2025 -- H 6212

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LC002662

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2025

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A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- GIFT

CARD FRAUD

     Introduced By: Representatives Baginski, and J. Brien

     Date Introduced: April 09, 2025

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Sections 6-59-1 and 6-59-3 of the General Laws in Chapter 6-59 entitled

"Gift Card Fraud" are hereby amended to read as follows:

     6-59-1. Definitions.

     As used in this chapter,:

     (1) “Cardholder” means any person to whom a physical or virtual gift card is issued or any

person who has agreed with the card issuer to pay obligations arising from the issuance of a gift

card to another person.

     (2) “Card issuer” means any person that issues a gift card or the agent of that person with

respect to that card.

     (3) “Closed-loop gift card” means a card, code, or device that is issued to a consumer on a

prepaid basis primarily for personal, family, or household purposes in a specified amount,

regardless of whether that amount may be increased or reloaded in exchange for payment; and is

redeemable upon presentation by a consumer at a single merchant or group of affiliated merchants.

     (4) “Forgery” means any person who, with the intent to defraud, alters or tampers with a

gift card.

     (5) “gift Gift card” means a written promise or electronic payment device that:

     (1)(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;

     (2)(ii) Is issued in a specific amount;

     (3)(iii) May or may not be increased in value or reloaded;

     (4)(iv) Is purchased and/or loaded on a prepaid basis for the future purchase or delivery of

any goods or services; and

     (5)(v) Is honored upon presentation.

     (6) “Gift card redemption information” means information unique to each gift card which

allows the cardholder to access, transfer, or spend the funds on that gift card.

     (7) “Gift card seller” means a merchant that is engaged in the business of selling open-loop

or closed-loop gift cards to consumers.

     (8) “Open-loop gift card” means a card, code, or device that is issued to a consumer on a

prepaid basis primarily for personal, family, or household purposes in a specified amount,

regardless of whether that amount may be increased or reloaded in exchange for payment; and is

redeemable upon presentation at multiple unaffiliated merchants for goods or services within the

payment card network.

     (9) “Value” means the greatest amount of economic loss the owner of the property might

reasonably suffer including, in the case of a gift card, the full monetary face value or potential value

for variable load gift cards.

     6-59-3. Penalty for violation Penalty for violation of posting requirement.

     Any person, firm, partnership, association, corporation, or retail mercantile establishment

that violates the provisions of § 6-59-2 this chapter shall be subject to a civil penalty of up to two

hundred fifty dollars ($250).

     SECTION 2. Chapter 6-59 of the General Laws entitled "Gift Card Fraud" is hereby

amended by adding thereto the following section:

     6-59-4. Crimes involving gift cards.

     (a) Any person who, with intent to defraud, acquires or retains possession of a gift card or

gift card redemption information without the consent of the cardholder, card issuer, or gift card

seller, in an amount less than one thousand five hundred dollars ($1,500), is guilty of larceny and

subject to a fine of up to one thousand dollars ($1,000) or by imprisonment of up to one year, plus

restitution for any person or entity defrauded; or if the larceny exceeds one thousand five hundred

dollars ($1,500) then subject to the penalties as provided pursuant to the provisions of § 11-41-5.

     (b) Any person who, with intent to defraud, alters or tampers with a gift card is guilty of

forgery and shall be subject to the penalties pursuant to the provisions of § 11-17-1.

     (c) Any person who, with intent to defraud, uses, for the purpose of obtaining money,

goods, services, or anything else of value, a gift card or gift card redemption information that has

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been obtained in violation of subsection (a) or (b) of this section in an amount in excess of one

thousand five hundred dollars ($1,500) is guilty of larceny and subject to the penalties as provided

pursuant to § 11-41-5.

     (d) If the value of all money, goods, services, and other things of value obtained in violation

of this section exceeds one thousand five hundred dollars ($1,500) in any consecutive six (6) month

period, then the person shall be guilty of larceny and subject to the penalties as provided in § 11-

41-5.

     SECTION 3. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- GIFT

CARD FRAUD

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     This act would make offenses against gift card holders subject to the penalties for larceny.

     This act would take effect upon passage.

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