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Bill

SB 5988

Concerning gift certificates as unclaimed property.

2023-2024 Regular Session Introduced by Steve Conway and 13 co-sponsors

SB 5988 redefines when Washington treats unused gift certificates as unclaimed property, affecting how long retailers hold funds before reporting to the state.

Public hearing in the Senate Committee on Ways & Means at 4:00 PM.
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WeVote Research Nonpartisan
Bill Summary · SB 5988

Legislative bill overview

SB 5988 modifies Washington state's unclaimed property laws regarding gift certificates. The bill appears to address how gift certificates are treated when they remain unused for extended periods, specifically defining when they become reportable to the state as unclaimed property.

Why is this important

Gift certificate escheatment directly affects both businesses and consumers. Retailers hold billions in gift certificate liabilities, while states use unclaimed property programs to protect consumer funds; how this balance is struck impacts corporate accounting practices and consumer protections for abandoned funds.

Potential points of contention

  • Business vs. consumer protection balance: Retailers may lobby for longer dormancy periods or exemptions, while consumer advocates want strong protections for forgotten gift cards
  • Definition of "unclaimed": Determining when a gift certificate becomes unclaimed (expiration date vs. inactivity period) creates significant practical and financial implications
  • State revenue considerations: Unclaimed property funds boost state treasuries; stricter requirements benefit businesses but reduce state revenue from dormant gift certificates

Compiled from official sources — confirm details with the bill’s official record.

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