79R5588 ATP-D

By:  Gattis                                                       H.B. No. 1343



A BILL TO BE ENTITLED

AN ACT

relating to the expiration or reduction in value of a gift 
certificate or gift card.
	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 35.42 to read as follows:
	Sec. 35.42.  EXPIRATION OR REDUCTION IN VALUE OF GIFT 
CERTIFICATE OR GIFT CARD.  (a)  In this section, "gift card" means a 
card used for the same purpose as a gift certificate and includes a 
gift card the value of which is intended to be electronically 
readable.
	(b)  A condition relating to the use of a gift certificate or 
gift card, other than a condition described by Subsection (c), is 
void if it provides that a fee is charged that decreases the value 
of the certificate or card for any reason.
	(c)  A condition relating to the use of a gift certificate or 
gift card that provides that the certificate or card expires after a 
certain date is void unless:
		(1)  the month, day, and year of the expiration date is 
stated in not less than 10-point type on the front of the 
certificate or card and is preceded by the words "Expiration Date"; 
and
		(2)  the expiration date is disclosed to the purchaser 
or original holder of the certificate or card at the time the 
certificate or card is purchased or otherwise first issued to a 
certificate or card user.
	(d)  Subsection (b) or (c) does not affect the validity of a 
gift certificate or gift card containing a condition that is void 
under Subsection (b) or (c).
	SECTION 2.  The change in law made by Section 35.42, Business &
 Commerce Code, as added by this Act, applies only to a gift 
certificate or gift card issued or activated on or after the 
effective date of this Act.  A gift certificate or gift card issued 
or activated before the effective date of this Act is governed by 
the law in effect when the certificate or card was issued or 
activated, and the former law is continued in effect for that 
purpose.
	SECTION 3.  This Act takes effect September 1, 2005.