Text: HF00519 Text: HF00521 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 527.2, subsection 10, Code 1995, is 1 2 amended to read as follows: 1 3 10. "Limited-function terminal" means an on-line point-of- 1 4 sale terminal or an off-line point-of-sale terminal which 1 5 satisfies the requirements of section 527.4, subsection 3, 1 6 paragraph "d", or a multiple use terminal, which is not 1 7 operated in a manner to accept an electronic personal 1 8 identifier, and which is not operated to distinguish between1 9transactions which affect a customer asset account and1 10transactions which do not affect a customer asset account. 1 11 Except as otherwise provided, a limited-function terminal 1 12 shall not be subject to the requirements imposed upon other 1 13 satellite terminals pursuant to sections 527.4 and 527.5, 1 14 subsections 1, 2, 3, 7, and 9. 1 15 Sec. 2. Section 527.3, Code 1995, is amended by adding the 1 16 following new subsection: 1 17 NEW SUBSECTION. 8. An administrator may issue any order 1 18 necessary to secure compliance with or prevent a violation of 1 19 this chapter or the rules adopted pursuant to this chapter, 1 20 regarding the establishment and operation of a satellite 1 21 terminal, limited-function terminal, upgraded, altered, 1 22 modified, or replaced limited-function terminal, and any other 1 23 device or facility with which such terminal is interconnected. 1 24 A person who violates a provision of this chapter or any rule 1 25 or any order issued pursuant to this chapter is subject to a 1 26 civil penalty not to exceed one thousand dollars for each day 1 27 the violation continues. A person aggrieved by an order of an 1 28 administrator may appeal the order by filing a written notice 1 29 of appeal with the administrator within thirty days of the 1 30 issuance of the order. The administrator shall schedule a 1 31 hearing for the purpose of hearing the arguments of the 1 32 aggrieved person within thirty days of the filing of the 1 33 notice of appeal. The provisions of chapter 17A shall apply 1 34 to all matters related to the appeal. The attorney general, 1 35 on request of the administrator, shall institute any legal 2 1 proceedings necessary to obtain compliance with an order of 2 2 the administrator or to prosecute a person for a violation of 2 3 the provisions of this chapter or rules adopted pursuant to 2 4 this chapter. 2 5 Sec. 3. Section 527.5, subsection 12, Code 1995, is 2 6 amended to read as follows: 2 7 12. a. If at any time, a limited-function terminal at a 2 8 location as defined in section 527.4, subsection 3, paragraph 2 9 "d", is replaced by a device constituting either an on-line or 2 10 an off-line point-of-sale terminal which may be utilized to 2 11 initiate transactions which affect customer asset accounts 2 12 through the use of an electronic personal identifier, or is 2 13 upgraded, altered, or modified to be operated in a mannerto2 14acceptwhich allows the use of an electronic personal 2 15 identifieror to distinguish betweento initiate transactions 2 16 which affect customer asset accountsand transactions which do2 17not affect customer asset accounts, or an on-line or an off- 2 18 line point-of-sale terminal which may be utilized to initiate 2 19 transactions which affect customer asset accounts through the 2 20 use of an electronic personal identifier is newly established 2 21 at a location defined in section 527.4, subsection 3, 2 22 paragraph "d", then such upgraded, altered, or modified 2 23 limited-function terminal or replacement point-of-sale 2 24 terminal or such newly established point-of-sale terminal is 2 25 deemed to be a full-function point-of-sale terminal for 2 26 purposes of this subsection and all requirements of a 2 27 satellite terminal in this chapter apply to the full-function 2 28 point-of-sale terminal with regard to all transactions 2 29 affecting customer asset accounts which are initiated through 2 30 the use of an electronic personal identifier, except for 2 31 section 527.4, subsections 1, 2, and 4, section 527.4, 2 32 subsection 3, paragraphs "a", "b", and "c", and section 527.5, 2 33 subsections 1, 3, and 7.A financial institution not eligible2 34to establish satellite terminals within this state, which has2 35established a limited-function terminal which is subsequently3 1upgraded, altered, or modified as contemplated in this3 2subsection, shall enter into an agreement with a financial3 3institution which is authorized to establish a satellite3 4terminal within this state to comply with the requirements of3 5section 527.4 and this subsection.3 6 b. A full-function point-of-sale terminal, as identified 3 7 in paragraph "a", which is operated in a manner which permits 3 8 all access devices to be utilized to initiate transactions 3 9 which affect customer asset accounts, and where all such 3 10 transactions can be directly routed for authorization purposes 3 11 as established in this subsection, is also exempt from the 3 12 provisions of section 527.5, subsection 9. However, if a data 3 13 processing center directly connected to such full-function 3 14 point-of-sale terminal does not authorize or reject a 3 15 transaction affecting a customer asset account initiated at 3 16 the terminal through the use of an electronic personal 3 17 identifier, the transaction shall be immediately transmitted 3 18 by the data processing center to either of the following: 3 19 (1) A central routing unit approved pursuant to this 3 20 chapter. 3 21 (2) An electronic funds transfer processing facility 3 22 maintained or operated by a national card association and 3 23 utilized for the processing of transactions initiated through 3 24 the use of electronic funds transfer transaction cards or 3 25 access devices depicting a service mark, logo, or trademark 3 26 associated with the national card association. However, if 3 27 the national card association's processing facility is unable 3 28 to immediately authorize or reject a transaction affecting a 3 29 customer asset account initiated at that terminal through the 3 30 use of an access device which bears a service mark, logo, or 3 31 trademark associated with a central routing unit approved 3 32 pursuant to this chapter but does not bear a service mark, 3 33 logo, or trademark associated with a national card 3 34 association, or which bears a service mark, logo, or trademark 3 35 other than that associated with either a central routing unit 4 1 approved pursuant to this chapter or a national card 4 2 association, the transaction shall be immediately transmitted 4 3 to a central routing unit approved pursuant to this chapter, 4 4 whether the transaction initiated through the use of such 4 5 access device was transmitted to the national card 4 6 association's processing facility by a data processing center 4 7 directly connected to the full-function point-of-sale 4 8 terminal, or the national card association's processing 4 9 facility received the transmission of transaction data 4 10 directly from the full-function point-of-sale terminal. 