Minnesota Legislature
HF 2173
1st Unofficial Engrossment - 87th Legislature (2011 - 2012) Posted on 04/03/2012 10:06pm
KEY: stricken = removed, old language.
underscored = added, new language.
1.2relating to consumer protection; establishing fraud prevention measures for
1.3money transmitters; clarifying the definition of home solicitation sale; amending
1.4Minnesota Statutes 2010, sections 53B.18; 325G.06, subdivision 2; proposing
1.5coding for new law in Minnesota Statutes, chapter 53B.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 53B.18, is amended to read:
1.853B.18 PROHIBITED PRACTICES.
1.9No licensee shall:
1.10(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;
1.11(2) refuse to indemnify an instrument holder for any misappropriation of money
1.12caused by any of its authorized delegates in conducting activities on behalf of the licensee
1.13for whom it acts as an authorized delegate;or
1.14(3) fail to transmit all money received for wire transmission in accordance with the
1.15purchaser's instructions within five days; or
1.16(4) fail to comply with section 53B.27.
1.17 Sec. 2. [53B.27] MONEY TRANSMITTERS; COOPERATION REQUIRED
1.18IN COMBATTING FRAUD.
1.19 Subdivision 1. Fraud prevention measures required. Each money transmitter
1.20shall:
1.21(1) provide a clear, concise, and conspicuous consumer fraud warning on all
1.22transmittal forms used by consumers;
1.23(2) provide consumer fraud prevention training for agents involved with transmittals;
2.1(3) monitor agent activity relating to consumer transmittals; and
2.2(4) establish a toll-free number for consumers to call to report fraud or suspected
2.3fraud.
2.4 Subd. 2. Voluntary disqualification by customer. A money transmitter that
2.5originates money transfers in this state must allow an individual to voluntarily disqualify
2.6the individual from sending or receiving money transfers. The disqualification lasts for
2.7one year, unless the individual requests that it be in effect for a period longer than one
2.8year. The individual may terminate the disqualification at any time upon written notice
2.9to the money transmitter.
2.10 Sec. 3. Minnesota Statutes 2010, section 325G.06, subdivision 2, is amended to read:
2.11 Subd. 2. Home solicitation sale. "Home solicitation sale" means a sale of goods
2.12or, services, or improvements to real property by a seller who regularly engages in
2.13transactions of the same kind, purchased primarily for personal, family or household
2.14purposes, and not for agricultural purposes, with a purchase price of more than $25, in
2.15which the seller or a person acting for the seller personally solicits the sale, and when the
2.16buyer's agreement or offer to purchase is made at a place other than the place of business
2.17of the seller, except as otherwise provided in this subdivision. It does not include:
2.18(a) (1) a sale made pursuant to prior negotiations in the course of a visit by the buyer
2.19to a retail business establishment having a fixed permanent location where the goods are
2.20exhibited or the services are offered for sale on a continuing basis;or
2.21(b) (2) a sale in which the buyer has initiated the contact and the goods or services
2.22are needed to meet a bona fide immediate personal emergency of the buyer and the buyer
2.23furnishes the seller with a separate dated and signed statement not furnished by the seller
2.24describing the situation requiring immediate remedy and expressly acknowledging and
2.25waiving the right to cancel the sale. This exclusion shall only apply where (i) the seller in
2.26good faith makes a substantial beginning of performance of the contract before the buyer
2.27gives notice of cancellation, and, (ii) in the case of goods, the goods cannot be returned to
2.28the seller in substantially as good condition as when received by the buyer;or
2.29(c) (3) a sale in which the buyer has initiated the contact and specifically requested
2.30the seller to visit the buyer's home for the purpose of repairing or performing maintenance
2.31upon the buyer's property. If in the course of such a visit, the seller sells the buyer the right
2.32to receive additional services or goods other than replacement parts necessarily used in
2.33performing the maintenance or in making the repairs, the sale of those additional goods or
2.34services would not fall within this exclusion;or
3.1(d) (4) a sale in which the buyer has initiated the contact either by oral, telephone, or
3.2written request (other than on a form provided by the seller), and requested the seller to
3.3visit the buyer's home for the purpose of negotiating the purchase of the specific good
3.4or service requested. This exclusion shall only apply where the buyer furnishes the
3.5seller with a separate dated and signed statement in the buyer's handwriting expressly
3.6acknowledging and waiving the right to cancel the sale;or
3.7(e) (5) a sale of insurance, securities, or real property; or a sale by public auction; or
3.8(f) (6) a sale of a motor vehicle, as defined in section
168.002, subdivision 18 ,
3.9when the buyer's agreement or offer to purchase is made at a place other than the buyer's
3.10place of residence.
