State Sen. David J. Cappiello's, R-Danbury, legislation to prevent the value of gift cards and gift certificates from escheating to the state has unanimously passed the both chambers of the General Assembly and now goes to
Gov. M. Jodi Rell for final approval. 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.
"Two years ago the legislature passed a law that eliminated expiration dates on gift cards and gift certificates. What many people did not know however is that if these prepaid gifts are not used within three years, the value of these cards is to be turned over to the state. When I buy or receive a gift card I should be able to use it whenever I feel free to do so, whether it's 10 months or 10 years after its purchase. To say that after three years the value of the card is to be handed over to the state would defeat the whole purpose of lifting expiration date and not fair to consumers or businesses," said Sen. Cappiello.
"Unused gift cards and certificates are not 'unclaimed property,'" said Sen. Cappiello. "To treat simple gift cards as such is simply ridiculous. Gift cards should be a convenience that benefits both the consumer and proprietor and something the state really has no business interfering with. I am very pleased this bill passed both chambers and I am hopeful it will sign the bill so no one has to go through the hassle of trying to track down a gift card value with the state Treasurer's office."
Sen. Cappiello said that the law (as it stands now) places yet another burden on state businesses if cards are not used because they would have the responsibility 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 to do away with the expiration dates 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." |
