GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1997

H	1 

HOUSE BILL 916*

Short Title:  Prohibit ATM Surcharge.	(Public)

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Sponsors: Representatives Hardaway; Bonner, Boyd-McIntyre, Braswell, Fitch, Gamble, Hensley, Hightower, Howard, H. Hunter, Kinney, Luebke, and Wainwright.

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Referred to:  Commerce, if favorable, Finance.

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April 10, 1997

A BILL TO BE ENTITLED
AN ACT TO PROHIBIT FINANCIAL INSTITUTIONS FROM CHARGING CERTAIN FEES FOR THE USE OF AUTOMATED TELLER MACHINES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 53-62 is amended by adding a new subsection to read:
"( d2)	A bank, savings and loan association, savings bank, credit union, or other financial institution that owns, operates, or leases an off-premises terminal, device, or machine authorized by subsection (d1) of this section shall not charge fees to consumers for transactions conducted at the terminal, device, or machine when the transactions are not related to or do not affect accounts held by the financial institution.  A violation of this subsection is an unfair and deceptive trade practice in violation of G.S. 75-1.1."
Section 2.  G.S. 54B-77(a)(1) reads as rewritten:
"(1)	Establish off the premises of any principal office or branch a customer communications terminal, point-of-sale terminal, automated teller machine, automated or other direct or remote information-processing device or machine through or by means of which funds or information relating to any financial service or transaction rendered to the public is stored and transmitted, instantaneously or otherwise to or from an association terminal or terminals controlled or used by or with other parties.  The device or machine may be manned or unmanned and the establishment and use of such a device or machine shall not be deemed to constitute a branch office and the capital requirements and standards for approval of a branch office as set forth in the statutes and rules and shall not be applicable to the establishment of any off-premises terminal, device or machine.  Associations may through mutual consent share on-premises unmanned automated teller machines and cash dispensers.  The Administrator may adopt rules with regard to the application for permission for use, maintenance and supervision of terminals, devices and machines, except that no association that owns, operates, or leases an off-premises terminal, device, or machine may charge a fee to consumers for transactions conducted at off-premises terminals, devices, or machines when the transactions are not related to or do not affect accounts held by the association and any association that charges such a fee is in violation of the Unfair and Deceptive Trade Practice Act, G.S. 75-1.1."
Section 3.  G.S. 54C-146(a)(1) reads as rewritten:
"(1)	Establish off the premises of any principal office or branch a customer communications terminal, point of sale terminal, automated teller machine, automated or other direct or remote information processing device or machine, whether manned or unmanned, through or by means of which funds or information relating to any financial service or transaction rendered to the public is stored and transmitted, instantaneously or otherwise to or from a savings bank terminal or terminals controlled or used by or with other parties.  The establishment and use of a device or machine is not deemed to constitute a branch office, and the capital requirements and standards for approval of a branch office as set forth in the statutes and regulations are not applicable to the establishment of any off-premises terminal, device or machine.  Savings banks may, through mutual consent, share on-premises, unmanned, automated teller machines and cash dispensers. No savings bank that owns, operates, or leases an off-premises terminal, device, or machine may charge a fee to consumers for transactions conducted at off-premises terminals, devices, or machines when the transactions are not related to or do not affect accounts held by the bank and any bank that charges such a fee is in violation of the Unfair and Deceptive Trade Practice Act, G.S. 75-1.1."
Section 4.  G.S. 53-180 is amended by adding a new subsection to read:
"( k)	A bank, savings and loan association, savings bank, credit union, or other financial institution that owns, operates, or leases an off-premises terminal, device, or machine authorized by G.S. 53-62, 54B-77, or 54C-146 shall not charge fees to consumers for transactions conducted at the terminal, device, or machine when the transactions are not related to or do not affect accounts held by the financial institution.  A violation of this subsection is an unfair and deceptive trade practice in violation of G.S. 75-1.1."
Section 5.  This act becomes effective October 1, 1997.