SB 5654 — Concerning rewards cards.

S-1206.1SUBSTITUTES-0841.1SENATE SENATE BILL 5654State of Washington66th Legislature2019 Regular SessionBySenateSessionBySenators FinancialMullet, Institutions,Wilson, EconomicL., Developmentand &O'BanRead Tradefirst (originallytime sponsored01/25/19.Referred byto SenatorsCommittee Mullet,on Wilson,Financial L.,Institutions, andEconomic O'Ban)READDevelopment FIRST& TIMETrade.AN 02/08/19.AN ACT Relating to rewards cards;

20.3, or rewards cards.(6) "Bearer" means a person with a right to receive consumer goods and services under the terms of a gift certificate, without regard to any fee, expiration date, or dormancy or inactivity charge.(7) "Issue" means to sell or otherwise provide a gift certificate to any person, and includes reloading or adding value to an existing gift certificate.(8) "Stored value" has the same meaning as the term "closed loop ((stored value device))prepaid access" defined in RCW 19.230.010.(9) "Cardholder" means the holder of a rewards card, regardless of whether the rewards card is represented by a card or an electronic record.(10)(a) "Rewards card" means any loyalty, incentive, or promotional program managed by a financial organization or a business association, whether represented by a card or electronic record, and established for the purpose of providing cardholder awards, rewards, rebates, or other amounts to compensate the cardholder for the cardholder's relationship with the entity sponsoring the rewards card, provided that no direct money was paid by the cardholder for the rewards card.(b)(i) A rewards card includes:(A) Cards or electronic records consisting of points, cash, or other tokens of value given to a cardholder as a reward or incentive for engaging in a transaction or a series of transactions;

"Fare card" does not include "gift card" or "gift certificate" as those terms are defined in RCW 19.240.010.(8) "Financial organization" means a savings and loan association, cooperative bank, building and loan association, or credit union.(9) "Gift certificate" has the same meaning as in RCW 19.240.010,19.240.010.(10) regardless of whether the gift certificate is represented by a card or an electronic record.(10) "Holder" means a person, wherever organized or domiciled, who is:(a) In possession of property belonging to another;(b) A trustee;

and(f) Amounts distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death, stock purchase, profit sharing, employee savings, supplemental unemployment insurance, or similar benefits.(13) "Last known address" means a description of the location of the apparent owner sufficient for the purpose of the delivery of mail.(14) "Owner" means a depositor in the case of a deposit, a beneficiary in case of a trust other than a deposit in trust, a creditor, claimant, or payee in the case of other intangible property, or a person having a legal or equitable interest in property subject to this chapter or his or her legal representative.(15) "Person" means an individual, business association, state or other government, governmental subdivision or agency, public corporation, public authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commercial entity.(16)(17) "Third party bank check" means any instrument drawn against a customer's account with a banking organization or financial organization on which the banking organization or financial organization is only secondarily liable.(18) "Utility" means a person who owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas.(19) "Cardholder" means the holder of a rewards card, regardless of whether the rewards card is represented by a card or an electronic record.(20)(a) "Rewards card" means any loyalty, incentive, or promotional program managed by a financial organization or a business association, whether represented by a card or electronic record, and established for the purpose of providing cardholder awards, rewards, rebates, or other amounts to compensate the cardholder for the cardholder's relationship with the entity sponsoring the rewards card, provided that no direct money was paid by the cardholder for the rewards card.(b) A rewards card includes:(i) Cards or electronic records consisting of points, cash, or other tokens of value given to a cardholder as a reward or incentive for engaging in a transaction or a series of transactions;

or(ii) The portion of a rewards card funded by the issuer as a reward or incentive when the rewards card is partially loaded by the cardholder.(c)cardholder.Sec. A minimal annual fee charged to a cardholder for any loyalty, incentive, or promotional program is not direct money paid by the cardholder for a rewards card.Sec.