HF 2810

1st Engrossment - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to commerce; protecting the privacy of 
  1.3             financial data; enhancing federal requirements and 
  1.4             providing state enforcement; proposing coding for new 
  1.5             law in Minnesota Statutes, chapter 45. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [45.0296] [PRIVACY OF FINANCIAL DATA.] 
  1.8      Subdivision 1.  [FINANCIAL DATA PRIVACY REQUIREMENT.] 
  1.9   Financial institutions shall comply with sections 502 and 503 of 
  1.10  the federal Gramm-Leach-Bliley Financial Services Modernization 
  1.11  Act, codified as United States Code, title 15, sections 6802 and 
  1.12  6803, respectively, including any federal regulations issued 
  1.13  under authority of section 504 of that act, codified as United 
  1.14  States Code, title 15, section 6804. 
  1.15     Subd. 2.  [PROVISION OF CONVENIENT OPT-OUT FORM 
  1.16  REQUIRED.] (a) In complying with section 502(b) of the federal 
  1.17  Gramm-Leach-Bliley Financial Services Modernization Act, 
  1.18  codified as United States Code, title 15, section 6802(b), a 
  1.19  financial institution shall allow consumers to exercise their 
  1.20  choice to opt out by using a convenient communication method. 
  1.21     (b) For purposes of this subdivision, a financial 
  1.22  institution may choose one or more of the following, which are 
  1.23  considered convenient communication methods: 
  1.24     (1) the financial institution may include a separate sheet 
  1.25  of paper, on which the consumer may elect to opt out.  The 
  2.1   separate sheet of paper must include the financial institution's 
  2.2   address that a consumer may use to exercise the consumer's 
  2.3   opt-out rights; or 
  2.4      (2) on its opt-out disclosure, the financial institution 
  2.5   may include a specific detachable section on which the consumer 
  2.6   may elect to opt out.  The form must include the financial 
  2.7   institution's address that a consumer may use to exercise the 
  2.8   consumer's opt-out rights. 
  2.9      (c) If the financial institution provides the opt-out 
  2.10  notice electronically, the financial institution shall also 
  2.11  provide a convenient form that the consumer may use to exercise 
  2.12  the consumer's opt-out rights.  The financial institution may 
  2.13  allow the consumer to complete and send the form by electronic 
  2.14  mail or may allow the consumer to print out, complete, and send 
  2.15  the completed form by mail or facsimile.  The form must include 
  2.16  the financial institution's e-mail address and mailing address 
  2.17  that a consumer may use to exercise the consumer's opt-out 
  2.18  rights. 
  2.19     (d) In addition, on its opt-out disclosure, the financial 
  2.20  institution may choose to provide a toll-free telephone number 
  2.21  or a facsimile number that the consumer may use to exercise the 
  2.22  consumer's opt-out rights. 
  2.23     (e) Financial institutions may, with the prior approval of 
  2.24  the commissioner, comply with this subdivision by providing an 
  2.25  opt-out method not specified in this subdivision.  The 
  2.26  commissioner may grant such prior approval if the commissioner 
  2.27  determines that the substitute opt-out method is at least as 
  2.28  convenient for consumers to use as a method prescribed in this 
  2.29  subdivision. 
  2.30     (f) This subdivision does not apply to the extent that it 
  2.31  is determined by the Federal Trade Commission to be preempted by 
  2.32  federal law under the standard provided in section 507 of the 
  2.33  federal Gramm-Leach-Bliley Financial Services Modernization Act, 
  2.34  codified as United States Code, title 15, section 6807. 
  2.35     Subd. 3.  [ENFORCEMENT.] (a) The commissioner shall enforce 
  2.36  this section under the procedures authorized in this chapter, 
  3.1   with respect to all financial institutions, including any not 
  3.2   otherwise regulated by the commissioner. 
  3.3      (b) Any penalty imposed by the commissioner under this 
  3.4   section is in addition to any penalty that may be imposed by 
  3.5   federal regulatory authorities. 
  3.6      Subd. 4.  [CONSISTENCY; FEDERAL LAW.] (a) This section does 
  3.7   not require compliance with the federal laws referenced in 
  3.8   subdivision 1 earlier than required under federal law. 
  3.9      (b) Except as expressly provided in this section, this 
  3.10  section does not require compliance with the federal laws 
  3.11  referenced in subdivision 1 in a different manner than is 
  3.12  required under federal law. 
  3.13     Subd. 5.  [DEFINITIONS.] For purposes of this section, 
  3.14  "consumer" and "financial institution" have the meanings given 
  3.15  in section 509 of the federal Gramm-Leach-Bliley Financial 
  3.16  Services Modernization Act, codified as United States Code, 
  3.17  title 15, section 6809, including any federal regulations issued 
  3.18  under that section.