HF 3904

1st Engrossment - 91st Legislature (2019 - 2020) Posted on 05/14/2020 10:19am

A bill for an act
relating to commerce; regulating certain conduct relating to the timing of money
transmission; amending Minnesota Statutes 2018, section 53B.18.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2018, section 53B.18, is amended to read:

53B.18 PROHIBITED PRACTICES.

new text begin (a) new text end No licensee shall:

(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;

(2) refuse to indemnify an instrument holder for any misappropriation of money caused
by any of its authorized delegates in conducting activities on behalf of the licensee for whom
it acts as an authorized delegate; new text begin or
new text end

deleted text begin (3) fail to transmit all money received for wire transmission in accordance with the
purchaser's instructions within five days; or
deleted text end

deleted text begin (4) deleted text end new text begin (3) new text end fail to comply with section 53B.27.

new text begin (b) A licensee must transmit all money received for transmission in accordance with the
sender's instructions within five business days of the date the licensee receives the money
from the sender unless:
new text end

new text begin (1) otherwise ordered by the sender;
new text end

new text begin (2) the licensee or its authorized delegate has a reasonable belief or a reasonable basis
to believe that a crime or violation of law, rule, or regulation has occurred, is occurring, or
may occur as a result of transmission; or
new text end

new text begin (3) the transmission is payment for goods or services.
new text end

new text begin (c) A licensee must conspicuously state in an agreement with a merchant to transmit
money from a sender for goods or services:
new text end

new text begin (1) that the licensee has the authority to place a hold on or delay the transmission of a
sender's money for more than five business days; and
new text end

new text begin (2) the general circumstances under which a transmittal may be subject to a hold or
delay.
new text end

new text begin (d) A licensee that receives money from a sender for transmission to a merchant to pay
for goods or services must transmit the money to the merchant within the time frame agreed
upon in the merchant's agreement with the licensee.
new text end

new text begin (e) If a licensee fails to transmit money received for transmission in accordance with
this section, the licensee must respond to inquiries by the sender or recipient with the reason
for the failure unless the response violates state or federal law.
new text end

new text begin (f) A licensee or its authorized delegate must refund to the customer all money received
for transmittal within ten days of receipt of a request for a refund unless any of the following
has occurred:
new text end

new text begin (1) the money has been transmitted and delivered to the person designated by the customer
prior to receipt of the written request for a refund;
new text end

new text begin (2) instructions have been given committing an equivalent amount of money to the
person designated by the customer prior to the receipt of a request for a refund; or
new text end

new text begin (3) the licensee is otherwise barred by law from making a refund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective August 1, 2020, and applies to
transmissions and merchant agreements with licensees executed on or after that date.
new text end