Minnesota Session Laws - 2012, Regular Session

CHAPTER 234--H.F.No. 2173

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 begin or deleted text end

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

new text begin (4) fail to comply with section 53B.27 new 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 or deleted text end new text begin , new text end services, new text begin or improvements to real property new text end by 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 end new 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 begin or deleted text end

deleted text begin (b) deleted text end new 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 begin or deleted text end

deleted text begin (c) deleted text end new 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 begin or deleted text end

deleted text begin (d) deleted text end new 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 begin or deleted text end

deleted text begin (e) deleted text end new 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 end new 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.

Presented to the governor April 24, 2012

Signed by the governor April 27, 2012, 2:08 p.m.