HB 1744
In CommitteeHouse
Gift card criminal conduct
Deterring criminal conduct involving gift cards.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill creates new criminal offenses for stealing, using, or defrauding gift cards—including theft, unlawful use, and fraud—and updates definitions and penalties to better address modern gift card fraud. It also adds these crimes to Washington’s sentencing severity levels.
- Creates new criminal offenses: 'theft of a gift card' and 'unlawful use of a gift card', with penalties based on the card’s value (e.g., over $5,000 = class B felony; under $750 = gross misdemeanor).
- Adds 'gift card fraud' as a separate class C felony offense for schemes using false pretenses to obtain gift cards or redemption information.
- Expands the definition of 'forgery' to include tampering with or altering gift cards or gift card redemption information.
- Clarifies legal definitions related to gift cards—including 'closed-loop' vs. 'open-loop' cards, 'gift card redemption information', and 'cardholder'—to support enforcement.
- Includes gift card theft and unlawful use in the state’s sentencing severity levels (Table 2), allowing courts to apply standard sentencing guidelines.
Who is affected
- Gift cardholders — People who receive or use gift cards (e.g., as gifts or for personal spending) may be at higher risk of fraud if their gift card information is stolen or misused, and may need to take extra precautions to protect their cards.
- Gift card sellers — Businesses that sell gift cards (e.g., grocery stores, pharmacies, big-box retailers) may face increased liability or fraud losses and will need to train staff to recognize and prevent gift card fraud.
- Gift card issuers — Companies that issue gift cards (e.g., banks, prepaid card providers, or large retailers with branded cards) may need to update security protocols and fraud monitoring systems to comply with new laws.
- Potential or actual offenders — People who commit or attempt gift card theft or fraud may face new or enhanced criminal penalties, including higher-level felony charges depending on the value of the cards involved.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
The bill strengthens protections for everyday gift card users—especially seniors, low-income individuals, and those on fixed incomes—who rely on gift cards for budgeting or as gifts and are vulnerable to fraud, especially digital scams or card skimming.
Public SafetyPeopleRef: Sec. 2(1), Sec. 2(2), Sec. 4By defining gift card fraud as a class C felony and adding theft/unlawful use to sentencing severity levels, the bill enables courts to apply structured sentencing and may deter organized fraud rings that target vulnerable populations through bulk gift card theft or phishing.
Public SafetyPeopleRef: Sec. 2(1), Sec. 2(2), Sec. 4The bill’s clarification of “gift card redemption information” and “cardholder” helps law enforcement investigate digital gift card scams (e.g., email-based redemption code theft), which disproportionately affect people with limited tech literacy or non-English speakers.
Public SafetyLean peopleRef: Sec. 2(1), Sec. 2(2), Sec. 4The bill may reduce financial losses for small businesses and nonprofits that sell gift cards as fundraising tools—many of which operate on thin margins and could be harmed by fraud losses they cannot absorb.
Public SafetyLean peopleRef: Sec. 2(1), Sec. 2(2), Sec. 4By including gift card tampering in the forgery statute and creating a standalone gift card fraud offense, the bill closes a gap in existing fraud laws and enables prosecutors to pursue cases that previously may have been dismissed or downgraded due to jurisdictional or evidentiary issues.
Public SafetyLean peopleRef: Sec. 3(1)(c), Sec. 4
Potential Concerns (5)
The bill creates new criminal offenses for low-value gift card crimes (gross misdemeanors), which may increase the burden on local law enforcement, courts, and jails for relatively minor offenses—particularly for low-income individuals who may face incarceration for inability to pay fines or court costs.
Public SafetyRef: Sec. 2(1)(c), Sec. 2(2)(c), Sec. 4The bill may disproportionately impact people experiencing poverty or mental health crises, who are statistically more likely to be involved in low-value thefts; without diversion or treatment options, the bill could increase incarceration rates for nonviolent offenses.
Public SafetyRef: Sec. 2(1)(a)-(c), Sec. 2(2)(a)-(c), Sec. 4The bill may increase costs for counties through expanded prosecution, public defense, and corrections, especially where local jails house pretrial detainees or serve sentences for gross misdemeanors—costs that are not fully reimbursed by the state.
Local GovernmentRef: Fiscal Impact section (not in bill text), Sec. 5 (adding offenses to Table 2)The bill does not include safeguards against overcriminalization—e.g., no requirement to prove intent beyond reasonable doubt in all elements, and no exclusion for minor or de minimis conduct—potentially expanding the scope of criminal liability for low-level conduct.
Rights & LibertiesRef: Sec. 2(1), Sec. 2(2), Sec. 4The bill criminalizes gift card theft and use at the gross misdemeanor level (up to 364 days in jail), but does not distinguish between intentional fraud and accidental or confused use (e.g., someone mistakenly using a card they believed was theirs), risking over-punishment for minor mistakes.
Public SafetyRef: Sec. 2(1)(c), Sec. 2(2)(c)
Who Is Most Affected
Low- and middle-income individuals who use gift cards for budgeting, gifting, or payroll (e.g., hourly workers paid via gift cards) benefit from stronger fraud protections and reduced risk of financial loss. However, those arrested for minor gift card offenses (e.g., shoplifting a $20 card) may face jail time and fines that exacerbate poverty.
Small retailers (e.g., gas stations, pharmacies, grocery stores) benefit from clearer legal tools to combat fraud and reduce losses, but may face increased compliance costs (e.g., staff training, fraud reporting) and potential liability if fraud occurs on their premises.
Large retailers and banks that issue open-loop cards (e.g., Visa, Mastercard, Amazon, Target) benefit from standardized definitions and stronger enforcement, but may face increased fraud monitoring costs. They are better positioned than small sellers to absorb losses.
People accused of low-value gift card offenses—especially those without legal resources—face higher risk of incarceration, fines, and collateral consequences (e.g., loss of housing, employment). The lack of diversion options increases negative impact.
Local governments (counties, cities) face increased costs for prosecution, public defense, and corrections for gross misdemeanors and class C felonies, with no guaranteed state reimbursement—straining already tight budgets.