0001|                           SENATE BILL 223
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0002|     43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998
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0003|                            INTRODUCED BY
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0004|                          ROMAN M. MAES III
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0005|     
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0006|                                   
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0007|     
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0008|                                   
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0009|     
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0010|                                AN ACT
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0011|     RELATING TO FINANCIAL INSTITUTIONS; PROVIDING FOR PUBLIC
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0012|     ASSISTANCE BENEFIT ACCOUNTS IN THE REMOTE FINANCIAL SERVICE
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0013|     UNIT ACT; AMENDING A SECTION OF THE REMOTE FINANCIAL SERVICE
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0014|     UNIT ACT.
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0015|     
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0016|     BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
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0017|          Section 1.  Section 58-16-3 NMSA 1978 (being Laws 1990,
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0018|     Chapter 123, Section 3, as amended) is amended to read:
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0019|          "58-16-3.  DEFINITIONS.--
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0020|               A.  As used in the Remote Financial Service Unit
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0021|     Act:
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0022|                    (1)  "account" means an account maintained by
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0023|     a cardholder or merchant with a financial institution, <u>or
</u>    |
<u></u>0024| <u>    with an agency or department of the state</u>, which term shall
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0025|     include demand deposit, checking, negotiable order of
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<center>- 1 -</center>

0001|     withdrawal (NOW) share, share draft, <u>public assistance
</u>    |
<u></u>0002| <u>    benefit</u> or other consumer or asset accounts or pre-authorized
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0003|     credit card accounts;
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0004|                    (2)  "account transfer" means a transaction
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0005|     that enables movement of funds by a cardholder from one
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0006|     account to another account within the same financial
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0007|     institution;
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0008|                    (3)  "acquirer" means the intercept processor
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0009|     that acquires financial data relating to a transaction from a
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0010|     card acceptor or a merchant and puts the data into a network
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0011|     system and means "agent acquirer" unless specifically
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0012|     indicated otherwise;
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0013|                    (4)  "agent acquirer" means any financial
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0014|     institution acting as an authorized agent of the acquirer in
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0015|     enabling financial data relating to a POS transaction to be
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0016|     acquired by the acquirer from a card acceptor or merchant and
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0017|     means "acquirer" unless specifically indicated otherwise;
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0018|                    (5)  "ATM transaction" means any one or more
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0019|     of the following transactions undertaken at an automated
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0020|     teller machine (ATM):
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0021|                         (a)  a cash advance from an account;
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0022|                         (b)  a cash advance from an authorized
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0023|     line of credit;
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0024|                         (c)  a deposit to an account;
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0025|                         (d)  a balance inquiry;
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<center>- 2 -</center>

0001|                         (e)  an account transfer; and
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0002|                         (f)  a normal financial transaction for
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0003|     a cardholder involving the issuance of non-cash or
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0004|     cash-equivalent items; provided, however, that normal
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0005|     financial transactions at an ATM will expressly exclude any
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0006|     POS transaction;
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0007|                    (6)  "authorization" means the issuance of
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0008|     approval, by or on behalf of the financial institution holding
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0009|     the cardholder's account, to complete a transaction initiated
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0010|     or authorized by the cardholder;
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0011|                    (7)  "automated teller machine" or "ATM" means
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0012|     an unmanned device that is activated by the cardholder through
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0013|     a specially prepared card or by the transmission of a code via
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0014|     a keyboard or keyset or both and is capable of one or more of
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0015|     the following transactions:
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0016|                         (a)  dispensing cash to any cardholder
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0017|     from an account or against a preauthorized line of credit;
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0018|                         (b)  accepting deposits;
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0019|                         (c)  account transfers;
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0020|                         (d)  satisfying a balance inquiry in the
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0021|     cardholder's account or accounts; and
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0022|                         (e)  conducting normal financial
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0023|     transactions involving the issuance of non-cash or
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0024|     cash-equivalent items; provided, however, that normal
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0025|     financial transactions at an ATM will expressly exclude a
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<center>- 3 -</center>

