Bill Text: NY A08600 | 2011-2012 | General Assembly | Introduced
Bill Title: Enacts the private automated teller machine safety act; requires operators of private automated teller machines to register their machines with the superintendent of financial services; imposes a fee for the registration of such machines; provides monetary penalties for those operators and building owners who do not comply with the provisions of the act.
Spectrum: Partisan Bill (Democrat 41-0)
Status: (Introduced - Dead) 2012-01-04 - referred to banks [A08600 Detail]
Download: New_York-2011-A08600-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
8600
2011-2012 Regular Sessions
I N A S S E M B L Y
September 21, 2011
___________
Introduced by M. of A. ROSENTHAL, DINOWITZ, MILLMAN, WRIGHT, CUSICK,
SCHIMEL, SCARBOROUGH, GABRYSZAK, KAVANAGH, GIBSON, CASTRO, P. RIVERA
-- Multi-Sponsored by -- M. of A. ABINANTI, AUBRY, BOYLAND, BRENNAN,
CAHILL, CLARK, COLTON, COOK, CYMBROWITZ, FARRELL, GALEF, GLICK, GOTT-
FRIED, HIKIND, HOOPER, JAFFEE, KELLNER, LAVINE, V. LOPEZ, MARKEY,
McENENY, M. MILLER, ORTIZ, REILLY, J. RIVERA, ROBINSON, TITONE, TITUS,
WEISENBERG -- read once and referred to the Committee on Banks
AN ACT to amend the general business law and the banking law, in
relation to enacting the private automated teller machine safety act
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "private automated teller machine safety act".
3 S 2. The general business law is amended by adding a new section 399-
4 yyy to read as follows:
5 S 399-YYY. AUTOMATED TELLER MACHINE SAFETY MEASURES. EVERY PERSON OR
6 ENTITY SHALL MAINTAIN THE FOLLOWING SECURITY MEASURES WITH RESPECT TO
7 EACH OF THE AUTOMATED TELLER MACHINES LOCATED AND INSTALLED ON HIS OR
8 HER PROPERTY:
9 1. ADEQUATE LIGHTING, WHICH PERMITS A PERSON USING AN AUTOMATED TELLER
10 MACHINE TO READILY AND EASILY SEE ALL OTHER PERSONS IN THE IMMEDIATE
11 VICINITY OF SUCH MACHINE; AND
12 2. A REFLECTIVE MIRROR OR MIRRORS, EITHER AFFIXED TO OR STANDING INDE-
13 PENDENTLY OF EACH AUTOMATED TELLER MACHINE, PLACED IN SUCH A MANNER AS
14 TO PERMIT A PERSON USING SUCH MACHINE TO SEE BEHIND THEM AS THEY CONDUCT
15 THEIR TRANSACTIONS.
16 S 3. The banking law is amended by adding a new article 2-AAA to read
17 as follows:
18 ARTICLE II-AAA
19 PRIVATE AUTOMATED TELLER MACHINE SAFETY
20 SECTION 75-P. LEGISLATIVE FINDINGS AND INTENT.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13229-01-1
A. 8600 2
1 75-Q. DEFINITIONS.
2 75-R. APPLICABILITY.
3 75-S. REGISTRATION.
4 75-T. REQUIREMENTS FOR OPERATION.
5 75-U. APPLICATION; WAIVER.
6 75-V. PENALTIES.
