Report Title:

Gift Certificates

Description:

Expands the definition of gift certificate to reflect changes in retail industry technology; extends the minimum life of certificates to seven years; provides that consumers may obtain cash after utilizing 90 percent of the value of the certificate; prohibits service charges or dormancy fees; no longer requires issuers to report unclaimed amounts under the Unclaimed Property Act. (HB2143 HD1)

HOUSE OF REPRESENTATIVES

H.B. NO.

2143

TWENTY-SECOND LEGISLATURE, 2004

H.D. 1

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to business regulation.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 481B-13, Hawaii Revised Statutes, is amended to read as follows:

"§481B-13 Gift certificates. (a) Any restaurant or person engaged in the business of offering services or goods for sale at retail may allow customers to purchase gift certificates; provided that the certificate issuer shall honor the certificate for a period of at least [two] seven years from the date of issuance. During those seven years issuers may not deduct service charges or dormancy fees from the value of the certificate.

(b) A certificate issuer shall include the expiration date on the face of any gift certificate that has an expiration date. The expiration date shall be not less than seven years after the date of issuance. If the gift certificate does not have an expiration date, it shall be valid in perpetuity.

(c) If the gift certificate holder has used at least ninety per cent of the value of the certificate, the certificate holder may obtain the balance in cash.

(d) After the expiration date of the certificate, if any, the unused value of the gift certificate shall not be subject to chapter 523A.

[(c)](e) Any violation of [subsection (a) or (b)] this section shall constitute an unfair and deceptive act or practice in the conduct of trade or commerce within the meaning of section 480-2.

[(d)](f) As used in this section, unless the context requires otherwise:

"Certificate issuer" or "issuer" means a restaurant or a person engaged in the business of offering services or goods for sale at retail who sells gift certificates to customers.

"Gift certificate" or "certificate" includes any [writing for which the certificate issuer has received payment for the full face value of the certificate for future purchases or delivery of goods or services] electronic card with a banked dollar value, merchandise credit, certificate where the issuer has received payment for the full face value for the future purchase or delivery of goods or services, and any other medium that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card, or other medium for goods, food, services, credit, or money of at least an equal value."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect upon its approval.