House Research Bill Summary
File Number: H.F. 1758
March 23, 2007
Version: First Engrossment
Status: Public Safety and Civil Justice Committee
Authors: Davnie and others
Subject: Retention of a card security code
Thomas R. Pender, 651-296-1885
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This bill prohibits businesses that accept a credit or similar card in connection with a transaction from retaining the access code that permits use of the card, after the transaction is completed. Makes such a business liable to a financial institution for costs resulting from a breach of the security of the retained access code.
breach of security.
Subd. 1. Definitions.
nine terms used in the bill.
Subd. 2. Security or identification information;
Prohibits a business from retaining a card
security code or other electronic data that verifies the identity of the user
for purposes of access to the card's purchasing power, after the transaction
is completed. They can include a PIN
number or the three digit number on the back of a credit or debit card.
Subd. 3. Liability.
business that violates subdivision 2 and afterwards experiences a breach in
its security system liable to any financial institution that issued access
devices affected by the breach, for the cost of any reasonable actions it
takes to protect itself or its
customers. Five such actions are
listed in the bill.
Subd. 4. Enforcement.
Provides a private right of
action, both under this section and under section 8.31.