Minnesota Session Laws - 1985, Regular Session

  

                         Laws of Minnesota 1985 

                        CHAPTER 243-S.F.No. 863 
           An act relating to commerce; modifying the definition 
          of credit card to include other types of instruments; 
          prescribing criminal penalties for financial 
          transaction card fraud; amending Minnesota Statutes 
          1984, sections 325G.02, subdivisions 2 and 4; 325G.03; 
          325G.04; 325G.041; 325G.05; 609.52, subdivisions 1 and 
          2; and 609.625, subdivision 1; proposing coding for 
          new law in Minnesota Statutes, chapter 609. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1984, section 325G.02, 
subdivision 2, is amended to read: 
    Subd. 2.  "Credit Financial transaction card" means any an 
instrument or device, whether known as a credit card, credit 
plate, charge plate, courtesy card, bank services card, banking 
card, check guarantee card, debit card, or by any other 
identification card or device name issued with or without fee by 
a person an issuer for the use of the holder to another person 
which authorizes the holder to obtain credit or to purchase or 
lease property or services on the credit of the issuer or of the 
obligor, money, goods, services, or anything else of value, but 
does not mean a telephone company credit card.  
    Sec. 2.  Minnesota Statutes 1984, section 325G.02, 
subdivision 4, is amended to read: 
    Subd. 4.  "Issuer" means a person or firm which or its duly 
authorized agent, that issues a credit financial transaction 
card.  
    Sec. 3.  Minnesota Statutes 1984, section 325G.03, is 
amended to read: 
    325G.03 [UNSOLICITED CREDIT FINANCIAL TRANSACTION CARDS.] 
    No person in whose name a credit financial transaction card 
is issued shall be liable for any amount resulting from use of 
that card from which he or a member of his family or household 
derives no benefit unless he has accepted the card by (1) 
signing or using the card, or (2) authorizing the use of the 
card by another.  A mere failure to destroy or return an 
unsolicited credit financial transaction card is not such an 
acceptance.  Signing or using a card is not acceptance if those 
acts were performed under duress as defined under section 609.08.
    Sec. 4.  Minnesota Statutes 1984, section 325G.04, is 
amended to read: 
    325G.04 [LOST OR STOLEN CREDIT FINANCIAL TRANSACTION 
CARDS.] 
    Subdivision 1.  No person in whose name a credit financial 
transaction card has been issued which he has accepted as 
provided in section 325G.03 shall be liable for any amount in 
excess of $50 resulting from the unauthorized use of the card 
from which he or a member of his family or household derives no 
benefit; provided, however, that the limitation on liability of 
this subdivision shall be effective only if the issuer is 
notified of any unauthorized charges contained in a bill within 
60 days of receipt of the bill by the person in whose name the 
card is issued.  
    Subd. 2.  No person in whose name a credit financial 
transaction card is issued shall be liable for any amount 
resulting from the unauthorized use of such credit the financial 
transaction card after receipt by the issuer of notice that the 
card has been lost or stolen and from which such person or a 
member of his family or household derives no benefit.  
     Sec. 5.  Minnesota Statutes 1984, section 325G.041, is 
amended to read: 
    325G.041 [MARRIED WOMAN; NAME ON CARD.] 
    If a credit financial transaction card issuer has 
determined in the normal course of business that it will issue a 
card to a married woman, the card shall be issued bearing either 
her current or former surname, as the woman may direct.  
    Credit Financial transaction card issuers may require that 
a married woman requesting a card in a former surname open a new 
account in that name.  Refusal to issue a credit financial 
transaction card pursuant to this section constitutes an unfair 
discriminatory practice under section 363.03, subdivision 8.  
    Sec. 6.  Minnesota Statutes 1984, section 325G.05, is 
amended to read: 
    325G.05 [DISPUTED ACCOUNTS.] 
    Subdivision 1.  [BILLING INFORMATION.] Every credit 
financial transaction card issuer shall include on each billing 
statement the name, address, and telephone number of the 
department designated by it to receive requests by the customer 
account holder to correct mistakes or make adjustments to the 
billing statement.  
    Subd. 2.  [REQUIRED RESPONSE.] Every credit financial 
transaction card issuer, within 30 days of receipt from a 
customer account holder, in writing at the address specified in 
subdivision 1, of a questioned or disputed charge, shall conduct 
an individual inquiry into the facts and send to the customer 
account holder an explanatory response in clear and definite 
terms.  
    Subd. 3.  [VIOLATION.] A violation of this section shall be 
treated as a violation of section 325F.69. 
