1.1 	A bill for an act
1.2 	relating to commerce; requiring debit cards to be issued as PIN-based cards and 
1.3 	transactions made with those cards to be processed as PIN-based transactions; 
1.4 	providing a moratorium on implementation of certain standards;proposing 
1.5 	coding for new law in Minnesota Statutes, chapter 47.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [47.695] PIN-BASED DEBIT CARD TRANSACTIONS.
1.8 		Subdivision 1.Definitions. (a) For purposes of this section, the terms defined in 
1.9 	this subdivision have the meanings given.
1.10 	(b) "Debit card" means a card issued by a financial institution that contains a 
1.11 	magnetic strip, microprocessor chip, or other means of storage of information that permits 
1.12 	the user to make a payment from a demand deposit account at that financial institution and 
1.13 	not in the form of an extension of credit.
1.14 	(c) "PIN-based debit card" means a debit card that requires that the user provide 
1.15 	the personal identification number (PIN) associated with the card in order to use the 
1.16 	debit card to make a transaction, and that requires the issuer to process the transaction as 
1.17 	a PIN-based transaction.
1.18 	(d) "Signature-based debit card" means a debit card that permits the user to make a 
1.19 	transaction by providing the cardholder's signature or the cardholder's PIN, but does not 
1.20 	allow the issuer of the card to process the transaction as a PIN-based transaction.
1.21 		Subd. 2.PIN-based debit cards required. No issuer of a debit card shall issue a 
1.22 	debit card to a resident of this state unless the debit card is a PIN-based debit card.
1.23 		Subd. 3.Transition language. Debit cards issued prior to the effective date of this 
1.24 	section that do not comply with subdivision 2 must be replaced with compliant cards no 
1.25 	later than six months after the effective date of this act.
2.1 		Subd. 4.Moratorium on PCI compliance. No debit card issuer, credit card issuer, 
2.2 	debit or credit card processor, or any other person may require a merchant or other owner 
2.3 	of a debit card terminal to become compliant with Payment Card Industries standards prior 
2.4 	to full compliance with subdivisions 2 and 3.

2.5 	EFFECTIVE DATE. Subdivisions 1 to 3 are effective January 1, 2011. Subdivision 
2.6 	4 is effective the day following final enactment.