0001| SENATE BILL 223 | 0002| 43RD LEGISLATURE - STATE OF NEW MEXICO - SECOND SESSION, 1998 | 0003| INTRODUCED BY | 0004| ROMAN M. MAES III | 0005| | 0006| | 0007| | 0008| | 0009| | 0010| AN ACT | 0011| RELATING TO FINANCIAL INSTITUTIONS; PROVIDING FOR PUBLIC | 0012| ASSISTANCE BENEFIT ACCOUNTS IN THE REMOTE FINANCIAL SERVICE | 0013| UNIT ACT; AMENDING A SECTION OF THE REMOTE FINANCIAL SERVICE | 0014| UNIT ACT. | 0015| | 0016| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO: | 0017| Section 1. Section 58-16-3 NMSA 1978 (being Laws 1990, | 0018| Chapter 123, Section 3, as amended) is amended to read: | 0019| "58-16-3. DEFINITIONS.-- | 0020| A. As used in the Remote Financial Service Unit | 0021| Act: | 0022| (1) "account" means an account maintained by | 0023| a cardholder or merchant with a financial institution, |or | 0024| with an agency or department of the state|, which term shall | 0025| include demand deposit, checking, negotiable order of | - 1 - 0001| withdrawal (NOW) share, share draft, |public assistance | 0002| benefit| or other consumer or asset accounts or pre-authorized | 0003| credit card accounts; | 0004| (2) "account transfer" means a transaction | 0005| that enables movement of funds by a cardholder from one | 0006| account to another account within the same financial | 0007| institution; | 0008| (3) "acquirer" means the intercept processor | 0009| that acquires financial data relating to a transaction from a | 0010| card acceptor or a merchant and puts the data into a network | 0011| system and means "agent acquirer" unless specifically | 0012| indicated otherwise; | 0013| (4) "agent acquirer" means any financial | 0014| institution acting as an authorized agent of the acquirer in | 0015| enabling financial data relating to a POS transaction to be | 0016| acquired by the acquirer from a card acceptor or merchant and | 0017| means "acquirer" unless specifically indicated otherwise; | 0018| (5) "ATM transaction" means any one or more | 0019| of the following transactions undertaken at an automated | 0020| teller machine (ATM): | 0021| (a) a cash advance from an account; | 0022| (b) a cash advance from an authorized | 0023| line of credit; | 0024| (c) a deposit to an account; | 0025| (d) a balance inquiry; | - 2 - 0001| (e) an account transfer; and | 0002| (f) a normal financial transaction for | 0003| a cardholder involving the issuance of non-cash or | 0004| cash-equivalent items; provided, however, that normal | 0005| financial transactions at an ATM will expressly exclude any | 0006| POS transaction; | 0007| (6) "authorization" means the issuance of | 0008| approval, by or on behalf of the financial institution holding | 0009| the cardholder's account, to complete a transaction initiated | 0010| or authorized by the cardholder; | 0011| (7) "automated teller machine" or "ATM" means | 0012| an unmanned device that is activated by the cardholder through | 0013| a specially prepared card or by the transmission of a code via | 0014| a keyboard or keyset or both and is capable of one or more of | 0015| the following transactions: | 0016| (a) dispensing cash to any cardholder | 0017| from an account or against a preauthorized line of credit; | 0018| (b) accepting deposits; | 0019| (c) account transfers; | 0020| (d) satisfying a balance inquiry in the | 0021| cardholder's account or accounts; and | 0022| (e) conducting normal financial | 0023| transactions involving the issuance of non-cash or | 0024| cash-equivalent items; provided, however, that normal | 0025| financial transactions at an ATM will expressly exclude a | - 3 - 0001| transaction that can only be initiated and completed at a POS | 0002| terminal; | 0003| (8) "balance inquiry" means a transaction | 0004| that permits a cardholder to obtain the current balance of the | 0005| cardholder's account or accounts; | 0006| (9) "card" means a plastic card or other | 0007| instrument or any other access device issued by a financial | 0008| institution |or by an agency or department of the state| to a | 0009| cardholder that enables the cardholder to have access to and | 0010| that processes transactions against one or more accounts, and | 0011| the term shall be used when referring either to an ATM access | 0012| card, |an EBT card|, a debit card or a credit card identifying | 0013| a cardholder who has established a pre-approved credit line | 0014| |or public assistance benefit| with the issuer of the credit | 0015| card; | 0016| (10) "card acceptor" means the party | 0017| accepting the card and presenting transaction data