Senate Bill S5669

                                 
BILL NUMBER: S5669

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the banking law, in relation to prohibiting banks from
imposing surcharge fees at automated teller machines located at a state
university or a city university

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit all banking institutions from imposing surcharge fees for
the use of automated teller machines on state university or city univer-
sity property.

 
SUMMARY OF PROVISIONS:

This legislation adds to section 9-t of the banking law. All banking
institutions which use, own, or lease automated teller machine facili-
ties on state university or city university property shall be prohibited
from charging surcharge fees at such automated teller machines.

              

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

 
JUSTIFICATION:

Students often open up their first checking account when they enter
college. Banks which provide ATMs on SUNY and CUNY campuses have the
exclusive benefit of advertising their bank to these new bank customers.
Often the location of local branches where their parents live are not
the same bank institution. When students are at college during the
semester or school hours, one bank's ATM is accessible, however when at
their parents during the summer/occasional weekends (or non-school hours
in the particular case of CUNY) they only have access to different bank
institutions ATMs. Inevitably, the student will need to use an ATM at
both locations and will be forced to pay additional surcharges.
Surcharge fees on ATMs owned and operated on state university or city
university property target individuals who are already overburdened with
expenses which exceed their means. Most students are already borrowing
from banks to pay their tuition, books and living expenses to attend
school. Given the benefits derived by a bank which has access to the
SUNY/CUNY campuses, the student population should derive a benefit by
having access to ATM free of surcharge (double) fees.

 
PRIOR LEGISLATIVE HISTORY:

2021-22 REFERRED TO SENATE BANKS

2019-20 REFERRED TO SENATE BANKS

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None.

 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become a law.