House File 2287

                                       HOUSE FILE       
                                       BY  DOLECHECK


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act to prohibit the sale of gift certificates containing an
  2    expiration date.
  3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  4 TLSB 6137YH 80
  5 kk/pj/5

PAG LIN

  1  1    Section 1.  Section 537.1301, subsection 20, Code
  1  2 Supplement 2003, is amended to read as follows:
  1  3    20.  "Gift certificate" means a merchandise certificate or
  1  4 electronic card conspicuously designated as a gift certificate
  1  5 or gift card, and purchased by a buyer for use by a person
  1  6 other than the buyer.
  1  7    Sec. 2.  NEW SECTION.  537.3312  GIFT CERTIFICATES ==
  1  8 EXPIRATION DATES PROHIBITED.
  1  9    1.  A seller shall not sell a gift certificate that
  1 10 contains an expiration date.  An expiration date contained on
  1 11 a gift certificate is void.  A gift certificate with an
  1 12 expiration date shall be redeemable in cash for its cash
  1 13 value, or subject to replacement with a new gift certificate
  1 14 without an expiration date at no cost to the buyer or holder.
  1 15    2.  This section shall not apply to any of the following
  1 16 gift certificates if the expiration date appears in capital
  1 17 letters in at least ten=point font on the front of the gift
  1 18 certificate:
  1 19    a.  Gift certificates distributed by the seller to a person
  1 20 pursuant to an awards, loyalty, or promotional program without
  1 21 any money or other thing of value being given in exchange for
  1 22 the gift certificate by the person.
  1 23    b.  Gift certificates that are sold below face value at a
  1 24 volume discount to employers or to nonprofit and charitable
  1 25 organizations for fundraising purposes if the expiration date
  1 26 on those gift certificates is not more than thirty days after
  1 27 the date of sale.
  1 28    c.  Gift certificates that are issued for a food product.
  1 29                           EXPLANATION
  1 30    This bill prohibits sellers from selling gift certificates
  1 31 that contain an expiration date.  The bill provides that gift
  1 32 certificates sold with an expiration date shall be redeemable
  1 33 in cash or may be replaced at no cost to the buyer or holder.
  1 34 If the gift certificate is distributed as an award or pursuant
  1 35 to a loyalty or promotional program or if the certificate is
  2  1 sold below face value for fundraising purposes or if the gift
  2  2 certificate is one issued for a food product, the certificate
  2  3 may contain an expiration date if the expiration date is
  2  4 printed in capital letters in at least 10=point font on the
  2  5 front of the gift certificate.  The bill amends the definition
  2  6 of gift certificate to include electronic gift cards.
  2  7 LSB 6137YH 80
  2  8 kk/pj/5