SB 5644
In CommitteeSenate
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 crimes for stealing, using, and defrauding gift cards and related information, with penalties tied to the value of the card. It also updates definitions and expands forgery laws to cover tampering with gift cards.
- Creates new criminal offenses for theft of a gift card and unlawful use of a gift card, with penalties based on value: first-degree (class B felony) for over $5,000, second-degree (class C felony) for over $750 but ≤ $5,000, and third-degree (gross misdemeanor) for $750 or less.
- Adds gift card fraud as a new class C felony for schemes using false or fraudulent pretenses to obtain gift cards or redemption information.
- Expands the definition of forgery to include altering or tampering with a gift card or gift card redemption information.
- Amends definitions in Washington’s criminal code to include specific terms for gift cards, closed-loop and open-loop gift cards, gift card redemption information, card issuer, cardholder, and gift card seller.
- Includes gift card theft and unlawful use in the state’s seriousness level classification table for sentencing purposes (e.g., *Theft of a Gift Card 1* and *Unlawful Use of a Gift Card 1* at Level II).
Who is affected
- Gift card users (consumers) — Individuals who buy or receive gift cards may be at higher risk of theft or fraud if someone uses deceptive means to obtain their gift card information or physical card.
- Retailers and gift card sellers — Businesses that sell gift cards may face increased risks of fraud, theft, or financial loss due to misuse of gift cards or redemption information.
- Gift card issuers — People who issue gift cards (e.g., banks, retailers, third-party providers) may need to strengthen security measures to prevent unauthorized access or tampering.
- Individuals accused of gift card-related crimes — People accused of stealing, using, or defrauding others of gift cards may face new or enhanced criminal penalties depending on the value involved.
Pro/Con Analysis
Potential Benefits (5)
Creates new criminal penalties for gift card theft, use, and fraud, which may deter opportunistic or organized theft of gift cards—especially from vulnerable populations like seniors or low-income individuals who rely on gift cards for budgeting or transportation. Gift cards are often used by families with limited means to manage household expenses, so reducing fraud could protect modest budgets.
Public SafetyPeopleRef: Sec. 2(1); Sec. 2(2); Sec. 4Protects consumers (especially low- and middle-income households) from small-scale but frequent fraud that could deplete limited funds. A $200 gift card stolen via fraud could represent a week’s groceries for a working family; criminalizing such acts may provide psychological and financial reassurance to everyday users.
Public SafetyPeopleRef: Sec. 2(1)(c); Sec. 2(2)(c); Sec. 5 (adding Theft of a Gift Card 3 and Unlawful Use of a Gift Card 3 to Level III)Clarifies and strengthens legal tools for prosecutors to address gift card fraud, which has become more prevalent with digital gift card sales and phishing schemes. This may improve law enforcement’s ability to investigate and prosecute cases involving identity theft or coordinated fraud rings.
Public SafetyRef: Sec. 3 (amending forgery to include gift card tampering); Sec. 4 (gift card fraud as class C felony)Provides clear statutory definitions for gift cards, closed-loop/open-loop cards, redemption information, and related terms—reducing ambiguity for law enforcement, courts, and businesses. This improves consistency in enforcement and reduces potential for arbitrary application.
Public SafetyRef: Sec. 1(24)-(30) (new definitions)Aligns gift card theft and use with existing seriousness levels in the sentencing grid, ensuring proportionality in punishment and enabling consistent sentencing across jurisdictions. This promotes fairness and predictability in the justice system.
Public SafetyRef: Sec. 5 (adding Theft of a Gift Card 1/2 and Unlawful Use of a Gift Card 1/2 to seriousness levels II and III); Sec. 2(1)(a)-(b); Sec. 2(2)(a)-(b)
Potential Concerns (5)
Increases criminal penalties for low-value gift card theft and use (gross misdemeanors), potentially increasing jail time and court costs for low-income individuals who may not have means to hire legal counsel or post bail. While the bill frames this as protecting consumers, gross misdemeanors can lead to job loss, housing instability, and long-term collateral consequences for people with limited resources.
Public SafetyRef: Sec. 2(1)(c); Sec. 2(2)(c); Sec. 5 (adding Theft of a Gift Card 3 and Unlawful Use of a Gift Card 3 to Level III of seriousness classification)Creates a tiered felony structure for gift card offenses that could disproportionately impact people of color and low-income individuals due to racial and socioeconomic disparities in policing and sentencing. The bill does not include safeguards against overcriminalization or racial bias in enforcement, and the penalties escalate quickly (e.g., $751 vs. $750 triggers a class C felony).
Public SafetyRef: Sec. 5 (adding Theft of a Gift Card 1/2 and Unlawful Use of a Gift Card 1/2 to seriousness levels II and III); Sec. 2(1)(a)-(b); Sec. 2(2)(a)-(b)May increase state correctional and court costs due to new or enhanced felony and gross misdemeanor charges, especially for higher-value offenses. While the fiscal impact is not quantified, the bill explicitly adds new offenses to the sentencing grid, which historically correlates with increased incarceration and associated public costs. These costs are ultimately borne by taxpayers, including everyday Washingtonians.
Public SafetyRef: Fiscal Impact section (not in bill text but in summary); Sec. 5 (adding new offenses to seriousness levels)Expands forgery and fraud statutes to cover gift card tampering and schemes, which could lead to overbroad application or misuse of prosecutorial discretion—particularly where intent to defraud is difficult to prove and may rely on circumstantial evidence. This risks criminalizing minor or ambiguous conduct, especially among vulnerable populations.
Public SafetyRef: Sec. 3 (amending RCW 9A.60.020(1)(c) to include tampering with gift cards); Sec. 4 (new gift card fraud offense)Criminalizes low-value gift card misuse (≤$750) as a gross misdemeanor, which may not meaningfully reduce gift card fraud but could increase incarceration and associated harms (e.g., lost wages, child custody issues) for low-income individuals. Empirical evidence suggests that low-level property crime prosecutions rarely reduce recidivism or improve public safety outcomes.
Public SafetyRef: Sec. 2(1)(c); Sec. 2(2)(c)
Who Is Most Affected
Consumers—especially low- and middle-income individuals—may benefit from reduced fraud and increased confidence in gift card use, but could face collateral consequences if falsely accused or prosecuted for minor offenses. Gift cards are commonly used by families on tight budgets for budgeting, gifting, or transportation (e.g., bus passes), so protection matters, but overcriminalization risks outweigh benefits for many.
Retailers and gift card sellers may benefit from reduced fraud losses and clearer legal recourse, but small businesses may lack resources to monitor or prosecute fraud. Larger retailers may benefit more due to legal infrastructure and insurance, while small mom-and-pop shops may see little practical gain despite bearing the same risk.
Gift card issuers (e.g., banks, third-party providers) may benefit from stronger legal tools to combat fraud and recover losses, especially for high-value open-loop cards. However, the bill does not require issuers to adopt security measures, so benefits are largely reactive rather than preventive.
Individuals accused of gift card crimes—particularly low-income, mentally ill, or justice-involved people—face heightened risk of incarceration for minor offenses. The bill does not include diversion, restorative justice, or mental health alternatives, increasing the likelihood of harsh penalties for non-violent, low-value conduct.