OLR Bill Analysis
sHB 5564 (as amended by House "B")*
AN ACT CONCERNING CARD BALANCES.
This bill requires someone:
1. selling or issuing a gift card to provide the purchaser with an electronic or paper copy of a proof of purchase or gift receipt and
2. accepting a gift card as payment for goods or services to provide the purchaser, on request, with cash for the remaining balance on the card after the purchase if the (a) balance is under $3 and (b) purchaser provides the proof of purchase or gift receipt.
*House Amendment “B” changes the definition of gift card, limits the requirement to provide cash for a gift card's remaining value to $3 instead of $10, requires gift card sellers or issuers to provide proof of purchase, and requires someone seeking cash for a card's remaining value to provide the proof of purchase.
EFFECTIVE DATE: October 1, 2016
For purposes of the bill, a “gift card” is a record showing a seller's or issuer's promise, made for consideration, to provide goods or services to the record's owner for the value shown in the record. It includes (1) a record with a microprocessor chip, magnetic stripe, or other way to store information that is prefunded with a value that decreases with each use; (2) an electronic gift card; (3) a stored-value card or certificate; (4) a store card; and (5) similar records or cards. But it does not include a:
1. general-use prepaid card, which is a card, code, or device (a) issued on a prepaid basis primarily for consumer use in a specified amount and in exchange for payment and (b) redeemable at multiple, unaffiliated merchants for goods and services or usable at ATMs;
2. gift certificate donated or sold below face value by a retailer to a charitable or nonprofit community organization;
3. linked prepaid card, which is a type of general-use prepaid card that allows the card purchaser or person who increases or replenishes funds on the card, code, or device (the customer) to (a) get back the unused balance and the interest earned on it through a financial account linked to the card; (b) set an expiration date at least 90 days from the date of purchase or from the date of increasing or replenishing funds for the purpose of receiving a refund of any unused balance and any accrued interest on that balance; and (c) transfer the unused balance to a bank offering a higher yield and full insurance from the Federal Deposit Insurance Corporation until the funds are exhausted or the card expires, if the customer has a financial account linked to the card;
4. card or certificate issued by a retailer as part of an awards, loyalty, or promotional program for which no money or monetary value was exchanged;
5. gift certificate or card sold below face value by a retailer;
6. gift certificate or card sold by a retailer that does not have a retail establishment in Connecticut; or
7. gift certificate issued only on paper.
Joint Favorable Substitute