HF 1136

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

1.1A resolution
1.2requesting Congress to limit fees and expiration dates associated with gift cards issued
1.3by federal banks.
1.4WHEREAS, the sale of gift cards is a growing business and over $72.8 billion was expected
1.5to be spent on gift cards during 2006; and
1.6WHEREAS, gift cards are issued either by retailers or by federal banks; and
1.7WHEREAS, a Federal District Court in New Hampshire ruled on August 1, 2006, that state
1.8governments cannot regulate gift cards issued by national banks; and
1.9WHEREAS, the United States Office of the Comptroller of Currency recently released
1.10guidelines stating that all expiration dates and fees associated with gift cards should be disclosed;
1.11and
1.12WHEREAS, 29 states have passed legislation regarding gift cards, including 16 states
1.13which have banned or limited expiration dates and/or fees that are charged in association with
1.14retail gift cards; and
1.15WHEREAS, gift cards are often used by an individual who did not purchase it; and
1.16WHEREAS, those who purchase a gift card view it as a promise from the retailer or bank
1.17that the gift recipient will be able to use the card to purchase merchandise for the full amount
1.18of the gift card; and
1.19WHEREAS, expiration dates and fees can decrease the amount a gift card is worth without
1.20the gift card owner's knowledge; and
2.1WHEREAS, the variety of state regulations make offering gift cards difficult for national
2.2retailers; NOW, THEREFORE,
2.3BE IT RESOLVED by the Legislature of the State of Minnesota that it urges, the President
2.4and the Congress of the United States to enact legislation to ban the use of expiration dates and
2.5fees with gift cards issued by federal banks.
2.6BE IT FURTHER RESOLVED that the legislation passed by Congress should not preempt
2.7state's laws regarding gift cards issued by retailers if state's laws are stronger than those passed by
2.8the Congress of the United States.
2.9BE IT FURTHER RESOLVED that the Secretary of State of the State of Minnesota is
2.10directed to prepare copies of this memorial and transmit them to the President of the United States,
2.11the President and the Secretary of the United States Senate, the Speaker and the Clerk of the United
2.12States House of Representatives, and Minnesota's Senators and Representatives in Congress.