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SB0437 • 2026

Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards

Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards

Crime
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Senator Folden
Last action
2026-05-12
Official status
Approved by the Governor - Chapter 456
Effective date
2026-10-01

Plain English Breakdown

The official source material does not provide specific details on how the value of a gift card is determined if no amount is listed, leaving some uncertainty.

Gift Card Theft and Forgery Law

This law sets rules for valuing gift cards in theft cases, prohibits altering or tampering with a gift card's value or packaging to defraud others, and establishes penalties for violators.

What This Bill Does

  • Defines closed-loop and open-loop gift cards.
  • Sets the value of a gift card based on its listed amount or $100 if no amount is shown.
  • Prohibits altering or tampering with a gift card's value or packaging to defraud another person.
  • Establishes that violators can be charged with misdemeanor gift card forgery and face up to 18 months in jail, a $500 fine, or both.

Who It Names or Affects

  • People who commit theft involving gift cards
  • Merchants and businesses dealing with gift cards

Terms To Know

Closed-loop gift card
A prepaid card that can only be used at a single merchant or group of affiliated merchants.
Open-loop gift card
A prepaid card that is payment network branded and can be used at multiple unaffiliated merchants.

Limits and Unknowns

  • The law does not specify how to determine the value of a gift card if it has no listed amount.
  • It remains unclear what constitutes 'tampering' with a gift card's packaging.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

453926/1

None

Favorable with Amendments { 453926/1 Adopted

Plain English: AMENDMENT TO SENATE BILL 437 (First Reading File Bill) On page 3, in line 11, after “(I)” insert “1.”; in the same line, after the first “THE” insert “HIGHEST”; in the same line, strike “ REPRESENTED” and substitute “LISTED”; in the same line, strike “ THE FACE OF ”; in the same line, strike the semicolon and substitute “OR ITS PACKAGING; OR 2.

  • AMENDMENT TO SENATE BILL 437 (First Reading File Bill) On page 3, in line 11, after “(I)” insert “1.”; in the same line, after the first “THE” insert “HIGHEST”; in the same line, strike “ REPRESENTED” and substitute “LISTED”; in the same line, strike “ THE FACE OF ”; in the same line, strike the semicolon and substitute “OR ITS PACKAGING; OR 2.
  • $100, IF NO VALUE IS LISTE D ON THE GIFT CARD OR ITS PACKAGING; OR”; and strike beginning with “THE” in line 12 down through “(III)” in line 14.
  • SB0437/453926/1 BY: Judicial Proceedings Committee

Bill History

  1. 2026-05-12 Post Passage

    Approved by the Governor - Chapter 456

  2. 2026-04-02 House

    Favorable Report by Judiciary

  3. 2026-03-18 House

    Third Reading Passed (120-0)

  4. 2026-03-17 House

    Favorable Adopted Second Reading Passed

  5. 2026-03-17 Senate

    Returned Passed

  6. 2026-03-09 Senate

    Favorable with Amendments Report by Judicial Proceedings

  7. 2026-03-01 House

    Referred Judiciary

  8. 2026-02-27 Senate

    Third Reading Passed (45-0)

  9. 2026-02-25 Senate

    Favorable with Amendments { 453926/1 Adopted

  10. 2026-02-25 Senate

    Second Reading Passed with Amendments

  11. 2026-02-09 Senate

    Hearing canceled

  12. 2026-02-09 Senate

    Hearing 2/11 at 2:00 p.m.

  13. 2026-02-02 Senate

    Hearing 2/11 at 1:00 p.m.

  14. 2026-01-30 Senate

    First Reading Judicial Proceedings

  15. Maryland General Assembly

    Text - First - Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards

  16. Maryland General Assembly

    Vote - Senate - Committee - Judicial Proceedings

  17. Maryland General Assembly

    Text - Third - Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards

  18. Maryland General Assembly

    Vote - House - Committee - Judiciary

  19. Maryland General Assembly

    Text - Chapter - Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards

Official Summary Text

Providing for the valuation of a gift card for the purpose of determining value for crimes involving theft; prohibiting a person, with the intent to defraud another, from altering or tampering with a gift card or its packaging; and providing that a person who violates the Act is guilty of a misdemeanor or gift card forgery and on conviction is subject to imprisonment of up to 18 months or a fine of up to $500 or both.

Current Bill Text

Read the full stored bill text
EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*sb0437*

SENATE BILL 437
E1 6lr2760
CF HB 752
By: Senator Folden
Introduced and read first time: January 30, 2026
Assigned to: Judicial Proceedings
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: February 25, 2026

CHAPTER ______

AN ACT concerning 1

Criminal Law – Theft and Fraud Crimes – Valuation and Forgery of Gift Cards 2

FOR the purpose of providing for the valuation of a gift card for the purpose of determining 3
value for crimes involving theft; prohibiting a person, with the intent to defraud 4
another, from altering or tampering with a gift card or its packaging; and generally 5
relating to crimes involving gift cards. 6

BY repealing and reenacting, without amendments, 7
Article – Commercial Law 8
Section 14–4901(a), (b), and (e) 9
Annotated Code of Maryland 10
(2025 Replacement Volume) 11

