093_HB0070ham001











                                     LRB093 02399 WGH 11613 a

 1                     AMENDMENT TO HOUSE BILL 70

 2        AMENDMENT NO.     .  Amend House  Bill  70  by  replacing
 3    everything after the enacting clause with the following:

 4        "Section  5.  The  Consumer  Fraud and Deceptive Business
 5    Practices Act is amended by adding Section 2MM as follows:

 6        (815 ILCS 505/2MM new)
 7        Sec. 2MM.  Gift certificates.
 8        (a)  This Section applies to gift certificates  and  gift
 9    cards issued on or after July 1, 2004.
10        (b)  It  is  an  unlawful  practice within the meaning of
11    this Act for a person to knowingly  engage  in  a  persistent
12    pattern  and  practice  of  issuing  to  a  consumer  a  gift
13    certificate  or  gift  card  containing an expiration date or
14    period. A gift certificate or a gift card issued  without  an
15    expiration date is valid until redeemed.
16        (c)  The  issuer  of  a gift certificate or gift card may
17    charge the  holder  a  service  fee  for  a  certificate  not
18    redeemed within 24 months after issuance as follows:
19             (1)  For  a  gift  certificate or gift card redeemed
20        more than 24 months after issuance but not more  than  36
21        months  after  issuance,  the service fee shall be 15% of
22        the original value of the gift certificate or gift card.
 
                            -2-      LRB093 02399 WGH 11613 a
 1             (2)  For a gift certificate or  gift  card  redeemed
 2        more  than  36 months after issuance but not more than 48
 3        months after issuance, the service fee shall  be  25%  of
 4        the original value of the gift certificate or gift card.
 5             (3)  For  a  gift  certificate or gift card redeemed
 6        more than 48 months after issuance, the service fee shall
 7        be 50% of the original value of the gift  certificate  or
 8        gift card.
 9        (d)  Whenever  the Attorney General or a State's Attorney
10    has reason  to  believe  that  a  person  has  violated  this
11    Section,  he  or  she  may bring an action in the name of the
12    People of  the  State  of  Illinois  against  the  person  to
13    restrain  the conduct by preliminary or permanent injunction.
14    The provisions of Section 7 and Section 10a do not apply to a
15    violation of this Section.
16        (e)  Gift certificates or gift cards that are  issued  to
17    not-for-profit  organizations  for  fundraising  purposes are
18    exempt from this Section.".