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Senate Bill Report — SB 5987, Consumer Protection on Gift Certificates (January 12, 2024)

Summary

Senate Bill Report on SB 5987, as of January 12, 2024, covers an act relating to improving consumer protection on gift certificates. The bill raises to $50 the threshold for returning the remaining value of a gift certificate in cash after the gift card is used. It directs issuers to allow the bearer to use a gift certificate with another form of payment when its value is less than the total cost of the purchase. The change in statute is applicable only to gift certificates purchased after July 1, 2024. The report lists Appropriation: None and states the bill takes effect on July 1, 2024.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Issuer
Congressional materials
Document type
Report
Date
2024-01-16
Case
2024 01 16 A31644 D264452 Bill Report 5987 Sba Bfgt 24

Cite this document

“Senate Bill Report — SB 5987, Consumer Protection on Gift Certificates (January 12, 2024).” Original at app.leg.wa.gov, dated 2024-01-16. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-16-2024-01-16-a31644-d264452-bill-report-5987-sba-bfgt-24/, SHA-256 b0f1a0f5ce659df2e57e9815556ead17f4693d4cc4af069425a910c1f8019ddf.

Full text

                             SENATE BILL REPORT
                                   SB 5987

                                       As of January 12, 2024

Title: An act relating to improving consumer protection on gift certificates.

Brief Description: Improving consumer protection on gift certificates.

Sponsors: Senators Trudeau, Dhingra, Conway, Frame, Hasegawa, Keiser, Kuderer, Liias,
    Nguyen, Nobles, Pedersen, Saldaña, Stanford, Valdez, Wilson, C. and Wilson, J..

Brief History:
     Committee Activity: Business, Financial Services, Gaming & Trade: 1/16/24.


                                      Brief Summary of Bill
           • Increases the threshold for returning the remaining value of a gift
             certificate that can be returned to the bearer in cash after the gift card is
             used from $5 to $50.
           • Directs the issuer of a gift certificate to allow the bearer to combine the
             value stored on a gift certificate with another form of payment to
             complete a purchase.


SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE

     Staff: Clint McCarthy (786-7319)

     Background: A gift certificate is defined to mean a record evidencing a promise by a seller
     to provide goods or services for the value of the record. The definition of a gift certificates
     includes gift cards. In 2004, the Legislature established consumer protections in statute for
     holders of gift certificates. Among those protections included allowing the bearer of a gift
     card with a remaining balance of less than $5 to receive that amount in cash.

     Sellers of gift certificates are not required to allow the bearer of a gift certificate to combine




     This analysis was prepared by non-partisan legislative staff for the use of legislative
     members in their deliberations. This analysis is not part of the legislation nor does it
     constitute a statement of legislative intent.

Senate Bill Report                               -1-                                            SB 5987
     the value stored on the that gift certificate with another form of payment to complete a
     purchase.

     Summary of Bill: Language stating that the intent of the Legislature to relieve businesses
     from the obligation of reporting gift certificates as unclaimed property in order to protect
     consumers is removed, and replaced with language revises the intent language to declare its
     intent to prohibit acts and practices of retailers that deprive consumers of the full value of
     gift certificates. The intent of the chapter is expanded to include language declaring the
     Legislature will protect consumers by requiring companies to combine gift certificates with
     other forms of payment to make purchases and increase the dollar threshold for gift
     certificates below which companies must provide cash in exchange for the remaining
     balance.

     The threshold for returning the remaining value of a gift certificate in cash after using the
     gift card is increased from $5 to $50. The bearer of a gift certificate must be able to reload
     the gift certificate with a maximum amount set by the issuer in any dollar amount they
     choose if the gift certificate is reloadable. Issuers are required to allow gift certificates to be
     used in conjunction with another form of payment if the value of the gift certificate is less
     than the total cost of purchase.

     The change in statute is applicable only to gift certificates purchased after July 1, 2024.

     Appropriation: None.

     Fiscal Note: Not requested.

     Creates Committee/Commission/Task Force that includes Legislative members: No.

     Effective Date: The bill takes effect on July 1, 2024,




Senate Bill Report                               -2-                                           SB 5987

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2024-01-16_a31644_d264452_bill-report-5987-sba-bfgt-24.pdf
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Our copy
2024-01-16_a31644_d264452_bill-report-5987-sba-bfgt-24.pdf
Original
app.leg.wa.gov
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