OLYMPIA, Wash. — Washington state law prevents gift cards from expiring, but what happens to the unclaimed funds?
In Washington state, corporations are able to keep that revenue thanks to a 2004 loophole passed by state legislators. At the time, corporations were expected to earn about $3 million in unused funds.
That number today is more than $250 million, according to the Federal Security and Exchange Commission.
”We don’t buy gift cards expecting that a large corporation is going to find ways to keep as much of that as they can,” said Sen. Yasmin Trudeau.
Trudeau said those funds should be added to the state’s general fund to be used to help low-income residents, schools, or affordable housing projects. The funds would still be available to gift card purchasers and recipients.
A dozen states require corporations to transfer profits to state general funds, impacting an estimated 70% of the country’s corporations, according to the Washington Consumer Protection Coalition.
”It could go to teachers. It could go to public health. It could go to housing,” said Marcy Bowers from the Statewide Poverty Action Network.
The bill’s backers said they do not know what the Washington state-based corporations impacted by the potential change think about the proposal.
”Those who we know who have the most gift cards include Starbucks, Nordstrom, REI, and we look forward to engaging with them and others to make sure this is implemented in a way that works for the people of Washington and works for their businesses as well,” said Rep. Emily Alvarado.