1.1 	A bill for an act
1.2 	relating to commerce; prohibiting expiration dates and
1.3 	service fees on gift certificates and gift cards;
1.4 	proposing coding for new law in Minnesota Statutes,
1.5 	chapter 325G.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [325G.53] GIFT CERTIFICATES.
1.8 		Subdivision 1.Definition. For purposes of this section,
1.9 	"gift certificate" means a tangible record evidencing a promise,
1.10 	made for consideration, by the seller or issuer of the record
1.11 	that goods or services will be provided to the owner of the
1.12 	record to the value shown in the record and includes, but is not
1.13 	limited to, a gift card, stored-value card, store card, or a
1.14 	similar record or card that contains a microprocessor chip,
1.15 	magnetic stripe, or other means for the storage of information,
1.16 	and for which the value is decreased upon each use.  "Gift
1.17 	certificate" does not include certificates distributed to a
1.18 	consumer pursuant to an awards, loyalty, or promotional program
1.19 	without any money or other thing of value being given in
1.20 	exchange for the certificate by the consumer and certificates
1.21 	sold below face value at a volume discount to employers or to
1.22 	nonprofit and charitable organizations for fundraising purposes
1.23 	and whose expiration dates are not less than 30 days after the
1.24 	date of sale.
1.25 		Subd. 2.Prohibitions. It is unlawful for any person or
2.1 	entity to sell a gift certificate that is subject to an
2.2 	expiration date or a service fee of any kind, including, but not
2.3 	limited to, a service fee for dormancy.
2.4 		Subd. 3.Balance in cash. If a holder of a gift
2.5 	certificate has used at least ... percent of the value of the
2.6 	gift certificate, the holder is entitled to receive the balance
2.7 	in cash.
2.8 		Subd. 4.Remedies. The remedies of section 8.31 apply to
2.9 	violations of this section.