STATE OF NEW YORK
________________________________________________________________________
5531
2023-2024 Regular Sessions
IN SENATE
March 7, 2023
___________
Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Banks
AN ACT to amend the banking law, in relation to non-bank automated
teller machines
The People of the State of New York, represented in Senate and Assem-
bly, do enact as follows:
1 Section 1. The banking law is amended by adding a new article 2-AAA to
2 read as follows:
3 ARTICLE II-AAA
4 NON-BANK ATM REGISTRATION
5 Section 76-a. Definitions.
6 76-b. Responsibilities.
7 76-c. Registration.
8 76-d. Required disclosures.
9 76-e. Penalties.
10 76-f. Examination of books.
11 76-g. Suspension or revocation of registration.
12 76-h. Treatment of fees.
13 76-i. Rules and regulations.
14 § 76-a. Definitions. For purposes of this article, the following terms
15 shall have the following meanings:
16 1. "Non-bank automated teller machine" or "non-bank ATM" means any
17 automated teller machine that is not under the dominion and control of a
18 state or federally chartered bank, trust company, savings bank, savings
19 and loan association or credit union.
20 2. "Operate" means to own, lease or otherwise legally control a non-
21 bank ATM.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10045-01-3
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1 3. "Operator" means the person who owns, leases, or otherwise legally
2 controls a non-bank ATM and is responsible for registering the non-bank
3 ATM.
4 § 76-b. Responsibilities. 1. A person shall not operate a non-bank ATM
5 in this state unless that person registers the non-bank ATM with the
6 superintendent.
7 2. Operators shall not charge a transaction fee in excess of the rate
8 set by the superintendent.
9 3. Non-bank ATMs must be operated in compliance with the federal Elec-
10 tronic Funds Transfer Act, Anti Money Laundering Act, Bank Secrecy Act,
11 and the ATM safety act under article two-AA of this chapter.
12 § 76-c. Registration. 1. Operators must register any non-bank ATM with
13 the superintendent on a registration form established by the superinten-
14 dent that contains such information as the superintendent may require,
15 including at a minimum:
16 (a) the operator's name, address, and telephone number;
17 (b) the name and address of where the non-bank ATM is located;
18 (c) the types of transactions available;
19 (d) the processor's name, address, and telephone number;
20 (e) the servicing agent's name, address, and telephone number;
21 (f) the name, title, address, and telephone number of the person
22 completing the registration; and
23 (g) any other information required by the superintendent.
24 2. The operator shall pay to the superintendent a registration fee as
25 prescribed pursuant to section eighteen-a of this chapter.
26 3. After the initial registration, the operator shall bi-annually
27 submit to the superintendent a registration renewal and registration
28 fee.
29 4. The operator shall promptly notify the superintendent in writing:
30 (a) of any changes to the information required in subdivision one of
31 this section; or
32 (b) if the operation of the non-bank ATM is terminated.
33 5. The certificate of registration issued shall not be transferable
34 from one operator to another operator or from one location to another.
35 If the operator of the non-bank ATM changes, the new operator must
36 re-register the non-bank ATM with the superintendent.
37 § 76-d. Required disclosures. 1. An operator shall clearly and
38 conspicuously disclose on a sign posted on the non-bank ATM or in clear
39 view of the non-bank ATM:
40 (a) the name of the operator;
41 (b) the name, address, and telephone number where a customer may
42 direct inquiries or complaints;
43 (c) a statement that the department is responsible for the operator's
44 compliance with state law and the address and telephone number for the
45 department; and
46 (d) that a fee may be assessed by the operator.
47 2. An operator may not charge a fee for the use of the non-bank ATM
48 that exceeds the rate permitted under section seventy-six-b of this
49 article. An operator shall clearly and conspicuously disclose the fee
50 during the course of the transaction in a manner that permits the
51 customer to cancel the transaction without incurring the fee.
52 3. A non-bank ATM must provide a receipt for the transaction that
53 includes the following information in a clear and conspicuous manner:
54 (a) the amount of the transaction;
55 (b) the amount of any fee imposed by the operator;
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1 (c) the total amount debited to the customer's account, including any
2 fee imposed by the operator;
3 (d) the date and time of the transaction;
4 (e) a number or code that identifies the customer and account
5 accessed; and
6 (f) the location of the non-bank ATM.
7 § 76-e. Penalties. Any operator who violates any provision of this
8 article or any rule adopted by the superintendent is subject to the
9 following:
10 1. For the first violation of this article, a civil penalty up to five
11 hundred dollars shall be imposed; and
12 2. For second and subsequent violations, a civil penalty up to one
13 thousand dollars shall be imposed for each single violation.
14 § 76-f. Examination of books. 1. The superintendent may at any time,
15 and as often as may be determined, either personally or by a person duly
16 designated by the superintendent, make investigations and examine the
17 books, accounts, records, and files of an operator to determine compli-
18 ance with this article. For that purpose the superintendent and duly
19 designated representatives shall have free access to the offices and
20 place of business, books, accounts, papers, records, files, safes and
21 vaults of all such operators. The superintendent shall have authority to
22 require the attendance of and to examine under oath all persons whomsoe-
23 ver whose testimony may be required.
24 2. In the event of such investigation or examination, the operator
25 shall pay the reasonable costs and expenses of the investigation or
26 examination as determined by the superintendent.
27 § 76-g. Suspension or revocation of registration. After notice and
28 hearing, the superintendent may revoke or suspend an operator's regis-
29 tration to operate a non-bank ATM if the superintendent finds that:
30 1. The operator has knowingly violated any provision of this article,
31 any rule or regulation promulgated by the superintendent under and with-
32 in the authority of this article, or any other applicable law; or
33 2. The operator does not cooperate with an examination or investi-
34 gation by the superintendent.
35 § 76-h. Treatment of fees. The aggregate of fees, examination expense
36 reimbursement and other payments made pursuant to this article are
37 appropriated for the use of the superintendent.
38 § 76-i. Rules and regulations. In addition to such powers as may
39 otherwise be prescribed by law, the superintendent is hereby authorized
40 and empowered to promulgate such rules and regulations as may in the
41 judgement of the superintendent be consistent with the purposes of this
42 article, or appropriate for the effective administration of this arti-
43 cle.
44 § 2. This act shall take effect on the ninetieth day after it shall
45 have become a law; effective immediately, the addition, amendment and/or
46 repeal of any rule or regulation necessary for the implementation of
47 this act on its effective date are authorized to be made and completed
48 on or before such effective date.