Senate Bill sb1638

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    Florida Senate - 2007                                  SB 1638

    By Senators Constantine and Webster





    22-529B-07

  1                      A bill to be entitled

  2         An act relating to the disposition of unclaimed

  3         property; creating s. 717.1045, F.S.; providing

  4         legislative intent; defining the terms "credit

  5         memo" and "gift certificate"; providing that

  6         the holder of an unredeemed gift certificate or

  7         credit memo is not required to report the

  8         unredeemed gift certificate or credit memo as

  9         unclaimed property to the Department of

10         Financial Services; providing that the

11         consideration paid for an unredeemed gift

12         certificate or credit memo is the property of

13         the issuer, subject only to any rights of a

14         purchaser or owner and is not subject to a

15         claim made by any state acting on behalf of a

16         purchaser or owner; prohibiting a gift

17         certificate or credit memo sold or issued for

18         consideration in this state from having an

19         expiration date, expiration period, or any type

20         of postsale charge or fee imposed on the gift

21         certificate or credit memo; providing an

22         effective date.

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

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26         Section 1.  Section 717.1045, Florida Statutes, is

27  created to read:

28         717.1045  Gift certificates and similar credit items.--

29         (1)  It is the intent of the Legislature that this

30  chapter applies to the custodial holding of unredeemed gift

31  

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    Florida Senate - 2007                                  SB 1638
    22-529B-07




 1  certificates and credit memos except as expressly provided in

 2  subsection (3).

 3         (2)  As used in this section, the term:

 4         (a)  "Credit memo" means a certificate, card, stored

 5  value card, or similar instrument issued in exchange for

 6  returned merchandise when the certificate, card, or similar

 7  instrument is redeemable for merchandise, food, or services

 8  regardless of whether any cash may be paid to the owner of the

 9  certificate, card, or instrument as part of the redemption

10  transaction.

11         (b)  "Gift certificate" means a certificate, gift card,

12  stored value card, or similar instrument issued in exchange

13  for monetary consideration when the certificate, card, or

14  similar instrument is redeemable for merchandise, food, or

15  services regardless of whether any cash may be paid to the

16  owner of the certificate, card, or instrument as part of the

17  redemption transaction.

18         (3)  Notwithstanding s. 717.117, an unredeemed gift

19  certificate or credit memo is not required to be reported as

20  unclaimed property. The consideration paid for an unredeemed

21  gift certificate or credit memo is the property of the issuer

22  of the unredeemed gift certificate or credit memo. An

23  unredeemed gift certificate or credit memo is subject only to

24  any rights of a purchaser or owner thereof and is not subject

25  to a claim made by any state acting on behalf of a purchaser

26  or owner.

27         (4)  A gift certificate or credit memo sold or issued

28  for consideration in this state, other than a gift certificate

29  or credit memo issued by an issuer that is regulated by the

30  Office of the Comptroller of the Currency, may not have an

31  expiration date, expiration period, or any type of postsale

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    Florida Senate - 2007                                  SB 1638
    22-529B-07




 1  charge or fee imposed on the gift certificate or credit memo,

 2  including, but not limited to, service charges, dormancy fees,

 3  account maintenance fees, or cash-out fees.

 4         Section 2.  This act shall take effect upon becoming a

 5  law.

 6  

 7            *****************************************

 8                          SENATE SUMMARY

 9    Defines the terms "credit memos" and "gift certificates."
      Provides that the holder of an unredeemed gift
10    certificate or credit memo is not required to report the
      unredeemed gift certificate or credit memo as unclaimed
11    property to the Department of Financial Services.
      Provides that an unredeemed gift certificate or credit
12    memo is the property of the issuer, subject only to any
      rights of a purchaser or owner and is not subject to a
13    claim made by any state acting on behalf of a purchaser
      or owner. Prohibits imposing an expiration date,
14    expiration period, or any type of postsale charge or fee
      on the gift certificate or credit memo.
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