Leawood, Kan. – April 7, 2023: Last week, the Indiana House of Representative passed Senate Bill 183 (“SB 183”) with amendment. SB 183 was previously passed by the Senate. SB 183 would 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).
Next, SB 183 will move back to the Senate for approval of the amendments. To read SB 183 click here: Indiana Senate Bill 183.
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