Assigned to FIN AS
PASSED BY COW
Assigned to FIN AS
PASSED BY COW
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
AMENDED
bank deposits; technical
correction
(NOW: gift cards; dormancy fee; prohibition)
Purpose
Prohibits the issuance or sale of gift cards in Arizona that are subject to expiration dates or fees.
Background
Current law requires a gift card
that is subject to an expiration date, a fee or both, to clearly and
conspicuously disclose the following: 1) the expiration date; and 2) the amount
of the fee and when the fee is incurred. Such disclosure must be clearly
visible to the consumer before the purchase is made. In cases involving paper
gift certificates, expiration date and fee information must be disclosed on the
front of the gift certificate (A.R.S. 
44-7402).
A fee is defined as any
amount or value that is automatically deducted from the gift card amount due to
a period of nonuse or inactivity. A gift card is defined as any gift
certificate, gift card or electronic gift card or any other medium that is
issued or sold after October 31, 2005, for which the issuer has received
payment for the full face value or full banked dollar value of the card for the
future purchase or delivery of goods or services (A.R.S. 
44-7401).
There is no anticipated fiscal impact to the state General Fund (GF) associated with this legislation.
Provisions
1. Prohibits a gift card from being subject to an expiration date or a fee, with exceptions.
2. Specifies that a gift card may be subject to an expiration date or fee if it is:
a) distributed to a consumer as part of an awards, loyalty or promotional program when no money or anything of value has been given by the consumer in exchange for the gift card;
b) sold below face value to a nonprofit or charitable organization or donated to the nonprofit or charitable organization for fund raising purposes; or
c) a prepaid telecom, debit or electronic funds transfer card.
3. Allows a gift card to contain an expiration date with respect to the gift card, a code or device associated with the gift card, but not with respect to the underlying gift card monies, if:
a) it is electronic, including a general purpose reloadable, debit or funds transfer card; and
b) there is prominent disclosure that the underlying monies do not expire and that the consumer may contact the issuer for a replacement gift card, code or device.
4. Removes statutory language relating to fee disclosure to consumers.
5. Makes technical and conforming changes.
6. Becomes effective on the general effective date.
Amendments Adopted by Committee
· Adopted the strike everything amendment.
Amendments Adopted by Committee of the Whole
1. Prohibits gift cards with expiration dates or fees and provides exceptions to the prohibition.
2. Removes the requirement that a gift card issuer or seller transmit any unused monies remaining on a gift card after 10 consecutive years of inactivity to the Department of Revenue for GF deposit.
3. Makes technical changes.
Senate Action
FIN 2/14/18 DPA/SE 6-1-0
Prepared by Senate Research
February 27, 2018
FB/lb