Sec. 1. 33 MRSA §1953, sub-§1, ¶G, as amended by PL 2003, c. 339, §2, is further amended to read:

G. A gift obligation, 3 years after December 31st of the year in which the gift obligation occurred. A period of limitation may not be imposed on the owner's right to redeem the gift obligation. The gift obligation may not contain a statement declaring that there is a period of limitation or an expiration date on the gift obligation or other words to that effect. The amount unclaimed is the face value of the gift obligation, except that the amount unclaimed is 60% of the gift obligation's face value if the issuer of the gift obligation does not impose a dormancy charge. Fees Notwithstanding section 1956, fees or charges may not be imposed on gift obligations unless they are noted on the gift obligation and are in accordance with section 1956. The amount of these charges or fees may not be unconscionable;

SUMMARY

Under current law, a gift obligation, such as a gift certificate or gift card, is presumed abandoned if not claimed by the end of the 3rd calendar year after the date of issue; however, the issuer is prohibited from placing a limitation on the gift obligation. An issuer is allowed to charge dormancy charges if the gift obligation is not redeemed before the obligation is presumed abandoned. There is no limit on these dormancy charges. An issuer is also allowed to deduct dormancy fees after the obligation is presumed abandoned; these fees may not be unconscionable.

This bill does the following.

1. It prohibits an issuer from placing an expiration date on a gift obligation.

2. It prohibits an issuer from charging dormancy charges or other fees, either before or after the start of the presumptive abandonment period.

3. It presumes that the abandoned amount is the face value of the gift obligation, requiring the issuer to turn that amount over to the Treasurer of State as abandoned property.