State Sen. David J. Cappiello, R-Danbury, is proposing legislation that would ensure that gift cards and gift certificates purchased in Connecticut would not be subjected to expiration dates. According to Sen. Cappiello , the purpose of the legislation is to prevent the value of gift cards from escheating to the state. Under current law if a gift card or gift certificate purchased in Connecticut is not used after three years it is presumed abandoned and it's value is escheated to the state.

"It is misleading for the state Treasurer to say that there are no expiration dates on gift cards in Connecticut when after three years the value of these cards is handed over to the state," said Sen. Cappiello. "Unused gift cards and certificates should not be considered 'unclaimed property' like the current law is interpreted. How in the world is someone going to know that they are eligible to claim money from the state on a gift card? The only way that's possible is if personal information is disclosed at the time of purchase, and under no circumstance should we ever allow that to happen. After all, we are talking about simple gift cards that can be used for small purchases and restaurants."

Sen. Cappiello said that the current law places yet another burden on state businesses whose responsibility it is to make sure the value of all unused gift cards is escheated to the state. "In effect the law penalizes businesses if consumers do not use their gift cards. That's ridiculous. The intention of the law we passed last year was to ensure that consumers could use a gift card whenever they saw fit, whether it's five days, five weeks or five years from its purchase. It was not designed for the state to make a profit," said Sen. Cappiello, who was one of the sponsors of the original legislation that eliminated expiration dates and dormancy fees.

Sen. Cappiello said that the practice of escheating values of gift cards to the state might require retailers to obtain personal information at the time of purchase. "I can understand giving personal information when applying for a mortgage or opening a bank account, but not for a gift card. That is an invasion of privacy and leads us down a road where all purchases could someday be tracked."