7 S 75-P. LEGISLATIVE FINDINGS AND INTENT. IDENTITY THEFT IS RECOGNIZED
8 AS ONE OF THE FASTEST-GROWING CRIMES IN AMERICA. THE FEDERAL TRADE
9 COMMISSION HAS REPORTED THAT BETWEEN NINETEEN HUNDRED NINETY-EIGHT AND
10 TWO THOUSAND THREE, 27.3 MILLION AMERICANS BECAME VICTIMS OF IDENTITY
11 THEFT, WHICH IS OFTEN ASSOCIATED WITH OTHER SERIOUS CRIMES INCLUDING
12 MAIL FRAUD, NARCOTICS, ORGANIZED CRIME, MONEY LAUNDERING, WEAPONS TRAF-
13 FICKING, COMPUTER CRIMES, AND TERRORISM. THE USE OF AUTOMATED TELLER
14 MACHINES ENABLES CONSUMERS TO ACCESS FUNDS CONVENIENTLY WITHOUT HAVING
15 TO GO TO A BANK, BUT IT ALSO PROVIDES AN OPPORTUNITY FOR IDENTITY
16 THIEVES. INDEED, PEOPLE WHO USE THE UNENCLOSED AUTOMATED TELLER MACHINES
17 FOUND IN MANY BUILDINGS SUCH AS SUPERMARKETS AND CONVENIENCE STORES,
18 WHOSE FUNCTIONS ARE UNRELATED TO BANKING ACTIVITIES, ARE PARTICULARLY
19 VULNERABLE BECAUSE SUCH MACHINES ARE NOT REGULATED BY FEDERAL OR STATE
20 LAW. THESE MACHINES CAN BE THE SETTING FOR UNSCRUPULOUS MACHINE OPERA-
21 TORS OR THIRD PARTIES TO OBTAIN THE PERSONAL BANK INFORMATION OF PERSONS
22 CONDUCTING FINANCIAL TRANSACTIONS. WHILE AUTOMATED TELLER MACHINES
23 LOCATED AT BANKING INSTITUTIONS PROVIDE CERTAIN SAFETY ENHANCEMENTS,
24 SUCH AS REARVIEW MIRRORS OR SECURITY CAMERAS, PRIVATE AUTOMATED TELLER
25 MACHINES ARE CURRENTLY NOT LEGALLY REQUIRED TO DO SO. MOREOVER, BECAUSE
26 SUCH MACHINES ARE NOT, AT PRESENT, LICENSED OR OTHERWISE REGISTERED IN
27 NEW YORK STATE, THEIR OPERATORS ARE OFTEN UNTRACEABLE, MAKING IT DIFFI-
28 CULT FOR LAW ENFORCEMENT TRYING TO SOLVE IDENTITY THEFT CRIMES INVOLVING
29 AUTOMATED TELLER MACHINE FRAUD. THIS LAW IMPLEMENTS MEASURES TO COMBAT
30 IDENTITY THEFT AND PROTECT CITIZENS' PERSONAL INFORMATION AT THOSE AUTO-
31 MATED TELLER MACHINES THAT ARE NOT CURRENTLY REGULATED BY FEDERAL OR
32 STATE LAW.
33 S 75-Q. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE:
34 1. "AUTOMATED TELLER MACHINE" SHALL MEAN A DEVICE WHICH IS LINKED TO
35 THE ACCOUNTS AND RECORDS OF A BANKING INSTITUTION AND WHICH ENABLES
36 CONSUMERS TO CARRY OUT BANKING TRANSACTIONS, INCLUDING, BUT NOT LIMITED
37 TO, ACCOUNT TRANSFERS, DEPOSITS, CASH WITHDRAWALS, BALANCE INQUIRIES,
38 AND LOAN PAYMENTS.
39 2. "OPERATOR" SHALL MEAN A PERSON, ORGANIZATION, OR COMPANY, INCLUDING
