SENATE AMENDED
PRIOR PRINTER'S NOS. 600, 3388, 3825 PRINTER'S NO. 4640
No. 552 Session of 2005
INTRODUCED BY STERN, CORRIGAN, GEORGE, YOUNGBLOOD, GEIST,
SATHER, THOMAS, CLYMER, WATSON, FABRIZIO, HENNESSEY,
GODSHALL, NAILOR, DENLINGER, HUTCHINSON, READSHAW,
BENNINGHOFF, PHILLIPS, SAINATO, GOODMAN, W. KELLER,
HICKERNELL, ROSS, TURZAI, SHANER, GINGRICH, WANSACZ,
CRAHALLA, MACKERETH, HERMAN, ARMSTRONG, RUBLEY, REICHLEY,
BOYD, PICKETT, BALDWIN, HESS, R. MILLER, MUSTIO, FORCIER,
CALTAGIRONE, HABAY, WILT, MARKOSEK, ROBERTS, R. STEVENSON,
B. SMITH, METCALFE, HERSHEY, SOLOBAY AND CREIGHTON,
FEBRUARY 15, 2005
SENATOR EARLL, FINANCE, IN SENATE, AS AMENDED,
SEPTEMBER 26, 2006
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,
1 association, and corporation required to pay, assess, or
2 collect taxes, or to make returns or reports under the laws
3 imposing taxes for State purposes, or to pay license fees or
4 other moneys to the Commonwealth, or any agency thereof,
5 every State depository and every debtor or creditor of the
6 Commonwealth," FURTHER PROVIDING FOR THE AUTHORITY TO INVEST <--
7 AND REINVEST CERTAIN MONEYS; defining "gift card," "gift
8 certificate" and "qualified gift certificate"; AND further <--
9 providing for unclaimed property.; and providing for <--
10 contributions to the Low Income Home Energy Assistance
11 Program from unclaimed property.
12 The General Assembly of the Commonwealth of Pennsylvania
13 hereby enacts as follows:
14 Section 1. Section 1301.1 of the act of April 9, 1929 <--
15 (P.L.343, No.176), known as The Fiscal Code, is amended by
16 adding definitions to read:
17 SECTION 1. SECTION 301.1(I) OF THE ACT OF APRIL 9, 1929 <--
18 (P.L.343, NO.176), KNOWN AS THE FISCAL CODE, AMENDED NOVEMBER
19 30, 2004 (P.L.1725, NO.220), IS AMENDED TO READ:
