25mar03... 0725h

05/29/03 1876s

2003 SESSION

03-0304

05/01

HOUSE BILL 259

COMMITTEE: Commerce

AMENDED ANALYSIS

This bill defines and regulates the use of gift certificates under the consumer protection act.

This bill also establishes a study committee relative to the regulation of gift certificates.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

25mar03... 0725h

05/29/03 1876s

03-0304

05/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

Be it Enacted by the Senate and House of Representatives in General Court convened:

193:1 New Paragraph; Consumer Protection; Definition of Gift Certificate Added. Amend RSA 358-A:1 by inserting after paragraph IV the following new paragraph:

IV-a. "Gift certificate" means a written promise given in exchange for payment to provide the bearer, upon presentation, goods or services in a specified amount.

193:2 Consumer Protection Act; Acts Unlawful; Restriction on Sale and Use of Gift Certificates. Amend RSA 358-A:2, XIII to read as follows:

XIII. Selling gift certificates having a face value of less than $100 to purchasers which contain expiration dates. Gift certificates having a face value of $100 or more shall expire when escheated to the state as abandoned property pursuant to RSA 471-C. [This paragraph shall not apply to gift certificates for which monetary consideration is not given or that are distributed to a consumer for promotional purposes. Nor shall this paragraph apply to season passes or coupons that are nonrefundable and nonredeemable.] Dormancy fees, latency fees, or any other administrative fees or service charges that have the effect of reducing the total amount for which the holder may redeem a gift certificate are prohibited. This paragraph shall not apply to season passes.

193:3 Committee Established. There is established a committee to study the regulation of gift certificates under the consumer protection act.

193:4 Membership and Compensation.

I. The members of the committee shall be as follows:

(a) Two members of the senate, appointed by the president of the senate.

(b) Two members of the house of representatives, appointed by the speaker of the house of representatives.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

193:5 Duties. The committee shall study the regulation of gift certificates under the consumer protection act. The committee shall examine application of the statute to gift cards and shall consider the possibility of prohibiting dormancy fees and similar administrative charges.

193:6 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named senate member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Three members of the committee shall constitute a quorum.

193:7 Report. The committee shall report its findings and any recommendations for proposed legislation to the senate president, the speaker of the house of representatives, the senate clerk, the house clerk, the governor, and the state library on or before November 1, 2004.

193:8 Effective Date.

I. Sections 1 and 2 of this act shall take effect January 1, 2004.

II. The remainder of this act shall take effect upon its passage.

(Approved: June 30, 2003)

(Effective Date: I. Sections 1 and 2 shall take effect January 1, 2004.