HB 75: "An Act relating to gift certificates, store gift cards, and general use prepaid cards, and to unclaimed property; and making a violation of certain prohibitions on gift certificates, store gift cards, and general use cards an unlawful trade practice."
00 HOUSE BILL NO. 75 01 "An Act relating to gift certificates, store gift cards, and general use prepaid cards, and 02 to unclaimed property; and making a violation of certain prohibitions on gift 03 certificates, store gift cards, and general use cards an unlawful trade practice." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 34.45.240(b) is amended to read: 06 (b) In the case of a gift certificate, store gift card, or general use prepaid 07 card, the amount presumed abandoned is the balance remaining on [PRICE PAID 08 BY THE PURCHASER FOR] the [GIFT] certificate or card. In the case of a credit 09 memo, the amount presumed abandoned is the amount credited to the recipient of the 10 memo. 11 * Sec. 2. AS 34.45.760(8) is amended to read: 12 (8) "gift certificate" has the meaning given in AS 45.45.940 [MEANS 13 AN OBLIGATION OF A BUSINESS ASSOCIATION ARISING FROM A 14 TRANSACTION BETWEEN THE BUSINESS ASSOCIATION AND A
01 CONSUMER TO PROVIDE GOODS OR SERVICES AT A FUTURE DATE; "GIFT 02 CERTIFICATE" INCLUDES A GIFT CERTIFICATE, STORED VALUE CARD, 03 GIFT CARD, ON-LINE GIFT ACCOUNT, OR OTHER REPRESENTATION OR 04 EVIDENCE OF THE OBLIGATION OF A BUSINESS ASSOCIATION]; 05 * Sec. 3. AS 34.45.760(11)(A) is amended to read: 06 (A) includes 07 (i) money, checks, drafts, warrants, deposits, interest, 08 dividends, and income; 09 (ii) credit balances, customer overpayments, gift 10 certificates, store gift cards, general use prepaid cards, security 11 deposits, refunds, credit memos, unpaid wages, and unidentified 12 remittances; 13 (iii) stocks and other intangible equity interests in 14 business associations; 15 (iv) money deposited to redeem stocks, bonds, coupons, 16 and other securities, or to make distributions; 17 (v) amounts due and payable under the terms of 18 insurance policies; 19 (vi) amounts distributable from a trust or custodial fund 20 established under a plan to provide health, welfare, pension, vacation, 21 severance, retirement, death, stock purchase, profit-sharing, employee 22 savings, supplemental unemployment insurance, or similar benefits; 23 and 24 (vii) amounts due and payable as mineral proceeds; 25 * Sec. 4. AS 34.45.760 is amended by adding new paragraphs to read: 26 (20) "general use prepaid card" has the meaning given in 27 AS 45.45.940; 28 (21) "store gift card" has the meaning given in AS 45.45.940. 29 * Sec. 5. AS 45.45 is amended by adding a new section to article 12 to read: 30 Sec. 45.45.940. Gift certificates, store gift cards, and general use prepaid 31 cards. (a) A person may not sell or issue a gift certificate, store gift card, or general
01 use prepaid card that is subject to an expiration date unless 02 (1) the gift certificate, store gift card, or general use prepaid card 03 contains an expiration date that is not earlier than 04 (A) for a gift certificate, five years after the date on which the 05 gift certificate was issued; or 06 (B) for a store gift card or general use prepaid card, five years 07 after the date on which funds were last loaded to the card; and 08 (2) the expiration date is clearly and conspicuously displayed on the 09 certificate or card. 10 (b) After the purchase of a gift certificate, store gift card, or general use 11 prepaid card, a person may not impose a fee, including a fee for inactivity, with 12 respect to the certificate or card unless 13 (1) there has not been activity with respect to the certificate or card 14 during the 36 months that precede the date on which the fee is imposed; 15 (2) the disclosure requirements set forth in (c) of this section have been 16 met; 17 (3) not more than one fee is charged in a calendar month; and 18 (4) any additional requirements that the department may establish 19 under (d) of this section have been met. 20 (c) To satisfy the disclosure requirements of (b)(2) of this section, 21 (1) the issuer or vendor of the certificate or card shall inform the 22 purchaser before the certificate or card is purchased, regardless of whether the 23 certificate or card is purchased in person, over the Internet, or by telephone, 24 (A) that a fee may be charged; 25 (B) the amount of the fee; 26 (C) how often the fee may be charged; and 27 (D) that, if the fee is for inactivity, the fee may be assessed for 28 inactivity; and 29 (2) the information required by (1) of this subsection must appear in a 30 location that is visible to the purchaser before the purchase; the information may also 31 appear on the front or back of the certificate or card.
01 (d) This section does not apply to the sale or offer of a gift certificate, store 02 gift card, or general use prepaid card that is 03 (1) distributed by the issuer of the certificate or card under an awards, 04 loyalty, or promotional program; 05 (2) donated to a nonprofit organization or a charitable organization; 06 (3) a debit card that is linked to a demand deposit account or a share 07 draft account at a financial institution; in this paragraph, "financial institution" has the 08 meaning given in AS 06.05.990; or 09 (4) used solely for telephone services. 10 (e) The department may adopt regulations to implement this section. 11 (f) In this section, 12 (1) "department" means the Department of Commerce, Community, 13 and Economic Development; 14 (2) "general use prepaid card" means a card or other payment code or 15 device that is issued by a person and 16 (A) redeemable at multiple, unaffiliated merchants or service 17 providers, or automated teller machines; 18 (B) issued in a requested amount, whether or not that amount 19 may, at the option of the issuer, be increased in value or reloaded if requested 20 by the holder; 21 (C) purchased or loaded on a prepaid basis; and 22 (D) honored, on presentation, by merchants for goods or 23 services, or at automated teller machines; 24 (3) "gift certificate" means an electronic or written promise that is 25 (A) redeemable at a single merchant or at an affiliated group of 26 merchants who share the same name, mark, or logo; 27 (B) issued in a specified amount that may not be increased or 28 reloaded; 29 (C) purchased on a prepaid basis in exchange for payment; and 30 (D) honored on presentation by the single merchant or 31 affiliated group of merchants who share the same name, mark, or logo for
01 goods or services; 02 (4) "store gift card" means an electronic payment device, promise, 03 plastic card, or other payment code or device that is 04 (A) redeemable at a single merchant or at an affiliated group of 05 merchants who share the same name, mark, or logo; 06 (B) issued in a specified amount, whether or not that amount 07 may be increased in value or reloaded at the request of the holder; 08 (C) purchased on a prepaid basis in exchange for payment; and 09 (D) honored on presentation by the single merchant or 10 affiliated group of merchants that share the same name, mark, or logo for 11 goods or services. 12 * Sec. 6. AS 45.50.471(b) is amended by adding a new paragraph to read: 13 (58) violating AS 45.45.940 (gift certificates, store gift cards, and 14 general use prepaid cards).