40 BUT NOT LIMITED TO ONE WHO OWNS, INVESTS IN, OR LEASES AN AUTOMATED
41 TELLER MACHINE AND IS RESPONSIBLE FOR THE MAINTENANCE, FUNCTIONING, AND
42 OPERATION OF SUCH MACHINE, WHICH IS LOCATED IN ANY BUILDING, STRUCTURE,
43 OR SPACE WHOSE PRIMARY PURPOSE OR FUNCTION IS UNRELATED TO BANKING
44 ACTIVITIES, INCLUDING BUT NOT LIMITED TO SUPERMARKETS, RESTAURANTS,
45 BARS, CONVENIENCE STORES, AIRPORTS, SCHOOL BUILDINGS, AND PUBLIC BUILD-
46 INGS.
47 3. "AUTOMATED TELLER MACHINE PLACEMENT AGREEMENT" SHALL MEAN AN AGREE-
48 MENT BETWEEN A MERCHANT AND A PRIVATE AUTOMATED TELLER MACHINE OPERATOR
49 AUTHORIZING THE LOCATION AND PROVIDING THE TERMS OF OPERATION OF A
50 PRIVATE AUTOMATED TELLER MACHINE AT A SPECIFIED SITE, INCLUDING THE
51 MERCHANT'S PLACE OF BUSINESS.
52 4. "EFT NETWORK" SHALL MEAN AN ELECTRONIC FUNDS TRANSFER NETWORK THAT
53 ENABLES THE TRANSFER OF FUNDS IN AND OUT OF A PERSON'S BANK ACCOUNT WHEN
54 SUCH PERSON COMPLETES A TRANSACTION AT AN AUTOMATED TELLER MACHINE.
55 5. "TRANSACTION" SHALL MEAN THE ACT OF ACCESSING AN ACCOUNT AT A
56 FINANCIAL INSTITUTION WITH A CREDIT CARD, DEBIT CARD, OR OTHER BANKCARD
A. 8600 3
1 AT A PRIVATE AUTOMATED TELLER MACHINE FOR THE PURPOSE OF MAKING CASH
2 WITHDRAWALS, BALANCE INQUIRIES, DEPOSITS, FUND TRANSFERS FROM OR TO THE
3 ACCOUNT, OR ENGAGING IN ANY OTHER TRANSACTION.
4 S 75-R. APPLICABILITY. THE PROVISIONS OF THIS ARTICLE SHALL APPLY TO
5 ANY UNENCLOSED AUTOMATED TELLER MACHINE LOCATED IN ANY BUILDING, STRUC-
6 TURE, OR SPACE WHOSE PRIMARY PURPOSE OR FUNCTION IS UNRELATED TO BANKING
7 ACTIVITIES, INCLUDING BUT NOT LIMITED TO SUPERMARKETS, RESTAURANTS,
8 BARS, CONVENIENCE STORES, AIRPORTS, SCHOOL BUILDINGS, AND PUBLIC BUILD-
9 INGS, WHERE SUCH AUTOMATED TELLER MACHINE IS AVAILABLE FOR USE ONLY
10 DURING THE REGULAR HOURS OF OPERATION OF THE BUILDING, STRUCTURE, OR
11 SPACE IN WHICH SUCH MACHINE IS LOCATED.
12 S 75-S. REGISTRATION. 1. AN AUTOMATED TELLER MACHINE SHALL NOT BE
13 MAINTAINED BY AN OPERATOR UNLESS SUCH MACHINE HAS FIRST BEEN REGISTERED
14 IN ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
15 2. EVERY OPERATOR OF AN AUTOMATED TELLER MACHINE OPERATED IN THE STATE
16 SHALL SUBMIT AN APPLICATION FOR REGISTRATION TO THE SUPERINTENDENT OF
17 FINANCIAL SERVICES IN THE FORM AND MANNER PRESCRIBED BY THE SUPERINTEN-
