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HOUSE OF REPRESENTATIVES |
H.B. NO. |
2108 |
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TWENTY-SEVENTH LEGISLATURE, 2014 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
relating to gift cards.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The Hawaii Revised Statutes is amended by adding a new chapter to be appropriately designated and to read as follows:
"Chapter
gift cards
§ -1 Definitions. As used in this chapter:
"Beneficiary" means any person who is legally in receipt of and entitled to receive the benefits of a gift card.
"Gift card" means 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.
"Issuer" means a person engaged in the business of offering goods or services for sale at retail who sells gift cards to consumers.
§ -2 Gift card; trust property. (a) A gift card shall constitute value held in trust by the issuer of the gift card on behalf of the beneficiary of the gift card. The value represented by the gift card shall belong to the beneficiary, or to the legal representative of the beneficiary to the extent provided by law, and not to the issuer.
(b) The issuer of a gift card shall maintain a separate trust account for the funds used to purchase a gift card.
§ -3 Bankruptcy. (a) An issuer of a gift card or who is in bankruptcy shall continue to honor a gift card issued prior to the date of the bankruptcy filing on the grounds that the value of the gift card constitutes trust property of the beneficiary.
(b) This chapter does not alter the terms of a gift card; provided that the terms of a gift card may not make its redemption or other use invalid in the event of a bankruptcy.
§ -4 Beneficiary and issuer relationship. (a) This chapter shall not create an interest in favor of the beneficiary of the gift card in any specific property of the issuer.
(b) This chapter shall not create a fiduciary or quasi-fiduciary relationship between the beneficiary of the gift cards and the issuer, unless otherwise provided by law.
(c) The issuer of a gift card shall not be obligated to pay interest on the value of the gift card held in trust under this chapter, unless otherwise provided by law.
§ -5 Office of consumer protection; reporting; rules; compliance. (a) An issuer shall file an annual report with the director of the office of consumer protection on or before March 31 for the prior year ending December 31 setting forth:
(1) Its name and trade name, if any;
(2) The address of its principal place of business in the state;
(3) The names of beneficiaries, the monetary amount of gift cards held in trust for each beneficiary, and the depository holding the trust funds; and
(4) Any other information as may be required by the director.
(b) The director of the office of consumer protection may adopt rules pursuant to chapter 91 for purposes of this chapter, including the charging of penalties and reasonable fees in an amount sufficient to cover the administrative and operational costs required by this chapter. The director shall have the duty and power to compel compliance with this chapter, including the duties and powers under chapter 487."
SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.
SECTION 3. This Act shall take effect on January 1, 2015.
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INTRODUCED BY: |
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Report Title:
Gift Cards; Purchase Payment Held in Trust
Description:
Requires an issuer of a gift card to hold in trust the moneys received in payment for the card. Effective January 1, 2015.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.