Bill > HB1990

This bill establishes the offense of gift card fraud by adding a new section to existing law that defines what constitutes gift card fraud and outlines the penalties based on the value of the gift card or related information involved. Specifically, it makes it illegal to knowingly alter or tamper with a gift card or its packaging, to use deceit to obtain a gift card or its redemption information (which refers to the unique details needed to access or spend the funds on the card) from a holder, issuer, or seller, or to use a fraudulently obtained gift card or its redemption information to get money, goods, or services. The penalties range from a Class C felony for offenses involving $25,000 or more, to a Class D felony for offenses between $750 and $25,000, and a Class A misdemeanor for offenses under $750, with "value" being defined as the full monetary face value or potential value for variable load gift cards. The bill also introduces definitions for "closed-loop gift card" (redeemable at a single merchant or affiliated group) and "open-loop gift card" (branded with a major payment network and redeemable at multiple unaffiliated merchants), as well as defining "gift card holder," "gift card issuer," and "gift card seller" to clarify who is involved in these transactions.