79R2143 ATP-D
By: Keel H.B. No. 1691
A BILL TO BE ENTITLED
AN ACT
relating to the reduction in value of a 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. REDUCTION IN VALUE OF GIFT CARD
PROHIBITED. (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, and a gift
card issued in association with a financial institution.
(b) A condition relating to the use of a gift card is void if
it provides that:
(1) the value of the card decreases over a period of
time; or
(2) a fee is charged against the balance of the card
after a certain period of time.
(c) Subsection (b) does not affect the validity of a gift
card containing a condition that is void under Subsection (b).
SECTION 2. The change in law made by Section 35.42, Business &
Commerce Code, as added by this Act, applies only to a gift card
issued or activated on or after the effective date of this Act. A
gift card issued or activated before the effective date of this Act
is governed by the law in effect when the 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.