Bill Text: NJ A3250 | 2010-2011 | Regular Session | Amended
Bill Title: Reverses certain changes to laws governing State treatment of unclaimed property.
Spectrum: Partisan Bill (Democrat 10-0)
Status: (Introduced - Dead) 2011-11-21 - Reported out of Assembly Comm. with Amendments, 2nd Reading [A3250 Detail]
Download: New_Jersey-2010-A3250-Amended.html
ASSEMBLY, No. 3250
STATE OF NEW JERSEY
214th LEGISLATURE
INTRODUCED SEPTEMBER 20, 2010
Sponsored by:
Assemblyman PATRICK J. DIEGNAN, JR.
District 18 (Middlesex)
Assemblyman PAUL D. MORIARTY
District 4 (Camden and Gloucester)
Assemblyman GORDON M. JOHNSON
District 37 (Bergen)
Co-Sponsored by:
Assemblywomen Quigley, Tucker, Assemblymen Coutinho, Coughlin, Caputo, Prieto and Giblin
SYNOPSIS
Reverses certain changes to laws governing State treatment of unclaimed property.
CURRENT VERSION OF TEXT
As reported by the Assembly Appropriations Committee on November 21, 2011, with amendments.
An Act concerning unclaimed property, amending 1[various sections of the Revised Statutes] R.S.46:30B-11, R.S.46:30B-12, P.L.2010, c.25, P.L.2002, c.35, and P.L.2002, c.141, supplementing 1[P.L.1960, c.39 (C.56:8-1 et seq.), and repealing section 5 of P.L.2010, c.25] Title 46 of the Revised Statutes1.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1[1. R.S.46:30B-6 is amended to read as follows:
46:30B-6. Definitions.
As used in this chapter:
a. "Administrator" means the Treasurer of the State of New Jersey, any individual serving as the Acting Treasurer in the absence of the appointed Treasurer, and any State employee to whom the Treasurer has delegated authority to administer the provisions of this chapter and to execute any pertinent documents;
b. "Apparent owner" means the person whose name appears on the records of the holder as the person entitled to property held, issued, or owing by the holder;
c. (Deleted by amendment, P.L.2002, c.35).
d. "Business association" means a corporation, joint stock company, investment company, business trust, partnership, unincorporated association, joint venture, limited liability company, safe deposit company, safekeeping depository, financial organization, insurance company, mutual fund, utility or other business entity consisting of one or more persons, whether or not for profit;
e. "Domicile" means the state of incorporation of a corporation and the state of the principal place of business of an unincorporated person;
f. "Financial organization" means a savings and loan association, building and loan association, credit union, savings bank, industrial bank, bank, banking organization, trust company, safe deposit company, private banker, or any organization defined by other law as a bank or banking organization;
g. "Holder" means a person, wherever organized or domiciled, who is the original obligor indebted to another on an obligation;
h. "Insurance company" means an association, corporation, fraternal or mutual benefit organization, whether or not for profit, which is engaged in providing insurance coverage, including accident, burial, casualty, credit life, contract performance, dental, fidelity, fire, health, hospitalization, illness, life (including endowments and annuities), malpractice, marine, mortgage, surety, and wage protection insurance;
i. (Deleted by amendment, P.L.2002, c.35).
j. (Deleted by amendment, P.L.2002, c.35).
