HB936 SD1

SECTION 1. Section 481B-13, Hawaii Revised Statutes, is amended to read as follows:

"§481B-13 Gift certificates. (a) Any restaurant or person engaged in the business of offering services or goods for sale at retail may allow customers to purchase gift certificates; provided that the certificate issuer [~~shall~~]:

(1) Shall honor the certificate for a period of at least two years from the date of issuance[~~. A certificate issuer shall not charge a service fee, including but not limited to a~~];

(2) May charge an issuance fee of not more than $2 for each certificate upon purchase if the following conditions are met:

(A) There is conspicuous disclosure of the issuance fee prior to the purchase;

(B) The issuance fee is not deducted from the initial balance of the certificate; and

(C) The certificate or card, or a sticker affixed to the certificate or card shall contain the following notice in no less than ten point font:

"Hawaii state law allows the issuer to assess a fee of no more than $2. If you are assessed a greater fee, the issuer is covered under federal laws that permit the issuer to charge more than $2. If you believe that you have been deceived, you may file a complaint with the office of consumer protection, located within the department of commerce and consumer affairs"; and

(3) Shall not charge a back-end service fee for dormancy, maintenance, or inactivity[.]; provided that the issuer may charge a fee of not more than $2 for replacement of a certificate.

(b) The date of issuance and the expiration date shall be clearly identified on the face of the gift certificate, or, if an electronic card with a banked dollar value, clearly printed upon a sales receipt transferred to the purchaser of the electronic card upon the completed transaction. The expiration date shall be not less than two years after the date of issuance. If the gift certificate does not have an expiration date, it shall be valid in perpetuity.

(c) Gift certificates that are issued as part of an awards, loyalty, or promotional program, or to a not-for‑profit charity organization, where no money or anything of value is given to the issuer by the consumer in exchange for the gift certificate, are exempt from this section; provided that the expiration date, if any, appears on the gift certificate or accompanying printed receipt.

(d) Any violation of this section shall constitute an unfair and deceptive act or practice in the conduct of trade or commerce within the meaning of section 480-2.

(e) As used in this section, unless the context requires otherwise:

"Certificate issuer" or "issuer" means a restaurant or a person engaged in the business of offering services or goods for sale at retail who sells gift certificates to customers[.], or any entity that issues electronic cards with a banked dollar value.

"Gift certificate" or "certificate" includes any electronic card with a banked dollar value where the issuer has received payment for the full banked dollar value for the future purchase or delivery of goods or services, any certificate where the issuer has received payment for the full face value of the certificate for future purchases or delivery of goods or services, and any other medium that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card, or other medium for goods, food, or services of at least an equal value. "Gift certificate" or "certificate" does not include an electronic card, code, computer, or electronic access device, including a prepaid debit card, payroll card, insurance claim card, and electronic travelers check, which is used to withdraw or transfer funds from a deposit, and that is not primarily intended for use as a gift to another person."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2999.

HOUSE OF REPRESENTATIVES	H.B. NO.	936
TWENTY-FOURTH LEGISLATURE, 2007		H.D. 2
STATE OF HAWAII		S.D. 1