February 13, 2004 - Introduced by Senators Lazich, Schultz and Plale,
cosponsored by Representatives Jeskewitz, Sinicki, Black, Musser, Nass,
Albers, Taylor, Hines, Wasserman, Shilling, Hahn, Berceau, Petrowski,
Gronemus
and Schneider. Referred to Committee on Labor, Small Business
Development and Consumer Affairs.
SB459,1,4 1An Act to amend 165.25 (4) (ar) and 814.04 (intro.); and to create 100.172 of
2the statutes; relating to: the sale of gift certificates, gift cards, and other gift
3obligations, requiring the exercise of rule-making authority, and providing
4penalties.
Analysis by the Legislative Reference Bureau
This bill regulates the sale of gift certificates, gift cards, or similar items (gift
obligation) if the gift obligation has an expiration date or is subject to a service
charge. Under the bill, any expiration date, and the amount and terms of any service
charge, must be disclosed conspicuously in writing to the purchaser, must be orally
disclosed to the purchaser, and must be written on the gift obligation. The bill
requires the Department of Agriculture, Trade and Consumer Protection (DATCP)
to promulgate a rule defining the term "conspicuous." The rules must require that
expiration dates be written in at least ten-point type size. The bill also requires
DATCP to promulgate a rule setting forth the service charge terms that must be
disclosed.
The bill authorizes DATCP to bring an action to enjoin persons from these
restrictions. Persons who violate these laws are also subject to forfeitures (civil
penalties) and criminal penalties. In addition, the bill does not preclude these
violations from being prosecuted as unfair methods of competition, unfair trade
practices, or fraudulent representations under existing laws. The bill allows an
individual to bring a civil action for violation of these laws.

For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB459, s. 1 1Section 1. 100.172 of the statutes is created to read:
SB459,2,3 2100.172 Gift certificates, gift cards, and other gift obligations. (1)
3Definitions. In this section:
SB459,2,44 (a) "Conspicuous" has the meaning given by the department by rule.
SB459,2,115 (b) "Gift obligation" means a written or electronic document that is evidence
6of an obligation arising from a transaction between a seller and a purchaser under
7which the seller will provide goods or services at a later date up to the value shown
8on the document. "Gift obligation" includes a gift certificate, a gift card, and an
9on-line gift account. "Gift obligation" does not include any type of obligation or
10transaction where the intent of the obligation or transaction is to not provide a gift
11to a person other than the seller and purchaser.
SB459,2,13 12(2) Restrictions. (a) No person may sell a gift obligation that has an expiration
13date unless all of the following apply:
SB459,2,1614 1. The purchaser of the gift obligation, before the purchase is completed,
15receives a written disclosure stating in a conspicuous manner the expiration date
16and is informed orally of the expiration date.
SB459,2,1717 2. The expiration date is written in a conspicuous manner on the gift obligation.
SB459,2,1918 (b) No person may sell a gift obligation to which a service charge applies unless
19all of the following apply:
SB459,3,3
11. The purchaser of the gift obligation, before the purchase is completed,
2receives a written disclosure that states in a conspicuous manner the terms and
3amount of the service charge and is informed orally of those terms and amount.
SB459,3,54 2. The terms and amount of the service charge are written in a conspicuous
5manner on the gift obligation.
SB459,3,8 6(3) Rules. (a) The department shall, by rule, define "conspicuous" for purposes
7of this section. The rule shall include a requirement that any expiration date be in
8at least 10-point type size.
SB459,3,109 (b) The department shall promulgate a rule stating the information that must
10be disclosed as terms of a service charge under sub. (2) (b).
SB459,3,12 11(4) Penalties and remedies. (a) The department may exercise its authority
12under ss. 93.14 and 93.15 to investigate violations of this section.
SB459,3,1613 (b) Any person who suffers pecuniary loss because of a violation of this section
14may commence an action for the pecuniary loss. If the person prevails, the person
15shall recover twice the amount of the pecuniary loss, or $200 for each violation,
16whichever is greater, together with costs, including reasonable attorney fees.
SB459,3,2017 (c) The department may commence an action in the name of the state to restrain
18by temporary or permanent injunction a violation of this section. Before entry of final
19judgment, the court may make any necessary orders to restore to any person any
20pecuniary loss suffered by the person because of the violation.
SB459,3,2321 (d) The department or any district attorney may commence an action in the
22name of the state to recover a forfeiture to the state of not less than $100 nor more
23than $10,000 for a violation of this section.
SB459,4,3
1(e) A person who violates this section may be fined not less than $25 nor more
2than $5,000 or imprisoned for not more than one year in the county jail, or both, for
3each violation.
SB459,4,74 (f) This section does not preempt the administration or enforcement of s. 100.18
5or 100.20. Practices in violation of this section may also constitute unfair methods
6of competition or unfair trade practices under s. 100.20 or fraudulent
7representations under s. 100.18.
SB459, s. 2 8Section 2. 165.25 (4) (ar) of the statutes is amended to read:
SB459,4,149 165.25 (4) (ar) The department of justice shall furnish all legal services
10required by the department of agriculture, trade and consumer protection relating
11to the enforcement of ss. 100.171, 100.172, 100.173, 100.174, 100.175, 100.177,
12100.18, 100.182, 100.20, 100.205, 100.207, 100.209, 100.21, 100.28, 100.37, 100.42,
13100.50 and 100.51 and chs. 126, 136, 344, 704, 707, and 779, together with any other
14services as are necessarily connected to the legal services.
SB459, s. 3 15Section 3. 814.04 (intro.) of the statutes is amended to read:
SB459,4,20 16814.04 Items of costs. (intro.) Except as provided in ss. 93.20, 100.172 (4) (b),
17100.30 (5m), 106.50 (6) (i), and (6m) (a), 115.80 (9), 281.36 (2) (b) 1., 767.33 (4) (d),
18769.313, 814.025, 814.245, 895.035 (4), 895.10 (3), 895.75 (3), 895.77 (2), 895.79 (3),
19895.80 (3), 943.212 (2) (b), 943.245 (2) (d), and 943.51 (2) (b), when allowed costs shall
20be as follows:
SB459, s. 4 21Section 4. Initial applicability.
SB459,4,2422 (1) This act first applies to gift obligations, as defined in section 100.172 (1) (b)
23of the statutes, as created by this act, that are sold on the effective date of this
24subsection.
SB459, s. 5 25Section 5. Effective date.
SB459,5,2
1(1) This act takes effect on first day of the 10th month beginning after
2publication.
SB459,5,33 (End)
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