NJ Official Wants Gift Card Law Permanently Repealed

NEW JERSEY (CBS) - A federal judge has temporarily blocked New Jersey's attempts to seize millions of dollars in unspent gift cards and calling cards. Now, an assemblyman who is chairman of the Consumer Affairs Committee is hoping the law will be repealed.

Assemblyman Paul Moriarty salutes the federal judge's ruling halting the Treasury Department from moving to grab up to $80 million worth of revenue represented by the unspent or unused cards.

The Washington Township Democrat says a law passed as part of a political compromise to resolve the budget stalemate with the governor was faulty.

"The legislation that they passed back in June, they made it retroactive so that the state was going to be confiscating all sorts of gift cards this year that people may have had laying around in their drawers and intending to use. And, when they went to use them, they'd find out that the money had been confiscated by the state."

The New Jersey Retail Merchants Association and other groups challenged the constitutionality of the law in federal court - leading to the ruling. They argued the law placed an unreasonable burden on retailers, who were being required to gather and keep personal information on those who bought gift cards or calling cards and turn that information over to the state.

Moriarity called the law unfair to both consumers and businesses.

Reported by Mark Abrams, KYW Newsradio