Connecticut 2011 Regular Session

Connecticut Senate Bill SB01078 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	General Assembly Substitute Bill No. 1078
2		-	January Session, 2011 _____SB01078BA____031511____
	1	+	General Assembly Raised Bill No. 1078
	2	+	January Session, 2011 LCO No. 3669
	3	+	03669_______BA_
	4	+	Referred to Committee on Banks
	5	+	Introduced by:
	6	+	(BA)
3	7
4	8		General Assembly
5	9
6		-	~~Substitute~~ Bill No. 1078
	10	+	Raised Bill No. 1078
7	11
8	12		January Session, 2011
9	13
10		-	_____SB01078BA____031511____
	14	+	LCO No. 3669
	15	+
	16	+	03669_______BA_
	17	+
	18	+	Referred to Committee on Banks
	19	+
	20	+	Introduced by:
	21	+
	22	+	(BA)
11	23
12	24		AN ACT ENHANCING COMMUNITY BANK COMPETITIVENESS AND FRAUD PREVENTION ON CERTAIN PRODUCTS.
13	25
14	26		Be it enacted by the Senate and House of Representatives in General Assembly convened:
15	27
16		-	Section 1. (NEW) (Effective October 1, 2011) (a) As used in this section, "general-use prepaid card" has the same meaning given to that term in 12 CFR 205.20(a)(3), as from time to time amended.
	28	+	Section 1. (NEW) (Effective October 1, 2011) (a) As used in this section, "general-use prepaid card" has the same meaning given to that term in 12 CFR Section 205.20(a)(3), as from time to time amended.
17	29
18		-	(b) A general–use prepaid card shall not include an expiration date relative to the underlying funds that are redeemable through the use of the applicable card, code or device. Notwithstanding the provisions of this subsection, a general-use prepaid card may include an expiration date with regard to such card, code or device, provided: (1) The following disclosures are made, in writing, with equal prominence and in close proximity to the expiration date on such card, code or device: (A) That such card, code or device expires, but that the underlying funds do not expire and that the consumer may contact the issuer for a replacement card, code or device; and (B) a toll-free telephone number and an Internet web site address, if one is maintained, that a holder of a general-use prepaid card may use to obtain a replacement card, code or device after such card, code or device expires; (2) no fee or charge is imposed on such holder for replacing the card, code or device or for providing such holder with the remaining balance in some other manner, provided the card, code or device has not been lost or stolen; and (3) the seller of the card, code or device has established policies and procedures to provide consumers a reasonable opportunity to purchase a card, code or device that has not less than five years remaining until the card, code or device expires.
	30	+	(b) A general–use prepaid card shall not include an expiration date relative to the underlying funds that are redeemable through the use of the applicable card, code or device. Notwithstanding the provisions of this subsection, a general-use prepaid card may include an expiration date with regard to such card, code or device, provided: (1) The following disclosures are made, in writing, with equal prominence and in close proximity to the expiration date on such card, code or device: (A) That such card, code or device expires, but that the underlying funds do not expire and that the consumer may contact the issuer for a replacement card, code or device; and (B) a toll-free telephone number and an Internet web site address, if one is maintained, that a holder of a general-use prepaid card may use to obtain a replacement card, code or device after such card, code or device expires; (2) no fee or charge is imposed on such holder for replacing the card, code or device or for providing such holder with the remaining balance in some other manner, provided the card, code or device has not been lost or stolen; and (3) the seller of the card, code or device has established policies and procedures to provide consumers a reasonable opportunity to purchase a card, code or device that has not less than five years remaining until the card, code or device expiration date expires.
19	31
20	32		(c) For purposes of complying with the disclosure requirements of subdivision (1) of subsection (b) of this section, the issuer of the general-use prepaid card may provide disclosures that are consistent with the applicable provisions of 12 CFR 205.20(e), as from time to time amended.
21	33
22	34		Sec. 2. Subdivision (5) of section 3-56a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2011):
23	35
24		-	(5) "Gift certificate" means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the owner of the record to the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information that is prefunded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored-value card or certificate, a store card, or a similar record or card, but "gift certificate" does not include prepaid calling cards regulated under section 42-370, [or] prepaid commercial mobile radio services, as defined in [47 C.F.R. Sec. ~~20.3] 47 CFR~~ 20.3 or general-use prepaid cards, as defined in section 1 of this act;
	36	+	(5) "Gift certificate" means a record evidencing a promise, made for consideration, by the seller or issuer of the record that goods or services will be provided to the owner of the record to the value shown in the record and includes, but is not limited to, a record that contains a microprocessor chip, magnetic stripe or other means for the storage of information that is prefunded and for which the value is decremented upon each use, a gift card, an electronic gift card, stored-value card or certificate, a store card, or a similar record or card, but "gift certificate" does not include prepaid calling cards regulated under section 42-370, [or] prepaid commercial mobile radio services, as defined in 47 C.F.R. Sec. 20.3 or general-use prepaid cards, as defined in section 1 of this act;
25	37
26	38
27	39
28	40
29	41		This act shall take effect as follows and shall amend the following sections:
30	42		Section 1 October 1, 2011 New section
31	43		Sec. 2 October 1, 2011 3-56a(5)
32	44
33	45		This act shall take effect as follows and shall amend the following sections:
34	46
35	47		Section 1
36	48
37	49		October 1, 2011
38	50
39	51		New section
40	52
41	53		Sec. 2
42	54
43	55		October 1, 2011
44	56
45	57		3-56a(5)
46	58
47		-	Statement of ~~Legislative Commissioners:~~
	59	+	Statement of Purpose:
48	60
49		-	~~In section 1(a), "12 CFR Section 205.20(a)(3)" was changed~~ to ~~"12 CFR 205.20(a)(3)" for consistency in citation form~~ to ~~federal regulations.~~ ~~In section 1(b)(3), "card, code or device~~ expiration ~~date expires"~~ ~~was changed to "card, code or device expires"~~ ~~for consistency and clarity~~. ~~In section 2(5) "47 C.F.R. Sec. 20.3" was changed to "47 CFR 20.3" for consistency in citation form to federal regulations.~~
	61	+	To permit community banks to offer open-loop gift cards and to reduce potential fraud by allowing expiration dates on such gift cards while preserving the underlying funds indefinitely.
50	62
51		-
52		-
53		-	BA Joint Favorable Subst.-LCO
54		-
55		-	BA
56		-
57		-	Joint Favorable Subst.-LCO
	63	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]