k. "Owner" means a person having a legal or equitable interest in property subject to this chapter or the person's legal representative and includes, but is not limited to, a depositor in the case of a deposit, a beneficiary in the case of a trust other than a deposit in trust, and a creditor, claimant, or payee in the case of other property;
l. "Person" means an individual, business association, state or other government, governmental subdivision or agency, public corporation, public authority, estate, trust, two or more persons having a joint or common interest, or any other legal or commercial entity;
m. "State" means any state in the United States, district, commonwealth, territory, insular possession, or any other area subject to the jurisdiction of the United States;
n. "Utility" means a person who owns or operates for public use any plant, equipment, property, franchise, or license for the transmission of communications or the production, storage, transmission, sale, delivery, or furnishing of electricity, water, steam, or gas;
o. "Mineral" means gas, oil, coal, other gaseous, liquid and solid hydrocarbons, oil shale, cement material, sand and gravel, road material, building stone, chemical raw material, gemstone, fissionable and nonfissionable ores, colloidal and other clay, steam and other geothermal resources, or any other substance defined as a mineral by the law of this State;
p. "Mineral proceeds" means amounts payable for the extraction, production, or sale of minerals, or, upon the abandonment of those payments, all payments that become payable thereafter, and includes, but is not limited to, amounts payable:
for the acquisition and retention of a mineral lease, including bonuses, royalties, compensatory royalties, shut-in royalties, minimum royalties, and delay rentals;
for the extraction, production, or sale of minerals, including net revenue interests, royalties, overriding royalties, extraction payments, and production payments; and
under an agreement of option, including a joint operating agreement, pooling agreement, and farm-out agreement;
q. "Money order" means an express money order and a personal money order, on which the remitter is the purchaser;
r. "Property" means tangible property described in R.S.46:30B-45 or a fixed and certain interest in intangible property that is held, issued, or owed in the course of a holder's business, or by a government, government subdivision, agency, or instrumentality, and all income or increments therefrom, and includes property that is referred to as or evidenced by:
money, a check, draft, deposit, interest, or dividend;
[stored value card;]
credit balance, customer's overpayment, security deposit, refund, credit memorandum, unpaid wage, unused ticket, mineral proceeds or unidentified remittance;
stock or other evidence of ownership of an interest in a business association or financial organization;
a bond, debenture, note, or other evidence of indebtedness;
money deposited to redeem stock, bonds, coupons, or other securities or distributions;
an amount due and payable under the terms of an annuity or insurance policy, including policies providing life insurance, property and casualty insurance, workers compensation insurance, or health and disability insurance; and
an amount distributable from a trust or custodial fund established under a plan to provide health, welfare, pension, vacation, severance, retirement, death stock purchase, profit sharing, employee savings, supplemental unemployment, insurance, or similar benefits; and
s. "Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form[; and
t. "Stored value card" means a record that evidences a promise, made for monetary or other consideration, by the issuer or seller of the record that the owner of the record will be provided, solely or a combination of, merchandise, services, or cash in the value shown in the record, which is pre-funded and the value of which is reduced upon each redemption. The term "stored value card" includes, but is not limited to the following items: paper gift certificates, records that contain a microprocessor chip, magnetic stripe or other means for the storage of information, gift cards, electronic gift cards, rebate cards, stored-value cards or certificates, store cards, and similar records or cards].
(cf: P.L.2010, c.25, s.1)]1
1[2.] 1.1 R.S.46:30B-11 is amended to read as follows:
46:30B-11. Presumption of abandonment of travelers check. Subject to R.S.46:30B-14, any sum payable on a travelers check that has been outstanding for more than [three] 15 years after its issuance is presumed abandoned unless the owner, within [three] 15 years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a contemporaneous memorandum or other record on file prepared by an employee of the issuer.
(cf: P.L.2010, c.25, s.2)
1[3.] 2.1 R.S.46:30B-12 is amended to read as follows:
46:30B-12. Presumption of abandonment of money order. Subject to R.S.46:30B-14, any sum payable on a money order or similar written instrument that has been outstanding for more than [three] seven years after its issuance is presumed abandoned unless the owner, within [three] seven years, has communicated in writing with the issuer concerning it or otherwise indicated an interest as evidenced by a contemporaneous memorandum or other record on file prepared by an employee of the issuer.
(cf: P.L.2010, c.25, s.3)
13. 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.
Provided however, no stored value card issued on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be subject to presumed abandonment pursuant to this section or any other provisions of the Uniform Unclaimed Property Act.
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.
Provided however, no stored value card issued on or after the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be subject to this subsection.
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] Section 37 of P.L.2002, c.35 (C.46:30B-43.1) does not apply to 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 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.
f. The State Treasurer is authorized to grant an exemption from [such provisions] section 37 of P.L.2002, c.35 (C.46:30B-43.1) 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, for stored value cards subject to presumed abandonment pursuant to this section or any other provisions of the Uniform Unclaimed Property Act 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.1
(cf: P.L.2010, c.25, s.5)
1[4. R.S.46:30B-13 is amended to read as follows:
46:30B-13. Limitation on holder's power to impose service charges. A holder may not deduct from the amount of a travelers check or money order any charge imposed by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the issuer and the owner of the instrument pursuant to which the issuer may impose a charge and the issuer regularly imposes the charges and does not regularly reverse or otherwise cancel them. The amount of the deduction shall be limited to an amount [not to exceed $2 per month. Notwithstanding any provision of this section to the contrary, no service charge, dormancy fee or other similar charge shall be imposed against a travelers check or money order within the twelve months immediately following the date of sale] that is not unconscionable.
