SB 985, a bill intended to reduce gift-card fraud, was recommended for passage with amendments by the Senate Committee on Commerce and Consumer Protection on Feb. 12, 2025, after more than an hour of public testimony and questions from committee members.

The bill would add a gift-card fraud provision to the states unfair and deceptive practices law and would require merchants and third-party resellers to take steps intended to prevent scams. Committee leaders said they will pass the measure with amendments and defer the effective date to July 1, 2050 to allow additional drafting and discussion before it moves to the Judiciary Committee.

Why it matters: Testimony highlighted that gift-card scams commonly affect older residents and cause substantial financial harm. Supporters said simple retailer measures could deter fraud; retailers warned about costs and urged stronger enforcement and penalties.

During the hearing, a woman identified in the committee roll as Rosie Davis said she was a victim of gift-card fraud and urged the committee to act on behalf of kupuna. "I always thought I wouldn't be somebody that would be affected by it, but I was," Davis said. She recommended more secure packaging and placing cards at cashier stations to reduce theft.

Tina Yamaki, speaking for the Retail Merchants of Hawaii, said her group appreciates the bills intent but opposed the measure as written because of potential retailer costs and limited efficacy. "Having retailers having to put them behind locked cases and stuff, it does cost a lot of money," Yamaki told the committee, and said stronger criminal penalties and enforcement were needed.

Other testifiers included Alexa DeDoy and Rochelle Castro, both of whom spoke in support. Castro, who rejoined the hearing after initial connection problems, told senators that gift-card scams cost Hawaii residents more than $100 million in 2024 and argued that modest retail-cost changes would be warranted to protect vulnerable consumers.

Committee action and next steps: Committee leadership said they would adopt amendments, including changes to penalties requested by the retail merchants and other technical edits, then pass SB 985 with amendments and refer it to Judiciary. The committee recorded its recommendation as "pass with amendments" and deferred the measures effective date to July 1, 2050 for further consideration.

The bill will next be considered by the Judiciary Committee, per the committees referral. Implementation details, including the precise packaging or display requirements and the final penalty structure, were left to the Judiciary Committee and subsequent drafting.

Votes and disposition: The Commerce and Consumer Protection Committee voted to pass SB 985 with amendments; the chair and vice chair recorded aye votes and no objections were registered on the record at the time the recommendation was adopted.

The hearing included numerous written supporters and opponents filed for the record; the Judiciary Committee will receive the amended measure for further review.