to an | 0018| acquirer; | 0019| (11) "cardholder" means a person to whom a | 0020| card has been issued by a financial institution or who is | 0021| authorized to use the card; | 0022| (12) "cash advance" means any transaction | 0023| resulting in a cardholder receiving cash, whether initiated | 0024| through an ATM or a POS terminal; | 0025| (13) "chargeback" means the credit of all or | - 4 - 0001| a portion of an amount previously posted to a cardholder's | 0002| account; | 0003| (14) "clearing account" means an account or | 0004| several accounts maintained for the purpose of settlement and | 0005| payment of fees to the network manager; | 0006| (15) "credit" means a claim for funds by the | 0007| cardholder for the credit of the cardholder's account and | 0008| provides details of funds acknowledged as payable by the | 0009| acquirer or card acceptor to the issuer for credit to the | 0010| cardholder's account; | 0011| (16) "credit card cash advance" means a cash | 0012| loan obtained by a cardholder against a pre-authorized line of | 0013| credit through presentation of a card; | 0014| (17) "data interchange" means the exchange of | 0015| transaction data, authorization requests, transaction records | 0016| or other data between intercept processors and acquirers and | 0017| issuers through a shared system or network; | 0018| (18) "debit" means a transaction initiated by | 0019| a cardholder that results in the debit to the cardholder's | 0020| account, through use of a card or otherwise, and results in a | 0021| claim for funds made by the acquirer or card acceptor against | 0022| the issuer; | 0023| (19) "director" means the director of the | 0024| financial institutions division of the regulation and | 0025| licensing department; | - 5 - 0001| | (20) "electronic benefit transfer" or "EBT" | 0002| means a system administered by an agency or department of the | 0003| state designed to provide a public assistance benefit or other | 0004| benefit of money value provided by a department or agency of | 0005| the state through POS terminals; | 0006| (21) "electronic benefit transfer card" or | 0007| "EBT card" means a plastic card or any other access device | 0008| issued by an agency or department of the state to a cardholder | 0009| that enables the cardholder to have access to and that | 0010| processes transactions against one or more public assistance | 0011| benefit accounts or other benefit accounts;| | 0012| ~[(20)]~ |(22)| "electronic funds transfer" | 0013| or "EFT" means a system designed to facilitate the exchange of | 0014| monetary value via electronic media utilizing electronic or | 0015| mechanical signals or impulses or a combination of electronic | 0016| or mechanical impulses and audio, radio or microwave | 0017| transmissions; | 0018| ~[(21)]~ |(23)| "financial institution" means | 0019| an insured state or national bank, a state or federal savings | 0020| and loan association or savings bank, a state or federal | 0021| credit union or authorized branches of each of the foregoing; | 0022| ~[(22)]~ |(24)| "in-state financial | 0023| ~[institutions]~ |institution|" means a financial institution | 0024| authorized to engage in and engaged in business in New Mexico | 0025| and having its main office or a staffed branch within the | - 6 - 0001| state; | 0002| ~[(23)]~ |(25)| "intercept processor" means | 0003| any electronic data processor operating for a financial | 0004| institution that passes transactions; | 0005| ~[(24)]~ |(26)| "issuer" means a financial | 0006| institution that issues cards or accepts transactions for a | 0007| card, is the acceptor of a transaction and is typically, but | 0008| not always, the entity that maintains the account relationship | 0009| with the cardholder; | 0010| ~[(25)]~ |(27)| "lobby |ATM| "or "teller-line | 0011| ATM" means any ATM located within the lobby of a financial | 0012| institution or in its teller line, access to which is | 0013| available only during regular banking hours; | 0014| ~[(26)]~ |(28)| "merchant" means a seller of | 0015| goods or services, retailer or other person who, pursuant to | 0016| an agreement with a financial institution, agrees to accept or | 0017| causes its outlets to accept cards for EFT transactions when | 0018| properly presented, is usually a card acceptor and is a seller | 0019| of goods and services who is regularly and principally engaged | 0020| in the business of selling, leasing or renting goods, selling | 0021| or leasing services for any purpose or selling insurance, | 0022| whether the