    Sec. 7.  Minnesota Statutes 1984, section 609.52, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITIONS.] In this section: 
     (1) "Property" means all forms of tangible property, 
whether real or personal, without limitation including documents 
of value, electricity, gas, water, corpses, domestic animals, 
dogs, pets, fowl, and heat supplied by pipe or conduit by 
municipalities or public utility companies and articles, as 
defined in clause (4), representing trade secrets, which 
articles shall be deemed for the purposes of Extra Session Laws 
1967, Chapter 15 to include any trade secret represented by the 
article. 
     (2) "Movable property" is property whose physical location 
can be changed, including without limitation things growing on, 
affixed to or found in land. 
     (3) "Value" means the retail market value at the time of 
the theft, or if the retail market value cannot be ascertained, 
the cost of replacement of the property within a reasonable time 
after the theft, or in the case of a theft or the making of a 
copy of an article representing a trade secret, where the retail 
market value or replacement cost cannot be ascertained, any 
reasonable value representing the damage to the owner which he 
has suffered by reason of losing an advantage over those who do 
not know of or use the trade secret.  For a theft committed 
within the meaning of subdivision 2, clause (5), (a) and (b), if 
the property has been restored to the owner, "value" means the 
value of the use of the property or the damage which it 
sustained, whichever is greater, while the owner was deprived of 
its possession, but not exceeding the value otherwise provided 
herein. 
     (4) "Article" means any object, material, device or 
substance, including any writing, record, recording, drawing, 
sample specimen, prototype, model, photograph, micro-organism, 
blueprint or map, or any copy of any of the foregoing. 
     (5) "Representing" means describing, depicting, containing, 
constituting, reflecting or recording. 
     (6) "Trade secret" means information, including a formula, 
pattern, compilation, program, device, method, technique, or 
process, that:  
     (i) derives independent economic value, actual or 
potential, from not being generally known to, and not being 
readily ascertainable by proper means by, other persons who can 
obtain economic value from its disclosure or use, and 
     (ii) is the subject of efforts that are reasonable under 
the circumstances to maintain its secrecy. 
     (7) "Copy" means any facsimile, replica, photograph or 
other reproduction of an article, and any note, drawing or 
sketch made of or from an article while in the presence of the 
article. 
     (8) "Property of another" includes property in which the 
actor is co-owner or has a lien, pledge, bailment, or lease or 
other subordinate interest, and property of a partnership of 
which the actor is a member, unless the actor and the victim are 
husband and wife.  It does not include property in which the 
actor asserts in good faith a claim as a collection fee or 
commission out of property or funds recovered, or by virtue of a 
lien, set-off, or counterclaim.  
    (9) "Services" include but are not limited to labor, 
professional services, transportation services, electronic 
computer services, the supplying of hotel accommodations, 
restaurant services, entertainment services, advertising 
services, telecommunication services, and the supplying of 
equipment for use.  
     (10) "Financial transaction card" means any instrument or 
device, whether known as a credit card, credit plate, charge 
plate, courtesy card, bank services card, banking card, check 
guarantee card, debit card, or by any other name, issued with or 
without fee by an issuer for the use of the cardholder in 
obtaining credit, money, goods, services, or anything else of 
value. 
    Sec. 8.  Minnesota Statutes 1984, section 609.52, 
subdivision 2, is amended to read: 
    Subd. 2.  [ACTS CONSTITUTING THEFT.] Whoever does any of 
the following commits theft and may be sentenced as provided in 
subdivision 3: 
      (1) Intentionally and without claim of right takes, uses, 
transfers, conceals or retains possession of movable property of 
another without his consent and with intent to deprive the owner 
permanently of possession of the property; or 
      (2) Having a legal interest in movable property, 
intentionally and without consent, takes the property out of the 
possession of a pledgee or other person having a superior right 
of possession, with intent thereby to deprive the pledgee or 
other person permanently of the possession of the property; or 
      (3) Obtains for himself or another the possession, custody 
or title to property of or performance of services by a third 
person by intentionally deceiving him with a false 
representation which is known to be false, made with intent to 
defraud, and which does defraud the person to whom it is made.  
