[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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