Connecticut Seal

General Assembly

File No. 255

    February Session, 2018

House Bill No. 5406

House of Representatives, April 5, 2018

The Committee on Banking reported through REP. LESSER of the 100th Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.

AN ACT CONCERNING CASH REFUNDS FOR THE BALANCE OF A GIFT CARD.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (c) of section 42-461 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2018):

(c) If a person uses a gift card to purchase goods or services and the balance on the gift card is less than [three] five dollars after such purchase, the person accepting the gift card as payment, if requested by the purchaser, shall provide the purchaser with a cash refund equal to the value of the remaining balance on the gift card after the purchase.

This act shall take effect as follows and shall amend the following sections:

Section 1

October 1, 2018

42-461(c)

BA

Joint Favorable

 

The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose. In general, fiscal impacts are based upon a variety of informational sources, including the analyst's professional knowledge. Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.


OFA Fiscal Note

State Impact: None

Municipal Impact: None

Explanation

This bill increases, from $3 to $5, the threshold where the person accepting a gift card as payment must give a cash refund upon request and results in no fiscal impact to the state because this deals with consumers and private businesses.

The Out Years

State Impact: None

Municipal Impact: None

OLR Bill Analysis

HB 5406

AN ACT CONCERNING CASH REFUNDS FOR THE BALANCE OF A GIFT CARD.

SUMMARY

This bill increases, from $3 to $5, the threshold under which someone who accepts a gift card as payment must give the purchaser, on request, cash for the remaining balance on the card after purchase. Existing law, unchanged by the bill, also requires that the purchaser provide the proof of purchase or gift receipt.

EFFECTIVE DATE: October 1, 2018

BACKGROUND

Gift Card Definition

By law, a “gift card” is a record showing a seller's or issuer's promise to provide goods or services 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; or (5) similar records or cards. But it does not include a:

COMMITTEE ACTION

Banking Committee

Joint Favorable

Yea

10

Nay

9

(03/20/2018)

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