NOTE:  This bill has been prepared for the signature of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
      history, or the Session Laws.
      
      
      SENATE BILL 10-155
      
      
      BY SENATOR(S) Tochtrop, Bacon, Carroll M., Foster, Heath, Hodge,
      Sandoval, Williams, Boyd;
      also REPRESENTATIVE(S) Benefield, Apuan, Court, Ferrandino, Kerr A.,
      Labuda, Merrifield, Pace, Peniston, Pommer, Primavera, Schafer S., Solano,
      Soper, Vigil.
      
      
      Concerning limitations on the issuance of gift cards.
       
      
      Be it enacted by the General Assembly of the State of Colorado:
      
           SECTION 1.  Part 7 of article 1 of title 6, Colorado Revised
      Statutes, is amended BY THE ADDITION OF A NEW SECTION to read:
      
           6-1-722.  Gift certificates - validity - exemptions - definitions. 
      (1) (a)  As used in this section, "gift card" means a prefunded
      tangible or electronic record of a specific monetary value
      evidencing an issuer's agreement to provide goods, services, credit,
      money, or anything of value.  A "gift card" includes, but is not
      limited to, a tangible card; electronic card; stored-value card; or
      certificate or similar instrument, card, or tangible record, all of
      which contain a microprocessor chip, magnetic chip, or other
      means for the storage of information and for which the value is
      decremented upon each use.  A "gift card" does not include a
      prefunded tangible or electronic record issued by, or on behalf
      of, any government agency; a gift certificate that is issued only
      on paper; a prepaid telecommunications or technology card; a
      card or certificate issued to a consumer pursuant to an awards,
      loyalty, or promotional program for which no money or other
      item of monetary value was exchanged; or a card that is donated
      or sold below face value at a volume discount to an employer or
      charitable organization for fundraising purposes.
      
           (b)  This section shall not apply to gift cards that are
      usable with multiple sellers of goods or services.  This exception
      shall not apply to a gift card usable only with affiliated sellers
      of goods or services.
      
           (2)  On and after the effective date of this section, the issuer
      shall redeem the remaining value of a gift card for cash if the
      amount remaining is five dollars or less on request of the holder.
      
           (3)  It is unlawful for any person or entity to sell to a
      purchaser a gift card that contains a service fee, a dormancy fee,
      an inactivity fee, a maintenance fee, or any other type of fee.
      
           (4)  A violation of this section shall be deemed a deceptive
      trade practice as provided in section 6-1-105 (1) (ccc).
      
           SECTION 2.  6-1-105 (1), Colorado Revised Statutes, is amended
      BY THE ADDITION OF A NEW PARAGRAPH to read:
      
           6-1-105.  Deceptive trade practices.  (1)  A person engages in a
      deceptive trade practice when, in the course of such person's business,
      vocation, or occupation, such person:
      
           (ccc)  Violates the provisions of section 6-1-722.
      
           SECTION 3.  Act subject to petition - effective date -
      applicability.  (1)   This act shall take effect at 12:01 a.m. on the day
      following the expiration of the ninety-day period after final adjournment of
      the general assembly (August 11, 2010, if adjournment sine die is on May
      12, 2010); except that, if a referendum petition is filed pursuant to section
      1 (3) of article V of the state constitution against this act or an item, section,
      or part of this act within such period, then the act, item, section, or part shall
      not take effect unless approved by the people at the general election to be
      held in November 2010 and shall take effect on the date of the official
      declaration of the vote thereon by the governor.
      
           (2)  The provisions of this act shall apply to gift cards issued on or
      after the applicable effective date of this act.
      
      
      
      
      ____________________________  ____________________________
      Brandon C. Shaffer                Terrance D. Carroll
      PRESIDENT OF                     SPEAKER OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
      
      
      ____________________________  ____________________________
      Karen Goldman                          Marilyn Eddins
      SECRETARY OF                 CHIEF CLERK OF THE HOUSE
      THE SENATE                         OF REPRESENTATIVES
      
      
      
      
                  APPROVED________________________________________
      
      
      
      
      
                                    _________________________________________
                                    Bill Ritter, Jr.
                                    GOVERNOR OF THE STATE OF COLORADO