Retailers speak against bill to extend life of gift cards

By Gordon Y.K. Pang
Advertiser Capitol Bureau

Business interests yesterday urged a Senate committee to reject a bill that would require gift certificates and cards to be valid for no less than seven years.

Sen. Ron Menor, D-17th (Mililani, Waipi'o), said the Committee on Commerce, Consumer Protection and Housing will hold a vote on House Bill 2143 House Draft 2, tomorrow.

Carol Pregill, president of the Retail Merchants of Hawai'i, said large and luxury retailers already issue gift certificates and cards with no expiration date, while for smaller retailers a two-year expiration period is "manageable."

Organizations such as Pregill's should be given a chance to educate businesses about the two-year minimum law, first instituted by the Legislature in 1996, as well as other rules, she said.

For example, a state attorney general's opinion already prohibits fees that diminish the value of certificates or cards, she said.

"If we are able to get the word out about the existing law and explain it to people so that we have compliance, we would be doing ourselves and the consumers a favor," Pregill said.

Pregill and other business representatives also raised concerns about a provision in the bill that would require a merchant to give the owner of a gift card or certificate cash back if the balance remaining is 10 percent or less of the original value.

Thomas Jones, chairman of the Hawai'i Restaurant Association, said the bill would increase the cost of administering and accounting for gift certificates and cards and would create a disincentive for businesses to issue them.

Reach Gordon Y.K. Pang at gpang@honoluluadvertiser.com or at 525-8070.