HomeMy Public PortalAbout682 An Ordinance Amending Chapter 3 of the City Code of Ordinances Pertaining to Third Party Gift Card ProcurementCITY OF MEDINA
ORDINANCE NO. 682
An Ordinance Amending Chapter 3 of the City Code of
Ordinances Pertaining to Third Party Gift Card Procurement
The city council of the city of Medina ordains as follows:
SECTION I: Medina city code chapter 3 is hereby amended by adding a new section 365,
entitled "Third Party Gift Card Procurement," as follows:
365. THIRD PARTY GIFT CARD PROCUREMENT
Section 365.01. Purpose. The fraudulent procurement of third party gift cards at retail
establishments in the city has become a widespread problem. These incidents both impact
numerous victims and require considerable law enforcement resources to investigate. By adopting
these provisions, the City Council desires to protect the health, safety, and welfare of all persons
living in the city, visiting the city, and operating businesses within the city by deterring the
fraudulent procurement of third party gift cards at retail establishments and conserving the limited
amount of time, energy, and resources available to local law enforcement agencies when
investigating such fraudulent activities.
Section 365.03. Findings. The City Council makes the following findings:
(a) There has been a substantial increase in the fraudulent procurement of third party
gift cards at retail establishments within the city. Third party gift cards often are
purchased by individuals through the use of cloned or stolen financial transaction
cards, counterfeit checks, or through other fraudulent means.
(b)
Due to the complex nature of cases involving fraudulent third party gift card
procurement, local law enforcement agencies have exerted a significant amount of
time and energy to investigate these cases. These investigations are particularly
time-consuming and strain local law enforcement resources.
(c) Requiring retail establishments to verify identification at the point of sale is an
effective way to deter criminal behavior.
(d) This section is adopted pursuant to Minnesota Statutes, section 412.221, subd. 32
and the city's inherent regulatory authority. The provisions contained herein are
reasonably related to promoting the general welfare of the community and other
legitimate police -power objectives, both expressly identified herein and otherwise
implied.
Section 365.05. Definitions. For purposes of this section, the following definitions shall apply:
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Subd. 1. "Financial transaction card" means any instrument or device, whether known as
a credit card, credit plate, charge plate, courtesy card, bank services card, banking card, check
guarantee card, debit card, electronic benefit system (EBS) card, electronic benefit transfer (EBT)
card, assistance transaction card, or by any other name, issued with or without fee by an issuer for
the use of the cardholder in obtaining credit, money, goods, services, public assistance benefits, or
anything else of value, and which includes the account or identification number or symbol of a
financial transaction card.
Subd. 2. "Third party gift card" means a reloadable or non-reloadable prepaid card sold
at retail establishments and used to make purchases via either the American Express, MasterCard,
or Visa networks, for which the value is decreased upon each purchase
Subd. 3. "Retail establishment" means a physical place of business in which consumer
merchandise is sold to the general public.
Subd. 4. "Person" means an individual, partnership, limited partnership, limited liability
company, corporation, or other legal entity.
Subd. 5. "Proof of identification" means a driver's license, Minnesota identification card
number, or other identification document issued for identification purposes by any state, federal,
or foreign government if the document includes the person's photograph, full name, birth date, and
signature.
Subd. 6. "Sell" means to transfer to another in exchange for monetary consideration
through the use of a financial transaction card.
Section 365.07. Regulations.
Subd. 1. Identification Verification Required. Any person that sells a third party gift
card to an individual on behalf of a retail establishment, including an agent, employee, or other
representative of the retail establishment, shall require that the individual purchasing the third party
gift card display proof of identification and shall verify that said proof of identification matches
the individual's form of payment.
Subd. 2. Self -Checkout. It is unlawful for a retail establishment to allow the purchase of
third party gift cards at self -checkout kiosks where customers themselves scan merchandise and
pay without the assistance of an employee of the retail establishment.
Section 365.09. Enforcement: Violations. In addition to any rights or remedies that are otherwise
available to the city in law or in equity, violations of this section shall be a misdemeanor subject
to the penalty provisions contained in Section 115 of the City Code.
SECTION II. This ordinance shall be effective upon its adoption and publication.
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Adopted by the city council of the city of Medina this 2°d day of February, 2022.
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Kathleen Martin, Mayor
ATTEST:
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Scott T. Johnson, City Administrator -Deputy Clerk
Published in the Crow River News on the 10th day of February, 2022.
Public Notice
The city council of the City of Medina has adopted Ordinance No. 682, an ordinance amending
police regulations pertaining to third party gift cards. By adopting these provisions, the City
Council desires to protect the health, safety, and welfare of all persons living in the city, visiting
the city, and operating businesses within the city by deterring the fraudulent procurement of third
party gift cards at retail establishments and conserving the limited amount of time, energy, and
resources available to local law enforcement agencies when investigating such fraudulent
activities.
The full text of the ordinance is available from the city administrator/clerk at Medina city hall
during regular business hours.
Attest: Scott Johnson, City Administrator -Clerk