Click here to close now.

SYS-CON MEDIA Authors: Liz McMillan, Pat Romanski, Elizabeth White, Kevin Jackson, Peter Silva

News Feed Item

New Jersey Lawmakers Approve Assembly Bill 3002, Affecting Gift Certificates, Gift Cards, and Stored-Value Cards

DALLAS, Sept. 10 /PRNewswire/ -- As originally signed into law, effective July 1, 2010 and subsequently extended to October 1, 2010, New Jersey's unclaimed property law requires companies holding a variety of unclaimed funds to report and remit the funds to the state after a statutory period of "dormancy" or inactivity. The recent amendments have expanded this law to include gift certificates, gift cards, and stored-value cards (SVCs), mandating that issuers turn over to state custody any unused balances on such instruments after two years of inactivity.

The new law directly targets national retailers, companies in the hospitality industry, and virtually any other business that issues SVCs and specifically dictates that the issuer of a SVC obtain the name and address and, at a minimum, retain for their records the ZIP code of the purchaser or owner of each SVC issued or sold. If the issuer does not have this information, the new law provides that the address of the owner is deemed to be in New Jersey if the SVC was issued in the state, with the result that unused balances on any such SVC must then be remitted to New Jersey unclaimed property authorities.

New Jersey's passage of Assembly Bill 3002 ("AB 3002") appears to be heading in a direct collision course with the long-established Supreme Court priority rules of escheat. In Texas v. New Jersey, 379 U.S. 674 (1965), the Supreme Court ruled that first priority to unclaimed funds belongs to the state of the creditor or owner's last-known address, as shown on the debtor's or holder's books and records. If the holder's records do not show a last-known address, the Supreme Court ruled that the funds must be remitted, secondarily, to the holder's state of incorporation. In Delaware v. New York, 507 U.S. 490 (1993), the Supreme Court reaffirmed these priority rules and declared that any state law purporting to vary them would be invalid under its unclaimed property jurisprudence.

Companies that issue their SVCs through the use of a gift card company ("GIFTCO"), especially those GIFTCOs incorporated in states where the unclaimed property laws exempt SVCs, should pay very close attention to the new law, as it may force them to choose between following the Supreme Court's priority rules, under which the state with the rightful claim to unused SVC balances exempts such property, or following AB 3002, under which the balances would be remitted to New Jersey.

Notably, at least one state, Delaware, has gone on record regarding New Jersey's attempt to modify the established priority rules by stating that holders of unclaimed property, including issuers of SVCs, can expect Delaware to follow the priority rules as laid down by the Supreme Court and that it is the holder's obligation to correctly report abandoned property to the appropriate state under the well-known priority rules. Delaware encouraged holders receiving contrary information from other states to contact Delaware's unclaimed property officials.

New Jersey's new law does not appear to provide any guidance to holders as to the consequences for failure to comply with the newly enacted provisions of AB 3002. With retailers, the hospitality industry, and others bracing for the rapidly approaching holiday season, New Jersey is considering further modifications to the law to help provide greater clarity and understanding to the issuers of SVCs in addition to some potential concessions, which have not yet been disclosed. Until New Jersey formally articulates what modifications, if any, to the new law are forthcoming, every SVC issuer, especially those utilizing a GIFTCO, is compelled to evaluate how best to comply and implement the reporting requirements of AB 3002.

About Ryan

Ryan is the leading tax services firm in North America, with the largest transaction tax practice in the United States and Canada. Headquartered in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, and strategic planning. With a multi-disciplinary team of more than 850 professionals and associates, Ryan serves many of the world's most prominent Fortune 1000 companies.

SOURCE Ryan

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Modern Systems announced completion of a successful project with its new Rapid Program Modernization (eavRPMa"c) software. The eavRPMa"c technology architecturally transforms legacy applications, enabling faster feature development and reducing time-to-market for critical software updates. Working with Modern Systems, the University of California at Santa Barbara (UCSB) leveraged eavRPMa"c to transform its Student Information System from Software AG's Natural syntax to a modern application lev...
SYS-CON Events announced today that WSM International (WSM), the world’s leading cloud and server migration services provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. WSM is a solutions integrator with a core focus on cloud and server migration, transformation and DevOps services.
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carr...
DevOps tasked with driving success in the cloud need a solution to efficiently leverage multiple clouds while avoiding cloud lock-in. Flexiant today announces the commercial availability of Flexiant Concerto. With Flexiant Concerto, DevOps have cloud freedom to automate the build, deployment and operations of applications consistently across multiple clouds. Concerto is available through four disruptive pricing models aimed to deliver multi-cloud at a price point everyone can afford.
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-cri...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provide...
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantro...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
SYS-CON Events announced today that Tufin, the market-leading provider of Security Policy Orchestration Solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. As the market leader of Security Policy Orchestration, Tufin automates and accelerates network configuration changes while maintaining security and compliance. Tufin's award-winning Orchestration Suite™ gives IT organizations the power and a...
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications U...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables c...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the ...
BroadSoft on Tuesday announced that it is a recipient of the 2014 Frost & Sullivan Market Leadership Award in the Hosted/Cloud Internet Protocol (IP) Telephony market for Latin America. According to Frost & Sullivan market research, the Latin America (LATAM) hosted/cloud Internet Protocol (IP) telephony market, including integrated unified communications and collaboration (UC&C) applications, is currently experiencing a rapid growth trajectory and is expected to exhibit a tenfold rise in annual...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada...