SB 1018 — AN ACT CONCERNING CASH REFUNDS FOR GIFT CARD BALANCES.

Senate GeneralBill Assembly File No.

1481018 JanuaryPublic Session,Act 2023 Senate Bill No.

101823-10 Senate,AN MarchACT 21,CONCERNING 2023CASH TheREFUNDS CommitteeFOR onGIFT BankingCARD reportedBALANCES. through SEN.

MILLER of the 27th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING CASH REFUNDS FOR GIFT CARD BALANCES.

(1) A general-use prepaid card, as defined in 12 CFR 1005.20(a)(3), as from time to time amended, (2) a gift certificate donated or sold below face value by a retailer to a charitable organization or nonprofit community organization, (3) a linked prepaid SB1018card, /as Filedefined in section 42-460a, (4) a card or certificate issued by a retailer pursuant to an awards, loyalty or promotional program for which no money or other item of monetary value was exchanged, (5) a gift certificate or card sold below face value by a retailer, (6) a gift Senate Bill No.

1481018 1certificate SB1018or Filecard No.sold by a retailer that does not have a retail establishment in this state, or (7) a gift certificate that is issued only on paper.

148 card, as defined in section 42-460a, (4) a card or certificate issued by a retailer pursuant to an awards, loyalty or promotional program for which no money or other item of monetary value was exchanged, (5) a gift certificate or card sold below face value by a retailer, (6) a gift certificate or card sold by a retailer that does not have a retail establishment in this state, or (7) a gift certificate that is issued only on paper.

[(d) The provisions of subsection (c) of this section shall only apply if the purchaser provides the person accepting the gift card as payment proof of purchase or a gift receipt for such gift card.] ThisApproved actJune shall7, take2023 effectPublic asAct followsNo. and shall amend the following sections:

Section23-10 12 Octoberof 1,2 2023 42-461 BA Joint Favorable SB1018 / File No.

148 2 SB1018 File No.

148 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation This bill makes various changes regarding cash refunds for gift card balances and results in no fiscal impact to the state because this deals with consumers and private businesses.

The Out Years State Impact:

None Municipal Impact:

None SB1018 / File No.

148 3 SB1018 File No.

148 OLR Bill Analysis SB 1018 AN ACT CONCERNING CASH REFUNDS FOR GIFT CARD BALANCES.

SUMMARY Under current law, anyone accepting a gift card as payment must give the purchaser cash for the remaining balance on the card after the purchase if the (1) balance is under $3 and (2) purchaser requests it and provides the proof of purchase or a gift receipt for the gift card.

This bill increases the balance limit from $3 to $5 and eliminates the requirement to provide the proof of purchase or a gift receipt.

EFFECTIVE DATE:

October 1, 2023 BACKGROUND Gift Card Definition By law, a “gift card” is a record showing a seller’s or issuer’s promise to provide goods or services for the value shown in the record.

It includes (1) a record with a microprocessor chip, magnetic stripe, or other way to store information that is prefunded with a value that decreases with each use;

(2) an electronic gift card;

(3) a stored-value card or certificate;

(4) a store card;

or (5) similar records or cards.

But it excludes the following:

1.

a general-use prepaid card, which is a card, code, or device (a) issued on a prepaid basis primarily for consumer use in a specified amount and in exchange for payment and (b) redeemable at multiple, unaffiliated merchants for goods and services or usable at ATMs;

SB1018 / File No.

148 4 SB1018 File No.

148 2.

a gift certificate donated or sold below face value by a retailer to a charitable or nonprofit community organization;

3.

a linked prepaidcard,whichisatypeofgeneral-use prepaidcard linked to a financial account;