I 

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. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Stored Value Device 

5 Registration and Reporting Act of 2010’’. 


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1 SEC. 2. DEFINITIONS. 

2 (a) DEFINITION OF FINANCIAL INSTITUTION.—Para3 graph (2) of section 5312(a) of title 31, United States 

4 Code is amended— 

5 (1) by redesignating subparagraphs (Y) and (Z) 

6 as subparagraphs (Z) and (AA), respectively; and 

7 (2) by inserting after subparagraph (X) the fol8 lowing new subparagraph: 

9 ‘‘(Y) a person engaged in the business of— 

10 ‘‘(i) issuing stored value devices; or 

11 ‘‘(ii) processing transactions related to 

12 a stored value device, including accessing 

13 information pertaining to the funds stored 

14 on such device, retrieving the funds stored 

15 on such device, or adding funds to be 

16 stored on such device;’’. 

17 (b) DEFINITION OF MONETARY INSTRUMENTS.— 

18 Subparagraph (B) of section 5312(a)(3) of title 31, 

19 United States Code, is amended by inserting after ‘‘trav20 elers’ checks,’’ the following: ‘‘stored value devices,’’. 

21 (c) STORED VALUE DEVICE DEFINED.—Subsection 

22 (a) of section 5312 of title 31, United States Code, is 

23 amended by adding at the end the following new para24 graphs: 

25 ‘‘(7) STORED VALUE DEVICE DEFINED.—The 

26 term ‘stored value device’ means a device that— 


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1 ‘‘(A) stores, or is capable of storing, funds 

2 represented in electronic format (whether or not 

3 specially encrypted) in such a way as to allow 

4 such funds to be retrievable and transferable 

5 electronically; 

6 ‘‘(B) is used to obtain money, goods, serv7 ices, or any other thing of value, or that can be 

8 used to initiate a transfer of funds (other than 

9 a transfer originated solely by paper instru10 ment); and 

11 ‘‘(C) is not a credit card or a debit card, 

12 as such terms are defined by the Secretary of 

13 the Treasury.’’. 

14 SEC. 3. REGISTRATION OF STORED VALUE DEVICE BUSI15 NESSES. 

16 (a) IN GENERAL.—Subchapter II of chapter 53 of 

17 title 31, United States Code, is amended by inserting after 

18 section 5330 the following new section: 

19 ‘‘§ 5330A. Registration of stored value device busi20 nesses 

21 ‘‘(a) REGISTRATION WITH SECRETARY OF THE

22 TREASURY REQUIRED.— 

23 ‘‘(1) IN GENERAL.—Any person who owns or 

24 controls a stored value device business shall register 

25 the business (whether or not the business is licensed 


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1 as a stored value device business in any State) with 

2 the Secretary of the Treasury not later than the end 

3 of the 180-day period beginning on the later of— 

4 ‘‘(A) the date of the enactment of the 

5 Stored Value Device Registration and Report6 ing Act of 2010; or 

7 ‘‘(B) the date on which the business is es8 tablished. 

9 ‘‘(2) FORM AND MANNER OF REGISTRATION.— 

10 Subject to the requirements of subsection (b), the 

11 Secretary of the Treasury shall prescribe, by regula12 tion, the form and manner for registering a stored 

13 value device business pursuant to paragraph (1). 

14 ‘‘(3) BUSINESSES REMAIN SUBJECT TO STATE

15 LAW.—This section shall not be construed as super16 seding any requirement of State law relating to 

17 stored value device businesses operating in such 

18 State. 

19 ‘‘(4) FALSE AND INCOMPLETE INFORMATION.— 

20 The filing of false or materially incomplete informa21 tion in connection with the registration of a stored 

22 value device businesses shall be considered as a fail23 ure to comply with the requirements of this sub24 chapter. 


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1 ‘‘(b) CONTENTS OF REGISTRATION.—The registra2 tion of a stored value device business under subsection (a) 

3 shall include the following information: 

4 ‘‘(1) The name and location of the business. 

5 ‘‘(2) The name and address of each person 

6 who— 

7 ‘‘(A) owns or controls the business; 

8 ‘‘(B) is a director or officer of the busi9 ness; or 

10 ‘‘(C) otherwise participates in the conduct 

11 of the affairs of the business. 

12 ‘‘(3) The name and address of any depository 

13 institution at which the business maintains a trans14 action account (as defined in section 19(b)(1)(C) of 

15 the Federal Reserve Act). 

16 ‘‘(4) An estimate of the volume of business in 

17 the coming year (which shall be reported annually to 

18 the Secretary). 

19 ‘‘(5) Such other information as the Secretary of 

20 the Treasury may require. 

21 ‘‘(c) AGENTS OF STORED VALUE DEVICE BUSI22 NESS.— 

23 ‘‘(1) MAINTENANCE OF LISTS OF AGENTS.— 

24 Pursuant to regulations which the Secretary of the 


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1 Treasury shall prescribe, each stored value device 

2 business shall— 

3 ‘‘(A) maintain a list containing the names 

4 and addresses of all persons authorized to act 

5 as an agent for such business in connection 

6 with activities described in subsection (d)(1) 

7 and such other information about such agents 

8 as the Secretary may require; and 

9 ‘‘(B) make the list and other information 

10 available on request to any appropriate law en11 forcement agency. 

