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HF 3623

as introduced - 86th Legislature (2009 - 2010) Posted on 03/10/2010 03:50pm

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 03/10/2010

Current Version - as introduced

Line numbers 1.1 1.2 1.3 1.4 1.5 1.6
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A bill for an act
relating to commerce; requiring debit cards to be issued as PIN-based cards and
transactions made with those cards to be processed as PIN-based transactions;
providing a moratorium on implementation of certain standards; proposing
coding for new law in Minnesota Statutes, chapter 47.

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

Section 1.

new text begin [47.695] PIN-BASED DEBIT CARD TRANSACTIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in
this subdivision have the meanings given.
new text end

new text begin (b) "Debit card" means a card issued by a financial institution that contains a
magnetic strip, microprocessor chip, or other means of storage of information that permits
the user to make a payment from a demand deposit account at that financial institution and
not in the form of an extension of credit.
new text end

new text begin (c) "PIN-based debit card" means a debit card that requires that the user provide
the personal identification number (PIN) associated with the card in order to use the
debit card to make a transaction, and that requires the issuer to process the transaction as
a PIN-based transaction.
new text end

new text begin (d) "Signature-based debit card" means a debit card that permits the user to make a
transaction by providing the cardholder's signature or the cardholder's PIN, but does not
allow the issuer of the card to process the transaction as a PIN-based transaction.
new text end

new text begin Subd. 2. new text end

new text begin PIN-based debit cards required. new text end

new text begin No issuer of a debit card shall issue a
debit card to a resident of this state unless the debit card is a PIN-based debit card.
new text end

new text begin Subd. 3. new text end

new text begin Transition language. new text end

new text begin Debit cards issued prior to the effective date of this
section that do not comply with subdivision 2 must be replaced with compliant cards no
later than six months after the effective date of this act.
new text end

new text begin Subd. 4. new text end

new text begin Moratorium on PCI compliance. new text end

new text begin No debit card issuer, credit card issuer,
debit or credit card processor, or any other person may require a merchant or other owner
of a debit card terminal to become compliant with Payment Card Industries standards prior
to full compliance with subdivisions 2 and 3.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Subdivisions 1 to 3 are effective January 1, 2011. Subdivision
4 is effective the day following final enactment.
new text end