1.3money transmitters; clarifying the definition of home solicitation sale; amending
1.4Minnesota Statutes 2010, sections 53B.18; 325G.06, subdivision 2; proposing
1.5coding for new law in Minnesota Statutes, chapter 53B.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 53B.18, is amended to read:
1.853B.18 PROHIBITED PRACTICES.
1.9No licensee shall:
1.10(1) fail to comply with chapter 345 as it relates to unclaimed property requirements;
1.11(2) refuse to indemnify an instrument holder for any misappropriation of money
1.12caused by any of its authorized delegates in conducting activities on behalf of the licensee
1.13for whom it acts as an authorized delegate;
1.14(3) fail to transmit all money received for wire transmission in accordance with the
1.15purchaser's instructions within five days; or
1.16(4) fail to comply with section 53B.27.
1.17 Sec. 2. [53B.27] MONEY TRANSMITTERS; COOPERATION REQUIRED
1.18IN COMBATTING FRAUD.
1.19 Subdivision 1. Fraud prevention measures required. Each money transmitter
1.20shall:
1.21(1) provide a clear, concise, and conspicuous consumer fraud warning on all
1.22transmittal forms used by consumers;
1.23(2) provide consumer fraud prevention training for agents involved with transmittals;
2.1(3) monitor agent activity relating to consumer transmittals; and
2.2(4) establish a toll-free number for consumers to call to report fraud or suspected
2.3fraud.
2.4 Subd. 2. Voluntary disqualification by customer. A money transmitter that
2.5originates money transfers in this state must allow an individual to voluntarily disqualify
2.6the individual from sending or receiving money transfers. The disqualification lasts for
2.7one year, unless the individual requests that it be in effect for a period longer than one
2.8year. The individual may terminate the disqualification at any time upon written notice
2.9to the money transmitter.
2.10 Sec. 3. Minnesota Statutes 2010, section 325G.06, subdivision 2, is amended to read:
2.11 Subd. 2. Home solicitation sale. "Home solicitation sale" means a sale of goods
2.12
2.13transactions of the same kind, purchased primarily for personal, family or household
2.14purposes, and not for agricultural purposes, with a purchase price of more than $25, in
2.15which the seller or a person acting for the seller personally solicits the sale, and when the
2.16buyer's agreement or offer to purchase is made at a place other than the place of business
2.17of the seller, except as otherwise provided in this subdivision. It does not include:
2.18
2.19to a retail business establishment having a fixed permanent location where the goods are
2.20exhibited or the services are offered for sale on a continuing basis;
2.21
2.22are needed to meet a bona fide immediate personal emergency of the buyer and the buyer
2.23furnishes the seller with a separate dated and signed statement not furnished by the seller
2.24describing the situation requiring immediate remedy and expressly acknowledging and
2.25waiving the right to cancel the sale. This exclusion shall only apply where (i) the seller in
2.26good faith makes a substantial beginning of performance of the contract before the buyer
2.27gives notice of cancellation, and, (ii) in the case of goods, the goods cannot be returned to
2.28the seller in substantially as good condition as when received by the buyer;
2.29
2.30the seller to visit the buyer's home for the purpose of repairing or performing maintenance
2.31upon the buyer's property. If in the course of such a visit, the seller sells the buyer the right
2.32to receive additional services or goods other than replacement parts necessarily used in
2.33performing the maintenance or in making the repairs, the sale of those additional goods or
2.34services would not fall within this exclusion;
3.1
3.2written request (other than on a form provided by the seller), and requested the seller to
3.3visit the buyer's home for the purpose of negotiating the purchase of the specific good
3.4or service requested. This exclusion shall only apply where the buyer furnishes the
3.5seller with a separate dated and signed statement in the buyer's handwriting expressly
3.6acknowledging and waiving the right to cancel the sale;
3.7
3.8
3.9when the buyer's agreement or offer to purchase is made at a place other than the buyer's
3.10place of residence.