Leawood, Kan. – April 7, 2023: Last month, the New Mexico Senate passed House Bill 165 (“HB 165”). You may recall that HB 165 was previously passed by the House of Representatives. HB 165 would enact New Mexico’s version of the Revised Uniform Unclaimed Property Act. If enacted in its current form, HB 165 would become effective on January 1, 2024. 2023 H.B. 165 § 110.
HB 165 would create a specific exemption for game-related digital content and loyalty cards. Id. at § 5(23)(C)(ii-iii). Loyalty cards are defined as “a record given without direct monetary consideration pursuant to an award, reward, benefit, loyalty, incentive, rebate or promotional program that may be used or redeemed only to obtain goods or services or a discount on goods or services. The term does not include a record that may be redeemed for money or otherwise monetized by the issuer.” Id. at § 5(13).
As currently written, the bill provides that “a gift card is presumed abandoned if it is unclaimed by the apparent owner five years after the later of the date of purchase or its most recent use, but if redeemable in merchandise only, the amount abandoned is deemed to be sixty percent of the card’s current face value.” Id. at § 14. “Gift card (A) means a stored-value card: (i) the value of which does not expire; (ii) that may be decreased in value only by redemption for merchandise, goods or services; and (iii) that, unless required by law, may not be redeemed for or converted into money or otherwise monetized by the issuer; and (B) includes a prepaid commercial mobile radio service, as defined in 47 C.F.R. 20.3.” Id. at § 5(10). HB 136 would require virtual currency to escheat. Id. at § 5(23)(B)(i).
The bill would also provide for a specific stored value card section and a payroll card section. If enacted, stored value cards will escheat three years after the later of December 31 of the year in which the card was last loaded or the last activity date. Id. at § 13. Under HB 165, payroll cards would escheat with other bank accounts three years after the last indication of the owner’s interest. Id. at § 8(5).
Next, HB 165 will move to the Governor for consideration. To read New Mexico Montana House Bill 165, click here: New Mexico HB 165.
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