Sec. 1. 33 MRSA §1953, sub-§1, ¶G, as amended by PL 2003, c. 339, §2, is further amended to read:

G. A gift obligation, 3 years after December 31st of the year in which the gift obligation occurred, except for those gift obligations that meet the requirements of section 1958, subsection 2, paragraph B-2. A period of limitation may not be imposed on the owner's right to redeem the gift obligation. The amount unclaimed is the face value of the gift obligation, except that the amount unclaimed is 60% of the gift obligation's face value if the issuer of the gift obligation does not impose a dormancy charge. Fees or charges may not be imposed on gift obligations unless they are noted on the gift obligation and are in accordance with section 1956. The amount of these charges or fees may not be unconscionable;

Sec. 2. 33 MRSA §1958, sub-§2, ¶B-2 is enacted to read:

B-2.__Notwithstanding paragraph B-1, if the issuer of the gift obligation or stored-value card does not impose an expiration date or dormancy charge on the gift obligation or stored-value card, then the requirements of paragraph B-1 do not apply and an issuer of that gift obligation or stored- value card is not required to make the report required under this section;

SUMMARY

Under current law, a gift obligation, such as a gift certificate or gift card, is presumed abandoned if not claimed by the end of the 3rd calendar year after the date of issue; however, the issuer is prohibited from placing a limitation on the gift obligation. An issuer of a gift obligation is allowed to charge dormancy charges if the gift obligation is not redeemed before the obligation is presumed abandoned. There is no limit on these dormancy charges. An issuer is also allowed to deduct dormancy fees after the obligation is presumed abandoned; these fees may not be unconscionable. An issuer is required to make a report to the Treasurer of State detailing the presumed abandoned property.

This bill exempts from the abandoned property reporting requirement gift obligations that do not have an expiration date or dormancy charges levied upon them and effectively exempts such gift obligations from the presumption of abandonment.