business is a wholesale or retail business and | 0023| whether the goods or services are for business, agricultural, | 0024| personal, family or household purposes. "Merchant" includes a | 0025| professional licensed by the state of New Mexico, but does not | - 7 - 0001| include financial institutions; | 0002| ~[(27)]~ |(29)| "modem" is a contraction of | 0003| "modulator-demodulator" and means a functional unit that | 0004| enables digital data to be transmitted over analog | 0005| transmission facilities such as telephone lines, radio or | 0006| microwave transmissions; | 0007| ~[(28)]~ |(30)| "network" means a | 0008| computer-operated system of transmitting items and messages | 0009| between ATM or POS terminals, intercept processor and | 0010| financial institutions, and settling transactions between | 0011| financial institutions, and includes without limitation, ATMs, | 0012| POS terminals, all related computer hardware and software, | 0013| modems, logos and service marks; | 0014| ~[(29)]~ |(31)| "network manager" means the | 0015| person managing the business of a network; | 0016| ~[(30)]~ |(32)| "off-line" means not on-line; | 0017| ~[(31)]~ |(33)| "~[off-premise]~ |off- | 0018| premises| ATM" means ATMs installed away from the building or | 0019| lobby of a financial institution by a distance of not less | 0020| than five hundred feet; | 0021| ~[(32)]~ |(34)| "on-line" means a system in | 0022| which all input data enters the computer at a financial | 0023| institution, an intercept processor or the network from its | 0024| point of origin and that is capable of transmitting | 0025| information back to the point of origin after all input data | - 8 - 0001| is processed; | 0002| ~[(33)]~ |(35)| "~[on-premise]~ |on-premises| | 0003| ATM" means an ATM that stands in or immediately adjacent to | 0004| the financial institution's building, such as in the financial | 0005| institution's lobby, through the wall or a drive-up ATM within | 0006| five hundred feet of the financial institution's building; | 0007| ~[(34)]~ |(36)| "person" means an individual, | 0008| partnership, joint venture, corporation or other legal entity | 0009| however organized; | 0010| ~[(35)]~ |(37)| "personal identification | 0011| number" or "PIN" means a series of numbers or letters selected | 0012| for or by the cardholder and used by the cardholder as a code | 0013| or password in conjunction with a card to perform a | 0014| transaction; | 0015| ~[(36)]~ |(38)| "point-of-sale |terminal|" or | 0016| "POS terminal" means an information processing device or | 0017| machine, located upon the premises occupied by one or more | 0018| merchants, through which transaction messages are initiated | 0019| and electronically transmitted to an acquirer to effectuate a | 0020| POS transaction and that accepts debit cards, ~[and]~ credit | 0021| cards |and EBT cards|; | 0022| ~[(37)]~ |(39)| "POS transaction" means any | 0023| of the following transactions undertaken at a POS terminal: | 0024| (a) purchases; | 0025| (b) purchases that include cash back to | - 9 - 0001| the cardholder; | 0002| (c) cash advances at POS terminals; | 0003| |(d) receipt of a public assistance | 0004| benefit at POS terminals;| | 0005| ~[(d)]~ |(e)| returned item transaction | 0006| message resulting in a credit to the cardholder's account; | 0007| ~[(e)]~ |(f)| a credit; | 0008| ~[(f)]~ |(g)| an authorization; | 0009| ~[(g)]~ |(h)| chargebacks at POS | 0010| terminals; | 0011| ~[(h)]~ |(i)| card verification whereby | 0012| the validity of a card is determined at POS terminals; | 0013| ~[(i)]~ |(j)| balance inquiries at POS | 0014| terminals; and | 0015| ~[(j)]~ |(k)| force post financial | 0016| advice at POS terminals whereby any other transaction | 0017| authorized by an issuer-approved stand-in processor requires | 0018| settlement resulting in a debit to the cardholder's account. | 0019| Nothing in this paragraph shall be construed to include | 0020| credit card transactions; | 0021| |(40) "public assistance benefit" means a | 0022| benefit of monetary value available from various state and | 0023| federal public benefit programs administered through or | 0024| enforced by an agency or department of the state;| | 0025| ~[(38)]~ |(41)| "purchase" means a | - 10 - 0001| transaction that, if approved, results in a debit transaction | 0002| for the payment of goods and services or may include cash paid | 0003| to the cardholder of some part of the amount of the | 0004| transaction; | 0005| ~[(39)]~ |(42)| "receipt" means a hard-copy | 0006| description