Leawood, Kan. – May 12, 2023: Last week, the Indiana Governor signed Senate Bill 183 (“SB 183”); it becomes effective on July 1, 2023. SB 183 was previously passed by the House of Representatives and the Senate. SB 183 will amend the Indiana Unclaimed Property Act to create a specific Gift Card exemption from escheat. As you may recall, Indiana adopted its version of the Revised Uniform Unclaimed Property Act (“RUUPA”) in 2021; however, Indiana failed to specifically address gift cards. Prior to adopting RUUPA, Indiana did not require gift cards to be reported as unclaimed property. The Indiana Attorney General did advise holders or companies reporting unclaimed property to continue to exclude gift cards from their unclaimed property holder reports; that directive can be found here.
As it relates to gift cards, the House of Representative amended SB 183 to add the language in bold to the definition of “gift card,” as follows: “[g]ift card means a stored card value: (A) the value of which does not expire; (B) that may be decreased in value only by redemption for merchandise, goods, or services, or due to any fees deducted by the card issuer; and (C) that, unless required by law, may not be redeemed for or converted into money or otherwise monetized by the issuer. The term includes a prepaid commercial mobile radio service (as defined in 47 CFR 20.3).” 2023 IN S.B. 183 § 1(12). Additionally, the definition of “property” would be amended to exclude gift cards. Id. at § 1(24).
About the Compliance Libraries:
The Compliance Libraries provide a one stop location for comprehensive information on the laws, rules and standards regulating gift cards. Its range includes federal and state laws, GAAP accounting standards and tax rules along with other helpful items.
For more information visit www.compliancelibraries.com.
The Compliance Libraries are a service of Card Issuance & Management, Inc., a subsidiary of Card Compliant, LLC.