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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5127 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5127

    To amend 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 programs, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 22, 2010

  Ms. Giffords (for herself and Mr. Bilbray) introduced the following 
    bill; which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
    To amend 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 programs, 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 providing 
                stored value services, including a stored value system 
                operator, an issuer of stored value, a seller of stored 
                value, and a redeemer of stored value;''.
    (b) Stored Value, Stored Value System Operator, and 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.--The term `stored value' means funds or 
        monetary value represented in digital electronics format 
        (whether or not specially encrypted) and stored or capable of 
        storage on electronic media in such a way as to be retrievable 
        and transferable electronically.
            ``(8) Stored value system operator.--
                    ``(A) In general.--The term `stored value system 
                operator' means any person doing business in the United 
                States that operates a system for clearing and settling 
                transactions in which the operator's stored value 
                device is used to purchase goods or services or to 
                obtain cash. To fall within this definition, the 
                operator must also have authorized another person 
                (whether located in the United States or not) to be an 
                issuing institution or acquiring institution for the 
                operator's stored value device or must act as its own 
                issuing institution or acquiring institution.
                    ``(B) Definitions.--For purposes of this paragraph:
                            ``(i) Issuing institution.--The term 
                        `issuing institution' means a person authorized 
                        by the stored value system operator to issue 
                        the operator's stored value device.
                            ``(ii) Acquiring institution.--The term 
                        `acquiring institution' means a person 
                        authorized by the stored value system operator 
                        to contract, directly or indirectly, with 
                        merchants or other persons to process 
                        transactions, including cash access 
                        transactions, involving the operator's stored 
                        value device.
                            ``(iii) Operator's stored value device.--
                        The term `operator's stored value device' means 
                        a stored value device capable of being used in 
                        the United States that--
                                    ``(I) has been issued by an issuing 
                                institution; and
                                    ``(II) can be used in the 
                                operator's stored value system.
            ``(9) Device.--The term `device' means any card, plate, 
        code, account number, electronic serial number, mobile 
        identification number, personal identification number, or other 
        telecommunications service, equipment, or instrument 
        identifier, or other means of account access that can be used, 
        alone or in conjunction with another access device, to obtain 
        money, goods, services, or any other thing of value, or that 
        can be used to initiate a transfer of funds or of stored value 
        (other than a transfer originated solely by paper instrument), 
        but a stored value device does not include a credit card or a 
        debit card, as such terms are defined by the Secretary of the 
        Treasury.
            ``(10) Reportable stored value device.--The term 
        `reportable stored value device' means a stored value device 
        for which--
                    ``(A) the associated stored value account is 
                reloadable by the device holder;
                    ``(B) the device does not comply with minimum 
                stored value device standards prescribed by the 
                Secretary of the Treasury;
                    ``(C) the device does not bear the name of the 
                person transporting or possessing the device; or
                    ``(D) the device is designated as reportable by the 
                Secretary of the Treasury.''.

SEC. 3. REGISTRATION OF STORED VALUE PROGRAMS.