4 11 c. If the national card association's electronic funds 4 12 transfer processing facility directly or indirectly receives a 4 13 transaction affecting a customer asset account initiated at a 4 14 full-function point-of-sale terminal through the use of an 4 15 electronic personal identifier and an access device bearing a 4 16 service mark, logo, or trademark associated with a national 4 17 card association, whether or not the access device also bears 4 18 the service mark, logo, or trademark of an approved central 4 19 routing unit, and the national card association's processing 4 20 facility cannot immediately authorize or reject the 4 21 transaction, such transaction shall be immediately transmitted 4 22 to a central routing unit approved pursuant to this chapter, 4 23 or to a financial institution, or its data processing center, 4 24 which is capable of immediately authorizing or rejecting the 4 25 transaction. 4 26 d. For purposes of this subsection, a national card 4 27 association must be a membership corporation or organization, 4 28 wherever incorporated and maintaining a principal place of 4 29 business, which is engaged in the business of administering 4 30 for the benefit of the association's members a program 4 31 involving electronic funds transfer transaction cards or 4 32 access devices depicting a service mark, logo, or trademark 4 33 associated with the national card association and which may be 4 34 utilized to perform transactions at point-of-sale terminals. 4 35 A national card association must have a membership solely 5 1 comprised of insured depository financial institutions, 5 2 organizations directly or indirectly owned or controlled 5 3 solely by insured depository financial institutions, entities 5 4 wholly owned by one or more insured depository financial 5 5 institutions, holding companies having at least two-thirds of 5 6 their assets consisting of the voting stock of insured 5 7 depository financial institutions, organizations wholly owned 5 8 by one or more holding companies having at least two-thirds of 5 9 their assets consisting of the voting stock of insured 5 10 depository financial institutions and which are solely engaged 5 11 in activities related to the programs sponsored by the 5 12 national card association, or such other entities or 5 13 organizations which are authorized by the national card 5 14 association's bylaws to participate in the electronic funds 5 15 transfer transaction card or access device programs or other 5 16 services and programs sponsored by the national card 5 17 association. For purposes of this subsection, a national card 5 18 association shall not include a financial institution, bank 5 19 holding company as defined in section 524.1801, or in the 5 20 federal Bank Holding Company Act of 1956, 12 U.S.C. 1842(d), 5 21 as amended to July 1, 1994, association holding company as 5 22 defined in section 534.102, or a supervised organization as 5 23 defined in section 534.102, any other financial institution 5 24 holding company organized under federal or state law, or a 5 25 subsidiary or affiliate corporation owned or controlled by a 5 26 financial institution or financial institution holding 5 27 company, which has authorized a customer or member to engage 5 28 in satellite terminal transactions. For purposes of this 5 29 subsection, a national card association shall also not include 5 30 a membership corporation or organization which is conducting 5 31 business as a regional or nationwide network of shared 5 32 electronic funds transfer terminals which do not constitute 5 33 point-of-sale terminals, and is engaged in satellite terminal 5 34 transaction services utilizing a common service mark, logo, or 5 35 trademark to identify such terminal services. 6 1 e. This subsection does not apply to satellite terminals 6 2 located in this state, other than on-line and off-line full- 6 3 function point-of-sale terminals as identified in this 6 4 subsection, or multiple use terminals located in this state 6 5 which are capable of being operated in a manner to initiate 6 6 transactions affecting customer asset accounts through the use 6 7 of an electronic personal identifier. 6 8 Sec. 4. Section 527.5, subsection 13, Code 1995, is 6 9 amended to read as follows: 6 10 13. Effective July 1, 1994, any transaction engaged in 6 11 with a retailer through a satellite terminallocated in this6 12stateat a location described in section 527.4, subsection 3, 6 13 paragraph "d", by means of an access device which results in a 6 14 debit to a customer asset account shall be cleared and paid at 6 15 parto the retailerduring the settlement of such transaction 6 16to the retailer.ProcessingNotwithstanding the terms of any 6 17 contractual agreement between a retailer or financial 6 18 institution and a national card association as described in 6 19 subsection 12, an electronic funds transfer processing 6 20 facility of a national card association, a central routing 6 21 unit approved pursuant to this chapter, or a data processing 6 22 center, the processing fees and charges for such transactions 6 23 to the retailer shallnot be based on a percentage of the6 24amount of the transactionbe as contractually agreed upon 6 25 between the retailer and the financial institution which 6 26 establishes, owns, operates, controls, or processes 6 27 transactions initiated at the satellite terminal. All 6 28 accounting documents reflecting such fees and charges imposed 6 29 on the retailer shall separately identify transactions which 6 30 have resulted in a debit to a customer asset account and the 6 31 charges imposed. The provisions of this subsection shall 6 32 apply to all satellite terminals, including limited-function 6 33 terminals, full-function point-of-sale terminals as identified 6 34 in subsection 12, paragraph "a", and multiple use terminals. 6 35 Sec. 5. Sections 527.6 and 527.8, Code 1995, are repealed. 7 1 Sec. 6. This Act, being deemed of immediate importance, 7 2 takes effect upon enactment. 7 3 HF 520 7 4 mj/pk/25
Text: HF00519 Text: HF00521 Text: HF00500 - HF00599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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