HF 2173
1st Unofficial Engrossment - 87th Legislature (2011 - 2012)
Posted on 04/03/2012 10:06 p.m.
KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers
1.1A bill for an act
1.2relating to consumer protection; establishing fraud prevention measures for
1.3money transmitters; clarifying the definition of home solicitation sale; amending
1.4Minnesota Statutes 2010, sections 53B.18; 325G.06, subdivision 2; proposing
1.5coding for new law in Minnesota Statutes, chapter 53B.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 53B.18, is amended to read:
1.853B.18 PROHIBITED PRACTICES.
1.9No licensee shall:
1.10(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;
1.11(2) refuse to indemnify an instrument holder for any misappropriation of money
1.12caused by any of its authorized delegates in conducting activities on behalf of the licensee
1.13for whom it acts as an authorized delegate; or
1.14(3) fail to transmit all money received for wire transmission in accordance with the
1.15purchaser's instructions within five daysnew text begin ; ornew text end
1.16new text begin (4) fail to comply with section 53B.27new text end .
1.17 Sec. 2. new text begin [53B.27] MONEY TRANSMITTERS; COOPERATION REQUIRED new text end
1.18new text begin IN COMBATTING FRAUD.new text end
1.19 new text begin Subdivision 1.new text end new text begin Fraud prevention measures required.new text end new text begin Each money transmitter new text end
1.20new text begin shall:new text end
1.21new text begin (1) provide a clear, concise, and conspicuous consumer fraud warning on all new text end
1.22new text begin transmittal forms used by consumers;new text end
1.23new text begin (2) provide consumer fraud prevention training for agents involved with transmittals;new text end
2.1new text begin (3) monitor agent activity relating to consumer transmittals; andnew text end
2.2new text begin (4) establish a toll-free number for consumers to call to report fraud or suspected new text end
2.3new text begin fraud.new text end
2.4 new text begin Subd. 2.new text end new text begin Voluntary disqualification by customer.new text end new text begin A money transmitter that new text end
2.5new text begin originates money transfers in this state must allow an individual to voluntarily disqualify new text end
2.6new text begin the individual from sending or receiving money transfers. The disqualification lasts for new text end
2.7new text begin one year, unless the individual requests that it be in effect for a period longer than one new text end
2.8new text begin year. The individual may terminate the disqualification at any time upon written notice new text end
2.9new text begin to the money transmitter.new text end
2.10 Sec. 3. Minnesota Statutes 2010, section 325G.06, subdivision 2, is amended to read:
2.11 Subd. 2. Home solicitation sale. "Home solicitation sale" means a sale of goods
2.12ornew text begin ,new text end services, new text begin or improvements to real property new text end by a seller who regularly engages in
2.13transactions of the same kind, purchased primarily for personal, family or household
2.14purposes, and not for agricultural purposes, with a purchase price of more than $25, in
2.15which the seller or a person acting for the seller personally solicits the sale, and when the
2.16buyer's agreement or offer to purchase is made at a place other than the place of business
2.17of the seller, except as otherwise provided in this subdivision. It does not include:
2.18(a)new text begin (1)new text end a sale made pursuant to prior negotiations in the course of a visit by the buyer
2.19to a retail business establishment having a fixed permanent location where the goods are
2.20exhibited or the services are offered for sale on a continuing basis; or
2.21(b)new text begin (2)new text end a sale in which the buyer has initiated the contact and the goods or services
2.22are needed to meet a bona fide immediate personal emergency of the buyer and the buyer
2.23furnishes the seller with a separate dated and signed statement not furnished by the seller
2.24describing the situation requiring immediate remedy and expressly acknowledging and
2.25waiving the right to cancel the sale. This exclusion shall only apply where (i) the seller in
2.26good faith makes a substantial beginning of performance of the contract before the buyer
2.27gives notice of cancellation, and, (ii) in the case of goods, the goods cannot be returned to
2.28the seller in substantially as good condition as when received by the buyer; or
2.29(c)new text begin (3)new text end a sale in which the buyer has initiated the contact and specifically requested
2.30the seller to visit the buyer's home for the purpose of repairing or performing maintenance
2.31upon the buyer's property. If in the course of such a visit, the seller sells the buyer the right
2.32to receive additional services or goods other than replacement parts necessarily used in
2.33performing the maintenance or in making the repairs, the sale of those additional goods or
2.34services would not fall within this exclusion; or
3.1(d)new text begin (4)new text end a sale in which the buyer has initiated the contact either by oral, telephone, or
3.2written request (other than on a form provided by the seller), and requested the seller to
3.3visit the buyer's home for the purpose of negotiating the purchase of the specific good
3.4or service requested. This exclusion shall only apply where the buyer furnishes the
3.5seller with a separate dated and signed statement in the buyer's handwriting expressly
3.6acknowledging and waiving the right to cancel the sale; or
3.7(e)new text begin (5)new text end a sale of insurance, securities, or real property; or a sale by public auction; or
3.8(f)new text begin (6)new text end a sale of a motor vehicle, as defined in section
168.002, subdivision 18,
3.9when the buyer's agreement or offer to purchase is made at a place other than the buyer's
3.10place of residence.