Bill
SB 1757
SB1757 requires gift certificates issued after enactment to be redeemable in cash for their cash value, changing consumer rights and forcing issuers to handle cash redemptions.
Status and basic timeline
- Introduced Feb 5, 2025 (Sen. Rachel Ventura).
- Passed the Senate (3rd reading) May 1, 2025; received by the House and referred to committee (Environmental Regulation / other referrals). As of May 19, 2025, no action recorded in committee. Current procedural notation: Rule 3‑9(a) / Re‑referred to Assignments.
- Bill would amend Section 2SS of the Illinois Consumer Fraud and Deceptive Business Practices Act (815 ILCS 505).
Purpose / intent
- Require that gift certificates (including gift cards, electronic gift cards, stored‑value cards, etc.) issued on or after the bill’s effective date be redeemable for cash for their “cash value.” The change is intended to protect consumers by allowing them to receive cash for remaining balances on gift instruments.
Key provisions and changes
- Adds a new provision (subsection d‑5) stating: any gift certificate issued on or after the effective date of this amendatory Act shall be redeemable in cash for its cash value.
- Retains existing definitions and rules in Section 2SS, including:
- Definition of “gift certificate” to include physical and electronic cards, stored‑value records, microprocessor/magnetic stripe cards, credit slips, etc.
- Requirements (effective Jan 1, 2008) that gift certificates: not expire earlier than 5 years after issuance; disclose any post‑purchase fees (amount, frequency, inactivity trigger) conspicuously on the certificate; and not have face value reduced or penalize holders for non‑use if issued after Jan 1, 2008.
- For gift certificates issued prior to Jan 1, 2008, specified disclosure exceptions (toll‑free number and balance/expiration info).
- Exclusions: the cash‑redemption rule does NOT apply to:
1. Certificates distributed under awards, loyalty, or promotional programs when no money/thing of value was exchanged for the certificate.
2. Certificates sold below face value at volume discount to employers or nonprofit/charitable organizations for fundraising if the expiration date is no more than 30 days after sale.
3. Certificates issued for a food product.
Who is affected
- Consumers: would gain the right to redeem gift certificates/cards for cash once the instruments are issued after the bill’s effective date.
- Retailers, third‑party gift card issuers, small businesses and payment processors: would need to implement cash‑redemption practices (procedures, point‑of‑sale processes, cash management). This may increase administrative/cash handling burdens and reduce revenue from breakage (unused balances).
- Promotional programs and certain fundraising/food product certificates are expressly excluded.
Important notes and gaps
- The bill does not specify a minimum balance threshold for cash redemption (some jurisdictions restrict cashing very low balances). It also does not define “cash value” beyond the ordinary meaning (i.e., the remaining balance).
- Effective date language: the requirement applies to gift certificates “issued on or after the effective date of this amendatory Act,” but the bill does not set a calendar effective date in the text provided.
Overall effect
- SB1757 would strengthen consumer protection by giving consumers a cash‑out option for gift certificates issued after enactment, while preserving several existing consumer protections and specific exemptions for promotional and fundraising instruments. Businesses issuing gift certificates would need to adapt operations to accommodate cash redemptions.
Compiled from official sources — confirm details with the bill’s official record.
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