House
File
85
-
Introduced
HOUSE
FILE
85
BY
BRANDENBURG
A
BILL
FOR
An
Act
placing
limitations
on
fees
imposed
for
failure
to
1
redeem
a
gift
certificate,
and
including
an
applicability
2
date
provision.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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H.F.
85
Section
1.
Section
556.9,
subsection
2,
Code
2013,
is
1
amended
to
read
as
follows:
2
2.
An
issuer
of
a
gift
certificate
shall
not
deduct
from
3
the
face
value
of
the
gift
certificate
any
charge
imposed
due
4
to
the
failure
of
the
owner
of
the
gift
certificate
to
present
5
the
gift
certificate
in
a
timely
manner
,
for
a
period
of
three
6
years
from
the
date
of
issuance.
Thereafter,
an
issuer
shall
7
not
deduct
any
charge
imposed
due
to
the
failure
to
present
8
the
gift
certificate
in
a
timely
manner
unless
a
valid
and
9
enforceable
written
contract
exists
between
the
issuer
and
the
10
owner
of
the
gift
certificate
pursuant
to
which
the
issuer
11
regularly
imposes
such
charges
and
does
not
regularly
reverse
12
or
otherwise
cancel
them.
For
purposes
of
this
subsection
,
13
“gift
certificate”
means
a
merchandise
certificate
or
electronic
14
gift
card
conspicuously
designated
as
a
gift
certificate
or
15
electronic
gift
card,
and
generally
purchased
by
a
buyer
for
16
use
by
a
person
other
than
the
buyer.
17
Sec.
2.
APPLICABILITY.
This
Act
applies
to
gift
18
certificates
issued
on
or
after
July
1,
2013.
19
EXPLANATION
20
This
bill
relates
to
amounts
which
the
issuer
of
a
gift
21
certificate
may
deduct
from
the
face
value
of
the
certificate
22
based
on
the
failure
of
the
owner
to
present
the
certificate
23
for
payment
in
a
timely
manner.
24
Currently,
an
amount
may
not
be
deducted
unless
a
valid
and
25
enforceable
written
contract
exists
between
the
issuer
and
the
26
owner
of
the
gift
certificate
pursuant
to
which
the
issuer
27
regularly
imposes
charges
for
failure
to
present
and
does
not
28
regularly
reverse
or
otherwise
cancel
them.
The
bill
makes
29
this
provision
applicable
only
after
a
three-year
time
frame
30
has
elapsed
from
the
date
of
issuance
of
the
gift
certificate,
31
for
gift
certificates
issued
on
or
after
July
1,
2013.
The
32
result
is
that
no
deduction
is
authorized
from
the
face
amount
33
of
a
gift
certificate
for
the
three-year
period
following
34
issuance
for
certificates
issued
on
or
after
July
1,
2013.
35
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