| 1 | A bill to be entitled |
| 2 | An act relating to gift certificates; creating s. 501.95, |
| 3 | F.S.; providing that it is unlawful for any person or |
| 4 | entity to sell a gift certificate that contains an |
| 5 | expiration date or a service fee; providing general |
| 6 | requirements with respect to gift certificates; providing |
| 7 | for applicability and construction of the act; authorizing |
| 8 | a fee; providing a definition; providing an effective |
| 9 | date. |
| 10 |
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| 11 | Be It Enacted by the Legislature of the State of Florida: |
| 12 |
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| 13 | Section 1. Section 501.95, Florida Statutes, is created to |
| 14 | read: |
| 15 | 501.95 Gift certificates; sale of gift certificates |
| 16 | containing expiration dates or service fees prohibited.-- |
| 17 | (1) PROHIBITED ACTIVITIES.--It is unlawful for any person |
| 18 | or entity to sell a gift certificate to a purchaser that |
| 19 | contains: |
| 20 | (a) An expiration date. |
| 21 | (b) A service fee, including, but not limited to, a |
| 22 | service fee for dormancy. |
| 23 | (2) GENERAL PROVISIONS.-- |
| 24 | (a) Any gift certificate sold after July 1, 2004, is |
| 25 | redeemable in cash for its cash value at no cost to the |
| 26 | purchaser or holder. |
| 27 | (b) A gift certificate sold without an expiration date is |
| 28 | valid until redeemed or replaced. |
| 29 | (c)1. A gift certificate constitutes value held in trust |
| 30 | by the issuer of the gift certificate on behalf of the |
| 31 | beneficiary of the gift certificate. The value represented by |
| 32 | the gift certificate belongs to the beneficiary or to the legal |
| 33 | representative of the beneficiary to the extent provided by law, |
| 34 | and not to the issuer. |
| 35 | 2. An issuer of a gift certificate who is in bankruptcy |
| 36 | shall continue to honor a gift certificate issued prior to the |
| 37 | date of the bankruptcy filing on the grounds that the value of |
| 38 | the gift certificate constitutes trust property of the |
| 39 | beneficiary. |
| 40 | (3) APPLICABILITY.--This section does not apply to any of |
| 41 | the following gift certificates issued on or after July 1, 2004, |
| 42 | provided the expiration date appears in capital letters in at |
| 43 | least 10-point type on the front of the gift certificate: |
| 44 | (a) Gift certificates that are distributed by the issuer |
| 45 | to a consumer pursuant to an awards, loyalty, or promotional |
| 46 | program without any money or other thing of value being given in |
| 47 | exchange for the gift certificate by the consumer. |
| 48 | (b) Gift certificates that are sold below face value at a |
| 49 | volume discount to employers or to nonprofit and charitable |
| 50 | organizations for fundraising purposes if the expiration date on |
| 51 | the gift certificates is not more than 30 days after the date of |
| 52 | sale. |
| 53 | (c) Gift certificates that are issued for a food product. |
| 54 | (4) CONSTRUCTION.-- |
| 55 | (a) This section does not alter the terms of a gift |
| 56 | certificate. The terms of a gift certificate may not make its |
| 57 | redemption or other use invalid in the event of a bankruptcy. |
| 58 | (b) Unless otherwise required by law, this section does |
| 59 | not require the issuer of a gift certificate to: |
| 60 | 1. Replace a gift certificate that has been lost or |
| 61 | stolen. |
| 62 | 2. Maintain a separate account for the funds used to |
| 63 | purchase the gift certificate. |
| 64 | (c)1. This section does not create an interest in favor of |
| 65 | the beneficiary of a gift certificate in any specific property |
| 66 | of the issuer. |
| 67 | 2. This section does not create a fiduciary or quasi- |
| 68 | fiduciary relationship between the beneficiary of a gift |
| 69 | certificate and the issuer, unless otherwise provided by law. |
| 70 | 3. The issuer of a gift certificate has no obligation to |
| 71 | pay interest on the value of a gift certificate held in trust |
| 72 | under this section, unless otherwise provided by law. |
| 73 | (d) Nothing in this section prohibits fees customarily |
| 74 | charged for or practices customarily associated with prepaid |
| 75 | calling cards that are issued solely to provide an access number |
| 76 | and authorization code for prepaid telecommunication services. |
| 77 | (5) FEE.--An issuer of a gift certificate may assess a fee |
| 78 | of up to $1 for each gift certificate issued to cover costs |
| 79 | associated with printing or producing the gift certificate, |
| 80 | provided that such fee is paid by the purchaser of the gift |
| 81 | certificate at the time of purchase and is not deducted from the |
| 82 | value of the gift certificate. |
| 83 | (6) DEFINITION.--As used in this section, "gift |
| 84 | certificate" includes gift cards, gift cards usable only with |
| 85 | affiliated sellers of goods or services, and gift cards usable |
| 86 | with multiple sellers of goods or services. |
| 87 | Section 2. This act shall take effect July 1, 2004. |