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                                                      PRINTER'S NO. 4246

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2736 Session of 2008


        INTRODUCED BY GODSHALL, AUGUST 21, 2008

        REFERRED TO COMMITTEE ON CONSUMER AFFAIRS, AUGUST 21, 2008

                                     AN ACT

     1  Amending the act of April 9, 1929 (P.L.343, No.176), entitled,
     2     as amended, "An act relating to the finances of the State
     3     government; providing for the settlement, assessment,
     4     collection, and lien of taxes, bonus, and all other accounts
     5     due the Commonwealth, the collection and recovery of fees and
     6     other money or property due or belonging to the Commonwealth,
     7     or any agency thereof, including escheated property and the
     8     proceeds of its sale, the custody and disbursement or other
     9     disposition of funds and securities belonging to or in the
    10     possession of the Commonwealth, and the settlement of claims
    11     against the Commonwealth, the resettlement of accounts and
    12     appeals to the courts, refunds of moneys erroneously paid to
    13     the Commonwealth, auditing the accounts of the Commonwealth
    14     and all agencies thereof, of all public officers collecting
    15     moneys payable to the Commonwealth, or any agency thereof,
    16     and all receipts of appropriations from the Commonwealth,
    17     authorizing the Commonwealth to issue tax anticipation notes
    18     to defray current expenses, implementing the provisions of
    19     section 7(a) of Article VIII of the Constitution of
    20     Pennsylvania authorizing and restricting the incurring of
    21     certain debt and imposing penalties; affecting every
    22     department, board, commission, and officer of the State
    23     government, every political subdivision of the State, and
    24     certain officers of such subdivisions, every person,
    25     association, and corporation required to pay, assess, or
    26     collect taxes, or to make returns or reports under the laws
    27     imposing taxes for State purposes, or to pay license fees or
    28     other moneys to the Commonwealth, or any agency thereof,
    29     every State depository and every debtor or creditor of the
    30     Commonwealth," in abandoned and unclaimed property, further
    31     providing for definitions, for property subject to custody
    32     and control of the Commonwealth and for property held by
    33     business associations.


