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Senate Bill 446 |
Senate Author: Carona |
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Effective: 9-1-05 |
House Sponsor: Martinez |
Senate Bill 446 amends the Business & Commerce Code and the Property Code to regulate stored value cards, including gift cards and gift certificates. The bill requires an expiration date, policy, fee, or other material restriction or contract term applicable to a stored value card to be clearly and conspicuously disclosed to a person at the time the card is sold or issued. Disclosure regarding expiration or a periodic fee that reduces the unredeemed value of the card must be legibly printed on the card. If a stored value card is sold without the required disclosure, it is valid until redeemed or replaced. The bill authorizes the issuer of a stored value card to impose and collect a handling fee, an access fee for an unmanned teller machine transaction, a reissue or replacement charge, or a periodic fee that reduces the unredeemed balance over time if disclosure is provided and the fee is reasonable. The periodic fee cannot be assessed until after the first anniversary of the date the card is sold or issued, nor can it be assessed after the card is presumed abandoned. The bill sets forth the circumstances under which a stored value card is presumed to be abandoned to the extent of its unredeemed and uncharged value, and, for purposes of treating such cards as unclaimed property, it establishes that the address of an apparent owner is the Austin, Texas, address of the comptroller of public accounts if the name and address of the owner are unknown. It requires the comptroller to transfer five percent of money collected from cards presumed to be abandoned for use as student financial assistance grants under the Education Code. It provides that the regulations do not create a cause of action against a person who issues or sells a stored value card and do not apply to prepaid calling cards or certain other cards.