House 4990

WEST virginia legislature

2026 regular session

Committee Substitute

for

House Bill 4990

By Delegates Brooks, Martin, Vance, Kyle, Roop, Mallow, Marple, Hornby, Pritt, Ferrell, and B. Smith

[Originating in the Committee on the Judiciary; Reported on February 13, 2026]

A BILL to amend the Code of West Virginia, 1931, as amended, by adding a new article, designated §61-4A-1 and §61-4A-2, relating to providing definitions; and creating new misdemeanor and felony crimes relating to gift cards and  creating criminal penalties and fines for these newly created crimes.

Be it enacted by the Legislature of West Virginia:

Article 4a. crimes involving gift cards.

§61-4A-1. Definitions.

(a) As used in this article:

"Cardholder" means any person or party to whom a physical or virtual gift card is issued through a purchase, or receives a gift card from a willing party.

"Card issuer" means any person that issues a gift card or the agent of that person with respect to that card.

"Closed-Loop Gift Card" means a card, code, or device that is issued to a consumer on a prepaid basis primarily for personal, family, or household purposes in a specified amount, regardless of whether that amount may be increased or reloaded in exchange for payment; and is redeemable upon presentation by a consumer at a single merchant or group of affiliated merchants.

"Gift Card" means a physical or digital "closed-loop gift card" or "open-loop gift card" that is either activated or inactivated.

"Gift Card Redemption Information" means information unique to each gift card which allows the cardholder to access, transfer, or spend the funds on that gift card.

"Open-Loop Gift Card" means a card, code, or device that is issued to a consumer on a prepaid basis primarily for personal, family, or household purposes in a specified amount, regardless of whether that amount may be increased or reloaded in exchange for payment; and is redeemable upon presentation at multiple unaffiliated merchants for goods or services within the payment card network.

"Gift Card Seller" means a merchant that is engaged in the business of selling open-loop or closed-loop gift cards to consumers.

"Value" means the greatest amount of economic loss the owner of the property might reasonably suffer including, in the case of a gift card, the full monetary face value or potential value for variable load gift cards.

§61-4A-2. Crimes involving gift cards.

(a) Any person who, with intent to defraud any other person or entity, acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller is guilty of the misdemeanor crime of petit larceny of a gift card and upon conviction thereof, shall be confined in jail for a term not to exceed one year or fined not more than $1,000, or both.

(b) Notwithstanding the provisions of subsection (a) of this section, any person who, with intent to defraud any other person or entity, acquires or retains possession of a gift card or gift card redemption information without the consent of the cardholder, card issuer, or gift card seller and the value exceeds $1,000 in any consecutive six month period is guilty of the felony crime of grand larceny of a gift card in excess of $1,000 and upon conviction thereof shall be imprisoned in a state correctional facility for not less than one nor more than ten years, or, in the discretion of the court, be confined in jail not more than one year and shall be fined not more than $2,500.  The provisions of this subsection are a separate and distinct criminal offense from the provisions of subsection (a) of this section.

(c) Any person who, with intent to defraud any other person or entity, alters or tampers with a gift card or its packaging is guilty of the misdemeanor crime of forgery of a gift card and upon conviction thereof shall be confined in jail for a term not to exceed one year or fined not more than $1,000, or both.

(d) Notwithstanding the provisions of subsection (c) of this section, any person who, with intent to defraud any other person or entity, alters or tampers with a gift card or its packaging and the value exceeds $1,000 in any consecutive six month period is guilty of the felony crime of forgery of a gift card in excess of $1,000 and upon conviction thereof shall be imprisoned in a state correctional facility for not less than one nor more than ten years, or, in the discretion of the court, be confined in jail not more than one year and shall be fined not more than $2,500. The provisions of this subsection are a separate and distinct criminal offense from the provisions of subsection (c) of this section.

(e) Any person who, with intent to defraud any other person or entity, devises a scheme to obtain a gift card or gift card redemption information from a card holder, card issuer, or gift card seller by means of false or fraudulent pretenses, representations, or promises, is guilty of the misdemeanor crime of forgery of a gift card and upon conviction thereof shall be confined in jail for a term not to exceed one year or fined not more than $1,000, or both.

(f) Notwithstanding the provisions of subsection (e) of this section, any person who, with intent to defraud any other person or entity, devises a scheme to obtain a gift card or gift card redemption information from a card holder, card issuer, or gift card seller by means of false or fraudulent pretenses, representations, or promises, and the value exceeds $1,000 in any consecutive six month period, is guilty of the felony crime of forgery involving a gift card in excess of $1,000 and upon conviction thereof, shall be imprisoned in a state correctional facility for not less than one nor more than ten years, or in the discretion of the court, be confined in jail not more than one year and shall be fined not more than $2,500. The provisions of this subsection are a separate and distinct criminal offense from the provisions of subsection (e) of this section.

NOTE: The purpose of this bill is to create the crime of gift card fraud, providing definitions, and establishing punishments.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.