1)     Don’t try to leverage your state into a higher priority; 
     and MORE IMPORTANTLY,

2)     Forget this so-called “third priority – place of sale” claim!

What good would a place of sale rule accomplish anyway? The state cannot return the property since there is no name and address. Essentially, the state is looking for additional revenue byway of the forgetful owner! In the case of the so-called “third priority” rule the state of a company’s domicile has made an express exemption of the property type (SVCs, B2B checks, etc.). Should the fact that a consumer has purchased a gift card in this state determine that the unused balance on that particular card should be used to enrich that state’s coffer? NO! That type of finagling would be nothing more than a sneaky sales tax (as if we don’t pay enough of those already)! On top of all that, most state legislatures probably didn’t understand the third priority rule when the Uniform Act was paced in front of them!

BOTTOM LINE: The 3^rd Priority Rule serves no legitimate purpose and turns escheat away from its stated goal of consumer protection. Let’s lobby our state representatives!

With that, Happy Thanksgiving!
Brooke Spotswood

CAUTION: This material contains both legal commentary and opinion. The commentary is not intended to be advice of any kind; the opinion is intended to provoke discussion and may not be suitable for all audiences...J

Re:      New Jersey’s Stored Value Card legislation has been temporarily enjoined

            (AMERICAN EXPRESS, et al v. SIDAMON-ERISTOFF, et al)

Well, what did New Jersey expect? I mean, really? The state – in the Judge’s words – attempted to “usurp” the claim of a retailer’s state of domicile. This attempt was, of course, in blatant violation of the TEXAS v. NEW JERSEY rules. The same rules the rest of us are forced to live by!

Rest assured, New Jersey has benefitted from those same priority rules. How would they have felt in Pennsylvania had tried the “deemed address” maneuver?

If New Jersey is ultimately successful, could you imagine the “copycat” legislation that will ensue?  Retailers would have a heck of a time trying to determine which state it was obligated to report to and when! The Judge foresaw that possibility too. My favorite line in her 92 Page Opinion is on page 80:

“It [the proposed priority rule] would permit New Jersey to fabricate an interest where it otherwise does not have one…”

What a slap in the face! New Jersey, you have been SERVED!

Regards,

Brooke