Should state let you cash out gift cards?

SPRINGFIELD - Consumers would be able to pocket the last few bucks left on gift cards if a suburban lawmaker gets her way.

Des Plaines Republican state Rep. Rosemary Mulligan proposed a state law that would let shoppers cash out the remaining balances left on gift cards and gift certificates once they drop below $10.

"I don't think it is a big deal to get $10 back," Mulligan said. "It was done in California and was very well received."

Retailers here, however, aren't embracing the idea, calling it a security risk and a nightmare to administer.

Rob Karr, vice president of government affairs for the Illinois Retail Merchant Association, said the requirement would mean stores would need to have more cash on hand, putting cashiers in greater danger of being robbed.

"It would also be a problem for stores to issue cash for reloadable gift cards," said Karr. "Why should the stores be responsible for giving cash back for those?"

Mulligan's proposal went nowhere last year, but she's brought it back with the start of the new legislative session.

She said the idea has newfound importance as more businesses fail and people are possibly stuck with what could be useless gift cards.

Mulligan said businesses wouldn't lose any money under her plan.

"They get the money up front and most people will not use the gift cards right away so they have the use of your money for a while," she said. "How many go unused is a huge number."

Consumer Reports estimated that in 2006 nearly $8 billion in gift cards went unused.

If supported by lawmakers, who resumed their session this week, the cash-out option would begin next year.