SF 1645

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/17/2023 08:39am

A bill for an act
relating to commerce; adopting under state law provisions of Federal Reserve
Board Regulation E by reference; extending protections related to unauthorized
transfers to accounts held by certain small businesses; proposing coding for new
law in Minnesota Statutes, chapter 47.

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

Section 1.

new text begin [47.86] FEDERAL ELECTRONIC FUND TRANSFER REGULATIONS;
ADOPTION.
new text end

new text begin Subdivision 1. new text end

new text begin Applicability. new text end

new text begin Financial institutions must comply with the federal
regulations incorporated in this section, as modified by subdivision 3.
new text end

new text begin Subd. 2. new text end

new text begin Incorporation by reference. new text end

new text begin Except as modified by subdivision 3, the provisions
of Federal Reserve Board Regulation E, Code of Federal Regulations, title 12, sections
205.1 to 205.14, are incorporated by reference.
new text end

new text begin Subd. 3. new text end

new text begin Modification; extension of certain protections to small business accounts. new text end

new text begin For
purposes of Minnesota law:
new text end

new text begin (1) the definition of "consumer" in Code of Federal Regulations, title 12, section 205.2,
includes a business entity with less than 50 full time equivalent employees; and
new text end

new text begin (2) the definition of "account" includes an account owned by a business entity with less
than 50 full time equivalent employees.
new text end

new text begin Subd. 4. new text end

new text begin Good faith standard. new text end

new text begin A financial institution and any person who initiated an
electronic fund transfer from the consumer's account must cooperate in good faith with the
consumer to establish the facts relevant to an unauthorized electronic fund transfer.
new text end