[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4966 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 4966

 To amend section 5316 of title 31, United States Code, to establish a 
reporting requirement for any stored value device carried out of, into, 
 or through the United States, to establish registration requirements 
      for stored value device businesses, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 2010

 Ms. Giffords introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend section 5316 of title 31, United States Code, to establish a 
reporting requirement for any stored value device carried out of, into, 
 or through the United States, to establish registration requirements 
      for stored value device businesses, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Stored Value Device Registration and 
Reporting Act of 2010''.

SEC. 2. DEFINITIONS.

    (a) Definition of Financial Institution.--Paragraph (2) of section 
5312(a) of title 31, United States Code is amended--
            (1) by redesignating subparagraphs (Y) and (Z) as 
        subparagraphs (Z) and (AA), respectively; and
            (2) by inserting after subparagraph (X) the following new 
        subparagraph:
                    ``(Y) a person engaged in the business of--
                            ``(i) issuing stored value devices; or
                            ``(ii) processing transactions related to a 
                        stored value device, including accessing 
                        information pertaining to the funds stored on 
                        such device, retrieving the funds stored on 
                        such device, or adding funds to be stored on 
                        such device;''.
    (b) Definition of Monetary Instruments.--Subparagraph (B) of 
section 5312(a)(3) of title 31, United States Code, is amended by 
inserting after ``travelers' checks,'' the following: ``stored value 
devices,''.
    (c) Stored Value Device Defined.--Subsection (a) of section 5312 of 
title 31, United States Code, is amended by adding at the end the 
following new paragraphs:
            ``(7) Stored value device defined.--The term `stored value 
        device' means a device that--
                    ``(A) stores, or is capable of storing, funds 
                represented in electronic format (whether or not 
                specially encrypted) in such a way as to allow such 
                funds to be retrievable and transferable 
                electronically;
                    ``(B) is used to obtain money, goods, services, or 
                any other thing of value, or that can be used to 
                initiate a transfer of funds (other than a transfer 
                originated solely by paper instrument); and
                    ``(C) is not a credit card or a debit card, as such 
                terms are defined by the Secretary of the Treasury.''.

SEC. 3. REGISTRATION OF STORED VALUE DEVICE BUSINESSES.

