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

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

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

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

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

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

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

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

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

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