ASSEMBLY No 3159 STATE OF NEW JERSEY 214th LEGISLATURE

assembly, no. 3159 state of new jersey 214th legislature introduced september 13, 2010 sponsored by: assemblyman pa

ASSEMBLY, No. 3159

STATE OF NEW JERSEY
214th LEGISLATURE

INTRODUCED SEPTEMBER 13, 2010
Sponsored by:
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
SYNOPSIS
Exempts stored value cards usable solely for telephone services from
State’s escheatment processes.
CURRENT VERSION OF TEXT
As introduced.

An Act providing an exemption for stored value cards usable solely for
telephone services from certain unclaimed property processes, and
amending P.L.2002, c.14.
Be It Enacted by the Senate and General Assembly of the State of New
Jersey:
1. Section 5 of P.L.2010, c.25 (C.46:30B-42.1) is amended to read as
follows:
5. a. A stored value card for which there has been no stored value
card activity for two years is presumed abandoned.
b. The proceeds of a stored value card presumed abandoned shall be the
value of the card, in money, on the date the stored value card is
presumed abandoned.
c. An issuer of a stored value card shall obtain the name and address
of the purchaser or owner of each stored value card issued or sold and
shall, at a minimum, maintain a record of the zip code of the owner or
purchaser.
If the issuer of a stored value card does not have the name and
address of the purchaser or owner of the stored value card, the
address of the owner or purchaser of the stored value card shall
assume the address of the place where the stored value card was
purchased or issued and shall be reported to New Jersey if the place
of business where the stored value card was sold or issued is located
in New Jersey.
d. Nothing in this section shall be construed to prevent an issuer
from honoring a stored value card, the unredeemed value of which has
been reported to the State Treasurer pursuant to R.S.46:30B-1 et seq.,
and thereafter seeking reimbursement from the State Treasurer pursuant
to R.S.46:30B-62.
e. This section [does] shall not apply to:
(1) a stored value card that is distributed by the issuer to a person
under a promotional or customer loyalty program or a charitable
program for which no monetary or other consideration has been tendered
by the owner [and this section does not apply to] ;
(2) a stored value card issued by any issuer that in the past year
sold stored value cards with a face value of $250,000 or less. For
purposes of this subsection, sales of stored value cards by businesses
that operate [either (1)] under the same trade name as, or under
common ownership or control with, another business or businesses in
the State[,]; or [(2)] as franchised outlets of a parent business,
shall be considered sales by a single issuer; or
(3) a stored value card that is usable solely for telephone services.
Stored value cards usable solely for telephone services
include, but are not limited to, stored value cards redeemable for
long-distance telephone service, prepaid cards for wireless telephone
service, and prepaid cards for other services that function similarly
to telephone services .
f. The State Treasurer is authorized to grant an exemption from such
provisions concerning stored value cards, on such terms and conditions
as the State Treasurer may require, for a business or class of
businesses that demonstrate good cause to the satisfaction of the
State Treasurer. In exercising his discretion pursuant to this
section, the State Treasurer may consider relevant factors including,
but not limited to, the amount of stored value card transactions
processed, the technology in place, whether or not stored value cards
issued contain a microprocessor chip, magnetic strip, or other means
designed to trace and capture information about place and date of
purchase, and such other factors as the State Treasurer shall deem
relevant.
g. Notwithstanding the provisions of this act or any other law to the
contrary, only a stored value card which is exempt from the provisions
of this act pursuant to subsection e. or f. of this section shall be
deemed a gift card or gift certificate for purposes of P.L.2002, c.14
(C.56:8-110 et seq.).
h. As used in this section:
"Stored value card activity" means the purchase or issuance of the
stored value card, a transaction executed by the owner that increased
or decreased the value of the stored value card, or communication by
the owner of the stored value card with the issuer of the stored value
card concerning the value of the balance remaining on the stored value
card as evidenced by a contemporaneous record prepared by or on behalf
of the issuer.
"Issuer" means an issuer or seller of a stored value card that is a
person, retailer, merchant, vendor, provider or business association
with the obligations of a holder to accept the stored value card as
redeemable for, solely or a combination of, merchandise, services, or
cash, and to report and deliver proceeds of the stored value card if
abandoned.
(cf: P.L.2010, c.25, s.5)
2. This act shall take effect immediately.
STATEMENT
This bill exempts stored value cards usable solely for telephone
services from the State’s escheatment processes. Stored value cards
usable solely for telephone services include, but are not limited to,
those redeemable for long-distance telephone service, wireless
telephone service, and other services that function similarly to
telephone services.
P.L.2010, c.25 added stored value cards to the State’s escheatment
processes which allowed the State to assume the value of unused cards
after two years. Several states exempt pre-paid telephone services
cards from their definition of gift card, or stored value card, and
the federal Credit CARD Act of 2009 which, in part, regulates the use
of stored value cards, also excludes stored value cards usable solely
for telephone services.