78R4322 ATP-D
By: Campbell H.B. No. 650
A BILL TO BE ENTITLED
AN ACT
relating to the expiration of a gift certificate.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 35, Business & Commerce
Code, is amended by adding Section 35.57 to read as follows:
Sec. 35.57. EXPIRATION OF GIFT CERTIFICATE PROHIBITED. (a)
In this section, "gift certificate" includes a gift card used for
the same purpose as a gift certificate.
(b) A person may not issue or sell a gift certificate that
provides that the certificate expires after a certain date. A
condition providing for the expiration of a gift certificate is
void.
(c) Subsection (b) does not affect the validity of a gift
certificate containing an expiration date.
(d) This section does not apply to a gift certificate:
(1) that states the expiration date on the front of the
certificate in capitalized letters in at least 10-point type; and
(2) that is:
(A) distributed by the issuer to a consumer under
an awards, loyalty, or promotional program without the consumer
giving money or any other thing of value in exchange for the
certificate;
(B) sold below face value at a volume discount to
an employer or a nonprofit or charitable organization for
fund–raising purposes, if the expiration date is not more than 30
days after the date of the sale; or
(C) issued for a food product.
SECTION 2. The change in law made by Section 35.57, Business &
Commerce Code, as added by this Act, applies only to the issuance
or sale of a gift certificate or gift card on or after the effective
date of this Act. The issuance or sale of a gift certificate or gift
card before the effective date of this Act is governed by the law in
effect when the certificate or card was issued or sold, and the
former law is continued in effect for that purpose.
SECTION 3. This Act takes effect September 1, 2003.