N.J. General Assembly Passes ZIP Code Repeal Bill (Dec. 22, 2014)
The N.J. General Assembly last week approved by a vote of 73-1 the ZIP code repeal bill (A-3480), which eliminates the collection of consumer ZIP code information for gift cards at the POS. The legislation now moves on to the desk of Gov. Chris Christie (R-NJ).
The collection of consumers’ ZIP codes was just one front of a protracted battle between the prepaid industry and the state of New Jersey that went on for the better part of two years regarding escheat legislation that led to several companies planning to pull products from the state. The law, passed June 2010 and amended by Gov. Christie in 2012, requires unused funds remaining on most prepaid cards to escheat to the state, among other provisions. The amended law extended the dormancy period for stored value cards from two years to five, and pertains to cards issued on or after July 1, 2010. But prepaid providers were still concerned about a provision to collect ZIP codes from consumers, which was set to go into effect July 1, 2016.
The bill to repeal the ZIP code provision has had overwhelming support from both sides of the aisle because it protects consumers and advances business-friendly policies, according to Mary Donovan, executive director of the Retail Gift Card Association (RGCA). “The governor now has 45 days to make a decision on signing the bill into law,” she tells Paybefore. “We are hopeful that Gov. Christie will see the value of supporting this bill. For businesses that operate with gift card programs in New Jersey, this is certainly a very positive step.”
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