BY repealing and reenacting, without amendments, 12
Article – Criminal Law 13
Section 7–103(a) and (b) 14
Annotated Code of Maryland 15
(2021 Replacement Volume and 2025 Supplement) 16

BY adding to 17
Article – Criminal Law 18
Section 7–103(h) and 8–409 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2025 Supplement) 21

2 SENATE BILL 437

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2

Article – Commercial Law 3

14–4901. 4

(a) In this subtitle the following words have the meanings indicated. 5

(b) “Closed–loop gift card” means a card, code, or device that is: 6

(1) Issued to a consumer on a prepaid basis primarily for personal, family, 7
or household purposes in a specified amount, regardless of whether that amount may be 8
increased or reloaded in exchange for payment; and 9

(2) Redeemable on presentati on by a consumer at a single merchant or a 10
group of affiliated merchants. 11

(e) “Open–loop gift card” means a card, code, or device that is: 12

(1) Issued to a consumer on a prepaid basis primarily for personal, family, 13
or household purposes in a specified amount, regardless of whether that amount may be 14
increased or reloaded in exchange for payment; 15

(2) Payment card network branded; and 16

(3) (i) Redeemable on presentation at multiple unaffiliated merchants 17
for goods or services within the payment card network; or 18

(ii) Usable at an automated teller machine. 19

Article – Criminal Law 20

7–103. 21

(a) In this section, “value” means: 22

(1) the market value of the property or service at the time and place of the 23
crime; or 24

(2) if the market value cannot satisfactorily be ascertained, the cost of the 25
replacement of the property or service within a reasonable time after the crime. 26

(b) Except as provided in § 7–104.1 of this subtitle, the value of property or service 27
under this part shall be determined in accordance with this section. 28

SENATE BILL 437 3

(H) (1) (I) IN THIS SUBSECTION TH E FOLLOWING WORDS HA VE THE 1
MEANINGS INDICATED. 2

(II) “CLOSED–LOOP GIFT CARD” HAS THE MEANING STATED IN 3
§ 14–4901 OF THE COMMERCIAL LAW ARTICLE. 4

(III) 1. “GIFT CARD” MEANS AN OPEN–LOOP GIFT CARD OR A 5
CLOSED–LOOP GIFT CARD. 6

2. “GIFT CARD” DOES NOT INCLUDE: 7

A. A CREDIT CARD; 8

B. AN ELECTRONIC FUNDS TRANSFER; OR 9

C. MONEY, A CHECK, A DRAFT, OR ANY OTHER SIMILAR 10
PAPER INSTRUMENT. 11

(IV) “OPEN–LOOP GIFT CARD ” HAS THE MEANING STATED IN § 12
14–4901 OF THE COMMERCIAL LAW ARTICLE. 13

(2) THE VALUE OF A GIFT CARD IS THE GREATEST OF: 14

(I) 1. THE HIGHEST VALUE REPRESENTED LISTED ON THE 15
FACE OF THE GIFT CARD; OR ITS PACKAGING; OR 16

2. $100, IF NO VALUE IS LISTE D ON THE GIF T CARD OR 17
ITS PACKAGING; OR 18

(II) THE VALUE THAT A DEFENDANT WHO IS ALLEGED TO HAVE 19
VIOLATED THIS SUBTITLE REPRESENTED THE VALUE OF THE GIFT CARD TO BE; OR 20

(III) THE AMOUNT OF LOSS I NCURRED BY ANY PERSO N 21
INVOLVING THE USE OF THE GIFT CARD. 22

8–409. 23

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 24
INDICATED. 25

(2) “CLOSED–LOOP GIFT CARD ” HAS THE MEANING STAT ED IN § 26
14–4901 OF THE COMMERCIAL LAW ARTICLE. 27

4 SENATE BILL 437

(3) (I) “GIFT CARD ” MEANS AN OPEN –LOOP GIFT CARD OR A 1
CLOSED–LOOP GIFT CARD. 2

(II) “GIFT CARD” DOES NOT INCLUDE: 3

1. A CREDIT CARD; 4

2. AN ELECTRONIC FUNDS TRANSFER; OR 5

3. MONEY, A CHECK, A DRAFT, OR ANY OTHER SIMILAR 6
PAPER INSTRUMENT. 7

(4) “OPEN–LOOP GIFT CARD ” HAS THE MEANING STAT ED IN § 8
14–4901 OF THE COMMERCIAL LAW ARTICLE. 9

(B) A PERSON MAY NOT, WITH THE INTENT TO D EFRAUD ANOTHER, ALTER 10
OR TAMPER WITH A GIFT CARD OR ITS PACKAGING. 11

(C) A PERSON WHO VIOLATES THIS SECTION IS GUIL TY OF THE 12
MISDEMEANOR OF GIFT CARD FORGERY AND ON CONVICTION IS SUBJEC T TO 13
IMPRISONMENT NOT EXCEEDING 18 MONTHS OR A FINE NOT EXCEEDING $500 OR 14
BOTH. 15

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2026. 17

Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.