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Senate Engrossed |
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State of Arizona Senate Fifty-third Legislature Second Regular Session 2018
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SENATE BILL 1264 |
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AN ACT
amending section 44-7402, Arizona Revised Statutes; relating to gift cards.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 44-7402, Arizona Revised Statutes, is amended to read:
44-7402. Gift card expiration date; fees prohibited; exceptions; civil penalty
A. Any Except as provided in subsection B of this section, A gift card may not be subject to an expiration date or a fee. , or both, shall clearly and conspicuously disclose the following:
1. The expiration date.
2. The amount of the fee and when the fee is incurred.
B. The disclosure required in subsection A of this section shall be clearly visible to a consumer before the purchase is made. In the case of a paper gift certificate, the information in subsection A of this section shall be disclosed on the front of the gift certificate.
C. For a gift card purchase via electronic or computer means, the existence of an expiration date and the amount of the fee and when the fee is incurred shall be conspicuously disclosed to the consumer before the purchase via the means used to purchase the gift card. For a gift card purchase via telephonic means, the existence of an expiration date and the amount of the fee and when the fee is incurred shall be disclosed verbally to the consumer before the purchase.
B. A gift card or a code or device associated with a gift card may contain an expiration date with respect to the gift card or the code or device, but not with respect to the underlying monies, if both of the following apply:
1. The gift card is electronic, including a general purpose reloadable card, a general purpose prepaid card, an open loop gift card and a closed loop gift card.
2. There is a prominent disclosure that the underlying monies do not expire and that the consumer may contact the issuer for a replacement gift card or a replacement code or device associated with the gift card.
C. Beginning on the effective date of this amendment to this section, a person may not issue or sell A gift card in this state that is subject to a fee.
D. Subsection A of this section does not apply to any of the following:
1. A gift card that is distributed to a consumer pursuant to an awards, loyalty or promotional program when no money or other thing of value has been given by the consumer in exchange for the gift card.
2. A gift card that is sold below face value to a nonprofit or charitable organization or that is donated to a nonprofit or charitable organization for fund raising purposes.
3. A card for prepaid telecommunication services, a debit card connected to a person's bank account or an electronic funds transfer card.
E. Notwithstanding title 44, chapter 10, article 7 of this title, the sole penalty for a violation of this section shall be is a civil penalty of not more than five hundred dollars per card violation.