Section 1 of chapter 149 of the General Laws, as appearing in the 2004 official edition, is hereby amended in line 30 by inserting after the word “Discrimination” the following:- “Electronic wage card, is an electronic card or other similar medium issued by an employer to an employee in order for an employee to receive payment of wages from an employer and where said employee’s wages are deposited into an account that is established and controlled by the employer or by a third party as designated by an employer; provided further that having employees pay for the implementation of said electronic wage card wage system shall be prohibited.”

Section 2. Section 148 of chapter 149 of the General Laws is hereby amended in line 95 after the words “to be reasonable.” by inserting the following:- “Any employer paying wages by electronic wage card shall provide for such employee such facilities for the employee to withdraw money from said account without charge by deduction from said account thereof or otherwise, as shall be deemed by the attorney general as reasonable.”

Section 3.  Section 1 of chapter 255D of the General Laws, as appearing in the 2004 official edition, is hereby amended by inserting after line 10 by inserting after the definition “Finance Charge” the following:- ““Gift Card” a gift card is an electronic card or electronic payment device purchased by a buyer and supplied by a seller or issuer in conjunction with a credit card company, bank, financial institution, licensed check seller or equivalent business and has its designation on the gift card, which is not redeemable in cash and usable in the amount deposited or assigned to the gift card to be used in lieu of cash for the exchange for goods or services at multiple unaffiliated merchants and service providers.  Gratuities deducted by the multiple unaffiliated seller or merchant which accepts issuer on the electronic card from the gift card without the owner’s permission is prohibited.  A gift card shall not include pre-paid calling arrangements, as defined in section 1 of chapter 64H of the General Laws.  A gift card shall not include electronic wage cards as defined under section 1 of chapter 149 of the General Laws.  Dormancy fees, latency fees, administrative fees, service fees or any other periodic fees that have the effect of reducing the total value of the gift card shall be prohibited for one year from the date of purchase; provided however, that the seller or issuer may assess a reasonable fee to replace a lost or stolen gift card at any time if it is requested by its owner.   Prior to the sale of a gift card, the seller must provide in writing in a clear and conspicuous manner to the buyer the amount of the dormancy fees, latency fees, administrative fees or any other periodic fees or service fees, and under the circumstances that fees would be assessed, unless the sale is conducted over the telephone whereby the seller must inform the buyer verbally and send with the gift card purchased a written conspicuous notice about said fees.  Any seller or issuer advertising the sale or issuance of gift cards in person, print, radio, television, Internet or any other medium must indicate in a conspicuous manner the amount of the dormancy fees, latency fees, administrative fees or any other periodic fees or services fees, and under the circumstances that fees would be assessed; provided that, a seller or issuer may reduce the amount of information in the notification about fees on outdoor print or electronic signs, billboards, or signs inside the seller’s or issuer’s premises in accordance to rules and regulations established by the office of consumer affairs and business regulations.  The seller or issuer of the gift card shall indicate on the gift card the date when the gift card was sold or issued, or shall indicate on the gift card the date when the said fees go shall go into effect, or shall indicate on the gift card when the gift card or gift card account requires reactivation, or shall indicate on the gift card when the gift card must be replaced; provided however, that the seller or issuer may provide a date which exceeds one year after the gift card was sold or issued and said date may be indicated as a month and year; provided, that the month of said date shall mean the last day of said month.  If seller or an issuer utilizes a date mechanism whereby the date indicated on the gift card is more than one year after the date or purchase, no fees shall go into effect until the date indicated on said gift card, unless it is reasonable fee to replace a lost or stolen gift card at any time if it is requested by its owner.

Section 4. 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, including an electronic card, electronic device or utilizes Internet based medium, that is not a gift card as defined in this section, 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 of the gift certificate.  A gift certificate shall include an electronic card, that is not a gift card as defined in this section, 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.  A gift certificate shall not include electronic wage cards as defined under section 1 of chapter 149 of the General Laws.  Gratuities deducted by redeeming seller or merchant which accepts the gift certificate without the owner’s permission is prohibited.  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 are prohibited. 

Section 5.       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 sells or offers to sell a gift card as defined under section 1 of chapter 255D and does not comply with the prohibition on the dormancy fees, latency fees, administrative fees, service fees or any other periodic fees must then forfeit the right to issue fees to the owner of the gift card and must reimburse the owner any fees charged and shall be punished by a fine of not more than three hundred dollars per incident.

Section 75F. Whoever sells or offers to sell a gift card as defined under section 1 of chapter 255D and does not comply with the notification or the advertising requirement must then forfeit the right to issue fees to the owner of the gift card and must reimburse the owner any fees charged and shall be punished by a fine of not more than three hundred dollars per incident.

Section 75G. Whoever redeems a gift card or 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 75H. Whoever sells or offers to sell a gift card as defined under section 1 of chapter 255D and does not indicate on the gift card the date of sale or issuance must then forfeit the right to issue and assess fees to the owner of the gift card and must reimburse the owner any fees charged and shall be punished by a fine of not more than three hundred dollars per incident.

Section 6.       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.”

Section 7. Notwithstanding any general or special law to the contrary, the executive office of consumer protection and business regulation shall establish rule and regulations relative a seller or issuer reducing the amount of information in the notification about fees on outdoor print or electronic signs, billboards, or signs inside the seller’s or issuer’s premises pursuant to section 3 of this act within 60 days after the passage of this act; provided further, that a copy of said rules and regulations shall be provided to the Joint Committee on Consumer Protection and Professional Licensure within 10 days of its completion.

Section 8.       Section 1, 2, and 7 of this act shall take effect upon its passage.