0001|     transaction that can only be initiated and completed at a POS
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0002|     terminal;
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0003|                    (8)  "balance inquiry" means a transaction
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0004|     that permits a cardholder to obtain the current balance of the
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0005|     cardholder's account or accounts;
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0006|                    (9)  "card" means a plastic card or other
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0007|     instrument or any other access device issued by a financial
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0008|     institution <u>or by an agency or department of the state</u> to a
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0009|     cardholder that enables the cardholder to have access to and
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0010|     that processes transactions against one or more accounts, and
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0011|     the term shall be used when referring either to an ATM access
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0012|     card, <u>an EBT card</u>, a debit card or a credit card identifying
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0013|     a cardholder who has established a pre-approved credit line
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0014|     <u>or public assistance benefit</u> with the issuer of the credit
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0015|     card;
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0016|                    (10)  "card acceptor" means the party
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0017|     accepting the card and presenting transaction data to an
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0018|     acquirer;
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0019|                    (11)  "cardholder" means a person to whom a
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0020|     card has been issued by a financial institution or who is
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0021|     authorized to use the card;
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0022|                    (12)  "cash advance" means any transaction
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0023|     resulting in a cardholder receiving cash, whether initiated
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0024|     through an ATM or a POS terminal;
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0025|                    (13)  "chargeback" means the credit of all or
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<center>- 4 -</center>

0001|     a portion of an amount previously posted to a cardholder's
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0002|     account;
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0003|                    (14)  "clearing account" means an account or
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0004|     several accounts maintained for the purpose of settlement and
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0005|     payment of fees to the network manager;
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0006|                    (15)  "credit" means a claim for funds by the
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0007|     cardholder for the credit of the cardholder's account and
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0008|     provides details of funds acknowledged as payable by the
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0009|     acquirer or card acceptor to the issuer for credit to the
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0010|     cardholder's account;
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0011|                    (16)  "credit card cash advance" means a cash
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0012|     loan obtained by a cardholder against a pre-authorized line of
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0013|     credit through presentation of a card;
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0014|                    (17)  "data interchange" means the exchange of
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0015|     transaction data, authorization requests, transaction records
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0016|     or other data between intercept processors and acquirers and
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0017|     issuers through a shared system or network;
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0018|                    (18)  "debit" means a transaction initiated by
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0019|     a cardholder that results in the debit to the cardholder's
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0020|     account, through use of a card or otherwise, and results in a
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0021|     claim for funds made by the acquirer or card acceptor against
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0022|     the issuer;
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0023|                    (19)  "director" means the director of the
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0024|     financial institutions division of the regulation and
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0025|     licensing department;
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<center>- 5 -</center>

0001|     <u>              (20)  "electronic benefit transfer" or "EBT"
</u>    |
<u></u>0002| <u>    means a system administered by an agency or department of the
</u>    |
<u></u>0003| <u>    state designed to provide a public assistance benefit or other
</u>    |
<u></u>0004| <u>    benefit of money value provided by a department or agency of
</u>    |
<u></u>0005| <u>    the state through POS terminals;
</u>    |
<u></u>0006| <u>                   (21)  "electronic benefit transfer card" or
</u>    |
<u></u>0007| <u>    "EBT card" means a plastic card or any other access device
</u>    |
<u></u>0008| <u>    issued by an agency or department of the state to a cardholder
</u>    |
<u></u>0009| <u>    that enables the cardholder to have access to and that
</u>    |
<u></u>0010| <u>    processes transactions against one or more public assistance
</u>    |
<u></u>0011| <u>    benefit accounts or other benefit accounts;</u>
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0012|                    <s>[(20)]</s> <u>(22)</u>  "electronic funds transfer"
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0013|     or "EFT" means a system designed to facilitate the exchange of
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0014|     monetary value via electronic media utilizing electronic or
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0015|     mechanical signals or impulses or a combination of electronic
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0016|     or mechanical impulses and audio, radio or microwave
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0017|     transmissions;
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0018|                    <s>[(21)]</s> <u>(23)</u>  "financial institution" means
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0019|     an insured state or national bank, a state or federal savings
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0020|     and loan association or savings bank, a state or federal
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0021|     credit union or authorized branches of each of the foregoing;
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0022|                    <s>[(22)]</s> <u>(24)</u>  "in-state financial
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0023|     <s>[institutions]</s> <u>institution</u>" means a financial institution
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0024|     authorized to engage in and engaged in business in New Mexico
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0025|     and having its main office or a staffed branch within the
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<center>- 6 -</center>

