Posted on: Tuesday, June 22, 2004

Lingle signs gift-certificate law

Advertiser Staff

Hawai'i businesses will need to honor gift certificates and gift cards for at least two years without charging service fees, including penalties for inactivity, under a bill signed by Gov. Linda Lingle yesterday.

The original House Bill 2143 sought to extend the minimum time limit for gift certificates to seven years but that proposal was shot down by the Senate. Instead, the bill signed yesterday strengthens the existing two-year minimum by including electronic gift cards and clarifying that fees cannot be charged within the two-year period.

The new law also clarifies that the dates of issue and expiration are to be clearly visible on the face of gift certificates or, with gift cards, printed on accompanying sales receipts. Certificates and cards with no expiration date will be valid in perpetuity, the bill says.

The changes do not apply to gift certificates issued as part of an awards, loyalty or promotional program, or to a not-for-profit charity organization.

The law takes effect July 1, 2005.

Correction: A previous version of this story gave the wrong date for when the new law takes effect.