093_HB0070ham004











                                     LRB093 02399 WGH 13660 a

 1                     AMENDMENT TO HOUSE BILL 70

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

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

 7        (815 ILCS 505/2MM new)
 8        Sec. 2MM.  Gift certificates.
 9        (a)  This  Section  applies to gift certificates and gift
10    cards issued on or after July 1, 2004.
11        (b)  It is an unlawful practice  within  the  meaning  of
12    this  Act  for  a  person to knowingly engage in a persistent
13    pattern  and  practice  of  issuing  to  a  consumer  a  gift
14    certificate or gift card containing  an  expiration  date  or
15    period.  A  gift certificate or a gift card issued without an
16    expiration date is valid until redeemed.
17        (c)  The issuer of a gift certificate or  gift  card  may
18    charge  the  holder  a  service  fee  for  a  certificate not
19    redeemed within 24 months after issuance as follows:
20             (1)  For a gift certificate or  gift  card  redeemed
21        more  than  24 months after issuance but not more than 36
22        months after issuance, the service fee shall  be  15%  of
 
                            -2-      LRB093 02399 WGH 13660 a
 1        the original value of the gift certificate or gift card.
 2             (2)  For  a  gift  certificate or gift card redeemed
 3        more than 36 months after issuance but not more  than  48
 4        months  after  issuance,  the service fee shall be 25% of
 5        the original value of the gift certificate or gift card.
 6             (3)  For a gift certificate or  gift  card  redeemed
 7        more than 48 months after issuance, the service fee shall
 8        be  50%  of the original value of the gift certificate or
 9        gift card.
10        (d)  Whenever the Attorney General or a State's  Attorney
11    has  reason  to  believe  that  a  person  has  violated this
12    Section, he or she may bring an action in  the  name  of  the
13    People  of  the  State  of  Illinois  against  the  person to
14    restrain the conduct by preliminary or permanent  injunction.
15    The provisions of Section 7 and Section 10a do not apply to a
16    violation of this Section.
17        (e)  Gift  certificates  or gift cards that are issued to
18    not-for-profit organizations  for  fundraising  purposes  are
19    exempt from this Section.
20        (f)  For  purposes  of  this  Section,  the  terms  "gift
21    certificate"  and  "gift  card"  do  not  include  any of the
22    following:
23             (1)  prepaid telecommunications and technology cards
24        (including, but not limited to, prepaid telephone calling
25        cards,  prepaid  technical  support  cards,  and  prepaid
26        Internet disks) that are distributed to, or purchased by,
27        a consumer;
28             (2)  prepaid telecommunications and technology cards
29        (including, but not limited to, prepaid telephone calling
30        cards,  prepaid  technical  support  cards,  and  prepaid
31        Internet disks) that are provided to a consumer  pursuant
32        to any award, loyalty, or promotional program without any
33        money or other thing of value begin given in exchange for
34        the card; or
 
                            -3-      LRB093 02399 WGH 13660 a
 1             (3)  gift   certificates  or  gift  cards  that  are
 2        distributed by the issuer to a consumer  pursuant  to  an
 3        awards, loyalty, or promotional program without any money
 4        or  other  thing of value being given in exchange for the
 5        gift certificate or gift card by the consumer.".