I 111th CONGRESS 2d Session H. R. 4966 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.

1.

Short title

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

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. .

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:

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. .

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.