12 ‘‘(2) TREATMENT OF AGENT.—The Secretary of 

13 the Treasury shall prescribe regulations establishing, 

14 on the basis of such criteria as the Secretary deter15 mines to be appropriate, a threshold point for treat16 ing an agent of a stored value device business as a 

17 stored value device business for purposes of this sec18 tion. 

19 ‘‘(d) STORED VALUE DEVICE BUSINESS DEFINED.— 

20 For purposes of this section, the term ‘stored value device 

21 business’ means a person other than the United States 

22 Postal Service who— 

23 ‘‘(1) is engaged in the business of— 

24 ‘‘(A) issuing stored value devices; or 


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1 ‘‘(B) processing transactions related to a 

2 stored value device, including accessing infor3 mation pertaining to the funds stored on such 

4 device, retrieving the funds stored on such de5 vice, or adding funds to be stored on such de6 vice; and 

7 ‘‘(2) is not a depository institution (as defined 

8 in section 5313(g)). 

9 ‘‘(e) CIVIL PENALTY FOR FAILURE TO COMPLY

10 WITH REGISTRATION REQUIREMENTS.— 

11 ‘‘(1) IN GENERAL.—Any person who fails to 

12 comply with any requirement of this section or any 

13 regulation prescribed under this section shall be lia14 ble to the United States for a civil penalty of $5,000 

15 for each such violation. 

16 ‘‘(2) CONTINUING VIOLATION.—Each day a vio17 lation described in paragraph (1) continues shall 

18 constitute a separate violation for purposes of such 

19 paragraph. 

20 ‘‘(3) ASSESSMENTS.—Any penalty imposed 

21 under this subsection shall be assessed and collected 

22 by the Secretary of the Treasury in the manner pro23 vided in section 5321 and any such assessment shall 

24 be subject to the provisions of such section. 


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1 ‘‘(f) SMALL BUSINESS EXEMPTION.—The Secretary 

2 of the Treasury shall prescribe regulations establishing, on 

3 the basis of such criteria as the Secretary determines to 

4 be appropriate, a threshold point under which small stored 

5 value device businesses will not be required to register 

6 under this section.’’. 

7 (b) CLERICAL AMENDMENT.—The table of sections 

8 for chapter 53 of title 31, United States Code, is amended 

9 by inserting after the item relating to section 5330 the 

10 following new item: 

‘‘5330A. Registration of stored value device businesses.’’. 

11 SEC. 4. STORED VALUE DEVICE STUDY. 

12 (a) IN GENERAL.—The Secretary of the Treasury, in 

13 consultation with the Attorney General, the Secretary of 

14 Homeland Security, and the Director of National Intel15 ligence, shall carry out a study on stored value devices. 

16 Such study shall include— 

17 (1) an analysis of the extent to which stored 

18 value devices are used for the purpose of pro19 viding— 

20 (A) payments related to drug trafficking; 

21 (B) payments related to human trafficking; 

22 or 

23 (C) financial support to terror cells oper24 ating within the United States; 


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1 (2) an analysis of the extent to which stored 

2 value devices issued by foreign entities are being uti3 lized in the United States, including the typical 

4 countries of origin of such devices and the typical 

5 values of such devices when imported into the 

6 United States; 

7 (3) an analysis of the extent to which stored 

8 value devices issued by United States entities are 

9 being utilized outside the United States, including 

10 the typical locations where value is added to such 

11 device and where value is typically subtracted inter12 nationally; 

13 (4) an identification of any trends in stored 

14 value addition and subtraction that appear to be as15 sociated with drug trafficking or human trafficking; 

16 (5) a list of stored value device types which are 

17 now or may soon be used for money trafficking; 

18 (6) recommendations on methods to collect data 

19 related to stored value device transactions for pur20 poses of law enforcement and intelligence analysis in 

21 a manner consistent with the Foreign Intelligence 

22 Surveillance Act and privacy laws; and 

23 (7) an analysis of whether requiring certain in24 formation to be printed, or otherwise made available, 

25 on stored value devices would help customs and law 


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1 enforcement officers identify such devices and track 

2 the origins of such devices, where such information 

3 could include the name and address of the device 

4 issuer, the maximum value of funds that can be 

5 stored on such device, and the fact that the device 

6 is a stored value device. 

7 (b) REPORT.—Not later than the end of the 180-day 

8 period beginning on the date of the enactment of this Act, 

9 the Secretary of the Treasury shall submit a report to the 

10 Congress containing all findings and determinations made 

11 in carrying out the study required under subsection (a). 

12 (c) STORED VALUE DEVICE DEFINED.—For pur13 poses of this section, the term ‘‘stored value device’’ shall 

14 have the meaning given such term under section 

15 5312(a)(7) of title 31, United States Code. 

Æ 


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