of a transaction: | 0007| (a) for the purposes of the Remote | 0008| Financial Service Unit Act, if the transaction is an ATM | 0009| transaction, the receipt shall contain, at a minimum: 1) the | 0010| date of the ATM transaction; 2) the amount of the ATM | 0011| transaction, if any; 3) the account number; 4) the type of | 0012| account accessed; 5) the location of the ATM used in the ATM | 0013| transaction; 6) the identity of any party or account to which | 0014| funds are transferred; and 7) the type of ATM transaction | 0015| completed; and | 0016| (b) for the purposes of the Remote | 0017| Financial Service Unit Act, if the transaction is a POS | 0018| transaction, the receipt shall contain, at a minimum: 1) the | 0019| date of the POS transaction; 2) the amount of the POS | 0020| transaction, if any; 3) the account number; 4) the type of | 0021| account accessed; 5) the merchant's name and location; and | 0022| 6) the type of POS transaction completed; | 0023| ~[(40)]~ |(43)| "remote financial service | 0024| unit" means a POS terminal or an ATM; | 0025| ~[(41)]~ |(44)| "returned item transaction | - 11 - 0001| message" means a credit message generated by the acquirer or | 0002| by the merchant that returns the value of the returned item to | 0003| the cardholder's account; | 0004| ~[(42)]~ |(45)| "settlement" means the | 0005| process by which funds are transferred between financial | 0006| institutions, intercept processors or networks in the flow of | 0007| a transaction or in the payment of fees associated with the | 0008| transaction; | 0009| ~[(43)]~ |(46)| "shared ATM |terminals|" or | 0010| "|shared| POS terminals" means ATM or POS terminals that are | 0011| shared among financial institutions by formal agreement for | 0012| the purposes of cardholder convenience, reduction of capital | 0013| investment and marketing advantage; | 0014| ~[(44)]~ |(47)| "single subscriber terminal" | 0015| means any terminal or set of terminals used to connect a | 0016| single customer of a financial institution to ~[its]~ |his| | 0017| financial institution through which EFT messages are sent and | 0018| completed, other than transactions; | 0019| ~[(45)]~ |(48)| "switch" means a routing | 0020| mechanism and any device attached thereto that is necessary | 0021| for the processing of a transaction used to communicate | 0022| information and transactions among participating financial | 0023| institutions or their intercept processors in a shared system | 0024| or network; | 0025| ~[(46)]~ |(49)| "transaction" means a | - 12 - 0001| collection of electronic messages concluded by: | 0002| (a) a debit to or a credit from an | 0003| account; | 0004| (b) a balance inquiry; | 0005| (c) the consummation of a normal | 0006| financial transaction; or | 0007| (d) a rejected attempt of any one of | 0008| those matters provided in Subparagraphs (a) through (c) of | 0009| this paragraph; | 0010| ~[(47)]~ |(50)| "unauthorized use of the card | 0011| of another" means the utilization of the card in or through a | 0012| remote financial service unit to affect the balance of or | 0013| obtain information concerning the account of the cardholder by | 0014| a person other than the cardholder, which person does not have | 0015| the permission of the cardholder for such use; and | 0016| ~[(48)]~ |(51)| "unauthorized withdrawal from | 0017| the account of another" means the debiting of or removal of | 0018| funds from a cardholder's account, accomplished by means of | 0019| the utilization of a remote financial service unit by a person | 0020| other than the cardholder, which person does not have actual, | 0021| implied or apparent authority for the debiting or removal and | 0022| from which debiting or removal the cardholder receives no | 0023| benefit. | 0024| B. ~[(1)]~ Any of the information provided | 0025| pursuant to Subparagraphs (a) and (b) of Paragraph ~[(39)]~ | - 13 - 0001| |(42)| of Subsection A of this section may be provided using | 0002| codes, numbers or other uniform explanations so long as they | 0003| are explained elsewhere on the receipt. | 0004| ~[(2)]~ |C.| No receipt shall be required in any | 0005| transaction involving a negotiable instrument that will itself | 0006| become a receipt. | 0007| ~[C.]~ |D.| Any term used in the Remote Financial | 0008| Service Unit Act but not specifically defined shall have the | 0009| meaning given to that term by the Uniform Commercial Code." | 0010| Section 2. EFFECTIVE DATE.--The effective date of the | 0011| provisions of this act is July 1, 1998. | 0012|  |