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(Lincoln, NE) Gov. Dave Heineman signed LB 173 into law, adding a new layer of consumer protection to gift card and gift certificate redemption and assisting in the ability of Nebraska-owned businesses to compete in the gift-card industry.
“The intent of LB 173 is to make gift cards and gift certificates more consumer-friendly, so more of the money people have received can stay in their pockets and be spent at Nebraska restaurants and retail outlets,” Gov. Heineman said. “That is good news for Nebraskans.”
Introduced by Sen. Carol Hudkins of Malcolm, LB 173 requires businesses to clearly note any expiration dates and finance charges on gift cards and gift certificates.
The bill will also require businesses to continue to honor unused gift cards of less than $100 as valid. Currently, businesses issuing cards or certificates that are unredeemed after three years are required to report them to the Nebraska State Treasurer’s Office, which listed them as unclaimed property and makes the cash equivalent available to cardholders. As a result of LB 173, gift cards and certificates will now remain valid for use by consumers.
Sen. Hudkins said. “Gift cards are growing in popularity, but we have received a lot of complaints from consumers who had lost value on their cards due to inactivity. LB 173 will improve their ability to extend the shelf-life of a gift.”
Under the new law, gift cards or certificates of more than $100 not redeemed within three years will be turned over to the Treasurer’s Office for listing as unclaimed property.
State Treasurer Ron Ross said, “By discouraging the use of expiration dates and fees, it is our hope this legislation will give consumers a better opportunity to redeem gift certificates and gift cards with retailers.”
Jim Otto, President of the Nebraska Retail Federation, said, “Consumers will benefit from having fewer cards and certificates with fees or expiration dates – theoretically, many will be good forever. Nebraska businesses will benefit by being able to focus more of their attention on consumers than unclaimed property.”
LB 173 will take effect on Nov. 2.
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