Sec. 1. 33 MRSA §1952, sub-§§4-A and 5-A are enacted to read:

4-A.__Face value.__"Face value" means the original purchase price or original issued value of a gift obligation if unused or, if partially used, the remaining balance prior to the deduction of any service charges, fees or dormancy charges.

5-A.__Gift obligation.__"Gift obligation" means an obligation of a business association arising from a transaction between the business association and a consumer to provide goods or services at a future date.__This includes, but is not limited to, a gift certificate, gift card, on-line gift account or other representation or evidence of the obligation.

Sec. 2. 33 MRSA §1953, sub-§1, ¶G, as amended by PL 1999, c. 232, §1, is further amended to read:

G. A gift certificate obligation, 3 years after December 31st of the year in which the certificate was sold; the gift obligation occurred.__A period of limitation may not be imposed on the owner's right to redeem the gift obligation.__The amount abandoned is the price paid by the purchaser for face value of the gift certificate obligation, except that the amount abandoned is 60% of the certificate's gift obligation's face value if the issuer of the certificate gift obligation does not impose a dormancy charge or period of limitations on the owner's right to redeem the certificate at 100% of face value.__ Fees or charges may not be imposed on gift obligations unless they are contained in a written agreement at the time of purchase or provided to an instrument holder in writing 30 days prior to their effective date.__The amount of these charges or fees may not be unconscionable;

SUMMARY

This bill adds "face value" to the abandoned property laws definition section to resolve issues of interpretation. The bill defines "gift obligation."

The bill also clarifies the abandonment period of a gift obligation and that the amount abandoned is the face value of the gift obligation.

The bill prohibits the imposition of a fee or charge on a gift obligation unless the fee or charge is contained in a written agreement at the time of purchase of the gift obligation.