"False representation" includes without limitation: 
      (a) The issuance of a check, draft, or order for the 
payment of money or the delivery of property knowing that he is 
not entitled to draw upon the drawee therefor or to order the 
payment or delivery thereof; or 
      (b) A promise made with intent not to perform.  Failure to 
perform is not evidence of intent not to perform unless 
corroborated by other substantial evidence; or 
    (c) The unauthorized use of a credit card, credit plate, 
charge plate financial transaction card, or the number thereof, 
or other identification device issued by an organization to a 
person for use in purchasing goods or services on credit; or 
    (d) The preparation or filing of a claim for reimbursement, 
a rate application, or a cost report used to establish a rate or 
claim for payment for medical care provided to a recipient of 
medical assistance under chapter 256B, which intentionally and 
falsely states the costs of or actual services provided by a 
vendor of medical care; or 
    (4) By swindling, whether by artifice, trick, device, or 
any other means, obtains property or services from another 
person; or 
    (5) Intentionally commits any of the acts listed in this 
subdivision but with intent to exercise temporary control only 
and; 
    (a) The control exercised manifests an indifference to the 
rights of the owner or the restoration of the property to him; 
or 
    (b) He pledges or otherwise attempts to subject the 
property to an adverse claim; or 
    (c) He intends to restore the property only on condition 
that the owner pay a reward or buy back or make other 
compensation; or 
    (6) Finds lost property and, knowing or having reasonable 
means of ascertaining the true owner, appropriates it to his own 
use or to that of another not entitled thereto without first 
having made reasonable effort to find the owner and offer and 
surrender the property to him; or 
      (7) Intentionally obtains property or services, offered 
upon the deposit of a sum of money or tokens in a coin or token 
operated machine or other receptacle, without making the 
required deposit or otherwise obtaining the consent of the 
owner; or 
      (8) Intentionally and without claim of right converts any 
article representing a trade secret, knowing it to be such, to 
his own use or that of another person or makes a copy of an 
article representing a trade secret, knowing it to be such, and 
intentionally and without claim of right converts the same to 
his own use or that of another person.  It shall be a complete 
defense to any prosecution under this clause for the defendant 
to show that information comprising the trade secret was 
rightfully known or available to him from a source other than 
the owner of the trade secret; or 
      (9) Leases or rents personal property under a written 
instrument and who with intent to place the property beyond the 
control of the lessor conceals or aids or abets the concealment 
of the property or any part thereof, or any lessee of the 
property who sells, conveys or encumbers the property or any 
part thereof without the written consent of the lessor, without 
informing the person to whom he sells, conveys, or encumbers 
that the same is subject to such lease and with intent to 
deprive the lessor of possession thereof.  Evidence that a 
lessee used a false or fictitious name or address in obtaining 
the property or fails or refuses to return the property to 
lessor within five days after written demand for the return has 
been served personally in the manner provided for service of 
process of a civil action or sent by certified mail to the last 
known address of the lessee, whichever shall occur later, shall 
be evidence of intent to violate this clause.  Service by 
certified mail shall be deemed to be complete upon deposit in 
the United States mail of such demand, postpaid and addressed to 
the person at the address for the person set forth in the lease 
or rental agreement, or, in the absence of the address, to the 
person's last known place of residence; or 
      (10) Alters, removes or obliterates numbers or symbols 
placed on movable property for purpose of identification by the 
owner or person who has legal custody or right to possession 
thereof with the intent to prevent identification, if the person 
who alters, removes or obliterates the numbers or symbols is not 
the owner and does not have the permission of the owner to make 
the alteration, removal or obliteration; or 
      (11) With the intent to prevent the identification of 
property involved, so as to deprive the rightful owner of 
possession thereof, alters or removes any permanent serial 
number, permanent distinguishing number or manufacturer's 
identification number on personal property or possesses, sells 
or buys any personal property with knowledge that the permanent 
serial number, permanent distinguishing number or manufacturer's 
identification number has been removed or altered; or 
      (12) Intentionally deprives another of a lawful charge for 
cable television service by 
      (i) making or using or attempting to make or use an 
unauthorized external connection outside the individual dwelling 
unit whether physical, electrical, acoustical, inductive or 
other connection, or by 
     (ii) attaching any unauthorized device to any cable, wire, 
microwave, or other component of a licensed cable communications 
system as defined in chapter 238.  Nothing herein shall be 
construed to prohibit the electronic video re-recording of 
program material transmitted on the cable communications system 
by a subscriber for fair use as defined by Public Law 94-553, 
Section 107; or 
     (13) Except as provided in paragraphs (12) and (14), 
obtains the services of another with the intention of receiving 
those services without making the agreed or reasonably expected 
payment of money or other consideration; or 
     (14) Intentionally deprives another of a lawful charge for 
telecommunications service by:  
     (i) making, using, or attempting to make or use an 
unauthorized connection whether physical, electrical, by wire, 
microwave, radio or other means to a component of a local 
telecommunication system as provided in chapter 237; or 
     (ii) attaching an unauthorized device to a cable, wire, 
microwave, radio or other component of a local telecommunication 
system as provided in chapter 237.  
     The existence of an unauthorized connection is prima facie 
evidence that the occupier of the premises:  
     (i) made or was aware of the connection; and 
     (ii) was aware that the connection was unauthorized.  
