HOUSE BILL No. 5298


     February 3, 2000, Introduced by Rep. Hager and referred to the Committee on Insurance and Financial Services.


        A bill to require certain persons that provide automatic

   teller machine services to disclose information regarding fees

   and charges; and to provide penalties.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 1.  As used in this act:

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           (a) "ATM" means an electronic device situated in Michigan,

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      other than a telephone, facsimile machine, or personal computer

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      operated by a consumer, through which a consumer initiates an

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      electronic fund transfer.  The term does not include a

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      point-of-sale terminal used exclusively to pay for a purchase of

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      goods or services by transferring funds electronically from a

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      consumer's credit card arrangement or deposit account at a finan-

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      cial institution to the terminal provider's account at a

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      financial institution, or a device located on the premises of a

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      customer of a financial institution that is used to execute


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      transactions only between that customer and the financial

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      institution.

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           (b) "Consumer" means an individual.

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           (c) "Credit card" means a card or device issued under a

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      credit card arrangement that gives the cardholder the privilege

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      of obtaining loans from the card issuer.

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           (d) "Credit card arrangement" means a line of credit issued

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      by a financial institution to a consumer, which line of credit

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      may be accessed for the purpose of obtaining a loan by means of a

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      credit card.

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           (e) "Electronic fund transfer" means any transaction con-

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      ducted by a consumer using an ATM that instructs or authorizes a

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      financial institution to debit or credit the consumer's deposit

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      account or credit card arrangement.

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           (f) "Financial institution" means a state or national

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      chartered bank or a state or federal chartered savings and loan

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      association, savings bank, or credit union or an affiliate or

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      subsidiary thereof.

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           (g) "Person" means an individual, corporation, association,

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      partnership, governmental entity, or any other legal entity.

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           (h) "Provider" means a person that owns, operates, or leases

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      an ATM.

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           Sec. 2.  (1) If a provider assesses or imposes a fee or

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      charge for an electronic fund transfer, prior to completion of

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      the transfer, the provider shall notify the consumer attempting

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      the transfer of the fee or charge and its amount, and shall





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      provide the consumer an opportunity to cancel the incomplete

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      transaction without incurring the fee or charge.

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           (2) The notice required by subsection (1) shall be displayed

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      on the ATM screen until 1 of the following occurs:

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           (a) The consumer cancels the transaction.

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           (b) The consumer proceeds with the transaction.

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           (c) Thirty seconds have elapsed, at which time the transac-

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      tion shall be canceled automatically, without charge to the con-

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      sumer, and the screen cleared.

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           (3) A provider required to disclose fees or charges under

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      subsection (1) shall also notify the consumer attempting an elec-

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      tronic fund transfer that his or her financial institution or

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      credit card issuer may assess an additional fee for the elec-

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      tronic fund transfer.

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           Sec. 3.  The provision of a notice in compliance with any

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      federal regulation regarding ATM fees shall be considered compli-

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      ance with this section, except that the disclosures required

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      under that regulation shall be displayed on the ATM screen.

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           Sec. 4.  (1) A person who violates this act is guilty of a

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      misdemeanor punishable by a fine of not more than $1,000.00 or by

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      imprisonment for not more than 90 days, or both.

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           (2) Each transaction completed in violation of this act

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      shall be a separate offense under this section.











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