new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.
new text end

new text begin (b) "Access device" means a card issued by a financial institution that contains a
magnetic stripe, microprocessor chip, or other means for storage of information which
includes, but is not limited to, a credit card, debit card, or stored value card.
new text end

new text begin (c) "Breach of the security of the system" has the meaning given in section 325E.61,
subdivision 1, paragraph (d).
new text end

new text begin (d) "Card security code" means the three-digit or four-digit value printed on an
access device or contained in the microprocessor chip of an access device which is used to
validate access device information during the authorization process.
new text end

new text begin (e) "Financial institution" means any office of a bank, bank and trust, trust company
with banking powers, savings bank, industrial loan company, savings association, credit
union, or regulated lender.
new text end

new text begin (f) "Microprocessor chip data" means the data contained in the microprocessor
chip of an access device.
new text end

new text begin (g) "Magnetic stripe data" means the data contained in the magnetic stripe of an
access device.
new text end

new text begin (h) "PIN" means a personal identification code that identifies the cardholder.
new text end

new text begin (i) "PIN verification code data" means the data used to verify cardholder identity
when a PIN is used in a transaction.
new text end

new text begin Subd. 2. new text end

new text begin Security or identification information; retention prohibited. new text end

new text begin No person
or entity conducting business in Minnesota that accepts an access device in connection
with a transaction shall retain the card security code data, the PIN verification code data,
or the full contents of any track of magnetic stripe data, subsequent to the authorization
of the transaction.
new text end

new text begin Subd. 3. new text end

new text begin Liability. new text end

new text begin Notwithstanding any other provision of law or contract and in
addition to any other liability of a person or entity, whenever there is a breach of the
security of the system of a person or entity that has violated this section, that person or
entity shall reimburse the financial institution that issued any access devices affected by the
breach for the costs of reasonable actions undertaken by the financial institution as a result
of the breach in order to protect the information of its cardholders or to continue to provide
services to cardholders, including but not limited to, any cost incurred in connection with:
new text end

new text begin (1) the cancellation or reissuance of any access device affected by the breach;
new text end

new text begin (2) the closure of any deposit, transaction, share draft, or other accounts affected
by the breach and any action to stop payments or block transactions with respect to the
accounts;
new text end

new text begin (3) the opening or reopening of any deposit, transaction, share draft, or other
accounts affected by the breach;
new text end

new text begin (4) any refund or credit made to a cardholder to cover the cost of any unauthorized
transaction relating to the breach; and
new text end

new text begin (5) the notification of cardholders affected by the breach.
new text end

new text begin Subd. 4. new text end

new text begin Enforcement. new text end

new text begin The attorney general shall enforce this section and section
8.31. The attorney general may recover costs and disbursements, including costs of
investigations.
new text end