HF 951

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; establishing notice and 
  1.3             authorization requirements and procedures for the use 
  1.4             of point of purchase debit entries on customer 
  1.5             accounts; providing for enforcement actions and 
  1.6             remedies; proposing coding for new law in Minnesota 
  1.7             Statutes, chapter 325F. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [325F.983] [POINT OF PURCHASE DEBIT ENTRIES.] 
  1.10     Subdivision 1.  [DEFINITIONS.] (a) For purposes of this 
  1.11  section, the terms in paragraphs (b) to (d) have the meanings 
  1.12  given them.  
  1.13     (b) "Debit entry" means a request for a withdrawal from an 
  1.14  account that is processed electronically in lieu of physical 
  1.15  presentment of a source document. 
  1.16     (c) "Point of purchase debit entry" means a debit entry 
  1.17  made on an account using a single, nonrecurring, in-person 
  1.18  transaction at the point of purchase of retail goods or services 
  1.19  for which there is no standing authorization from the purchaser 
  1.20  for a debit entry to be made from the purchaser's account. 
  1.21     (d) "Source document" means a check or share draft that 
  1.22  includes a routing number, account number, and check serial 
  1.23  number that are used for the purpose of making a point of 
  1.24  purchase debit entry. 
  1.25     Subd. 2.  [AUTHORIZATION AND NOTICE REQUIREMENTS.] (a) A 
  1.26  point of purchase debit entry is not permissible unless the 
  2.1   merchant who makes the entry complies with this subdivision.  
  2.2      (b) The merchant must obtain a written authorization for 
  2.3   the debit entry from the purchaser.  The written authorization 
  2.4   must be separate from the source document.  The source document 
  2.5   must include the information specified in subdivision 1, 
  2.6   paragraph (d), the amount of the debit entry that is being 
  2.7   authorized, the signature of the purchaser, and a preprinted 
  2.8   serial number.  
  2.9      (c) Upon completion of the point of purchase debit entry, 
  2.10  the source document must be voided and returned to the 
  2.11  purchaser.  The purchaser must be given a receipt, which may be 
  2.12  printed on the back of the source document, that includes at 
  2.13  least the following information: 
  2.14     (1) name, address, and telephone number of the merchant; 
  2.15     (2) date and amount of the transaction; and 
  2.16     (3) merchant identification number. 
  2.17     Subd. 3.  [ENFORCEMENT; REMEDIES.] The public and private 
  2.18  remedies and enforcement provisions available under section 8.31 
  2.19  apply to this section.  In addition, a merchant who violates 
  2.20  this section is liable to the purchaser for a civil fine of $250 
  2.21  for the first violation; $750 for the second violation; and 
  2.22  $1,500 for a third or subsequent violation involving the same 
  2.23  purchaser.