Gift card redemption

Most gift cards would have no expiration dates, under a bill approved by the House.

Sponsored by Rep. Joe Atkins (DFL-Inver Grove Heights) and Sen. Katie Sieben (DFL-Newport), HF512/SF69* would make it unlawful for a business to sell a gift card that has an expiration date or a service fee of any kind, including for nonuse.

Amended by the House to provide that it would apply only to gift cards sold on or after the proposed Aug. 1, 2007, effective date, the bill was passed 95-37 and sent to the Senate, which passed the initial bill 43-16 April 16.

The bill would exempt:
• those distributed for loyalty or promotional reasons without money given in exchange,
• cards distributed for employee recognition,
• cards sold below face value to employers or nonprofit organizations for fundraisers,
• prepaid calling cards,
• debit cards used to access a debit account, and
• cards that can be used at multiple sellers or goods and services, such as a mall card, provided any expiration date and associated fees are disclosed. These are typically bank-issued cards subject to federal regulations.

Supporters have said that some gift cards have expiration dates as short as six months. “You can buy one at Thanksgiving, give it over the holidays and by Spring Break the gift card has no value,” Atkins said.