    (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 programs
    ``(a) Registration With Secretary of the Treasury Required.--
            ``(1) In general.--Any stored value system operator shall 
        register each stored value program that such person authorizes 
        to function on such stored value system 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 end of the 30-day period that begins on 
                the date on which the first stored value transaction in 
                the stored value program is processed.
            ``(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 program pursuant to paragraph (1).
            ``(3) Persons remain subject to state law.--This section 
        shall not be construed as superseding any requirement of State 
        law relating to persons operating stored value systems or 
        persons engaged in stored value programs within the 
        jurisdiction of such State.
            ``(4) False and incomplete information.--The filing of 
        false or materially incomplete information in connection with 
        the registration of a stored value program shall be considered 
        as a failure to comply with the requirements of this 
        subchapter.
    ``(b) Contents of Registration.--The registration of a stored value 
program under subsection (a) shall include the following information:
            ``(1) The name and location of the operator of the stored 
        value system.
            ``(2) The name and address of each person who--
                    ``(A) issues the stored value associated with the 
                stored value program;
                    ``(B) issues a stored value device associated with 
                the stored value program; or
                    ``(C) provides stored value processing services to 
                the issuer of the stored value or to the issuer of the 
                stored value device, or to a person acting in a 
                capacity similar to such issuer.
            ``(3) The name and address of any depository institution at 
        which the stored value program maintains a transaction account 
        (as defined in section 19(b)(1)(C) of the Federal Reserve Act).
            ``(4) The name and address of the bank, foreign or 
        domestic, in which the primary transaction account for the 
        funds representing the stored value sold is held, the bank 
        routing number, and the bank account number.
            ``(5) The bank identification number or other system 
        identifier of the stored value devices for the stored value 
        program.
            ``(6) A description of the features included in the group 
        of services offered to stored value account holders in the 
        stored value program, either provided directly through the 
        stored value system or otherwise, including--
                    ``(A) the maximum amount of value that may be held 
                in a stored value account at any time (maximum total 
                load amount);
                    ``(B) the maximum amount of funds that may be 
                loaded to the stored value account per load 
                transaction;
                    ``(C) the maximum amount of funds that may be 
                loaded to a stored value account per day;
                    ``(D) the maximum amount of funds that may be 
                loaded to a stored value account per day through one or 
                more load purchases in currency;
                    ``(E) the maximum amount of stored value that may 
                be loaded through an automated clearinghouse 
                transaction;
                    ``(F) the maximum amount that may be loaded through 
                a Fedwire (the realtime gross settlement system 
                operated by the Board of Governors of the Federal 
                Reserve System) transaction;
                    ``(G) the maximum amount of stored value that may 
                be redeemed in currency through an over-the-counter 
                transaction by a system member;
                    ``(H) the maximum amount of stored value that may 
                be redeemed in currency through an automated teller 
                machine or other mechanical means per transaction;
                    ``(I) the maximum amount of stored value that may 
                be redeemed in currency through an automated teller 
                machine or other mechanical means per day;
                    ``(J) the maximum amount of value that may be spent 
                though one or more automated clearinghouse transactions 
                per day; and
                    ``(K) the maximum amount of value that may be spent 
                through Fedwire transactions per day.
            ``(7) A description of the measures in effect under the 
        program to assure that--
                    ``(A) the identity of the owner of the stored value 
                is accurate;
                    ``(B) the person using the device is the person 
                entitled to do so;
                    ``(C) stored value account holders are informed 
                that participation in a stored value program 
                constitutes waiver of objection to law enforcement 
                access to the present amount of stored value accessible 
                through a stored value device; and
                    ``(D) the amount of value available through the 
                device at the time of the inquiry is accessible to law 
                enforcement.
            ``(8) Such other information as the Secretary of the 
        Treasury may require.
    ``(c) Eligibility for Registration.--No stored value program is 
eligible for registration unless the stored value devices associated 
with that program clearly and visibly state on the device, to the 
extent the device is a physical device, and to the extent prescribed by 
the Secretary of the Treasury--
            ``(1) that the device is a stored value device;
            ``(2) the name, address, and telephone number of the issuer 
        of the stored value associated with the device for use by law 
        enforcement;
            ``(3) the maximum amount of value that may be held in a 
        stored value account associated with the device at any time 
        (maximum value);
            ``(4) the bank identification number of the stored value 
        program that is associated with the device, if any; and
            ``(5) a clear and concise descriptive label of the type of 
        stored value program through which the device is issued.
    ``(d) Stored Value Program Defined.--For purposes of this section, 
the term `stored value program' means any one or more stored value 
devices with the same device functionality authorized by a stored value 
system operator to be issued by an issuing institution in which each 
device in the program is identified by the same bank identification 
number or other identifier that relates the stored value device to the 
issuing institution.
    ``(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) Forfeiture.--
            ``(1) In general.--Any--
                    ``(A) stored value device issued in connection with 
                a stored value program that fails to comply with any 
                requirement of this section or any regulation 
                prescribed under this section,
                    ``(B) stored value issued in connection with a 
                stored value program that fails to comply with any 
                requirement of this section or any regulation 
                prescribed under this section, or
                    ``(C) physical stored value device that does not 
                comply with the physical characteristics required for 
                registration under this section,
        may be seized and forfeited to the United States.
            ``(2) Procedure.--The seizure and forfeiture shall be 
        governed by the procedures governing civil forfeitures in money 
        laundering cases pursuant to section 981(a)(1)(A) of title 18, 
        United States Code.
            ``(3) Treatment of certain property as involved in the 
        offense.--For purposes of this subsection, any stored value 
        device, and any other property used, or intended to be used to 
        facilitate the offense (including the funds or value of funds 
        accessible by the stored value device at the time of the 
        offense), shall be considered property involved in the offense.
    ``(g) Small Business and Low-Risk 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- and low-risk stored value programs 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 programs.''.