(cf: P.L.2010, c.25, s.4)]1
1[5.] 4.1 Section 37 of P.L.2002, c.35 (C.46:30B-43.1) is amended to read as follows:
37. Limitation on holder's power to impose charges. A holder [of property] 1[may not deduct from the amount of any instrument subject to]1 [R.S.46:30B-42, section 5 of P.L.2010, c.25 (C.46:30B-42.1), and] 1[R.S.46:30B-43]1 [shall not impose on the property a dormancy] 1[any charge]1 [or fee, abandoned property] 1[imposed by reason of the failure to present the instrument for payment unless there is a valid and enforceable written contract between the issuer and owner of the instrument pursuant to which the issuer may impose a charge]1 [or fee, unclaimed property charge or fee, escheat charge or fee, inactivity charge or fee, or any similar charge, fee or penalty for inactivity with respect to the property. Neither the property nor an agreement with respect to the property may contain language suggesting that the property may] 1[and the issuer regularly imposes the charges and does not regularly reverse or otherwise cancel them. The amount of the deduction shall be]1 [subject to that kind of charge, fee or penalty for inactivity] 1[limited to an amount that is not unconscionable] of property subject to R.S.46:30B-42, section 5 of P.L.2010, c.25 (C.46:30B-42.1), and R.S.46:30B-43 shall not impose on the property a dormancy charge or fee, abandoned property charge or fee, unclaimed property charge or fee, escheat charge or fee, inactivity charge or fee, or any similar charge, fee or penalty for inactivity with respect to the property. Neither the property nor an agreement with respect to the property may contain language suggesting that the property may be subject to that kind of charge, fee or penalty for inactivity.
A stored value card issuer, as defined pursuant to section 5 of P.L.2010, c.25 (C.46:30B-42.1) except as to the obligation to report and deliver the proceeds of an abandoned stored value card, shall be subject to the limits on holder imposed charges of this section. Provided however, the application of this section is subject to the exemptions provided pursuant to subsections e. and f. of section 5 of P.L.2010, c.25 (C. 46:30B-42.1). If a stored value card is exempt from this section pursuant to subsections e. and f. of section 5 of P.L.2010, c.25 (C. 46:30B-42.1) the stored value card shall be subject to section 1 of P.L.2002, c.14 (C.56:8-110) as provided therein1.
(cf: P.L.2010, c.25, s.6)
15. Section 1 of P.L.2002, c.14 (C.56:8-110) is amended to read as follows:
1. a. A gift certificate or gift card sold after the effective date of this amendatory act shall retain full unused value until presented in exchange for merchandise, or shall have any and all conditions and limitations, as permitted in paragraphs (1) through (3) of this subsection, disclosed to the purchaser of the gift certificate or gift card at the time of purchase as provided in subsection b. of this section.
(1) In no case shall a gift certificate or gift card expire within the 24 months immediately following the date of sale.
(2) No dormancy fee shall be charged against a gift certificate or a gift card within the 24 months immediately following the date of sale, nor shall one be charged within the 24 months immediately following the most recent activity or transaction in which the certificate or card was used.
(3) A dormancy fee charged against a gift certificate or gift card as permitted by this subsection shall not exceed $2.00 per month.
b. The terms of any expiration date or dormancy fee applicable to a gift certificate or gift card, as permitted by subsection a. of this section, shall be disclosed to a consumer by:
(1) written notice of the expiration date or dormancy fee or both printed in at least 10 point font, on the gift certificate or gift card, or the sales receipt for the certificate or card, or the package for the certificate or card; and
(2) written notice, in at least 10 point font, on the gift certificate or gift card, or the sales receipt for the certificate or card, or the package for the certificate or card, of a telephone number which the consumer may call, for information concerning any expiration date or dormancy fee.
