SF 2516

as introduced - 92nd Legislature (2021 - 2022) Posted on 06/08/2021 03:04pm

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.

[47.86] FEDERAL ELECTRONIC FUND TRANSFER REGULATIONS;
ADOPTION.

Subdivision 1.

Applicability.

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

Subd. 2.

Incorporation by reference.

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.

Subd. 3.

Modification; extension of certain protections to small business accounts.

For
purposes of state law, 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 the definition of "account" includes an account owned by a business entity with less
than 50 full time equivalent employees.

Subd. 4.

Good faith standard.

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.

EFFECTIVE DATE.

This section is effective August 1, 2021.