DES MOINES -- Gift cards seem simple enough, but some retailers choose to add fine print about expiration dates and fees.

An Iowa Senate proposal would ban some of the stipulations in fine print, requiring that the cards never expire and never be reduced from their initial value. The measure was recommended Wednesday by the Senate Commerce Committee in a 9-3 vote.

"Present law doesn't do enough," said Sen. Steve Warnstadt, D-Sioux City, the committee chairman.

Opponents argued that the bill clashes with current law and creates an unfair burden for businesses.

"I just think that's an imposition beyond anything we should be doing," said Sen. Steve Kettering, R-Lake View.

Those concerns aren't shared by consumers like Laura Selken of Fort Madison. She said she likes the convenience of gift cards, but she doesn't like the restrictions placed by some retailers.

"I get a lot of gift cards - and expiration dates were a real issue," she said.

The bill includes an exception for gift cards that are given away as charitable prizes or as part of a promotion. Those cards would could still have expiration dates or other conditions that would reduce the face value.

One of the more complicated parts of the measure is how it works with current law. Right now, if a gift card is purchased in Iowa and not redeemed for three years, businesses are required to declare the cash value as unclaimed property and transfer it to the Iowa Treasurer's Office. That adds up to about $500,000 per year.

Opponents of the bill say retailers would be in a bind if a customer tries to redeem a gift card after three years. Supporters say this is unlikely to happen often, but if it does, retailers would be able to get the money back from the Treasurer's Office

The Treasurer's Office helped write the bill. The office handles about 100 complaints per year from consumers about gift cards, but Deputy Treasurer Steve Larson thinks the number of affected customers is much higher.

"Customers who are not sophisticated just walk out of the store mad" and don't make a formal complaint, he said.

If the bill becomes law, Iowa would join more than 30 states that either ban expiration dates or say a certain amount of time must pass before expiration is legal.

Dan Gearino can be reached at 515-243-0138 and dan.gearino@lee.net.