20 SECTION 301.1. INVESTMENT OF MONEYS.--* * *
21 (I) (1) NOTWITHSTANDING SUBSECTIONS (A) THROUGH (H), THE
22 TREASURY DEPARTMENT SHALL HAVE THE EXCLUSIVE MANAGEMENT AND FULL
23 POWER TO INVEST AND REINVEST THE MONEYS OF ANY FUND AS SHALL BE
24 ACCUMULATED BEYOND THE ORDINARY NEEDS OF THE VARIOUS FUNDS AND
25 WHICH ARE NOT AUTHORIZED BY LAW TO BE INVESTED BY ANY BOARD,
26 COMMISSION OR STATE OFFICER, SUBJECT, HOWEVER, TO THE EXERCISE
27 OF THAT DEGREE OF JUDGMENT AND CARE UNDER THE CIRCUMSTANCES THEN
28 PREVAILING WHICH PERSONS OF PRUDENCE, DISCRETION AND
29 INTELLIGENCE WHO ARE FAMILIAR WITH SUCH MATTERS EXERCISE IN THE
30 MANAGEMENT OF THEIR OWN AFFAIRS NOT IN REGARD TO SPECULATION BUT
31 IN REGARD TO THE PERMANENT DISPOSITION OF THE FUNDS, CONSIDERING
32 THE PROBABLE INCOME TO BE DERIVED THEREFROM AS WELL AS THE
33 PROBABLE SAFETY OF THEIR CAPITAL. THE TREASURY DEPARTMENT SHALL
34 HAVE THE POWER TO HOLD, PURCHASE, SELL, ASSIGN, TRANSFER AND
35 DISPOSE OF ANY SECURITIES, INCLUDING EQUITY SECURITIES AND
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1 MUTUAL FUNDS CONSISTING IN WHOLE OR IN PART OF EQUITY
2 SECURITIES, AND INVESTMENTS IN ANY SUCH FUND AS WELL AS THE
3 PROCEEDS OF SUCH INVESTMENTS AND OF THE MONEY BELONGING TO ANY
4 SUCH FUND. THE TREASURY DEPARTMENT SHALL, THROUGH THE GOVERNOR,
5 SUBMIT TO THE GENERAL ASSEMBLY ANNUALLY, AT THE SAME TIME THE
6 TREASURY DEPARTMENT SUBMITS ITS BUDGET COVERING ADMINISTRATIVE
7 EXPENSES, A REPORT IDENTIFYING THE NATURE AND AMOUNT OF ALL
8 EXISTING INVESTMENTS MADE PURSUANT TO THIS SECTION.
9 (2) THE AUTHORITY TO INVEST OR REINVEST THE MONEYS OF ANY
10 FUND PURSUANT TO THIS SUBSECTION SHALL [EXPIRE DECEMBER 31,
11 2006. THE TREASURY DEPARTMENT MAY MAINTAIN INVESTMENTS PURSUANT
12 TO THIS SUBSECTION WHICH ARE IN EXISTENCE ON THE EXPIRATION DATE
13 IN THIS PARAGRAPH FOR NOT MORE THAN TWO YEARS FOLLOWING SUCH
14 EXPIRATION DATE.] CONTINUE UNLESS SPECIFICALLY REPEALED BY
15 AMENDMENT TO THIS ACT.
16 SECTION 2. SECTION 1301.1 OF THE ACT IS AMENDED BY ADDING
17 DEFINITIONS TO READ:
18 Section 1301.1. Definitions.--As used in this article,
19 unless the context otherwise requires:
20 * * *
21 "General use prepaid cards" shall mean cards issued only by a
22 bank or other similarly regulated financial institutions, or by
23 a licensed money transmitter and shall mean plastic cards or
24 other electronic payment devices which are:
25 (1) usable AND HONORED UPON PRESENTATION at multiple, <--
26 unaffiliated merchants or service providers FOR GOODS OR <--
27 SERVICES or at automated teller machines (ATMs); AND <--
28 (2) issued in a requested PREPAID amount which amount may <--
29 be, at the option of the issuer, increased in value or reloaded
30 if requested by the holder; <--
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1 (3) purchased or loaded on a prepaid basis by a consumer or
2 by a business entity; and
3 (4) honored upon presentation by merchants for goods or
4 services or at ATMs. HOLDER. <--
5 The term shall not include debit cards linked to a deposit
6 account or prepaid telephone calling cards. The term also shall
7 not include flexible spending arrangements, including health
8 reimbursement arrangements, as defined in section 106(c)(2) of
9 the Internal Revenue Code of 1986 (Public Law 99-514, 26 U.S.C.
10 § 106(c)(2)); flexible spending accounts subject to section 125
11 of the Internal Revenue Code of 1986; Archer MSAs as defined in
12 section 220(d) of the Internal Revenue Code of 1986; dependent
13 care reimbursement accounts subject to section 129 of the
14 Internal Revenue Code of 1986; health savings accounts subject
15 to section 223(d) of the Internal Revenue Code of 1986; or
16 similar accounts from which, under the Internal Revenue Code of
17 1986 and its implementing regulations, individuals may pay
18 medical expenses, health care expenses, dependent care expenses
19 or similar expenses on a pretax basis.
20 "Gift card" shall mean plastic cards or other electronic
21 payment devices which are:
22 (i) useable at a single merchant or an affiliated group of <--
23 merchants sharing the same name, mark or logo;
24 (ii) issued in a specified amount and may or may not be
25 increased in value or reloaded;
26 (iii) purchased on a prepaid basis by a consumer in exchange
27 for payment; and
28 (iv) honored upon presentation by such single merchant or
29 affiliated group of merchants for goods or services.
30 (I) USABLE AND HONORED UPON PRESENTATION AT A SINGLE <--
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1 MERCHANT OR AN AFFILIATED GROUP OR MERCHANTS THAT SHARE THE SAME
2 NAME, MARK OR LOGO, OR USABLE AT MULTIPLE, UNAFFILIATED
3 MERCHANTS OR SERVICE PROVIDERS FOR THE FUTURE PURCHASE OR
4 DELIVERY OF ANY GOODS OR SERVICES; AND
5 (II) ISSUED IN A SPECIFIED PREPAID AMOUNT AND MAY OR MAY NOT
6 BE INCREASED IN VALUE OR RELOADED.
7 The term shall not include debit cards linked to a deposit
8 account. The term also shall not include flexible spending
9 arrangements including health reimbursement arrangements, as
10 defined in section 106(c)(2) of the Internal Revenue Code of
11 1986 (Public Law 99-514, 26 U.S.C. § 106(c)(2)); flexible
12 spending accounts subject to section 125 of the Internal Revenue
13 Code of 1986; Archer MSAs as defined in section 220(d) of the
14 Internal Revenue Code of 1986; dependent care reimbursement
15 accounts subject to section 129 of the Internal Revenue Code of
16 1986; health savings accounts subject to section 223(d) of the
17 Internal Revenue Code of 1986; or similar accounts from which,
18 under the Internal Revenue Code and its implementing
19 regulations, individuals may pay medical expenses, health care
20 expenses, dependent care expenses or similar expenses on a
21 pretax basis.
