6-13-12. Sales of gift certificates. |
4 | (a) “Gift certificate” means a record evidencing a promise, made for monetary |
5 | consideration, by the seller or issuer for the record that goods or services will be provided to the |
6 | owner of the record to the value shown in the record and includes, but is not limited to: (1) A record |
7 | that contains a microprocessor chip, magnetic strip, or other means of storage of information that |
8 | is pre-funded and for which the value is decremented upon each use; (2) A gift card, an electronic |
9 | gift card, stored-value card or certificate; (3) A store card; (4) Prepaid long-distance telephone |
10 | service that is activated by a prepaid card that requires dialing an access number or an access code |
11 | for each call in addition to dialing the phone number to which the user of the prepaid card seeks to |
12 | connect; or (5) A similar record or card. Any person, firm, or corporation that sells gift certificates |
13 | for any product or merchandise sold by the person, firm, or corporation, shall be required to record |
14 | the sales and keep an accurate and complete record of each gift certificate sold. The record shall |
15 | include the date of sale; the full value of the certificate; the identification number assigned by the |
16 | retailer to the certificate; and the state in which the sale of the certificate took place. The retailer |
17 | shall further be required to give to the purchaser of gift certificates exceeding fifty dollars ($50.00) |
18 | a written and numbered receipt evidencing the sale of the certificate. It shall be unlawful for any |
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1 | person, firm, or corporation of any kind to charge any surcharge or additional monthly or annual |
2 | service or maintenance fees on gift certificates or to limit the time for the redemption of a gift |
3 | certificate or to place an expiration date upon the gift certificate. No gift certificate or any |
4 | agreement with respect to such gift certificate may contain language suggesting that an expiration |
5 | date may apply to the gift certificate. Any person, firm, or corporation that shall violate the |
6 | provisions of this section shall be punished by a fine of not more than two hundred dollars ($200). |
7 | Due to the unlimited redemption period, the division of taxation shall not escheat the funds paid |
8 | for those unredeemed gift certificates. Any unused portion of a redeemed gift certificate shall be |
9 | afforded to the consumer by reissuing the gift certificate for the unused amount or providing cash |
10 | where the balance due the consumer is less than one dollar ($1.00). This section shall not apply to |
11 | the following: |
12 | (b) Gift certificates that are distributed to a consumer pursuant to an awards, loyalty, or |
13 | promotional program without any money or other thing of value being given in exchange for the |
14 | gift certificate by the consumer. Any restrictions or limitations that such gift certificates may be |
15 | subject to must be disclosed to the consumer, in writing, at the time the gift certificates are |
16 | distributed to the consumer. |
17 | (c) Prepaid wireless telephone service or prepaid wireless telephone card. “Prepaid wireless |
18 | telephone service” means wireless telephone service that is activated in advance by payment for a |
19 | finite dollar amount of service or for a finite set of minutes that terminate either upon use by a |
20 | customer and delivery by the wireless provider of an agreed-upon amount of service corresponding |
21 | to the total dollar amount paid in advance or within a certain period of time following the initial |
22 | purchase or activation, unless additional payments are made. |
23 | (d) Gift cards or prepaid or store value cards that are issued by state-chartered financial |
24 | institutions and credit unions or that are issued by third-party issuers usable at multiple, unaffiliated |
25 | merchants or service providers; provided that said financial institutions, credit unions, or third- |
26 | party issuers comply with the guidelines on disclosure and marketing as published by the office of |
27 | the comptroller of the currency. |
28 | (e) Gift certificates that are issued by a state-chartered institution of higher education, but |
29 | only in respect of the provisions set forth herein relating to expiration, escheatment, reissuance and |
30 | refund. Rather, in the case of theses gift certificates, said institutions may refund any unused portion |
31 | of a gift certificate upon an individual's separation from the institution or otherwise apply such |
32 | funds against such individual's account at said institution; if such an institution is unable to |
33 | complete such a refund or application, the associated funds shall be treated as abandoned after a |
34 | period to two (2) years, and the institution shall escheat such funds to the division of taxation. |
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1 | SECTION 2. This act shall take effect upon passage. |
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LC005402 | |
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EXPLANATION | |
BY THE LEGISLATIVE COUNCIL | |
OF | |
A N A C T | |
RELATING TO COMMERCIAL LAW--GENERAL REGULATORY PROVISIONS -- | |
UNFAIR SALES PRACTICES | |
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1 | This act would provide that gift certificates issued by state-chartered institutions of higher |
2 | education would be exempt from the provisions of the gift certificate statute relating to expiration, |
3 | escheatment, reissuance and refund. |
4 | This act would take effect upon passage. |
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LC005402 | |
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