CS/CS/CS/SB 1638--Gift certificates and similar credit items.

This bill requires that a gift certificate or credit memo sold or issued for consideration in this state may not have an expiration date, expiration period, or any post-sale charge or fee, such as a service charge, dormancy fee, account maintenance fee, or cash-out fee. The bill creates the following exemptions to this requirement: A gift certificate may have an expiration date of not less than three years if it is provided as a charitable contribution where payment of consideration is not required and the expiration date is prominently disclosed in writing to the consumer at the time it is provided. A gift certificate may have an expiration date of not less than one year if it is provided as a benefit pursuant to an employee incentive program, consumer-loyalty program, or promotional program where payment of consideration is not required and the expiration date is prominently disclosed in writing to the consumer at the time it is provided. A gift certificate may have an expiration date if it is provided as part of a larger package related to a convention, conference, vacation, sporting, or fine arts event having a limited duration and if the majority of the value paid by the recipient is attributable to the convention, conference, vacation, sporting or fine arts event. The prohibitions against expiration dates, expiration periods, or post-sale charges or fees do not apply to gift certificates or credit memos sold or issued by a financial institution, as defined in [section] 655.055, (state-chartered banks and credit unions), or by a money transmitter, as defined in [section] 560.103, if the gift certificate or credit memo is redeemable by multiple unaffiliated merchants that accept monetary consideration remitted through the financial institution or money transmitter that sold or issued the gift certificate or credit memo. The terms "gift certificate" and "credit memo" are defined by the bill. This bill provides that unredeemed gift certificates or credit memos are not required to be reported as unclaimed property. However, this does not apply to gift certificates that are exempt from the prohibitions against fees and expiration dates contained in the bill and are sold or issued by a financial institution as defined in [section] 655.005, or a money transmitter as defined in [section] 560.103. If approved by the governor, these provisions take effect upon becoming law.