S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                 10157--A
                                                         Cal. No. 849
 
                           I N  A S S E M B L Y
 
                              March 21, 2018
                                ___________
 
 Introduced  by  M.  of A. PELLEGRINO, WEPRIN, SEAWRIGHT -- read once and
   referred to the Committee on Banks -- reported  and  referred  to  the
   Committee  on Codes -- advanced to a third reading, passed by Assembly
   and delivered to the Senate, recalled from the Senate, vote  reconsid-
   ered,  bill  amended,  ordered  reprinted,  retaining its place on the
   order of third reading
 
 AN ACT to direct the department of financial services to study  consumer
   protection issues regarding ATMs that accept EVM-enabled chip cards
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
 declares  that the introduction of EVM-enabled chip cards to the general
 public has presented a unique public  safety,  consumer  protection  and
 personal identity protection issue with respect to ATMs that accept such
 cards.  Due to the unique nature, construction and process sequencing of
 ATMs  the  consumer's  card is regularly held fully in the machine until
 such time as the money is disbursed and a receipt is printed.  In  prac-
 tice,  many  consumers  have reported that they regularly walk away once
 they have received the money and receipt and forget to wait for the card
 to be released from the ATM. In the event that people forget to retrieve
 their card, a host of negative outcomes may be visited  upon  consumers,
 including,  without limitation: the card may be taken by another for the
 purposes of theft, larceny, fraud, identity assumption and other  unlaw-
 ful  purposes.  The  legislature further finds that this is an important
 public policy issue that bears study, research and scrutiny,  as  simple
 and  viable  alternatives  may  exist  that can more proactively protect
 consumers, including  requiring  all  newly  installed  ATMs  which  are
 EVM-chip  enabled to release the card before disbursing cash or printing
 a receipt.
   § 2. For purposes of this act:
   (a) "EVM chip" means a data storage chip that implements the  Europay,
 Mastercard and Visa technical standard;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11833-03-8

 A. 10157--A                         2
 
   (b)  "Chip  card" means an automated teller machine card, credit card,
 or other form of secure-payment card with an  EVM  chip  inset  for  the
 purposes of customer data storage;
   (c) "Dipping" means the insertion of a chip card into a card reader to
 enable customer data to be read off the EVM chip; and
   (d) "Department" means the department of financial services.
   §  3. The department shall study, research and prepare a report on the
 issue of ATMs that accept EVM-enabled  chip  cards  to  determine  which
 measures may be necessary and proper to ensure that the cards and corre-
 sponding  personal  data  and information of consumers is protected from
 falling into the hands of others. Such report shall include but  not  be
 limited to the following issues:
   (a)  The prevalence and incidence of people leaving their cards behind
 in ATM machines;
   (b) The extent to which the general public, including vulnerable popu-
 lations such as seniors and low-income individuals, are affected by this
 issue;
   (c) The correlation, if any, between such cards being left behind  and
 the design of such ATM machines which hold the card within the very body
 of the machine until the last step of the transaction;
   (d)  The  availability  and  efficacy  of alternative ATM designs that
 would release the card earlier in the transaction or allow  for  dipping
 of  the  cards,  such  as  is  available in most major stores and at gas
 stations and other businesses, so that the card never leaves the consum-
 ers hands; and
   (e) Any other related issues that the department shall deem  advisable
 to create the report.
   § 4. Within one hundred eighty days of the effective date of this act,
 the  department  shall  submit a report on its findings, conclusions and
 recommendations pursuant to this act  to  the  governor,  the  temporary
 president  of  the  senate,  the  speaker of the assembly, the chair and
 ranking minority members of the senate banks committee, the chair  rank-
 ing  minority  members  of the senate consumer protection committee, the
 chair and ranking minority members of the assembly banks  committee  and
 the  chair and ranking minority members of the assembly consumer affairs
 and protection committee.
   § 5. The department may acquire directly from the head of  any  agency
 or  instrumentality of the executive branch of the government, available
 information which the department considers useful in  the  discharge  of
 its  duties.  All agencies and instrumentalities of the executive branch
 of the government shall cooperate with the department  with  respect  to
 such  information  and  shall  furnish  all information requested by the
 department to the extent permitted by law.
   § 6. This act shall take effect immediately.