     1     The General Assembly of the Commonwealth of Pennsylvania
     2  hereby enacts as follows:
     3     Section 1.  The definitions of "general use prepaid
     4  cards,""gift card" and "gift certificate" in section 1301.1 of
     5  the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal
     6  Code, added November 9, 2006 (P.L.1335, No.138), are amended to
     7  read:
     8     Section 1301.1.  Definitions.--As used in this article,
     9  unless the context otherwise requires:
    10     * * *
    11     ["General use prepaid cards" shall mean cards issued only by
    12  a bank or other similarly regulated financial institution or by
    13  a licensed money transmitter and shall mean plastic cards or
    14  other electronic payment devices which are:
    15     (1)  usable and honored upon presentation at multiple,
    16  unaffiliated merchants or service providers for goods or
    17  services or at automated teller machines (ATMs); and
    18     (2)  issued in a requested prepaid amount which amount may
    19  be, at the option of the issuer, increased in value or reloaded
    20  if requested by the holder.
    21  The term shall not include debit cards linked to a deposit
    22  account or prepaid telephone calling cards. The term also shall
    23  not include flexible spending arrangements, including health
    24  reimbursement arrangements, as defined in section 106(c)(2) of
    25  the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
    26  § 106(c)(2)); flexible spending accounts subject to section 125
    27  of the Internal Revenue Code of 1986; Archer MSAs as defined in
    28  section 220(d) of the Internal Revenue Code of 1986; dependent
    29  care reimbursement accounts subject to section 129 of the
    30  Internal Revenue Code of 1986; health savings accounts subject
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     1  to section 223(d) of the Internal Revenue Code of 1986; or
     2  similar accounts from which, under the Internal Revenue Code of
     3  1986 and its implementing regulations, individuals may pay
     4  medical expenses, health care expenses, dependent care expenses
     5  or similar expenses on a pretax basis.
     6     "Gift card" shall mean plastic cards or other electronic
     7  payment devices which are:
     8     (i)  usable and honored upon presentation at a single
     9  merchant or an affiliated group or merchants that share the same
    10  name, mark or logo, or usable at multiple, unaffiliated
    11  merchants or service providers for the future purchase or
    12  delivery of any goods or services; and
    13     (ii)  issued in a specified prepaid amount and may or may not
    14  be increased in value or reloaded.
    15  The term shall not include general use prepaid cards or debit
    16  cards linked to a deposit account. The term also shall not
    17  include flexible spending arrangements, including health
    18  reimbursement arrangements, as defined in section 106(c)(2) of
    19  the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
    20  § 106(c)(2)); flexible spending accounts subject to section 125
    21  of the Internal Revenue Code of 1986; Archer MSAs as defined in
    22  section 220(d) of the Internal Revenue Code of 1986; dependent
    23  care reimbursement accounts subject to section 129 of the
    24  Internal Revenue Code of 1986; health savings accounts subject
    25  to section 223(d) of the Internal Revenue Code of 1986; or
    26  similar accounts from which, under the Internal Revenue Code and
    27  its implementing regulations, individuals may pay medical
    28  expenses, health care expenses, dependent care expenses or
    29  similar expenses on a pretax basis.]
    30     "Gift certificate" shall [mean a written promise which is:
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     1     (i)  usable and honored upon presentation at a single
     2  merchant or an affiliated group of merchants that share the same
     3  name, mark or logo, or usable at multiple, unaffiliated
     4  merchants or service providers for the future purchase or
     5  delivery of any goods or services; and
     6     (ii)  issued in a specific prepaid amount and may or may not
     7  be increased in value or reloaded.
     8  The term shall not include general use prepaid cards or debit
     9  cards linked to a deposit account. The term also shall not
    10  include flexible spending arrangements, including health
    11  reimbursement arrangements, as defined in section 106(c)(2) of
    12  the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
    13  § 106(c)(2)); flexible spending accounts subject to section 125
    14  of the Internal Revenue Code of 1986; Archer MSAs as defined in
    15  section 220(d) of the Internal Revenue Code of 1986; dependent
    16  care reimbursement accounts subject to section 129 of the
    17  Internal Revenue Code of 1986; health savings accounts subject
    18  to section 223(d) of the Internal Revenue Code of 1986; or
    19  similar accounts from which, under the Internal Revenue Code and
    20  its implementing regulations, individuals may pay medical
    21  expenses, health care expenses, dependent care expenses or
    22  similar expenses on a pretax basis.] have the same meaning given
    23  to it under section 2 of the act of December 17, 1968 (P.L.1224,
    24  No.387), known as the "Unfair Trade Practices and Consumer
    25  Protection Law."
    26     * * *
    27     ["Qualified gift certificate" shall mean a gift certificate
    28  or gift card that does not contain any of the following:
    29     (i)  An expiration date or a period of time after which it
    30  expires.
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     1     (ii)  Any type of postsale charge or fee, including, but not
     2  limited to, a service charge, dormancy fee, account maintenance
     3  fee, cash-out fee, replacement card fee or activation or
     4  reactivation fee.
     5  The term shall not include general use prepaid cards.]
     6     * * *
     7     Section 2.  Section 1301.2 of the act is amended by adding a
     8  subsection to read:
     9     Section 1301.2.  Property Subject to Custody and Control of
    10  the Commonwealth.--
    11     * * *
    12     (d)  The consideration paid for a gift certificate held by a
    13  business association is not subject to the custody and control
    14  of the Commonwealth under this article.
    15     Section 3.  Clause 1 of section 1301.6 of the act, amended
    16  November 9, 2006 (P.L.1335, No.138), is amended to read:
    17     Section 1301.6.  Property Held by Business Associations.--The
    18  following property held or owing by a business association is
    19  presumed abandoned and unclaimed:
    20     [1.  The consideration paid for a gift certificate or gift
    21  card which has remained unredeemed for two (2) years or more
    22  after its redemption period has expired or for five (5) years or
    23  more from the date of issuance if no redemption period is
    24  specified. The provisions of this clause shall not apply to a
    25  qualified gift certificate.]
    26     * * *
    27     Section 4.  This act shall take effect in 60 days.


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