PA 16-140—sHB 5564
AN ACT CONCERNING CASH REFUNDS FOR GIFT CARD BALANCES
SUMMARY: This act requires someone:
1. selling or issuing a gift card to give the buyer an electronic or paper proof of purchase or gift receipt and
2. accepting a gift card as payment to give the purchaser, on request, cash for the remaining balance on the card after the purchase if the (a) balance is under $3 and (b) purchaser provides the proof of purchase or gift receipt.
EFFECTIVE DATE: October 1, 2016
For purposes of the act, a “gift card” is a record showing a seller's or issuer's promise to provide goods or services for the value shown in the record. It includes (1) a record with a microprocessor chip, magnetic stripe, or other way to store information that is prefunded with a value that decreases with each use; (2) an electronic gift card; (3) a stored-value card or certificate; (4) a store card; or (5) similar records or cards. But it does not include a:
1. general-use prepaid card, which is a card, code, or device (a) issued on a prepaid basis primarily for consumer use in a specified amount and in exchange for payment and (b) redeemable at multiple, unaffiliated merchants for goods and services or usable at ATMs;
2. gift certificate donated or sold below face value by a retailer to a charitable or nonprofit community organization;
3. linked prepaid card, which is a type of general-use prepaid card that allows the purchaser or person who increases or replenishes its funds to (a) get back the unused balance and the interest earned on it through a linked financial account, upon its expiration; (b) set an expiration date at least 90 days from the purchase date or date of increasing or replenishing funds, in order to receive a refund of any unused balance and interest on that date; and (c) where the customer has a linked financial account, transfer the unused balance to a bank offering certain benefits until the funds are all used or the card expires;
4. card or certificate issued by a retailer as part of an awards, loyalty, or promotional program for which no money or monetary value was exchanged;
5. gift certificate or card sold by a retailer (a) that does not have a store in Connecticut or (b) at below face value; or
6. gift certificate issued only on paper.
OLR Tracking: CR; SD ; PF: tjo