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.