HF 393

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to commerce; prohibiting expiration dates and
service fees on gift certificates and gift cards;
proposing coding for new law in Minnesota Statutes,
chapter 325G.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [325G.53] GIFT CERTIFICATES.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For purposes of this section,
"gift certificate" means a tangible record evidencing a promise,
made for consideration, by the seller or issuer of the record
that goods or services will be provided to the owner of the
record to the value shown in the record and includes, but is not
limited to, a gift card, stored-value card, store card, or a
similar record or card that contains a microprocessor chip,
magnetic stripe, or other means for the storage of information,
and for which the value is decreased upon each use. "Gift
certificate" does not include certificates distributed to a
consumer pursuant to an awards, loyalty, or promotional program
without any money or other thing of value being given in
exchange for the certificate by the consumer and certificates
sold below face value at a volume discount to employers or to
nonprofit and charitable organizations for fundraising purposes
and whose expiration dates are not less than 30 days after the
date of sale.
new text end

new text begin Subd. 2. new text end

new text begin Prohibitions. new text end

new text begin It is unlawful for any person or
entity to sell a gift certificate that is subject to an
expiration date or a service fee of any kind, including, but not
limited to, a service fee for dormancy.
new text end

new text begin Subd. 3. new text end

new text begin Balance in cash. new text end

new text begin If a holder of a gift
certificate has used at least ... percent of the value of the
gift certificate, the holder is entitled to receive the balance
in cash.
new text end

new text begin Subd. 4. new text end

new text begin Remedies. new text end

new text begin The remedies of section 8.31 apply to
violations of this section.
new text end