Senate Bill S6695

                                 
BILL NUMBER: S6695

SPONSOR: SANDERS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
predatory automated teller machine fees at casinos and colleges

 
PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to protect college students and casino
patrons from excessive or predatory ATM fees, ensuring they can access
their funds at a fair cost.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one: Amends the general business law by adding a new section
399-y-2.

Subdivision one: Definitions.

Subdivision two: Prohibits casinos and colleges from knowingly hosting
              

ATMs on their premises that charge fees or surcharges above a limit set
by the Department of Financial Services, which may review and adjust the
limit as necessary.

Subdivision three: Specifies that a casino or college that receives a
consumer complaint about an ATM charging fees or surcharges in excess of
the limit as having knowledge of such activity.

Subdivision four: Imposes a $250 civil penalty on any casino or college
that knowingly allows an ATM on their premises to charge fees or
surcharges exceeding the cap set by the Department of Financial
Services. Subdivision five: Severability clause.

Section two: Effective Date.

 
JUSTIFICATION:

Automated teller machines (ATMs) provide a simple, efficient, and acces-
sible way for one to receive their hard-earned money in cash.  However,
like with most services, it comes at a cost. This cost is the same
regardless of one's income, meaning that for those who earn less, the
cost to simply get their money in cash hits harder.

The problem is exacerbated when groups of people become captive audi-
ences to ATM providers. Essentially, due to their circumstances they
have no choice but to pay an exorbitant fee to take out their own money.

This is particularly true when it comes to students on college campuses.
The employment rate for full-time undergraduate students in 2020,
according to the National Center for Education Statistics, is just 40%.

This is far lower that then that of adults, who have an employment rate
that generally exceeds 95%. College students are already burdened with
the high cost to attend school, including but not limited to tuition,
housing and purchasing textbooks and other class-related materials.
Worrying about whether they can simply afford to take their money out of
an ATM should not be among those costs, and on remote campuses where
students spend most of their time, they should not be treated as captive
audiences to ATM providers.

And it's not just college students who are affected. Step into any casi-
no, and you'll find ATMs that charge exorbitant fees since you have
nowhere else to go to get cash. While the national average ATM fee
hovers at a few dollars, these machines demand a staggering $10, $15, or
even more just for the privilege of accessing one's own money. It's an
inherently unfair, predatory practice that targets people who are
already taking a financial risk - and who, on average, lose. Casinos
generate substantial revenue from the funds wagered on their premises,
yet these ATM fees extract additional sums from patrons before they can
even participate.

This bill targets two high-risk areas with respect to ATM fees to ensure
that the people on these premises can access their money at a reasonable
cost, and hold accountable the owners of the premises when they subject
those on their premises to unreasonable fees.

 
PRIOR LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect immediately after it shall have become a law.