    Sec. 9.  Minnesota Statutes 1984, section 609.625, 
subdivision 1, is amended to read: 
    Subdivision 1.  [MAKING OR ALTERING WRITING OR OBJECT.] 
Whoever, with intent to defraud, falsely makes or alters a 
writing or object of any of the following kinds so that it 
purports to have been made by another or by himself under an 
assumed or fictitious name, or at another time, or with 
different provisions, or by authority of one who did not give 
such authority, is guilty of aggravated forgery and may be 
sentenced to imprisonment for not more than ten years or to 
payment of a fine of not more than $20,000, or both: 
    (1) A writing or object whereby, when genuine, legal 
rights, privileges, or obligations are created, terminated, 
transferred, or evidenced, or any writing normally relied upon 
as evidence of debt or property rights; or 
    (2) An official seal or the seal of a corporation; or 
    (3) A public record or an official authentication or 
certification of a copy thereof; or 
    (4) An official return or certificate entitled to be 
received as evidence of its contents; or 
    (5) A court order, judgment, decree, or process; or 
    (6) The records or accounts of a public body, office, or 
officer; or 
    (7) The records or accounts of a bank or person, with whom 
funds of the state or any of its agencies or subdivisions are 
deposited or entrusted, relating to such funds; or 
    (8) A financial transaction card as defined in section 
609.52.  
    Sec. 10.  [609.821] [FINANCIAL TRANSACTION CARD FRAUD.] 
    Subdivision 1.  [DEFINITIONS.] For the purposes of this 
section, the following terms have the meanings given them: 
    (a) "Financial transaction card" or "card" has the meaning 
given in section 609.52, and includes the account or 
identification number or symbol of a financial transaction card. 
    (b) "Cardholder" means a person in whose name a card is 
issued. 
    (c) "Issuer" means a person or firm, or a duly authorized 
agent, that issues a financial transaction card. 
    (d) "Property" includes money, goods, services, or anything 
else of value. 
    Subd. 2.  [VIOLATIONS; PENALTIES.] A person who does any of 
the following commits financial transaction card fraud: 
    (1) without the consent of the cardholder, and knowing that 
the cardholder has not given consent, uses or attempts to use a 
card to obtain the property of another; 
    (2) uses or attempts to use a card knowing it to be forged, 
false, fictitious, or obtained in violation of clause (6); 
    (3) sells or transfers a card knowing that the cardholder 
and issuer have not authorized the person to whom the card is 
sold or transferred to use the card, or that the card is forged, 
false, fictitious, or was obtained in violation of clause (6); 
    (4) without a legitimate business purpose, and without the 
consent of the cardholders, receives or possesses, with intent 
to use, or with intent to sell or transfer in violation of 
clause (3), two or more cards issued in the name of another, or 
two or more cards knowing the cards to be forged, false, 
fictitious, or obtained in violation of clause (6); 
    (5) being authorized by an issuer to furnish money, goods, 
services, or anything else of value, knowingly and with an 
intent to defraud the issuer or the cardholder: 
    (i) furnishes money, goods, services, or anything else of 
value upon presentation of a financial transaction card knowing 
it to be forged, expired, or revoked, or knowing that it is 
presented by a person without authority to use the card; or 
    (ii) represents in writing to the issuer that the person 
has furnished money, goods, services, or anything else of value 
which has not in fact been furnished;  
    (6) upon applying for a financial transaction card to an 
issuer: 
    (i) knowingly gives a false name or occupation; or 
    (ii) knowingly and substantially overvalues assets or 
substantially undervalues indebtedness for the purpose of 
inducing the issuer to issue a financial transaction card; or 
    (7) with intent to defraud, falsely notifies the issuer or 
any other person of a theft, loss, disappearance, or nonreceipt 
of a financial transaction card. 
    Subd. 3.  [SENTENCE.] A person who commits financial 
transaction card fraud may be sentenced as follows: 
    (1) For a violation of clause (1), (2) or (5) of 
subdivision 2, in the manner provided in section 609.52, 
subdivision 3; 
    (2) For a violation of clause (3) or (4) of subdivision 2, 
to imprisonment for not more than 3 years or to payment of a 
fine of not more than $5,000, or both; or 
    (3) For a violation of clause (6) or (7) of subdivision 2, 
    (a) If no property, other than a financial transaction 
card, has been obtained by the defendant by means of the false 
statement or false report, to imprisonment for not more than 90 
days or to payment of a fine of not more than $300, or both; or 
    (b) If property, other than a financial transaction card, 
is so obtained, in the manner provided in section 609.52, 
subdivision 3. 
    Approved May 28, 1985