Introduced Version






HOUSE BILL No. 1122

_____


DIGEST OF INTRODUCED BILL



Citations Affected: IC 24-5-26.

Synopsis: Gift cards. Provides that a person may not issue a gift card that is subject to an expiration date or a fee.

Effective: July 1, 2009.





Cherry




    January 8, 2009, read first time and referred to Committee on Commerce, Energy, Technology and Utilities.







Introduced

First Regular Session 116th General Assembly (2009)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
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HOUSE BILL No. 1122



    A BILL FOR AN ACT to amend the Indiana Code concerning trade regulation.

Be it enacted by the General Assembly of the State of Indiana:

SOURCE: IC 24-5-26; (09)IN1122.1.1. -->     SECTION 1. IC 24-5-26 IS ADDED TO THE INDIANA CODE AS A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2009]:
     Chapter 26. Gift Cards
    Sec. 1. (a) As used in this chapter, "gift card" means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the holder of the record for the value shown in the record.

     (b) The term includes the following:
        (1) A gift certificate.

         (2) A stored value card or certificate.
         (3) An online gift account.
     (c) The term does not include a prepaid calling card used to make telephone calls.
    Sec. 2. As used in this chapter, "person" means an individual, a corporation, the state or its subdivisions or agencies, a business trust, an estate, a trust, a partnership, an association, a

cooperative, or any other legal entity.
    Sec. 3. (a) Except as provided in this section, this chapter applies to gift cards that are issued after June 30, 2009.
    (b) Section 4 of this chapter does not apply to the following:
        (1) A gift card issued without consideration by a person under an awards, loyalty, or promotional program.
        (2) A gift card issued by a financial institution (as defined in IC 22-2-4-1).
        (3) A gift card issued for less than face value to:
            (A) an employer;
            (B) a charitable organization exempt from federal taxation under Section 501 of the Internal Revenue Code; or
            (C) a nonprofit organization.
        (4) A gift card that is sold by:
            (A) a charitable organization exempt from federal taxation under Section 501 of the Internal Revenue Code; or
            (B) a nonprofit organization.

         (5) A gift card that an employer issues to an employee in recognition of services performed by the employee.
     Sec. 4. (a) A person may not issue a gift card that is subject to:
        (1) an expiration date; or
        (2) a fee, including a service fee, maintenance fee, dormancy charge, or inactivity charge.
    (b) A gift card may be subject to an initial fee at the time the gift card is issued.
    Sec. 5. A provision in an agreement creating a gift card that conflicts with this chapter is void.