18 DENT. SUCH APPLICATION SHALL CONTAIN:
19 A. A BRIEF DESCRIPTION OF THE AUTOMATED TELLER MACHINE TO BE REGIS-
20 TERED, INCLUDING THE NAME AND SERIAL NUMBER OF SUCH MACHINE,
21 B. THE NAME AND ADDRESS OF THE OPERATOR OF SUCH MACHINE, SPECIFYING IN
22 THE CASE OF AN UNINCORPORATED PARTNERSHIP, THE NAME AND ADDRESS OF EACH
23 MEMBER OR PARTNER THEREOF, OR IN THE CASE OF A CORPORATION, THE NAME AND
24 ADDRESS OF EACH OFFICER OF THE CORPORATION,
25 C. THE LOCATION OF THE AUTOMATED TELLER MACHINE TO BE REGISTERED,
26 D. PROOF SATISFACTORY TO THE SUPERINTENDENT THAT SUCH MACHINE IS IN
27 COMPLIANCE WITH ALL APPLICABLE STATE AND FEDERAL REGULATIONS, AND
28 E. SUCH ADDITIONAL INFORMATION AS THE SUPERINTENDENT MAY REQUIRE.
29 3. THE REMOVAL OF ANY AUTOMATED TELLER MACHINE FROM A PREMISES AND ITS
30 RELOCATION IN A DIFFERENT PREMISES WITHIN THIS STATE SHALL REQUIRE THE
31 RENEWAL OF SUCH REGISTRATION OF SUCH MACHINE IN ACCORDANCE WITH THE
32 PROVISIONS OF THIS SECTION.
33 4. REGISTRATIONS AND RENEWALS SHALL TAKE EFFECT ON DATES ESTABLISHED
34 BY THE SUPERINTENDENT AND SHALL EXPIRE ONE YEAR AFTER SUCH DATE. WHERE
35 SUCH REGISTRATION EXPIRATION DATE FALLS ON A SATURDAY, SUNDAY, OR HOLI-
36 DAY, SUCH REGISTRATION SHALL BE VALID FOR THE OPERATION OF THE AUTOMATED
37 TELLER MACHINE UNTIL THE END OF THE NEXT BUSINESS DAY FOLLOWING SUCH
38 SATURDAY, SUNDAY, OR HOLIDAY.
39 5. EACH OPERATOR SHALL PAY A REGISTRATION FEE OF ONE HUNDRED DOLLARS
40 FOR EACH AUTOMATED TELLER MACHINE HE OR SHE WISHES TO REGISTER. EACH
41 OPERATOR SHALL PAY A RENEWAL REGISTRATION FEE OF FIFTY DOLLARS FOR THE
42 REGISTRATION OF EACH AUTOMATED TELLER MACHINE HE OR SHE WISHES TO RENEW.
43 6. ANY OPERATOR WHO HAS PLACED AN AUTOMATED TELLER MACHINE IN SERVICE
44 PRIOR TO THE EFFECTIVE DATE OF THIS ARTICLE SHALL HAVE NINETY DAYS FROM
45 SUCH EFFECTIVE DATE TO ENSURE THAT HIS OR HER MACHINES ARE REGISTERED IN
46 ACCORDANCE WITH THIS ARTICLE.
47 S 75-T. REQUIREMENTS FOR OPERATION. 1. NOTWITHSTANDING ANY OTHER
48 PROVISION OF THIS ARTICLE, NO PERSON OR ENTITY SHALL PERMIT AN UNENC-
49 LOSED AUTOMATED TELLER MACHINE TO BE LOCATED ON HIS OR HER PREMISES
50 WITHOUT HAVING OBTAINED PROOF THAT SUCH MACHINE HAS BEEN REGISTERED IN
51 ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE.