    (a) In General.--Subchapter II of chapter 53 of title 31, United 
States Code, is amended by inserting after section 5330 the following 
new section:
``Sec. 5330A. Registration of stored value device businesses
    ``(a) Registration With Secretary of the Treasury Required.--
            ``(1) In general.--Any person who owns or controls a stored 
        value device business shall register the business (whether or 
        not the business is licensed as a stored value device business 
        in any State) with the Secretary of the Treasury not later than 
        the end of the 180-day period beginning on the later of--
                    ``(A) the date of the enactment of the Stored Value 
                Device Registration and Reporting Act of 2010; or
                    ``(B) the date on which the business is 
                established.
            ``(2) Form and manner of registration.--Subject to the 
        requirements of subsection (b), the Secretary of the Treasury 
        shall prescribe, by regulation, the form and manner for 
        registering a stored value device business pursuant to 
        paragraph (1).
            ``(3) Businesses remain subject to state law.--This section 
        shall not be construed as superseding any requirement of State 
        law relating to stored value device businesses operating in 
        such State.
            ``(4) False and incomplete information.--The filing of 
        false or materially incomplete information in connection with 
        the registration of a stored value device businesses shall be 
        considered as a failure to comply with the requirements of this 
        subchapter.
    ``(b) Contents of Registration.--The registration of a stored value 
device business under subsection (a) shall include the following 
information:
            ``(1) The name and location of the business.
            ``(2) The name and address of each person who--
                    ``(A) owns or controls the business;
                    ``(B) is a director or officer of the business; or
                    ``(C) otherwise participates in the conduct of the 
                affairs of the business.
            ``(3) The name and address of any depository institution at 
        which the business maintains a transaction account (as defined 
        in section 19(b)(1)(C) of the Federal Reserve Act).
            ``(4) An estimate of the volume of business in the coming 
        year (which shall be reported annually to the Secretary).
            ``(5) Such other information as the Secretary of the 
        Treasury may require.
    ``(c) Agents of Stored Value Device Business.--
            ``(1) Maintenance of lists of agents.--Pursuant to 
        regulations which the Secretary of the Treasury shall 
        prescribe, each stored value device business shall--
                    ``(A) maintain a list containing the names and 
                addresses of all persons authorized to act as an agent 
                for such business in connection with activities 
                described in subsection (d)(1) and such other 
                information about such agents as the Secretary may 
                require; and
                    ``(B) make the list and other information available 
                on request to any appropriate law enforcement agency.
            ``(2) Treatment of agent.--The Secretary of the Treasury 
        shall prescribe regulations establishing, on the basis of such 
        criteria as the Secretary determines to be appropriate, a 
        threshold point for treating an agent of a stored value device 
        business as a stored value device business for purposes of this 
        section.
    ``(d) Stored Value Device Business Defined.--For purposes of this 
section, the term `stored value device business' means a person other 
than the United States Postal Service who--
            ``(1) is engaged in the business of--
                    ``(A) issuing stored value devices; or
                    ``(B) processing transactions related to a stored 
                value device, including accessing information 
                pertaining to the funds stored on such device, 
                retrieving the funds stored on such device, or adding 
                funds to be stored on such device; and
            ``(2) is not a depository institution (as defined in 
        section 5313(g)).
    ``(e) Civil Penalty for Failure To Comply With Registration 
Requirements.--
            ``(1) In general.--Any person who fails to comply with any 
        requirement of this section or any regulation prescribed under 
        this section shall be liable to the United States for a civil 
        penalty of $5,000 for each such violation.
            ``(2) Continuing violation.--Each day a violation described 
        in paragraph (1) continues shall constitute a separate 
        violation for purposes of such paragraph.
            ``(3) Assessments.--Any penalty imposed under this 
        subsection shall be assessed and collected by the Secretary of 
        the Treasury in the manner provided in section 5321 and any 
        such assessment shall be subject to the provisions of such 
        section.
    ``(f) Small Business Exemption.--The Secretary of the Treasury 
shall prescribe regulations establishing, on the basis of such criteria 
as the Secretary determines to be appropriate, a threshold point under 
which small stored value device businesses will not be required to 
register under this section.''.
    (b) Clerical Amendment.--The table of sections for chapter 53 of 
title 31, United States Code, is amended by inserting after the item 
relating to section 5330 the following new item:

``5330A. Registration of stored value device businesses.''.

SEC. 4. STORED VALUE DEVICE STUDY.

    (a) In General.--The Secretary of the Treasury, in consultation 
with the Attorney General, the Secretary of Homeland Security, and the 
Director of National Intelligence, shall carry out a study on stored 
value devices. Such study shall include--
            (1) an analysis of the extent to which stored value devices 
        are used for the purpose of providing--
                    (A) payments related to drug trafficking;
                    (B) payments related to human trafficking; or
                    (C) financial support to terror cells operating 
                within the United States;
            (2) an analysis of the extent to which stored value devices 
        issued by foreign entities are being utilized in the United 
        States, including the typical countries of origin of such 
        devices and the typical values of such devices when imported 
        into the United States;
            (3) an analysis of the extent to which stored value devices 
        issued by United States entities are being utilized outside the 
        United States, including the typical locations where value is 
        added to such device and where value is typically subtracted 
        internationally;
            (4) an identification of any trends in stored value 
        addition and subtraction that appear to be associated with drug 
        trafficking or human trafficking;
            (5) a list of stored value device types which are now or 
        may soon be used for money trafficking;
            (6) recommendations on methods to collect data related to 
        stored value device transactions for purposes of law 
        enforcement and intelligence analysis in a manner consistent 
        with the Foreign Intelligence Surveillance Act and privacy 
        laws; and
            (7) an analysis of whether requiring certain information to 
        be printed, or otherwise made available, on stored value 
        devices would help customs and law enforcement officers 
        identify such devices and track the origins of such devices, 
        where such information could include the name and address of 
        the device issuer, the maximum value of funds that can be 
        stored on such device, and the fact that the device is a stored 
        value device.
    (b) Report.--Not later than the end of the 180-day period beginning 
on the date of the enactment of this Act, the Secretary of the Treasury 
shall submit a report to the Congress containing all findings and 
determinations made in carrying out the study required under subsection 
(a).
    (c) Stored Value Device Defined.--For purposes of this section, the 
term ``stored value device'' shall have the meaning given such term 
under section 5312(a)(7) of title 31, United States Code.
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