HF 1067

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/18/2021 04:55pm

A bill for an act
relating to financial institutions; modifying checking account requirements;
amending Minnesota Statutes 2020, section 48.512, subdivisions 2, 3, 7.

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

Section 1.

Minnesota Statutes 2020, section 48.512, subdivision 2, is amended to read:

Subd. 2.

Required information.

Before opening or authorizing signatory power over
a transaction account, a financial intermediary shall require one applicant to provide the
following information on an application document signed by the applicant:

(a) full name;

(b) birth date;

(c) address of residence;

(d) address of current employment, if employed;

(e) telephone numbers of residence and place of employment, if any;

(f) Social Security number;

(g) driver's license or identification card number issued pursuant to section 171.07. If
the applicant does not have a driver's license or identification card, the applicant may provide
an identification document number issued for identification purposes by any state, federal,
or foreign government if the document includes the applicant's photograph, full name, birth
date, and signature. deleted text begin A valid Wisconsin driver's license without a photograph may be accepted
in satisfaction of the requirement of this paragraph until January 1, 1985 deleted text end ;

(h) whether the applicant has had a transaction account at the same or another financial
intermediary within 12 months immediately preceding the application, and if so, the name
of the financial intermediary;

(i) whether the applicant has had a transaction account closed by a financial intermediary
without the applicant's consent within 12 months immediately preceding the application,
and if so, the reason the account was closed; and

(j) whether the applicant has been convicted of a criminal offense because of the use of
a check or other similar item within 24 months immediately preceding the application.

A financial intermediary may require an applicant to disclose additional information.

An applicant who makes a false material statement that the applicant does not believe
to be true in an application document with respect to information required to be provided
by this subdivision is guilty of perjury. The financial intermediary shall notify the applicant
of the provisions of this paragraph.

Sec. 2.

Minnesota Statutes 2020, section 48.512, subdivision 3, is amended to read:

Subd. 3.

Confirm no involuntary closing.

new text begin (a) new text end Before opening or authorizing signatory
power over a transaction account, the financial intermediary shall attempt to verify the
information disclosed for subdivision 2, clause (i). Inquiries made to verify this information
through persons in the business of providing such information must include an inquiry based
on the applicant's identification number provided under subdivision 2, clause (g).

new text begin (b) new text end The financial intermediary may not open or authorize signatory power over a
transaction account if (i) the applicant had a transaction account closed by a financial
intermediary without consent because of issuance by the applicant of dishonored checks
within 12 months immediately preceding the application, or (ii) the applicant has been
convicted of a criminal offense because of the use of a check or other similar item within
24 months immediately preceding the application. new text begin This paragraph does not apply to programs
designed to expand access to financial services to individuals who do not possess a transaction
account.
new text end

new text begin (c) new text end If the transaction account is refused pursuant to this subdivision, the reasons for the
refusal shall be given to the applicant in writing and the applicant shall be allowed to provide
additional information.

Sec. 3.

Minnesota Statutes 2020, section 48.512, subdivision 7, is amended to read:

Subd. 7.

Transaction account service charges and charges relating to dishonored
checks.

(a) The establishment of transaction account service charges and the amounts of
the charges not otherwise limited or prescribed by law or rule is a business decision to be
made by each financial intermediary according to sound business judgment and safe, sound
financial institution operational standards. In establishing transaction account service charges,
the financial intermediary may consider, but is not limited to considering:

(1) costs incurred by the institution, plus a profit margin, in providing the service;

(2) the deterrence of misuse by customers of financial institution services;

(3) the establishment of the competitive position of the financial institution in accordance
with the institution's marketing strategy; and

(4) maintenance of the safety and soundness of the institution.

(b) Transaction account service charges must be reasonable in relation to these
considerations and should be arrived at by each financial intermediary on a competitive
basis and not on the basis of any agreement, arrangement, undertaking, or discussion with
other financial intermediaries or their officers.

deleted text begin (c) A financial intermediary may not impose a service charge in excess of $4 for a
dishonored check on any person other than the issuer of the check.
deleted text end