Text: SF2090            Text: SF2092
Complete Bill History


Senate File 2091

SENATE FILE BY BOLKCOM, CONNOLLY, STEWART, SCHMITZ, DANIELSON, DOTZLER, HECKROTH, DVORSKY, HOGG, SENG, HATCH, BEALL, OLIVE, DEARDEN, FRAISE, QUIRMBACH, APPEL, COURTNEY, KIBBIE, BLACK, and SCHOENJAHN Passed Senate, Date Passed House, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act relating to the issuance or redemption of gift 2 certificates, establishing restrictions on fees and charges, 3 prohibiting expiration dates, and making penalties applicable. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 5597XS 82 6 rn/nh/5 PAG LIN 1 1 Section 1. Section 537.1301, subsection 22, Code 2007, is 1 2 amended by striking the subsection and inserting in lieu 1 3 thereof the following: 1 4 22. "Gift certificate" means a writing, instrument, 1 5 record, or other tangible medium of expression generally 1 6 purchased by a buyer for use by a person other than the buyer, 1 7 or for use by the buyer at a later date, for the purchase of 1 8 goods, property, services, or other consideration sold or 1 9 provided by the seller or issuer and includes but is not 1 10 limited to all of the following: 1 11 a. An electronic card with a stored or banked dollar 1 12 value. 1 13 b. A merchandise credit. 1 14 c. A certificate or card exchangeable for the full face 1 15 value of a future purchase or delivery of goods, property, 1 16 services, or any other consideration. 1 17 d. Any other medium that evidences a grant of 1 18 consideration in exchange for the right to redeem the 1 19 certificate for goods, property, services, credit, or money of 1 20 at least an equal value as that of the certificate. 1 21 Sec. 2. NEW SECTION. 537.3312 GIFT CERTIFICATES == FEES 1 22 == EXPIRATION DATES == VIOLATIONS. 1 23 1. A gift certificate shall be redeemable for its full 1 24 value. A seller, issuer, or holder of a gift certificate may 1 25 not do any of the following: 1 26 a. Assess, charge, or deduct a fee or other charge from or 1 27 with respect to a gift certificate. 1 28 b. Sell or issue a gift certificate that includes, bears, 1 29 or is otherwise subject to an expiration date. 1 30 c. Impose any other term or condition on a gift 1 31 certificate that would limit the ability of the owner to 1 32 redeem the gift certificate for its full value. 1 33 2. A violation of this section is an unlawful practice 1 34 under section 714.16, and is additionally subject to the 1 35 penalty provisions of section 537.5201. 2 1 Sec. 3. Section 556.1, Code Supplement 2007, is amended by 2 2 adding the following new subsection: 2 3 NEW SUBSECTION. 4A. "Gift certificate" means a writing, 2 4 instrument, record, or other tangible medium of expression 2 5 generally purchased by a buyer for use by a person other than 2 6 the buyer, or for use by the buyer at a later date, for the 2 7 purchase of goods, property, services, or other consideration 2 8 sold or provided by the seller or issuer and includes but is 2 9 not limited to all of the following: 2 10 a. An electronic card with a stored or banked dollar 2 11 value. 2 12 b. A merchandise credit. 2 13 c. A certificate or card exchangeable for the full face 2 14 value of a future purchase or delivery of goods, property, 2 15 services, or any other consideration. 2 16 d. Any other medium that evidences a grant of 2 17 consideration in exchange for the right to redeem the 2 18 certificate for goods, property, services, credit, or money of 2 19 at least an equal value as that of the certificate. 2 20 Sec. 4. Section 556.9, subsection 2, Code 2007, is amended 2 21 by striking the subsection. 2 22 EXPLANATION 2 23 This bill relates to the issuance of gift certificates. 2 24 The bill provides a definition of gift certificate, which 2 25 includes a writing or instrument usable for the purchase of 2 26 goods, property, or services sold or provided by the seller or 2 27 issuer of the gift certificate. The bill provides that a gift 2 28 certificate shall be redeemable for its full value and 2 29 prohibits a seller, issuer, or holder of a gift certificate 2 30 from assessing any fee or charge against the value of the 2 31 certificate or selling or issuing a certificate with an 2 32 expiration date. Further, the bill prohibits a seller, 2 33 issuer, or holder from imposing any other term or condition 2 34 that limits the ability of the owner to redeem the gift 2 35 certificate for its full value. The bill prescribes that an 3 1 issuer in violation of these provisions shall be subject to 3 2 the consumer fraud provisions of Code section 714.16, and 3 3 shall additionally be subject to a civil action under Code 3 4 section 537.5201 in which actual damages may be recovered and 3 5 a penalty assessed in an amount not less than $100 nor more 3 6 than $1,000 per violation. 3 7 The bill repeals a provision in Code chapter 556, dealing 3 8 with unclaimed property, which currently permits the deduction 3 9 from the face value of a gift certificate of a charge imposed 3 10 due to the failure of the owner of the certificate to present 3 11 it in a timely manner, provided that a valid and enforceable 3 12 written contract exists between the issuer and the owner of 3 13 the gift certificate and the issuer regularly imposes such 3 14 charges and does not regularly reverse or otherwise cancel 3 15 them. 3 16 LSB 5597XS 82 3 17 rn/nh/5.1
Text: SF2090            Text: SF2092 Complete Bill History