[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 3636 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 3636

       To provide increased consumer protections for gift cards.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 26, 2012

Mr. Blumenthal introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
       To provide increased consumer protections for gift cards.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Gift Card Consumer Protection Act of 
2012''.

SEC. 2. EXPANDED DEFINITION OF GIFT CARDS TO INCLUDE LOYALTY, AWARD, 
              AND PROMOTIONAL GIFT CARDS.

    Section 915(a)(2) of the Electronic Fund Transfer Act (15 U.S.C. 
1693l-1(a)(2)) is amended--
            (1) in the paragraph heading, by striking ``general use'' 
        and inserting ``general-use''; and
            (2) in subparagraph (D), by striking clause (iii) and 
        redesignating clauses (iv) through (vi) as clauses (iii) 
        through (v), respectively.

SEC. 3. BAN ON FEES FOR INACTIVITY ASSOCIATED WITH GIFT CARDS.

    Section 915(b) of the Electronic Fund Transfer Act (15 U.S.C. 
1693l-1(b)) is amended to read as follows:
    ``(b) Prohibition on Imposition of Fees or Charges.--It shall be 
unlawful for any person to impose a dormancy fee, an inactivity charge 
or fee, or a service fee with respect to a gift certificate, store gift 
card, or general-use prepaid card.''.

SEC. 4. BAN ON EXPIRATION DATES ON GIFT CARDS.

    Section 915(c) of the Electronic Fund Transfer Act (15 U.S.C. 
1693l-1(c)) is amended--
            (1) by striking ``(1) In general.--Except as provided in 
        paragraph (2), it shall'' and inserting ``It shall''; and
            (2) by striking paragraph (2).

SEC. 5. CLERICAL AMENDMENT.

    Section 915(d)(2) of the Electronic Fund Transfer Act (15 U.S.C. 
1693l-1(d)(2)) is amended by striking ``shall''.

SEC. 6. CONSUMER PROTECTIONS FOR WHEN A COMPANY THAT ISSUES GIFT CARDS 
              FILES FOR BANKRUPTCY PROTECTION.

    (a) EFTA.--Section 915 of the Electronic Fund Transfer Act (15 
U.S.C. 1693l-1) is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following:
    ``(d) Requirements for a Gift Certificate, Store Gift Card, or 
General-Use Prepaid Card Seller or Issuer That Has Filed for Bankruptcy 
Protection.--It shall be unlawful for any person--
            ``(1) to sell or issue a gift certificate or store gift 
        card if that person has filed for bankruptcy protection under 
        title 11, United States Code; or
            ``(2) to resell or reissue a gift certificate, store gift 
        card, or general-use prepaid card, if--
                    ``(A) the original seller or issuer of the gift 
                certificate, store gift card, or general-use prepaid 
                card has filed for bankruptcy protection under title 
                11, United States Code; and
                    ``(B) 7 days or more have elapsed since that 
                original seller or issuer filed for bankruptcy 
                protection under title 11, United States Code.''.
    (b) Title 11.--Title 11, United States Code, is amended--
            (1) in section 362(a), by striking paragraph (6) and 
        inserting the following:
            ``(6) any act to collect, assess, or recover a claim 
        against the debtor that arose before the date of commencement 
        of the case under this title, except that this paragraph shall 
        not operate as a stay against the presentation or redemption of 
        a gift certificate or store gift card at full value;''; and
            (2) in section 363(c), by striking paragraph (1) and 
        inserting the following:
    ``(1) If the business of the debtor is authorized to be operated 
under section 721, 1108, 1203, 1204, or 1304 of this title, and unless 
the court orders otherwise, the trustee--
            ``(A) may enter into transactions, including the sale or 
        lease of property of the estate, in the ordinary course of 
        business, without notice or a hearing;
            ``(B) may use property of the estate in the ordinary course 
        of business, without notice or a hearing; and
            ``(C) shall honor a gift certificate or store gift card 
        issued by the debtor at full value and treat the gift 
        certificate or store gift card the same as cash.''.
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