SENATE, No. 211

SECTION 1.  Section 1 of chapter 255D of the General Laws, as appearing in the 2004 official edition, is hereby amended by striking out lines 11 to 22 in their entirety and inserting in place thereof the following:- “Gift certificate", a writing identified as a gift certificate purchased by a buyer for use by a person other than the buyer not redeemable in cash and usable in its face amount in lieu of cash in exchange for goods or services supplied by the seller. A gift certificate shall include an electronic card with a banked dollar value, a merchandise credit, a certificate where the issuer has received payment for the full face value for the future purchase 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, services, credit or money of at least an equal value. A gift certificate shall not include pre-paid calling arrangements, as defined in section 1 of chapter 64H of the General Laws, or any electronic card usable with multiple unaffiliated sellers of goods or services.

SECTION 2.   Section 75C of chapter 266 of the General Laws, as appearing in the 2004 official edition, is hereby amended by inserting after section 75C the following new sections:-

Section 75D. Whoever sells or offers to sell a gift certificate as defined under section 1 of chapter 255D which imposes dormancy fees, latency fees, administrative fees, periodic fees, service fees or other fees that have the effect of reducing the total amount for which the holder may redeem a gift certificate, shall be punished by a fine of not more than three hundred dollars per incident.

Section 75E. Whoever redeems a gift certificate as defined under section 1 of chapter 225D and deducts a gratuity without the consent of the owner of the gift card or gift certificate shall be punished by a fine of not more than three hundred dollars per incident.

SECTION 3.   Section 5D of chapter 200A of the General Laws in lines 13 to 16 by striking out the following:- “Notwithstanding any general or special law to the contrary, upon a gift certificate being redeemed for up to 90 per cent of its face value, a consumer shall make an election to receive the balance in cash or to continue with the gift certificate.” inserting in place thereof the following:- “Notwithstanding any general or special law to the contrary, upon a gift certificate, which is of a type whereby the owner is unable to or prohibited from adding value to it after it has been sold or issued, being redeemed for 90 per cent or more of its face value, a consumer shall make an election to receive the balance in cash or to continue with the gift certificate.  Notwithstanding any general or special law to the contrary, upon a gift certificate, which is of a type whereby the owner is able to or permitted to add value to it after it has been sold or issued, being redeemed to the point where its value remaining on said gift certificate is five dollars or less, a consumer shall make an election to receive the balance in casher or to continue with the gift certificate.  When a zero balance is reached on a gift certificate, whereby the owner can add to it after it has been sold or issued, then gift certificate is deemed void and no longer redeemable.”