SLS 10RS-333 REENGROSSED
Page 1 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 342
BY SENATORS MARIONNEAUX AND THOMPSON
COMMERCIAL REGULATIONS. Provides relative to gift certificates. (8/15/10)
AN ACT1
To amend and reenact R.S. 51:1423(A), (D) and (E), and to enact R.S. 51:1423(F), relative2
to gift certificates; to provide for cash redemption of remaining value under a certain3
amount; to eliminate certain exemptions; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 51:1423(A), (D) and (E) are hereby amended and reenacted and R.S.6
51:1423(F) is hereby enacted to read as follows: 7
ยง1423. Deceptive trade practices; gift certificates; expiration date8
A. For purposes of this Section, the term "gift certificate" shall mean a9
writing identified as a gift certificate or gift card purchased by a buyer for use by a10
person not redeemable in cash, except as provided in this Section, and usable in its11
face amount in lieu of cash in exchange for goods or services supplied by the seller.12
A gift certificate or gift card shall include an electronic card with a banked dollar13
value, a merchandise credit, a certificate where the issuer has received payment for14
the full face value of the future purchase or delivery of goods or services and any15
other medium that evidences the giving of consideration in exchange for the right to16
redeem the certificate, electronic card or other medium for goods, food, services,17 SB NO. 342
SLS 10RS-333 REENGROSSED
Page 2 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
credit or money of at least an equal value.1
* * *2
D. The issuer shall redeem the remaining value of the gift certificate for3
cash if the remaining value is five dollars or less, upon request of the holder.4
E. The provisions of this Section shall not apply to any of the following gift5
certificates:6
(1) Gift certificates that are distributed by the issuer to a consumer pursuant7
to an awards loyalty or promotional program without any money or other thing of8
value being given in exchange for the gift certificate by the consumer.9
(2) Gift certificates that are sold below face value or donated to nonprofit and10
charitable organizations for fundraising purposes.11
(3) Gift certificates that are usable with multiple sellers of goods or services.12
E. F. Any violation of this Section shall be a deceptive and unfair trade13
practice and shall subject the violator to any and all actions and penalties provided14
for in this Chapter.15
The original instrument was prepared by Alan Miller. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Sherri Breaux.
DIGEST
Marionneaux (SB 342)
Present law defines a "gift certificate" as a writing identified as a gift certificate or gift card
purchased by a buyer for use by a person not redeemable in cash and usable in its face
amount in lieu of cash in exchange for goods or services supplied by the seller. A gift
certificate or gift card 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 of 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, food, services, credit or money of at least an equal value.
Proposed law retains present law, but requires the issuer to redeem the remaining value of
the gift certificate for cash if the remaining value is $5.00 or less, upon request of the holder.
Present law provides that the relevant laws relating to gift certificates do not apply to the
following:
(1)Gift certificates that are distributed by the issuer to a consumer pursuant to an awards
loyalty or promotional program without any money or other thing of value being
given in exchange for the gift certificate by the consumer. SB NO. 342
SLS 10RS-333 REENGROSSED
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(2)Gift certificates that are sold below face value or donated to nonprofit and charitable
organizations for fundraising purposes.
Proposed law retains present law.
Present law also provides that such relevant laws do not apply to gift certificates that are
usable with multiple sellers of goods or services. Proposed law deletes present law
provision.
Effective August 15, 2010.
(Amends R.S. 51:1423(A), (D), and (E); adds R.S. 51:1423(F))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Commerce, Consumer
Protection, and International Affairs to the original bill.
1. Removes exception in present law relating to gift certificates for those gift
certificates that are usable with multiple sellers of goods or services.
Senate Floor Amendments to engrossed bill.
1. Makes technical corrections.