SEC. 4. AMENDMENTS RELATING TO REPORTS ON EXPORTS AND IMPORTS OF 
              MONETARY INSTRUMENTS, STORED VALUE, AND STORED VALUE 
              DEVICES.

    (a) Requirement of Reports on Exports and Imports of Stored Value 
and Stored Value Devices.--Section 5316(a) of title 31, United States 
Code, is amended to read as follows:
    ``(a) Except as provided in subsection (d) of this section, a 
person or an agent or bailee of the person shall file a report under 
subsection (b) of this section when the person, agent, or bailee 
knowingly--
            ``(1) transports, is about to transport, or has 
        transported, monetary instruments, stored value, or a 
        combination of monetary instruments and stored value, of more 
        than $10,000 at one time, or reportable stored value devices at 
        one time--
                    ``(A) from a place in the United States to or 
                through a place outside the United States; or
                    ``(B) to a place in the United States from or 
                through a place outside the United States; or
            ``(2) receives monetary instruments, stored value, or a 
        combination of monetary instruments and stored value, of more 
        than $10,000 at one time, or reportable stored value devices at 
        one time, transported into the United States from or through a 
        place outside the United States.''.
    (b) Report Filing and Content Requirements.--Subsection (b) of 
section 5316 of title 31, United States Code, is amended to read as 
follows:
    ``(b) Report Filing and Content Requirements.--
            ``(1) Time and place of filing.--A report under subsection 
        (a) shall be filed at the time and place the Secretary of the 
        Treasury prescribes.
            ``(2) Monetary instrument or stored value.--A report filed 
        under this subsection with respect to monetary instruments or 
        stored value shall contain the following information to the 
        extent the Secretary of the Treasury prescribes:
                    ``(A) The legal capacity in which the person filing 
                the report is acting.
                    ``(B) The origin, destination, and route of the 
                monetary instruments or stored value.
                    ``(C) When the monetary instruments or stored value 
                are not legally and beneficially owned by the person 
                transporting the instruments or stored value, or if the 
                person transporting the instruments or stored value 
                personally is not going to use them, the identity of 
                the person that gave the instruments or stored value to 
                the person transporting them, the identity of the 
                person who is to receive them, or both.
                    ``(D) The amount and kind of monetary instruments 
                or stored value transported.
                    ``(E) Such additional information as the Secretary 
                of the Treasury may require.
            ``(3) Stored value devices.--A report filed under this 
        subsection with respect to reportable stored value devices 
        shall contain the following information to the extent the 
        Secretary of the Treasury prescribes:
                    ``(A) The legal capacity in which the person filing 
                the report is acting.
                    ``(B) The origin, destination, and route of the 
                stored value devices.
                    ``(C) When the stored value devices are not legally 
                and beneficially owned by the person transporting the 
                stored value devices, or if the person transporting the 
                stored value devices personally is not going to use the 
                stored value devices, the identity of the person that 
                gave the stored value devices to the person 
                transporting them, the identity of the person who is to 
                receive them, or both.
                    ``(D) The maximum value of the devices transported.
                    ``(E) The amount of stored value in the stored 
                value account associated with the devices at the time 
                they are transported.
                    ``(F) The number and kind of stored value devices 
                transported.
                    ``(G) Such additional information as the Secretary 
                of the Treasury may require.
            ``(4) Maximum value.--For purposes of this subsection, the 
        `maximum value' of a stored value device is the maximum 
        monetary value that can be loaded to the stored value account 
        that the device accesses.''.

SEC. 5. AMENDMENTS RELATING TO SEARCH AND FORFEITURE OF MONETARY 
              INSTRUMENTS AND STORED VALUE DEVICES.

