Senate Bill sb2570

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2004                                  SB 2570

    By Senator Wise





    5-1490A-04                                         See HB 1053

  1                      A bill to be entitled

  2         An act relating to gift certificates; creating

  3         s. 501.95, F.S.; providing that it is unlawful

  4         for any person or entity to sell a gift

  5         certificate that contains an expiration date or

  6         a service fee; providing general requirements

  7         with respect to gift certificates; providing

  8         for applicability and construction of the act;

  9         authorizing a fee; providing a definition;

10         providing an effective date.

11  

12  Be It Enacted by the Legislature of the State of Florida:

13  

14         Section 1.  Section 501.95, Florida Statutes, is

15  created to read:

16         501.95  Gift certificates; sale of gift certificates

17  containing expiration dates or service fees prohibited.--

18         (1)  PROHIBITED ACTIVITIES.--It is unlawful for any

19  person or entity to sell a gift certificate to a purchaser

20  that contains:

21         (a)  An expiration date.

22         (b)  A service fee, including, but not limited to, a

23  service fee for dormancy.

24         (2)  GENERAL PROVISIONS.--

25         (a)  Any gift certificate sold after July 1, 2004, is

26  redeemable in cash for its cash value at no cost to the

27  purchaser or holder.

28         (b)  A gift certificate sold without an expiration date

29  is valid until redeemed or replaced.

30         (c)1.  A gift certificate constitutes value held in

31  trust by the issuer of the gift certificate on behalf of the

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 2570
    5-1490A-04                                         See HB 1053




 1  beneficiary of the gift certificate. The value represented by

 2  the gift certificate belongs to the beneficiary or to the

 3  legal representative of the beneficiary to the extent provided

 4  by law, and not to the issuer.

 5         2.  An issuer of a gift certificate who is in

 6  bankruptcy shall continue to honor a gift certificate issued

 7  prior to the date of the bankruptcy filing on the grounds that

 8  the value of the gift certificate constitutes trust property

 9  of the beneficiary.

10         (3)  APPLICABILITY.--This section does not apply to any

11  of the following gift certificates issued on or after July 1,

12  2004, provided the expiration date appears in capital letters

13  in at least 10-point type on the front of the gift

14  certificate:

15         (a)  Gift certificates that are distributed by the

16  issuer to a consumer pursuant to an awards, loyalty, or

17  promotional program without any money or other thing of value

18  being given in exchange for the gift certificate by the

19  consumer.

20         (b)  Gift certificates that are sold below face value

21  at a volume discount to employers or to nonprofit and

22  charitable organizations for fundraising purposes if the

23  expiration date on the gift certificates is not more than 30

24  days after the date of sale.

25         (c)  Gift certificates that are issued for a food

26  product.

27         (4)  CONSTRUCTION.--

28         (a)  This section does not alter the terms of a gift

29  certificate. The terms of a gift certificate may not make its

30  redemption or other use invalid in the event of a bankruptcy.

31  

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 2004                                  SB 2570
    5-1490A-04                                         See HB 1053




 1         (b)  Unless otherwise required by law, this section

 2  does not require the issuer of a gift certificate to:

 3         1.  Replace a gift certificate that has been lost or

 4  stolen.

 5         2.  Maintain a separate account for the funds used to

 6  purchase the gift certificate.

 7         (c)1.  This section does not create an interest in

 8  favor of the beneficiary of a gift certificate in any specific

 9  property of the issuer.

10         2.  This section does not create a fiduciary or

11  quasi-fiduciary relationship between the beneficiary of a gift

12  certificate and the issuer, unless otherwise provided by law.

13         3.  The issuer of a gift certificate has no obligation

14  to pay interest on the value of a gift certificate held in

15  trust under this section, unless otherwise provided by law.

16         (d)  Nothing in this section prohibits fees customarily

17  charged for or practices customarily associated with prepaid

18  calling cards that are issued solely to provide an access

19  number and authorization code for prepaid telecommunication

20  services.

21         (5)  FEE.--An issuer of a gift certificate may assess a

22  fee of up to $1 for each gift certificate issued to cover

23  costs associated with printing or producing the gift

24  certificate, provided that such fee is paid by the purchaser

25  of the gift certificate at the time of purchase and is not

26  deducted from the value of the gift certificate.

27         (6)  DEFINITION.--As used in this section, "gift

28  certificate" includes gift cards, gift cards usable only with

29  affiliated sellers of goods or services, and gift cards usable

30  with multiple sellers of goods or services.

31         Section 2.  This act shall take effect July 1, 2004.

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CODING: Words stricken are deletions; words underlined are additions.