Citations Affected: IC 24-5.
Synopsis: Gift certificates. Provides that a gift certificate may not
expire or be subject to a fee unless certain conditions are met. Provides
that a gift certificate may not expire in less than 12 months and a fee
may not begin to accrue until at least six months after the date the gift
certificate was issued.
Effective: July 1, 2005.
January 4, 2005, read first time and referred to Committee on Commerce and
February 24, 2005, amended, reported favorably _ Do Pass.
February 28, 2005, read second time, amended, ordered engrossed.
A BILL FOR AN ACT to amend the Indiana Code concerning trade
SECTION 1. IC 24-5-23 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
Chapter 23. Gift Certificates
Sec. 1. As used in this chapter, "activity" includes the following uses of a gift certificate:
(1) Acquiring or purchasing goods or services with the gift certificate.
(2) Checking the balance of the gift certificate.
(3) Adding value to the gift certificate.
(4) Redeeming the gift certificate for cash.
Sec. 2. As used in this chapter, "gift certificate" means a representation or other evidence of an obligation of a person arising from a transaction that requires the person to provide goods or services. The term includes the following:
(1) A gift certificate.
(2) A stored value card.
(3) A gift card.
(4) An online gift account.
Sec. 3. As used in this chapter, "person" means an individual, a corporation, the state or its subdivisions or agencies, a business trust, an estate, a trust, a partnership, an association, a cooperative, or any other legal entity.
Sec. 4. (a) Except as provided in this section, this chapter applies to gift certificates that are issued after October 31, 2005.
(b) This chapter does not apply to the following gift certificates:
(1) A gift certificate issued without consideration by a person other than a financial institution (as defined in IC 22-2-4-1) under an awards program, a loyalty program, or a promotional program.
(2) A gift certificate issued for less than face value to:
(A) an employer;
(B) a charitable organization exempt from federal taxation under Section 501 of the Internal Revenue Code; or
(C) a nonprofit organization;
for fundraising purposes.
Sec. 5. (a) Except as provided in subsection (b) and sections 6 and 7 of this chapter, a gift certificate may not be subject to the following:
(1) An expiration date.
(2) A fee, including a service fee, maintenance fee, dormancy charge, or inactivity charge.
(b) A gift certificate may be subject to an initial fee at the time the gift certificate is issued.
Sec. 6. A gift certificate may be subject to an expiration date if the following requirements are satisfied:
(1) One (1) of the following is printed in at least 8 point type on the gift certificate or on a sticker permanently affixed to the gift certificate:
(A) The date or time period after which the gift certificate expires.
(B) The exact date on which the gift certificate was issued and the number of days following the date of issuance after which the gift certificate expires.
(2) The expiration date is at least twelve (12) months after the issuance of the gift certificate.
Sec. 7. A gift certificate may be subject to a fee if the following requirements are satisfied:
(1) The fee does not begin to accrue until at least six (6)
months after the date on which the gift certificate was issued.
(2) A statement printed on the gift certificate or on a sticker permanently affixed to the gift certificate in at least 8 point type states:
(A) the type of fee and the dollar amount of the fee; and
(B) one (1) of the following:
(i) The date or time period after which the fee begins to accrue.
(ii) The exact date on which the gift certificate was issued and the number of days following the date of issuance after which the fee begins to accrue.
Sec. 8. A provision in an agreement creating a gift certificate that conflicts with this chapter is void.