Section 1 of chapter 255D of the General Laws, as appearing in the 2002 official edition, is hereby amended by striking out lines 11 to 20 in their entirety and inserting in place thereof the following:-

 "Gift certificate'', a writing identified as a gift certificate or gift card, including an electronic card, purchased by a 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 or another seller as designated on the gift certificate or gift card.  A gift certificate or gift card 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.  Dormancy fees, latency fees, gratuities or any other administrative fees or service that have the effect of reducing the total amount for which the holder may redeem a gift certificate or gift card are prohibited. 

Section 2.       Section 75C of chapter 266D of the General Laws, as appearing in the 2002 official edition, is hereby amended by inserting after section 75C the following new section:-

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, gratuities or any other administrative fees or service 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.

Section 3.       This act shall take effect upon its passage.