Bill Text: NY S09026 | 2017-2018 | General Assembly | Introduced

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Bill Title: Directs the department of financial services to study 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 corresponding personal data and information of consumers is protected from falling into the hands of others.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-06-18 - SUBSTITUTED BY A10157A [S09026 Detail]

Download: New_York-2017-S09026-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          9026
                    IN SENATE
                                      June 14, 2018
                                       ___________
        Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
        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:
     1    Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
     2  declares  that the introduction of EVM-enabled chip cards to the general
     3  public has presented a unique public  safety,  consumer  protection  and
     4  personal identity protection issue with respect to ATMs that accept such
     5  cards.  Due to the unique nature, construction and process sequencing of
     6  ATMs  the  consumer's  card is regularly held fully in the machine until
     7  such time as the money is disbursed and a receipt is printed.  In  prac-
     8  tice,  many  consumers  have reported that they regularly walk away once
     9  they have received the money and receipt and forget to wait for the card
    10  to be released from the ATM. In the event that people forget to retrieve
    11  their card, a host of negative outcomes may be visited  upon  consumers,
    12  including,  without limitation: the card may be taken by another for the
    13  purposes of theft, larceny, fraud, identity assumption and other  unlaw-
    14  ful  purposes.  The  legislature further finds that this is an important
    15  public policy issue that bears study, research and scrutiny,  as  simple
    16  and  viable  alternatives  may  exist  that can more proactively protect
    17  consumers, including  requiring  all  newly  installed  ATMs  which  are
    18  EVM-chip  enabled to release the card before disbursing cash or printing
    19  a receipt.
    20    § 2. For purposes of this act:
    21    (a) "EVM chip" means a data storage chip that implements the  Europay,
    22  Mastercard and Visa technical standard;
    23    (b)  "Chip  card" means an automated teller machine card, credit card,
    24  or other form of secure-payment card with an  EVM  chip  inset  for  the
    25  purposes of customer data storage;
    26    (c) "Dipping" means the insertion of a chip card into a card reader to
    27  enable customer data to be read off the EVM chip; and
    28    (d) "Department" means the department of financial services.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11833-04-8
        S. 9026                             2
     1    §  3. The department shall study, research and prepare a report on the
     2  issue of ATMs that accept EVM-enabled  chip  cards  to  determine  which
     3  measures may be necessary and proper to ensure that the cards and corre-
     4  sponding  personal  data  and information of consumers is protected from
     5  falling  into  the hands of others. Such report shall include but not be
     6  limited to the following issues:
     7    (a) The prevalence and incidence of people leaving their cards  behind
     8  in ATM machines;
     9    (b) The extent to which the general public, including vulnerable popu-
    10  lations such as seniors and low-income individuals, are affected by this
    11  issue;
    12    (c)  The correlation, if any, between such cards being left behind and
    13  the design of such ATM machines which hold the card within the very body
    14  of the machine until the last step of the transaction;
    15    (d) The availability and efficacy  of  alternative  ATM  designs  that
    16  would  release  the card earlier in the transaction or allow for dipping
    17  of the cards, such as is available in  most  major  stores  and  at  gas
    18  stations and other businesses, so that the card never leaves the consum-
    19  ers hands; and
    20    (e)  Any other related issues that the department shall deem advisable
    21  to create the report.
    22    § 4. Within one hundred eighty days of the effective date of this act,
    23  the department shall submit a report on its  findings,  conclusions  and
    24  recommendations  pursuant  to  this  act  to the governor, the temporary
    25  president of the senate, the speaker of  the  assembly,  the  chair  and
    26  ranking  minority members of the senate banks committee, the chair rank-
    27  ing minority members of the senate consumer  protection  committee,  the
    28  chair  and  ranking minority members of the assembly banks committee and
    29  the chair and ranking minority members of the assembly consumer  affairs
    30  and protection committee.
    31    §  5.  The department may acquire directly from the head of any agency
    32  or instrumentality of the executive branch of the government,  available
    33  information  which  the  department considers useful in the discharge of
    34  its duties. All agencies and instrumentalities of the  executive  branch
    35  of  the  government  shall cooperate with the department with respect to
    36  such information and shall furnish  all  information  requested  by  the
    37  department to the extent permitted by law.
    38    § 6. This act shall take effect immediately.