52 2. EACH OPERATOR OF AN AUTOMATED TELLER MACHINE REGISTERED IN ACCORD-
53 ANCE WITH THIS ARTICLE SHALL:
54 A. COMPLY WITH ALL EFT NETWORK OPERATING RULES AND ALL LOCAL, STATE,
55 AND FEDERAL REGULATIONS GOVERNING THE OPERATIONS OF ITS PRIVATE AUTO-
56 MATED TELLER MACHINES;
A. 8600 4
1 B. MAINTAIN COMPREHENSIVE AND VERIFIABLE INVENTORY PROCEDURES AND
2 ESTABLISH CONTROLS THAT IDENTIFY THE LOCATION OF ALL OF THE PRIVATE
3 AUTOMATED TELLER MACHINES THAT IT OWNS AND OPERATES WITHIN THE STATE;
4 C. WHEN LOCATING AND INSTALLING AN AUTOMATED TELLER MACHINE ON PREM-
5 ISES OWNED BY ANOTHER PERSON OR ENTITY, OPERATE SUCH MACHINE ONLY PURSU-
6 ANT TO AN AUTOMATED TELLER MACHINE PLACEMENT AGREEMENT WITH A PERSON OR
7 ENTITY WHO IS LEGALLY AUTHORIZED TO CONDUCT BUSINESS IN NEW YORK STATE.
8 SUCH AGREEMENT SHALL PROVIDE THE OPERATOR'S FULL LEGAL NAME AND ANY
9 TRADE NAME UNDER WHICH BUSINESS IS CONDUCTED, ALONG WITH THE OPERATOR'S
10 FEDERAL AND NEW YORK INCOME TAX IDENTIFICATION NUMBERS, OR IN THE CASE
11 OF A SOLE PROPRIETOR, HIS OR HER SOCIAL SECURITY NUMBER, AND SHALL BE
12 FILED WITH THE SUPERINTENDENT; AND
13 D. POST IN A CONSPICUOUS PLACE ON THE FRONT OF EACH PRIVATE AUTOMATED
14 TELLER MACHINE A NOTICE IN AT LEAST TWENTY-FOUR-POINT TYPE SETTING
15 FORTH: (I) THE NAME OF THE OPERATOR OF THE AUTOMATED TELLER MACHINE, AS
16 WELL AS THE NAME AND PHONE NUMBER OF THE MERCHANT ON WHOSE PREMISES SUCH
17 MACHINE IS LOCATED; (II) THE TELEPHONE NUMBER WHERE THE SUPERINTENDENT
18 MAY BE CONTACTED; AND (III) THE LANGUAGE: "PROTECT YOUR PIN. REPORT A
19 LOST OR STOLEN CARD IMMEDIATELY."
20 3. EVERY OPERATOR OF AN AUTOMATED TELLER MACHINE, AND ANY PERSON OR
21 ENTITY ON WHOSE PREMISES ANY SUCH MACHINE IS LOCATED AND INSTALLED,
22 SHALL MAINTAIN SUCH RECORDS IN RELATION TO SUCH MACHINE AS THE SUPER-
23 INTENDENT MAY REQUIRE.
24 S 75-U. APPLICATION; WAIVER. 1. THE PROVISIONS OF THIS ARTICLE SHALL
25 NOT APPLY TO ANY ESTABLISHMENT THAT IS SUBJECT TO THE PROVISIONS OF
26 ARTICLE TWO-AA OF THIS CHAPTER.
27 2. THE PROVISIONS OF THIS ARTICLE SHALL NOT BE WAIVED FOR ANY OPERA-
28 TOR.
29 S 75-V. PENALTIES. 1. ANY OPERATOR OF AN AUTOMATED TELLER MACHINE
30 FOUND TO BE IN VIOLATION OF ANY PROVISION OF THIS ARTICLE SHALL BE
31 SUBJECT TO A CIVIL PENALTY OF UP TO FIVE THOUSAND DOLLARS, WHICH MAY BE
32 RECOVERED FOLLOWING NOTICE AND AN OPPORTUNITY TO BE HEARD IN A PROCEED-
33 ING BEFORE THE SUPERINTENDENT. EACH PERIOD OF FIFTEEN DAYS THAT SUCH
34 VIOLATION REMAINS UNCORRECTED SHALL CONSTITUTE A SEPARATE, DISTINCT
35 OFFENSE.
36 2. ANY PERSON OR ENTITY WHO PERMITS AN AUTOMATED TELLER MACHINE TO BE
37 LOCATED AND INSTALLED AND TO OPERATE ON HIS OR HER PREMISES IN VIOLATION
38 OF ANY PROVISION OF THIS ARTICLE SHALL BE SUBJECT TO A CIVIL PENALTY OF
39 UP TO TWO HUNDRED FIFTY DOLLARS, WHICH MAY BE RECOVERED FOLLOWING NOTICE
40 AND AN OPPORTUNITY TO BE HEARD IN A PROCEEDING BEFORE THE SUPERINTEN-
41 DENT. EACH PERIOD OF FIFTEEN DAYS THAT SUCH VIOLATION REMAINS UNCOR-
42 RECTED SHALL CONSTITUTE A SEPARATE, DISTINCT OFFENSE.
43 3. ANY CIVIL PENALTY IMPOSED PURSUANT TO THIS SECTION SHALL NOT LIMIT
44 OR PRECLUDE ANY CAUSE OF ACTION AVAILABLE TO ANY PERSON OR ENTITY
45 INJURED OR AGGRIEVED BY SUCH ACTION.
46 S 4. This act shall take effect on the one hundred eightieth day after
47 it shall have become a law. Effective immediately, the superintendent of
48 financial services is authorized to implement any rule or regulation
49 necessary for the timely implementation of this act on its effective
50 date.
