Following injunctions issued against New Jersey and its 2010 unclaimed property law provisions applicable to stored value cards (SVCs) and gift cards in the New Jersey Retail Merchants and American Express Travel Related Services cases, New Jersey has enacted S.B. 1928 and has revised how it will now treat SVCs for unclaimed property purposes. Under the new law, SVCs issued prior to July 1, 2010 are not subject to New Jersey's unclaimed property statute. For cards issued on or after July 1, 2010 for which there has been no activity for five years, the amount that must be escheated to New Jersey is 60 percent of the unredeemed value of the SVC. However, "general purpose reloadable cards" (i.e., cards issued by a bank or financial institution that can be used at multiple merchants and that can be "reloaded" by the user) are not included as SVCs subject to escheatment. In addition, promotional, incentive, loyalty, or reward cards for which the owner paid no direct monetary consideration for the card are exempt. The new law also repeals the "place of purchase" presumption and delays implementation of the data collection requirement for merchants (the requirement that they collect zip codes from purchasers of SVCs) for 49 months after the date of enactment or until July 1, 2016.
The parties in these cases have also petitioned the U.S. Supreme Court for writs of certiorari on other issues addressed in the New Jersey SVC cases. American Express Travel Related Services is asking the Supreme Court to decide that New Jersey's retroactive shortening of the dormancy period for unused travelers checks from 15 years to three years violated the Due Process Clause and also constituted an unconstitutional taking without just compensation. In a separate petition, the state has asked the Court to reverse the Federal Court of Appeals for the Third Circuit's decision that federal common law preempted New Jersey's point of sale priority rule for reporting dormant, unused SVC balances.