BILL NUMBER:  S5433

 TITLE OF BILL :
An act to amend the banking law, in relation to establishing a rating
system for automated teller machine usage fees


 PURPOSE :
To establish a rating system to be posted on automated teller machines
that will allow consumers to quickly and easily ascertain the cost of
a withdrawal according to the lettered designation.

 SUMMARY OF PROVISIONS :
Automated teller machine (ATM) operators will be required to post a
letter designating the level of a transaction fee being charged for
said ATM conspicuously and prominently, thereby augmenting existing
provisions that give consumers ample notice of fee impositions prior
to their election to go forward with a financial transaction.  Notice
of fee and the amount of such fee are already required to be provided
on the screen of the ATM or on paper issued from the machine before
the consumer is irrevocably committed to completing the transaction.
The designated letter system will denote a usage fee as follows:

a. "A" designates a usage fee of $1.00 or less;
b. "B" designates a usage fee of $1.01 to $2.00;
c. "C" designates a usage fee of $2.01 to $3.00;
              

d. "D" designates a usage fee of $3.01 or more;

 EXISTING LAW :
* § 399-y. Automated teller machine fee disclosure. 1. For the
purposes of this section, "automated teller machine operator" shall me
an 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 of
such machine; (ii) the amount of such fee; and (iii) that the consumer
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 by an automated teller machine operator 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.
* NB There are 2 § 399-y's

 JUSTIFICATION :
To amend existing law by adding an enhanced and clearly defined
alphabetical system of fee notification that will inform and alert
consumers as to the cost of financial transactions on automated teller
machines. Automated teller machine (ATM) operators will be required to
post a letter designating the level of transaction fee being charged
for said ATM conspicuously and prominently, thereby giving consumers
ample notice of fee impositions prior to their election to go forward
with a financial transaction. Notice of fee and the amount of such fee
are already required to be provided on the screen of the ATM or on
paper issued from the machine before the consumer is irrevocably
committed to completing the transaction. This amendment expands upon
existing provisions by codifying a colored alphabetical system to be
prominently displayed on or near ATM machines that will serve as clear
notice to consumers of the fee associated with financial transactions
on the specific machine.

 LEGISLATIVE HISTORY :
This is a new bill.

 FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.