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HF 2173

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 05/23/2012 09:35am

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

Current Version - 1st Engrossment

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A bill for an act
relating to consumer protection; establishing fraud prevention measures for
money transmitters; clarifying the definition of home solicitation sale; amending
Minnesota Statutes 2010, sections 53B.18; 325G.06, subdivision 2; proposing
coding for new law in Minnesota Statutes, chapter 53B.

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

Section 1.

Minnesota Statutes 2010, section 53B.18, is amended to read:


53B.18 PROHIBITED PRACTICES.

No licensee shall:

(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;

(2) refuse to indemnify an instrument holder for any misappropriation of money
caused by any of its authorized delegates in conducting activities on behalf of the licensee
for whom it acts as an authorized delegate; deleted text beginor
deleted text end

(3) fail to transmit all money received for wire transmission in accordance with the
purchaser's instructions within five daysnew text begin; or
new text end

new text begin (4) fail to comply with section 53B.27new text end.

Sec. 2.

new text begin [53B.27] MONEY TRANSMITTERS; COOPERATION REQUIRED
IN COMBATTING FRAUD.
new text end

new text begin Subdivision 1. new text end

new text begin Fraud prevention measures required. new text end

new text begin Each money transmitter
shall:
new text end

new text begin (1) provide a clear, concise, and conspicuous consumer fraud warning on all
transmittal forms used by consumers;
new text end

new text begin (2) provide consumer fraud prevention training for agents involved with transmittals;
new text end

new text begin (3) monitor agent activity relating to consumer transmittals; and
new text end

new text begin (4) establish a toll-free number for consumers to call to report fraud or suspected
fraud.
new text end

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
originates money transfers in this state must allow an individual to voluntarily disqualify
the individual from sending or receiving money transfers. The disqualification lasts for
one year, unless the individual requests that it be in effect for a period longer than one
year. The individual may terminate the disqualification at any time upon written notice
to the money transmitter.
new text end

Sec. 3.

Minnesota Statutes 2010, section 325G.06, subdivision 2, is amended to read:


Subd. 2.

Home solicitation sale.

"Home solicitation sale" means a sale of goods
deleted text begin ordeleted text endnew text begin,new text end services, new text beginor improvements to real property new text endby a seller who regularly engages in
transactions of the same kind, purchased primarily for personal, family or household
purposes, and not for agricultural purposes, with a purchase price of more than $25, in
which the seller or a person acting for the seller personally solicits the sale, and when the
buyer's agreement or offer to purchase is made at a place other than the place of business
of the seller, except as otherwise provided in this subdivision. It does not include:

deleted text begin (a)deleted text endnew text begin (1)new text end a sale made pursuant to prior negotiations in the course of a visit by the buyer
to a retail business establishment having a fixed permanent location where the goods are
exhibited or the services are offered for sale on a continuing basis; deleted text beginor
deleted text end

deleted text begin (b)deleted text endnew text begin (2)new text end a sale in which the buyer has initiated the contact and the goods or services
are needed to meet a bona fide immediate personal emergency of the buyer and the buyer
furnishes the seller with a separate dated and signed statement not furnished by the seller
describing the situation requiring immediate remedy and expressly acknowledging and
waiving the right to cancel the sale. This exclusion shall only apply where (i) the seller in
good faith makes a substantial beginning of performance of the contract before the buyer
gives notice of cancellation, and, (ii) in the case of goods, the goods cannot be returned to
the seller in substantially as good condition as when received by the buyer; deleted text beginor
deleted text end

deleted text begin (c)deleted text endnew text begin (3)new text end a sale in which the buyer has initiated the contact and specifically requested
the seller to visit the buyer's home for the purpose of repairing or performing maintenance
upon the buyer's property. If in the course of such a visit, the seller sells the buyer the right
to receive additional services or goods other than replacement parts necessarily used in
performing the maintenance or in making the repairs, the sale of those additional goods or
services would not fall within this exclusion; deleted text beginor
deleted text end

deleted text begin (d)deleted text endnew text begin (4)new text end a sale in which the buyer has initiated the contact either by oral, telephone, or
written request (other than on a form provided by the seller), and requested the seller to
visit the buyer's home for the purpose of negotiating the purchase of the specific good
or service requested. This exclusion shall only apply where the buyer furnishes the
seller with a separate dated and signed statement in the buyer's handwriting expressly
acknowledging and waiving the right to cancel the sale; deleted text beginor
deleted text end

deleted text begin (e)deleted text endnew text begin (5)new text end a sale of insurance, securities, or real property; or a sale by public auction; or

deleted text begin (f)deleted text endnew text begin (6)new text end a sale of a motor vehicle, as defined in section 168.002, subdivision 18,
when the buyer's agreement or offer to purchase is made at a place other than the buyer's
place of residence.