c. As used in this section:
"Dormancy fee" means a charge imposed against the unused value of a gift card or gift certificate due to inactivity;
"Gift card" means a tangible device, whereon is embedded or encoded in an electronic or other format a value issued in exchange for payment, which promises to provide to the bearer merchandise of equal value to the remaining balance of the device. "Gift card" does not include a prepaid telecommunications or technology card, prepaid bank card [or], rewards card or stored value card subject to section 37 of P.L.2002, c.35 (C.46:30B-43.1);
"Gift certificate" means a written promise given in exchange for payment to provide merchandise in a specified amount or of equal value to the bearer of the certificate. "Gift certificate" does not include a prepaid telecommunications or technology card, prepaid bank card [or], rewards card or stored value card subject to section 37 of P.L.2002, c.35 (C.46:30B-43.1);
"Merchandise" means and includes any objects, wares, goods, commodities, services or anything offered, directly or indirectly, to the public for sale;
"Prepaid bank card" means a general use, prepaid card or other electronic payment device that is issued by a bank or other financial institution, or a licensed money transmitter, in a predenominated amount usable at multiple, unaffiliated merchants or at automated teller machines, or both, but shall not include a card issued by a retail merchant;
"Prepaid telecommunications or technology card" includes, but is not limited to: a prepaid telephone calling card; prepaid technical support card; or prepaid Internet disk distributed to or purchased by a consumer; and
"Rewards card" means a card or certificate distributed by the issuer to a consumer pursuant to an awards, loyalty, rewards or promotional program, without any money or other consideration or thing of value by the consumer in exchange for the card or certificate.1
(cf: P.L.2005, c.254, s.1)
1[6. R.S.46:30B-62 is amended to read as follows:
46:30B-62. Reimbursement of holder paying claim. A holder who has paid money to the administrator pursuant to this chapter may make payment to any person appearing to the holder to be entitled to payment and, upon filing proof of payment and proof that the payee was entitled thereto, the administrator shall promptly reimburse the holder for the payment without imposing any fee or other charge. If reimbursement is sought for a payment made on a negotiable instrument, including a [stored value card,] travelers check or money order, the holder shall be reimbursed under this section upon filing proof that the instrument was duly presented and that payment was made to a person who appeared to the holder to be entitled to payment. The holder shall be reimbursed for payment made under this section even if the payment was made to a person whose claim was barred under R.S.46:30B-88.
(cf: P.L.2010, c.25, s.7)]1
1[7. (New section) a. Notwithstanding any other provisions of law to the contrary, a money order sold after the effective date of P.L.2007, c.326 (C.56:8-182 et seq.) shall retain full value until presented for payment, or shall have all conditions and limitations, as permitted in paragraphs (1) and (2) of this subsection, disclosed to the purchaser of the money order at the time of purchase, as provided in subsection b. of this section.
(1) No dormancy fee shall be charged against a money order within the 12 months immediately following the date of sale.
(2) An issuer of a money order may charge a dormancy fee against a money order, as permitted by this subsection, of not more than $2 per month.
b. The terms of any dormancy fee applicable to a money order, as permitted by subsection a. of this section, shall be disclosed by an issuer to a consumer by:
(1) written notice of the dormancy fee on the money order or the sales receipt for the money order; and
(2) written notice on the money order or the sales receipt for the money order, of a telephone number which the consumer may call for information concerning any dormancy fee.
c. As used in this section, "dormancy fee" means a charge imposed against the value of a money order due to inactivity.]1
1[8. (New section) It shall be an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to violate the provisions of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill).]1
1[9. (New section) The Director of the Division of Consumer Affairs in the Department of Law and Public Safety shall promulgate regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate sections 7 and 8 of P.L. , c. (C. ) (pending before the Legislature as this bill).]1
1[10. Section 5 of P.L.2010, c.25 (46:30B-42.1) is repealed.]1
1[11.] 6.1 (New section) 1[P.L. , c. (C. ) (pending before the Legislature as this bill) shall supersede the enactment of P.L.2010, c.25.]1 Notwithstanding any provision of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the State Treasurer may adopt immediately upon filing with the Office of Administrative Law such regulations as the 1[director] State Treasurer1 deems necessary to implement the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) 1[and reimburse issuers for all property which would not have been reported but for P.L.2010, c.25]1, which regulations shall be effective for a period not to exceed 180 days following the date of enactment of P.L. , c. (C. ) (pending before the Legislature as this bill) and may thereafter be amended, adopted, or readopted by the State Treasurer in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
1[12.] 7.1 This act shall take effect immediately and sections 1 1[through 10] 2, 3, 4, and 51 shall 1[be retroactive to July 1, 2010] apply to travelers checks, money orders and stored value cards issued on or after the date of enactment1.
