S. B. No. 33 As Introduced

Senators Spada, Jacobson, Amstutz, Schuler, Mumper

A BILL
To enact section 1349.19 of the Revised Code to 1
prohibit the sale of a gift certificate that has 2
an expiration date that is less than two years 3
after the date the gift certificate is issued and 4
to prohibit service charges or fees having the 5
effect of reducing the value of the gift 6
certificate. 7

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That section 1349.19 of the Revised Code be 8
enacted to read as follows: 9

       Sec. 1349.19. (A)(1) Subject to division (C) of this 10
section, no person or entity shall sell a gift certificate to a 11
purchaser containing an expiration date that is less than two 12
years after the date the gift certificate is issued. Any gift 13
certificate sold after December 31, 2004, is subject to 14
replacement with a new gift certificate at no cost to the 15
purchaser or holder. 16

       (2) No person or entity, in connection with a gift 17
certificate, shall charge service charges or fees, including 18
dormancy fees, latency fees, or administrative fees, that have the 19
effect of reducing the total amount for which the holder of the 20
gift certificate may redeem the gift certificate. 21

       (B) A gift certificate sold without an expiration date is 22
valid until redeemed or replaced with a new gift certificate. 23

       (C) Division (A)(1) of this section does not apply to any of 24
the following gift certificates issued on or after January 1, 25
2005, provided that the expiration date appears in capital letters 26
in at least ten-point boldface type on the front of the gift 27
certificate: 28

       (1) A gift certificate that is distributed by the issuer to a 29
consumer pursuant to an awards, loyalty, or promotional program 30
without any money or anything of value being given in exchange for 31
the gift certificate by the consumer; 32

       (2) A gift certificate that is sold below face value at a 33
volume discount to employers or to nonprofit and charitable 34
organizations for fundraising purposes, if the expiration date on 35
that gift certificate is not more than thirty days after the date 36
of sale; 37

       (3) A gift certificate that is issued for a food product. 38

       (D) Whoever violates division (A)(2) of this section is 39
liable to the holder for any amount that the redemption value of 40
the gift certificate was reduced, any court costs incurred, and 41
reasonable attorney's fees. 42

Section 1. That section 1349.19 of the Revised Code be	8
enacted to read as follows:	9

Sec. 1349.19. (A)(1) Subject to division (C) of this	10
section, no person or entity shall sell a gift certificate to a	11
purchaser containing an expiration date that is less than two	12
years after the date the gift certificate is issued. Any gift	13
certificate sold after December 31, 2004, is subject to	14
replacement with a new gift certificate at no cost to the	15
purchaser or holder.	16

(2) No person or entity, in connection with a gift	17
certificate, shall charge service charges or fees, including	18
dormancy fees, latency fees, or administrative fees, that have the	19
effect of reducing the total amount for which the holder of the	20
gift certificate may redeem the gift certificate.	21

(B) A gift certificate sold without an expiration date is	22
valid until redeemed or replaced with a new gift certificate.	23

(C) Division (A)(1) of this section does not apply to any of	24
the following gift certificates issued on or after January 1,	25
2005, provided that the expiration date appears in capital letters	26
in at least ten-point boldface type on the front of the gift	27
certificate:	28

(1) A gift certificate that is distributed by the issuer to a	29
consumer pursuant to an awards, loyalty, or promotional program	30
without any money or anything of value being given in exchange for	31
the gift certificate by the consumer;	32

(2) A gift certificate that is sold below face value at a	33
volume discount to employers or to nonprofit and charitable	34
organizations for fundraising purposes, if the expiration date on	35
that gift certificate is not more than thirty days after the date	36
of sale;	37

(D) Whoever violates division (A)(2) of this section is	39
liable to the holder for any amount that the redemption value of	40
the gift certificate was reduced, any court costs incurred, and	41
reasonable attorney's fees.	42