Section 1, subdivision 1, adds specificity to the existing definition of "offers a payroll card," by clarifying that the term does not include the provision of summary promotional materials, such as posters and flyers.

Subdivision 2 eliminates language requiring a payroll card issuer to file a notice with the Commissioner of Labor and Industry that includes the entity's true name, the other names that the entity conducts business under, and the entity's address and telephone number.

Subdivision 3 requires that wages paid by electronic funds transferred to an employee's payroll card account must be owned by the employee, with no interest retained by the employer.

Subdivision 4 provides that an employee who chooses to be paid wages by electronic fund transfer to a payroll card account must be permitted to withdraw two free transactions from the employee's payroll card account.

Subdivision 5 requires an employer to provide written disclosure of the employee's wage payment options to the employee when offering the employee the option of being paid wages by electronic fund transfer to a payroll card account. The initiation of payment of an employee by electronic refund transfer to a payroll account may only occur after the employee has voluntarily consented in writing to that method of payment. Written disclosures and consents under this subdivision may be administered electronically in accordance with the Minnesota Uniform Electronic Transactions Act.

Subdivision 6 is eliminated and the language is incorporated in subdivision 5.

Subdivision 7 eliminates the requirement that an employer must provide to the employee, upon the employee's request, one free transaction history each month.

Subdivision 8 provides clarifying language to the requirement that the payroll card or the payroll card amount shall not be linked to any form of credit by specifying that overdrafts are not deemed to be a form of credit.

Subdivision 9 eliminates the requirement that unless the employee consents in writing to the use, information generated by the employee's possession or use of a payroll card or payroll card account may only be used to process transactions and administer the payroll card and the payroll card account.

Subdivision 12 prohibits an employer from charging an employee initiation, participation, loading, or other employer fee to receive wages payable in an electronic fund transfer to a payroll card account.

Section 2 repeals the sunset of the law permitting payment by payroll cards.

Section 3 provides that section 1 is effective June 1, 2007. Section 2 is effective the day following final enactment.

DWS:cs

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