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TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 39-1-55 SO AS TO PROVIDE THAT A PERSON MAY NOT ISSUE OR SELL A GIFT CERTIFICATE WHICH PROVIDES THAT THE CERTIFICATE EXPIRES BEFORE THE FIRST ANNIVERSARY OF THE DATE ON WHICH THE CERTIFICATE IS ISSUED OR SOLD, TO PROVIDE EXCEPTIONS, AND TO PROVIDE THAT A CONDITION RELATING TO THE USE OF A GIFT CERTIFICATE MUST BE STATED CLEARLY ON THE CERTIFICATE IF THE CONDITION PROVIDES THAT THE CERTIFICATE DECREASES IN VALUE OVER A PERIOD OF TIME OR THAT A FEE IS CHARGED AGAINST THE BALANCE OF THE CERTIFICATE AFTER A CERTAIN PERIOD OF TIME.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 1 of Title 39 of the 1976 Code is amended by adding:
"Section 39-1-55. (A) As used in this section, 'gift certificate' means a certificate that is issued or sold by a person engaged in the business of offering goods or services for sale at retail and that entitles a recipient of the certificate to the delivery of goods or services from the person who issued or sold the certificate. This term includes a gift card used for the same purpose as a gift certificate.
(B) A person may not issue or sell a gift certificate which provides that the certificate expires before the first anniversary of the date on which the certificate is issued or sold.
A gift certificate that contains an expiration date prohibited by this subsection expires on the first anniversary of the date on which the certificate is issued or sold.
(C) Subsection (B) does not apply to a gift certificate that states the expiration date on the front of the certificate in capitalized letters in at least ten-point type and is:
(1) distributed by the issuer to a consumer under an awards, loyalty, or promotional program without the consumer giving money in exchange for the certificate;
(2) sold below face value at a volume discount to an employer or a nonprofit or charitable organization for fundraising purposes, if the expiration date is not more than thirty days after the date of the sale; or
(3) issued for a food product.
(D) A condition relating to the use of a gift certificate must be stated clearly on the certificate, the envelope, or covering of the certificate, or the receipt given to the purchaser of the certificate, if the condition provides that the certificate decreases in value over a period of time or that a fee is charged against the balance of the certificate after a certain period of time.
A gift certificate that does not state clearly a condition described by this subsection may be redeemed at any time for the original value of the certificate, less any amount charged against the balance of the certificate by the consumer.
(E) This section applies only to a gift certificate issued or sold on or after the effective date of this section."
SECTION 2. This act takes effect July 1, 2004.
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