STAND. COM. REP. 3192
Honolulu, Hawaii
, 2004
RE: H.B. No. 2143
H.D. 2
S.D. 1
Honorable Robert Bunda
President of the Senate
Twenty-Second State Legislature
Regular Session of 2004
State of Hawaii
Sir:
Your Committee on Commerce, Consumer Protection and Housing, to which was referred H.B. No. 2143, H.D. 2, entitled:
"A BILL FOR AN ACT RELATING TO BUSINESS REGULATION,"
begs leave to report as follows:
The purpose of this measure is to expand the scope of the gift certificate law to include electronic gift cards and merchandise credits, extend the minimum honor period from two years to seven years, prohibit dormancy charge or service fees, permit cash refunds of minimal unused amounts, and exempt gift certificates from the requirements relating to unclaimed or abandoned property.
The Department of Commerce and Consumer Affairs presented comments on this measure. Testimony in opposition to the measure was received from the Department of Budget and Finance, Legislative Information Services of Hawaii, Activities and Attractions Association of Hawaii, The Hawaii Restaurant Association, and Retail Merchants of Hawaii.
Your Committee finds that concerns have been raised about this measure, including that precluding gift certificates from being classified as abandoned property will allow retailers to retain the proceeds of unredeemed certificates, that merchandise credit requirements are already addressed in the refunds law, and that other proposed requirements may increase merchants' administrative costs and create disincentives for issuing certificates.
Therefore, based upon discussions between the retail industry and the Office of Consumer Protection, your Committee has amended this measure:
(1) By deleting language proposing to:
(a) Extend the minimum period for honoring a gift certificate from two years to seven years;
(b) Entitle a certificate holder to the certificate's cash balance after at least ninety per cent of the certificate's value has been redeemed;
(c) Exempt gift certificate issuers from complying with the requirements of the Unclaimed Property Act; and
(d) Include merchandise credits within the definition of "gift certificate"; and
(2) By adding language proposing to:
(a) Require that the date of issuance, in addition to the expiration date be clearly indicated on the face of the gift certificate, or an electronic card sales receipt; and
(b) Specifically exempt from the law's requirements promotional gift certificates with expiration dates.
Additionally, your Committee has amended this measure by inserting therein an effective date of July 1, 2030.
As affirmed by the record of votes of the members of your Committee on Commerce, Consumer Protection and Housing that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2143, H.D. 2, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2143, H.D. 2, S.D. 1, and be placed on the calendar for Third Reading.
Respectfully submitted on behalf of the members of the Committee on Commerce, Consumer Protection and Housing,
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____________________________ RON MENOR, Chair |
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