    Section 5317 of title 31, United States Code, is amended--
            (1) in the heading of such section, by inserting after 
        ``instruments'' the following: ``and stored value devices''; 
        and
            (2) by amending subsection (a) to read as follows:
    ``(a) In General.--The Secretary of the Treasury or the Secretary 
of Homeland Security may apply to a court of competent jurisdiction for 
a search warrant when such Secretary reasonably believes a monetary 
instrument, stored value, or a reportable stored value device is being 
transported and a report on the instrument or device under section 5316 
of this title has not been filed or contains a material omission or 
misstatement. Such Secretary shall include a statement of information 
in support of the warrant. On a showing of probable cause, the court 
may issue a search warrant for a designated person or a designated or 
described place or physical object. This subsection does not affect the 
authority of the Secretary of the Treasury or the Secretary of Homeland 
Security under another law.''.

SEC. 6. AMENDMENT OF SMUGGLING PROVISIONS.

    Chapter 53 of subtitle IV of title 31, United States Code, is 
amended by amending section 5332 to read as follows:

``SEC. 5332. SMUGGLING OF CASH, MONETARY INSTRUMENTS, STORED VALUE, AND 
              STORED VALUE DEVICES INTO OR OUT OF THE UNITED STATES.

    ``(a) Criminal Offense.--
            ``(1) In general.--Whoever, with the intent to evade a 
        currency reporting requirement under section 5316, knowingly 
        conceals more than $10,000 in currency or other monetary 
        instruments or stored value, or any physical reportable stored 
        value device, on the person of such individual or in any 
        conveyance, article of luggage, merchandise, or other 
        container, and transports or transfers or attempts to transport 
        or transfer such currency, other monetary instruments, stored 
        value, or physical reportable stored value device from a place 
        within the United States to a place outside of the United 
        States, or from a place outside the United States to a place 
        within the United States, shall be guilty of a currency 
        smuggling offense and subject to punishment pursuant to 
        subsection (b).
            ``(2) Concealment on person.--For purposes of this section, 
        the concealment of currency, other monetary instruments, or 
        physical reportable stored value device on the person of any 
        individual includes concealment in any article of clothing worn 
        by the individual or in any luggage, backpack, or other 
        container worn or carried by such individual.
    ``(b) Penalty.--
            ``(1) Term of imprisonment.--A person convicted of a 
        currency smuggling offense under subsection (a), or a 
        conspiracy to commit such offense, shall be imprisoned for not 
        more than 5 years.
            ``(2) Forfeiture.--In addition, the court, in imposing 
        sentence under paragraph (1), shall order that the defendant 
        forfeit to the United States any property, real or personal, 
        involved in the offense, and any property traceable to such 
        property.
            ``(3) Procedure.--The seizure, restraint, and forfeiture of 
        property under this section shall be governed by section 413 of 
        the Controlled Substances Act.
            ``(4) Personal money judgment.--If the property subject to 
        forfeiture under paragraph (2) is unavailable, and the 
        defendant has insufficient substitute property that may be 
        forfeited pursuant to section 413(p) of the Controlled 
        Substances Act, the court shall enter a personal money judgment 
        against the defendant for the amount that would be subject to 
        forfeiture.
    ``(c) Civil Forfeiture.--
            ``(1) In general.--Any property involved in a violation of 
        subsection (a), or a conspiracy to commit such violation, and 
        any property traceable to such violation or conspiracy, may be 
        seized and forfeited to the United States.
            ``(2) Procedure.--The seizure and forfeiture shall be 
        governed by the procedures governing civil forfeitures in money 
        laundering cases pursuant to section 981(a)(1)(A) of title 18, 
        United States Code.
            ``(3) Treatment of certain property as involved in the 
        offense.--For purposes of this subsection and subsection (b), 
        any currency, other monetary instrument, stored value, or 
        physical reportable stored value device that is concealed or 
        intended to be concealed in violation of subsection (a) or a 
        conspiracy to commit such violation, any article, container, or 
        conveyance used, or intended to be used, to conceal or 
        transport the currency, other monetary instrument, stored 
        value, or physical reportable stored value device, and any 
        other property used, or intended to be used to facilitate the 
        offense (including the funds or value of funds accessible by 
        the stored value device at the time of the offense), shall be 
        considered property involved in the offense.''.

SEC. 7. 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 laundering;
            (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)(9) of title 31, United States Code.
                                 <all>
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