0001|     state;
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0002|                    <s>[(23)]</s> <u>(25)</u>  "intercept processor" means
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0003|     any electronic data processor operating for a financial
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0004|     institution that passes transactions;
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0005|                    <s>[(24)]</s> <u>(26)</u>  "issuer" means a financial
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0006|     institution that issues cards or accepts transactions for a
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0007|     card, is the acceptor of a transaction and is typically, but
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0008|     not always, the entity that maintains the account relationship
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0009|     with the cardholder;
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0010|                    <s>[(25)]</s> <u>(27)</u>  "lobby <u>ATM</u> "or "teller-line
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0011|     ATM" means any ATM located within the lobby of a financial
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0012|     institution or in its teller line, access to which is
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0013|     available only during regular banking hours;
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0014|                    <s>[(26)]</s> <u>(28)</u>  "merchant" means a seller of
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0015|     goods or services, retailer or other person who, pursuant to
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0016|     an agreement with a financial institution, agrees to accept or
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0017|     causes its outlets to accept cards for EFT transactions when
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0018|     properly presented, is usually a card acceptor and is a seller
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0019|     of goods and services who is regularly and principally engaged
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0020|     in the business of selling, leasing or renting goods, selling
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0021|     or leasing services for any purpose or selling insurance,
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0022|     whether the business is a wholesale or retail business and
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0023|     whether the goods or services are for business, agricultural,
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0024|     personal, family or household purposes.  "Merchant" includes a
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0025|     professional licensed by the state of New Mexico, but does not
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<center>- 7 -</center>

0001|     include financial institutions;
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0002|                    <s>[(27)]</s> <u>(29)</u>  "modem" is a contraction of
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0003|     "modulator-demodulator" and means a functional unit that
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0004|     enables digital data to be transmitted over analog
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0005|     transmission facilities such as telephone lines, radio or
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0006|     microwave transmissions;
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0007|                    <s>[(28)]</s> <u>(30)</u>  "network" means a
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0008|     computer-operated system of transmitting items and messages
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0009|     between ATM or POS terminals, intercept processor and
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0010|     financial institutions, and settling transactions between
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0011|     financial institutions, and includes without limitation, ATMs,
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0012|     POS terminals, all related computer hardware and software,
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0013|     modems, logos and service marks;
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0014|                    <s>[(29)]</s> <u>(31)</u>  "network manager" means the
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0015|     person managing the business of a network;
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0016|                    <s>[(30)]</s> <u>(32)</u>  "off-line" means not on-line;
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0017|                    <s>[(31)]</s> <u>(33)</u>  "<s>[off-premise]</s> <u>off-
</u>    |
<u></u>0018| <u>    premises</u> ATM" means ATMs installed away from the building or
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0019|     lobby of a financial institution by a distance of not less
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0020|     than five hundred feet;
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0021|                    <s>[(32)]</s> <u>(34)</u>  "on-line" means a system in
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0022|     which all input data enters the computer at a financial
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0023|     institution, an intercept processor or the network from its
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0024|     point of origin and that is capable of transmitting
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0025|     information back to the point of origin after all input data
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<center>- 8 -</center>

