DENVER -- Fees that chip away at the value of gift cards would be banned under a bill two state lawmakers plan to introduce next year.

The bill is being drafted by Rep. Debbie Benefield and Sen. Lois Tochtrop and has the backing of Gov. Bill Ritter. It is expected to be introduced during the next Legislative session, which begins in January.

“This legislation is critical when it comes to protecting Colorado consumers,” Benefield said in a statement. “Gift cards are given to our loved ones with the best intentions, and it’s important we make sure they don't become the gift that keeps on taking.”

The proposed new law would ban often-hidden fees that can drain a card’s value. Companies would no longer be able to charge fees for using, or not using, a card, for checking the balance, or even for simply activating the card. The result would be that gift cards would retain their full value over time.

In addition, consumers would be able to receive cash back when their card balance goes below $5.

“Gifts cards make an excellent gift to give or receive, and if you buy a $25 gift card today, it should still be a $25 gift card a year or two from now,” Ritter said. “Unfortunately for consumers, under current law that isn’t the case. Giant card companies and merchants are able to quietly chip away at the value by deducting fees and costs for non-use. It’s time to stand up for Colorado consumers and put an end to that.”

The bill won't stop cards from expiring because a new proposed federal rule would give consumers at least five years to use gift cards before they expire.