Bill Would Give State Unused Gift Card Money (MD)

WBALTV.COM ^ | 2-5-09

[JZelle]

ANNAPOLIS, Md. -- Annapolis lawmakers are introducing a bill that would allow for the collection of money from unspent gift cards to put into the state treasury.

Nationally, gift cards are a $59 billion industry. Experts estimate that 6 percent of gift cards go unspent in Maryland. The bill would allow the state to claim 70 percent of that unused money and use the cash to fund education.

"To me, this is a no-brainer. If you haven't used your gift card for four years, you are not going to use it, and why can't we share? The bill states we keep 70 percent of it, and retailers keep 30 percent," said Delegate Joseline Pena-Melnyk, D-Anne Arundel and Prince George's counties.

Thirty-two states have a similar law. Some of them keep 100 percent of the unspent gift card money, 11 News reporter David Collins said. But state retailers, grocers and the hospitality industry oppose the measure.

"The money belongs to the person. It doesn't belong to the state. It is sort of an indirect taxation -- this bill. This was money that was given to somebody, and if they choose not to spend it in a certain time period, it's still their money," said lobbyist Bruce Bereano.

International consulting firm Towergroup noted in a report that retailers don't generate revenue from gift cards until they are used or declared dormant. However, the money used to purchase the cards generates interest for the business.

The report cited Best Buy as an example. It said the store moved $39 million from liability to income in 2005 due to unredeemed gift cards.

[kittymyrib]

I’d like a list of the 32 states that think they are entitled to someone’s gift money. If my state is on that list, I will give cash gifts instead of gift cards in the future.

[pgkdan]

"To me, this is a no-brainer. If you haven't used your gift card for four years, you are not going to use it, and why can't we share? The bill states we keep 70 percent of it, and retailers keep 30 percent," said Delegate Joseline Pena-Melnyk, D-Anne Arundel and Prince George's counties.

WHAT THE HELL????? How does this moron think she has ANY claim whatsoever to this money???

[Leftism is Mentally Deranged]

Just the government seizing privately held assets. They already to this with bank accounts.
The left can’t wait to get its red hands on our bank accounts. They HATE private property (see the communist manifesto) They HATE the idea that any citizen can actually keep the money that he has earned or that any business can make a profit.

[DesertRhino]

Wow,,,just wow. Yes, that’s exactly why,,,because it’s not your money.

[Oldpuppymax]

Soooooo theft by an individual (unless a democrat) is illegal. Theft by Big Brother is perfectly fine. OK, now it’s clear.

[JackOfVA]

It has been the law for centuries that dormant bank accounts escheated to the state. Escheat is an old concept at common law that deals with property without an apparent owner—in essence at common law “someone” must own all property and there can be no ownerless property.

In the case of a dormant bank account, the state is supposed to try and locate the owner and his heirs so as to turn the property over to the lawful owner(s). If no owner is found within the specified time, the state keeps it.

In the case of the store cards, there’s arguably a case that the store is the residual owner, if that’s what the gift card contract provides and if the original owner can’t be located, which one would expect is normally the case for an old gift card. Of course, the entire concept of “contract” between the store upon which the card is based and the purchaser and the card holder (not the same person as the card purchaser) is murky to say the least, particularly considering the number of parties involved, as the card might be purchased at yet another store.

When I was practicing law and had a major cellular operator as client, I was concerned that the pre-paid phone cards with residual value after the expiration date would escheat to the state, and it seems that may well be happening now.

Jack

[allmost]

I'm familiar with the concept of escheat. I'm also familiar with the two nameless Outback Steakhouse gift cards I've been saving for a certain person. They are in fact nameless, wholly transferable, and nearly two years old. I intend to use them, when I feel the time is right. Looks like the government's got other ideas. Escheat usually refers to death, confiscation, or intentional abandonment. There is no way to monitor gift cards in this fashion. This is a stretch, a very sneaky but significant one, of government power. Creeping socialism that's been sprinting as of late.

[JackOfVA]

Creeping socialism that's been sprinting as of late.

More of a full gallop.

Jack

[Trailerpark Badass]

"To me, this is a no-brainer. If you haven't used your gift card for four years, you are not going to use it, and why can't we share? The bill states we keep 70 percent of it, and retailers keep 30 percent," said Delegate Joseline Pena-Melnyk, D-Anne Arundel and Prince George's counties.

This is a joke, right?

Someone, please, tell me this is satire, my head's about to explode.

[Trailerpark Badass]

Sheesh! It’s like they’re daring people to revolt!

Seems like that, doesn't it?

But they're probably right, we'll just sit here and take it like suckers.