senate Bill S4363

Relates to automated teller machine fee disclosure

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 22 / Mar / 2013
    • REFERRED TO CONSUMER PROTECTION
  • 29 / Apr / 2013
    • 1ST REPORT CAL.450
  • 30 / Apr / 2013
    • 2ND REPORT CAL.
  • 01 / May / 2013
    • ADVANCED TO THIRD READING
  • 29 / May / 2013
    • SUBSTITUTED BY A6234

Summary

Relates to automated teller machine fee disclosure; eliminates provisions requiring an automated teller machine operator to post a sign that a fee is imposed for the use of such machine, as well as the amount of such fee.

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Bill Details

See Assembly Version of this Bill:
A6234
Versions:
S4363
Legislative Cycle:
2013-2014
Law Section:
General Business Law
Laws Affected:
Amd §399-y, Gen Bus L

Votes

9
2
9
Aye
2
Nay
0
aye with reservations
0
absent
0
excused
0
abstained
show Consumer Protection committee vote details

Sponsor Memo

BILL NUMBER:S4363

TITLE OF BILL: An act to amend the general business law, in relation
to automated teller machine fee disclosure

PURPOSE OR GENERAL IDEA OF BILL:

To bring state law into conformity with current provisions of federal
law relating to ATM fee disclosure requirements which eliminated the
outdated requirement that ATM machines carry a physical disclosure of
potential ATM fees.

SUMMARY OF SPECIFIC PROVISIONS:

Section 1- amends § 399-y to the General Business Law by removing
paragraph 3(a) which requires a sign be posted in on or at the ATM
stating that a fee is imposed and the amount of the fee.

Section 2 - Contains the effective date.

JUSTIFICATION:

Under current law, automatic teller machine (ATM) operators are
required to display notices in two separate locations notifying
consumers that they might be charged fees for withdrawing cash from
the ATM. One notice is required to be posted in a prominent and
conspicuous location on or at the ATM with the second notice required
to appear on the screen of the ATM or on a paper notice issued from
the machine after the transaction is initiated and before the consumer
is irrevocably committed to completing the transaction. The
requirements of state law were patterned after the ATM disclosure
requirements under federal law.

Congress recently adopted legislation (H.R. 3647) which eliminates the
requirement that ATM fee notices be affixed to or displayed on ATMs.
This legislation would bring state law into conformity with current
provisions of federal law relating to ATM fee disclosure requirements.

PRIOR LEGISLATIVE HISTORY:

None

FISCAL IMPLICATIONS:

None to the State.

EFFECTIVE DATE:

This act shall take effect immediately.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4363

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                             March 22, 2013
                               ___________

Introduced  by  Sens.  GRIFFO, FARLEY -- read twice and ordered printed,
  and when  printed  to  be  committed  to  the  Committee  on  Consumer
  Protection

AN  ACT  to  amend  the  general  business law, in relation to automated
  teller machine fee disclosure

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  399-y  of  the general business law, as added by
chapter 495 of the laws of 1999, is amended to read as follows:
  S 399-y. Automated teller machine fee disclosure. 1. For the  purposes
of  this  section,  "automated  teller  machine operator" shall mean any
person who: (a) operates an automated teller machine at which  consumers
may  make financial transactions, including but not limited to deposits,
withdrawals, balance inquiries, and loan payments; and (b)  is  not  the
financial  institution  which holds the account accessed by the consumer
to make the financial transaction.
  2. No automated teller machine  operator  shall  impose  a  fee  on  a
consumer  using  such machine, unless such operator: (a) provides notice
as required by subdivision three of this section; and (b)  the  consumer
elects  to  continue  to  effect a financial transaction after receiving
such notice.
  3. [(a) The automated teller machine operator shall  post  a  sign  or
warning  in  a prominent and conspicuous location on or at the automated
teller machine at which the financial transaction is  initiated  by  the
consumer.  Such  sign shall clearly state: (i) that a fee is imposed for
the use of such machine; and (ii) the amount of such fee.
  (b)] The automated teller machine operator shall [also] provide notice
on the screen of the automated teller machine or on a paper issued  from
such  machine  after  the financial transaction is initiated, but before
the consumer is irrevocably committed  to  completing  the  transaction.
Such  notice  shall clearly state: (i) that a fee is imposed for the use

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05805-03-3

S. 4363                             2

of such machine; (ii) the amount of such fee; and (iii) that the consum-
er may cancel such transaction without being assessed a fee.
  4.  (a) Any automated teller machine operator who fails to comply with
the requirements of this section shall be assessed a civil  penalty  not
to exceed two hundred fifty dollars per transaction.
  (b)  If  the  notice  required  pursuant  to subdivision three of this
section has been [posted] PROVIDED by an automated teller machine opera-
tor and such notice is subsequently removed, damaged, or altered by  any
person  other  than  such operator, the operator shall have no liability
for a failure to comply with subdivision three of this section.
  S 2. This act shall take effect immediately.

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