Leawood, Kan. – August 15, 2025: The Maryland Governor recently approved Senate Bill 665 and House Bill 761 (collectively the “Maryland Session Law”). The Maryland Session Law amends the Maryland Abandoned Property Act (the “Act”) to, among other things: specifically exempt gift cards from escheat, escheat virtual currency, and change the definition of last known address. The effective date of the Maryland Session Law is October 1, 2025. 2025 Maryland Laws Ch. 635 §2 (S.B. 665).
Under the Maryland Session Law, Gift Card as it is defined in §14-1320 and Gift Certificate as it is defined in §14-1319 are explicitly excluded from the definition of “Personal Property.” Id at §1, 17-101(q), (j) and (k). Previously, gift certificate was explicitly excluded. Id. It was previously undefined in the Act.
However, Gift Certificate was defined in the Maryland Consumer Protection Act as, “means a device constructed of paper, plastic, or any other material that is: (i) Sold or issued by a person for a cash value that can be used to purchase goods or services; or (ii) Issued as a store credit for returned goods.” MD Code, Commercial Law, § 14-1319(a)(1). But, Gift Certificate does not include a “gift card that: 1.[i]s processed through a national credit or debit card service; and 2.[m]ay be used to purchase goods or services from multiple unaffiliated sellers of goods or services.” Id. at (a)(2)(vi). As a result, it was unclear whether or not open loop and restricted access network cards (RAN) were exempt from unclaimed property reporting.
Gift Card is defined in the Maryland Consumer Protection Act as, “this section applies to a gift card that: (1) Is processed through a national credit or debit card service; and (2) May be used to purchase goods or services from multiple unaffiliated sellers of goods and services.” MD Code, Commercial Law, § 14-1320(a). Therefore, under this new Session Law both Gift Certificate and Gift Card are now explicitly excluded. 2025 Maryland Laws Ch. 635 §1, 17-101(q), (j) and (k). (S.B. 665). Meaning that closed loop gift cards, RAN gift cards, and open loop gift cards are all explicitly excluded.
Virtual Currency is added as a new property and is defined as a “digital representation of value used as a medium of exchange, unit of account, or store of value that does not have legal tender status recognized by the United States.” Id. at §1, 17-101(u)(1). Among other things, specifically exempted from the definition of Virtual Currency is (1) game-related digital content and (2) a loyalty card. Id. at §1, 17–101(u)(2)(ii) and (iii). Virtual Currency is presumed abandoned and does escheat “if it remains unclaimed 5 years after the last indication of apparent owner interest in the property.” Id. at §1, 17-307.2(a).
The Session Law also changed how Maryland determines what information is sufficient to determine the apparent owner’s last known address. Id. at §1, 17-301(b). This includes, “any description, code, or other indication of the location of the apparent owner that identifies a state; and [a]n indication of the location of the apparent owner that identifies a state does not need to be sufficient to direct the delivery of first-class mail to the apparent owner.” Id. at §1, 17–301(b)(1).
The Maryland Session Law further provides that Maryland is deemed to be the state of the last known address of the apparent owner if: (1) the postal zip code associated with the apparent owner is for a post office located in this State; and (2) there are no other records associated with the apparent owner that specifically identify the physical address of the apparent owner to be in another state. Id. at §1, 17–301(b)(2)(i)-(ii). The Session Law also provides that the reverse is true. Maryland is not deemed to be the state of the last known address of the apparent owner if: (1) the postal zip code associated with the apparent owner is for a post office located outside this State; and (2) there are no other records associated with the apparent owner that specifically identify the physical address of the apparent owner to be in this State. Id. at §1, 17–301(b)(3)(i)-(ii). As a result under the Session Law, a postal zip code or a state designation would be sufficient to determine that Maryland is the last known address of the owner. However, as discussed earlier in this article, Gift Cards and Gift Certificates are exempt in Maryland.
The Session Law also provides for other changes to the Act. To view all the amendments to the Abandoned Property Act, click here: Senate Bill 665 and House Bill 761..
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