0001|     is processed;
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0002|                    <s>[(33)]</s> <u>(35)</u>  "<s>[on-premise]</s> <u>on-premises</u>
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0003|     ATM" means an ATM that stands in or immediately adjacent to
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0004|     the financial institution's building, such as in the financial
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0005|     institution's lobby, through the wall or a drive-up ATM within
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0006|     five hundred feet of the financial institution's building;
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0007|                    <s>[(34)]</s> <u>(36)</u>  "person" means an individual,
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0008|     partnership, joint venture, corporation or other legal entity
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0009|     however organized;
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0010|                    <s>[(35)]</s> <u>(37)</u>  "personal identification
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0011|     number" or "PIN" means a series of numbers or letters selected
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0012|     for or by the cardholder and used by the cardholder as a code
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0013|     or password in conjunction with a card to perform a
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0014|     transaction;
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0015|                    <s>[(36)]</s> <u>(38)</u>  "point-of-sale <u>terminal</u>" or
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0016|     "POS terminal" means an information processing device or
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0017|     machine, located upon the premises occupied by one or more
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0018|     merchants, through which transaction messages are initiated
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0019|     and electronically transmitted to an acquirer to effectuate a
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0020|     POS transaction and that accepts debit cards, <s>[and]</s> credit
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0021|     cards <u>and EBT cards</u>;
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0022|                    <s>[(37)]</s> <u>(39)</u>  "POS transaction" means any
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0023|     of the following transactions undertaken at a POS terminal:
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0024|                         (a)  purchases;
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0025|                         (b)  purchases that include cash back to
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<center>- 9 -</center>

0001|     the cardholder;
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0002|                         (c)  cash advances at POS terminals;
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0003|                         <u>(d)  receipt of a public assistance
</u>    |
<u></u>0004| <u>    benefit at POS terminals;</u>
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0005|                         <s>[(d)]</s> <u>(e)</u>  returned item transaction
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0006|     message resulting in a credit to the cardholder's account;
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0007|                         <s>[(e)]</s> <u>(f)</u>  a credit;
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0008|                         <s>[(f)]</s> <u>(g)</u>  an authorization;
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0009|                         <s>[(g)]</s> <u>(h)</u>  chargebacks at POS
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0010|     terminals;
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0011|                         <s>[(h)]</s> <u>(i)</u>  card verification whereby
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0012|     the validity of a card is determined at POS terminals;
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0013|                         <s>[(i)]</s> <u>(j)</u>  balance inquiries at POS
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0014|     terminals; and
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0015|                         <s>[(j)]</s> <u>(k)</u>  force post financial
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0016|     advice at POS terminals whereby any other transaction
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0017|     authorized by an issuer-approved stand-in processor requires
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0018|     settlement resulting in a debit to the cardholder's account.
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0019|          Nothing in this paragraph shall be construed to include
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0020|     credit card transactions;
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0021|                    <u>(40)  "public assistance benefit" means a
</u>    |
<u></u>0022| <u>    benefit of monetary value available from various state and
</u>    |
<u></u>0023| <u>    federal public benefit programs administered through or
</u>    |
<u></u>0024| <u>    enforced by an agency or department of the state;</u>
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0025|                    <s>[(38)]</s> <u>(41)</u>  "purchase" means a
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<center>- 10 -</center>

0001|     transaction that, if approved, results in a debit transaction
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0002|     for the payment of goods and services or may include cash paid
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0003|     to the cardholder of some part of the amount of the
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0004|     transaction;
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0005|                    <s>[(39)]</s> <u>(42)</u>  "receipt" means a hard-copy
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0006|     description of a transaction:
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0007|                         (a)  for the purposes of the Remote
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0008|     Financial Service Unit Act, if the transaction is an ATM
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0009|     transaction, the receipt shall contain, at a minimum:  1) the
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0010|     date of the ATM transaction; 2) the amount of the ATM
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0011|     transaction, if any; 3) the account number; 4) the type of
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0012|     account accessed; 5) the location of the ATM used in the ATM
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0013|     transaction; 6) the identity of any party or account to which
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0014|     funds are transferred; and 7) the type of ATM transaction
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0015|     completed; and
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0016|                         (b)  for the purposes of the Remote
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0017|     Financial Service Unit Act, if the transaction is a POS
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0018|     transaction, the receipt shall contain, at a minimum:  1) the
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0019|     date of the POS transaction; 2) the amount of the POS
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0020|     transaction, if any; 3) the account number; 4) the type of
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0021|     account accessed; 5) the merchant's name and location; and
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0022|     6) the type of POS transaction completed;
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0023|                    <s>[(40)]</s> <u>(43)</u>  "remote financial service
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0024|     unit" means a POS terminal or an ATM;
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0025|                    <s>[(41)]</s> <u>(44)</u>  "returned item transaction
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<center>- 11 -</center>

