SF 3000

2nd Engrossment - 81st Legislature (1999 - 2000)

Posted on 12/15/2009 12:00 a.m.

  1.1                          A bill for an act 
  1.2             relating to consumer protection; providing consumers' 
  1.3             right to privacy, confidentiality, and secrecy of 
  1.4             their financial records; requiring consumer 
  1.5             authorization for exchange or disclosure of their 
  1.6             financial records; providing civil remedies and 
  1.7             penalties; proposing coding for new law as Minnesota 
  1.8             Statutes, chapter 13E. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  [13E.01] [DEFINITIONS.] 
  1.11     For purposes of this chapter, the terms "consumer," 
  1.12  "financial institution," "nonaffiliated third party," and 
  1.13  "nonpublic personal information" have the meanings given in 
  1.14  section 509 of the federal Gramm-Leach-Bliley Financial Services 
  1.15  Modernization Act, codified as United States Code, title 15, 
  1.16  section 6809, including any federal regulations implementing 
  1.17  that section. 
  1.18     Sec. 2.  [13E.02] [PRIVACY OF FINANCIAL DATA.] 
  1.19     Every financial institution doing business in this state 
  1.20  shall comply with sections 502 and 503 of the federal 
  1.21  Gramm-Leach-Bliley Financial Services Modernization Act, 
  1.22  codified as United States Code, title 15, sections 6802 and 6803 
  1.23  respectively, including any federal regulations issued under 
  1.24  authority of section 504 of the act, codified as United States 
  1.25  Code, title 15, section 6804. 
  1.26     Sec. 3.  [13E.03] [DUTY OF CONFIDENTIALITY.] 
  1.27     In addition to complying with section 13E.02, a financial 
  2.1   institution doing business in this state may not disclose 
  2.2   nonpublic personal information about a consumer to any 
  2.3   nonaffiliated third party unless the disclosure is made in 
  2.4   accordance with any of the following: 
  2.5      (1) pursuant to consent granted by the consumer in 
  2.6   accordance with this chapter; 
  2.7      (2) pursuant to the exception in section 502(b)(2) or the 
  2.8   general exceptions in section 502(e) of the Gramm-Leach-Bliley 
  2.9   Financial Services Modernization Act, codified as United States 
  2.10  Code, title 15, sections 6802(b)(2) and 6802(e), including any 
  2.11  federal regulations issued to implement that section; or 
  2.12     (3) for the purpose of reporting a suspected violation of 
  2.13  the law. 
  2.14     Sec. 4.  [13E.04] [CONSENT.] 
  2.15     Subdivision 1.  [USE.] A consent or waiver must not be 
  2.16  required as a condition of doing business with any financial 
  2.17  institution, and any consent or waiver obtained from a consumer 
  2.18  as a condition of doing business with a financial institution 
  2.19  must not be deemed a consent of the consumer for the purpose of 
  2.20  this chapter. 
  2.21     Subd. 2.  [FORM.] A valid consent must be in writing and 
  2.22  signed by the consumer.  The consent signed by the consumer must 
  2.23  be contained on a separate page that also clearly and 
  2.24  conspicuously discloses the following: 
  2.25     (1) the time during which the consent will operate which 
  2.26  must not be longer than five years; 
  2.27     (2) each category of consumer information to be disclosed, 
  2.28  including specifically, but without limitation, the consumer's 
  2.29  social security number, account numbers, account balances, 
  2.30  credit limits, the amount or dates of any transaction, the 
  2.31  identity of persons to whom the consumer's checks are made 
  2.32  payable, and the identity of merchants or other persons honoring 
  2.33  the consumer's credit cards; and 
  2.34     (3) the nonaffiliated third parties to which disclosure may 
  2.35  be made. 
  2.36     Sec. 5.  [13E.05] [PENALTIES.] 
  3.1      The attorney general may seek the remedies set forth in 
  3.2   section 8.31, subdivision 3, against any financial institution 
  3.3   in violation of this chapter. 
  3.4      Sec. 6.  [EFFECTIVE DATE.] 
  3.5      Sections 1 to 5 are effective June 30, 2001.