House narrows unclaimed‑property reporting, exempts small gift certificates under $25

The Utah House approved a first substitute to House Bill 76 on Feb. 9 that adjusts how unclaimed property law treats small‑value gift certificates. Representative John L. Ballantine, sponsor of the substitute, said the change creates a de minimis threshold so very small gift certificates — under $25 — are exempted from state unclaimed‑property collection requirements.

"This bill therefore would be, if passed by both bodies, to alleviate that record keeping responsibility on those small accounts, those very small ones as it relates only to gift certificates," Ballantine told colleagues on the floor. He said the first substitute limits the administrative burden on small merchants while preserving recovery for larger balances.

Members questioned the policy tradeoffs and drafting choices. Representative France asked why the $25 figure was chosen and whether other small intangible balances (for example, small credit balances) should be treated the same. Ballantine said the $25 threshold reflected the agency's administrative practice and an intentional narrowing of scope to reduce the fiscal note, noting the original proposal carried an estimated $220,000 fiscal impact that sponsors reduced to roughly $30,000 by limiting the bill's scope.

Opponents and cautious members flagged bookkeeping burdens for businesses and the potential need to expand the exemption if other trivial balances are to be treated similarly. Sponsors said the narrower threshold was intended to strike a practical balance between state recovery and merchant burden.

The House passed the bill 71 yes, 1 no. The measure now goes to the Senate.