0001|     message" means a credit message generated by the acquirer or
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0002|     by the merchant that returns the value of the returned item to
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0003|     the cardholder's account;
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0004|                    <s>[(42)]</s> <u>(45)</u>  "settlement" means the
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0005|     process by which funds are transferred between financial
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0006|     institutions, intercept processors or networks in the flow of
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0007|     a transaction or in the payment of fees associated with the
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0008|     transaction;
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0009|                    <s>[(43)]</s> <u>(46)</u>  "shared ATM <u>terminals</u>" or
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0010|     "<u>shared</u> POS terminals" means ATM or POS terminals that are
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0011|     shared among financial institutions by formal agreement for
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0012|     the purposes of cardholder convenience, reduction of capital
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0013|     investment and marketing advantage;
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0014|                    <s>[(44)]</s> <u>(47)</u>  "single subscriber terminal"
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0015|     means any terminal or set of terminals used to connect a
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0016|     single customer of a financial institution to <s>[its]</s> <u>his</u>
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0017|     financial institution through which EFT messages are sent and
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0018|     completed, other than transactions;
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0019|                    <s>[(45)]</s> <u>(48)</u>  "switch" means a routing
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0020|     mechanism and any device attached thereto that is necessary
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0021|     for the processing of a transaction used to communicate
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0022|     information and transactions among participating financial
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0023|     institutions or their intercept processors in a shared system
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0024|     or network;
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0025|                    <s>[(46)]</s> <u>(49)</u>  "transaction" means a
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<center>- 12 -</center>

0001|     collection of electronic messages concluded by:
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0002|                         (a)  a debit to or a credit from an
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0003|     account;
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0004|                         (b)  a balance inquiry;
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0005|                         (c)  the consummation of a normal
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0006|     financial transaction; or
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0007|                         (d)  a rejected attempt of any one of
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0008|     those matters provided in Subparagraphs (a) through (c) of
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0009|     this paragraph;
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0010|                    <s>[(47)]</s> <u>(50)</u>  "unauthorized use of the card
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0011|     of another" means the utilization of the card in or through a
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0012|     remote financial service unit to affect the balance of or
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0013|     obtain information concerning the account of the cardholder by
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0014|     a person other than the cardholder, which person does not have
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0015|     the permission of the cardholder for such use; and
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0016|                    <s>[(48)]</s> <u>(51)</u>  "unauthorized withdrawal from
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0017|     the account of another" means the debiting of or removal of
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0018|     funds from a cardholder's account, accomplished by means of
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0019|     the utilization of a remote financial service unit by a person
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0020|     other than the cardholder, which person does not have actual,
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0021|     implied or apparent authority for the debiting or removal and
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0022|     from which debiting or removal the cardholder receives no
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0023|     benefit.
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0024|               B.  <s>[(1)]</s>  Any of the information provided
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0025|     pursuant to Subparagraphs (a) and (b) of Paragraph <s>[(39)]</s>
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<center>- 13 -</center>

0001|     <u>(42)</u> of Subsection A of this section may be provided using
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0002|     codes, numbers or other uniform explanations so long as they
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0003|     are explained elsewhere on the receipt.
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0004|               <s>[(2)]</s> <u>C.</u>  No receipt shall be required in any
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0005|     transaction involving a negotiable instrument that will itself
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0006|     become a receipt.
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0007|               <s>[C.]</s> <u>D.</u>  Any term used in the Remote Financial
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0008|     Service Unit Act but not specifically defined shall have the
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0009|     meaning given to that term by the Uniform Commercial Code."
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0010|          Section 2.  EFFECTIVE DATE.--The effective date of the
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0011|     provisions of this act is July 1, 1998.
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0012|                              
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