HOUSE BILL 127

48th legislature - STATE OF NEW MEXICO - first session, 2007

INTRODUCED BY

Joni Marie Gutierrez

AN ACT

RELATING TO TRADE PRACTICES; REGULATING THE SALE AND REDEMPTION OF GIFT CERTIFICATES; ESTABLISHING PENALTIES.  

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. GIFT CERTIFICATES--EXPIRATION--FEES--PENALTIES.--

          A. As used in this section, "gift certificate" means a writing identified as a gift certificate that is not redeemable in cash and is usable in its face amount in lieu of cash in exchange for goods or services supplied by a seller. "Gift certificate" includes an electronic card with a banked dollar value, a merchandise credit, a certificate where the issuer has received payment for the full face value for the future purchase or delivery of goods or services and any other medium that evidences the giving of consideration in exchange for the right to redeem the certificate, electronic card or other medium for goods or services of at least an equal value.

          B. A gift certificate shall not have an expiration date less than sixty months after the date upon which the gift certificate was issued. If an expiration date is not conspicuously stated on a gift certificate, that gift certificate shall be presumed to have no expiration date and shall be valid until redeemed or replaced.

          C. An issuer of a gift certificate shall not charge a fee of any kind in relation to the sale, redemption or replacement of a gift certificate other than an initial charge not exceeding the face value of the gift certificate, nor may a gift certificate be reduced in value by any fee, including a service or dormancy fee.

          D. A violation of this section shall constitute an unfair or deceptive trade practice and shall be subject to the penalties set forth in the Unfair Practices Act.

     Section 2. SEVERABILITY.--If any part or application of this act is held invalid, the remainder or its application to other situations or persons shall not be affected.

     Section 3. APPLICABILITY.--The provisions of this act apply to gift certificates sold or offered for sale on or after July 1, 2007.

     Section 4. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2007.