22 "Gift certificate" shall mean a written promise or electronic <--
23 payment device that: WHICH IS: <--
24 (i) is useable USABLE AND HONORED UPON PRESENTATION at a <--
25 single merchant or an affiliated group of merchants that share
26 the same name, mark or logo, or usable at multiple, unaffiliated
27 merchants or service providers; PROVIDERS FOR THE FUTURE <--
28 PURCHASE OR DELIVERY OF ANY GOODS OR SERVICES; AND
29 (ii) is issued in a specified amount; <--
30 (II) ISSUED IN A SPECIFIC PREPAID AMOUNT AND MAY OR MAY NOT <--
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1 BE INCREASED IN VALUE OR RELOADED.
2 (iii) may or may not be increased in value or reloaded; <--
3 (iv) is purchased or loaded on a prepaid basis for the
4 future purchase or delivery of any goods or services; and
5 (v) is honored upon presentation.
6 The term shall not include debit cards linked to a deposit
7 account. The term also shall not include flexible spending
8 arrangements, including health reimbursement arrangements, as
9 defined in section 106(c)(2) of the Internal Revenue Code of
10 1986 (Public Law 99-514, 26 U.S.C. § 106(c)(2)); flexible
11 spending accounts subject to section 125 of the Internal Revenue
12 Code of 1986; Archer MSAs as defined in section 220(d) of the
13 Internal Revenue Code of 1986; dependent care reimbursement
14 accounts subject to section 129 of the Internal Revenue Code of
15 1986; health savings accounts subject to section 223(d) of the
16 Internal Revenue Code of 1986; or similar accounts from which,
17 under the Internal Revenue Code and its implementing
18 regulations, individuals may pay medical expenses, health care
19 expenses, dependent care expenses or similar expenses on a
20 pretax basis.
21 * * *
22 "Qualified gift certificate" shall mean a gift certificate or
23 gift card that does not contain any of the following:
24 (i) An expiration date or a period of time after which it
25 expires.
26 (ii) Any type of postsale charge or fee, including, but not
27 limited to, a service charge, dormancy fee, account maintenance
28 fee, cash out fee, replacement card fee or activation or
29 reactivation fee.
30 The term does not include general use prepaid cards.
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1 * * *
2 Section 2 3. Clause 1 of section 1301.6 of the act, amended <--
3 June 29, 2002 (P.L.614, No.91), is amended to read:
4 Section 1301.6. Property Held by Business Associations.--The
5 following property held or owing by a business association is
6 presumed abandoned and unclaimed:
7 1. The consideration paid for a gift certificate or gift
8 card which has remained unredeemed for two (2) years or more
9 after its redemption period has expired or for five (5) years or
10 more from the date of issuance if no redemption period is
11 specified. The provisions of this clause shall not apply to a
12 qualified gift certificate.
13 * * *
14 Section 3. The act is amended by adding a section to read: <--
15 Section 1301.19a. Contributions to LIHEAP from Unclaimed
16 Property.--(a) The State Treasurer shall promulgate regulations
17 allowing any person claiming an interest in any property paid or
18 delivered to the Commonwealth under this article to donate the
19 total cash value of such property to LIHEAP.
20 (b) As used in this section, the term "LIHEAP" shall mean
21 the program established by Title XXVI of the Omnibus Budget
22 Reconciliation Act of 1981 (Public Law 97-35, 95 Stat. 893 et
23 seq.) and administered by the Department of Public Welfare.
24 Section 3. This act shall take effect in 60 days.
25 SECTION 4. THIS ACT SHALL APPLY TO GIFT CARDS AND GIFT <--
26 CERTIFICATES REPORTED TO THE COMMONWEALTH FOR THE YEAR 2006 AND
27 EACH YEAR THEREAFTER.
28 SECTION 5. THIS ACT SHALL TAKE EFFECT IMMEDIATELY.
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