Bill
LC 4256
Updates banking laws for interactive teller machines (ITMs): defines ITMs, sets allowed transactions, security, disclosures, accessibility, hours, liability, regulator oversight.
Quick Facts
- Bill Number: LC 4256
- Title: Revise banking laws relating to interactive teller machines
- Status: Draft Delivered to Requester (as of 2025-02-06)
- Introduced: January 6, 2025
- Classification: bill
- Subject: Financial Institutions (also: Credit Transactions)
Legislative Timeline (as published)
- 2025-01-06: Drafter Assigned
- 2025-01-28 to 2025-01-31: Drafts moving through Legal Review, Input/Proofing, Final Drafter Review, Edit
- 2025-01-31: Draft in Assembly
- 2025-02-04: Draft Ready for Delivery
- 2025-02-06: Draft Delivered to Requester
Purpose (inferred from the title)
- The bill seeks to revise state banking laws to address interactive teller machines (ITMs). ITMs combine features of traditional ATMs with video or remote teller support, enabling certain banking transactions without in-person branch visits. The measure likely aims to clarify the authority, requirements, and protections surrounding ITMs to ensure safe, accessible, and compliant operation.
Potential Provisions (inferred, based on the topic)
- Definitions: Establish ITMs as part of the banking device framework, including what qualifies as an ITM.
- Authorized Activities: Outline which transactions ITMs may handle (e.g., deposits, withdrawals, transfers, balance inquiries, check cashing) and whether remote tellers can assist with more complex operations.
- Access and Hours: Rules governing availability (e.g., 24/7 access vs. limited hours) and any constraints on after-hours usage.
- Consumer Disclosures and Fees: Requirements for clear disclosures about ITM capabilities, surcharges, and fee structures.
- Security and Privacy: Standards for authentication, encryption, data protection, and fraud prevention; handling of customer data collected via ITMs.
- Accessibility: Compliance with accessibility laws (e.g., ADA) to ensure usable ITM interfaces for all customers.
- Liability and Dispute Resolution: Processes for addressing ITM errors, transaction disputes, and customer redress.
- Regulatory Oversight: Provisions for examinations, reporting, and compliance by state banking regulators.
- Interplay with Federal Law: Alignment or preemption considerations with federal banking regulations and guidance.
- Transition and Effective Date: When the act would take effect and any phased implementation requirements.
Who Would Be Affected
- Financial institutions subject to state banking laws (banks, and potentially credit unions) that deploy or operate ITMs.
- Consumers who use ITMs for banking transactions.
- Regulators responsible for supervision and enforcement of banking devices and customer protections.
Potential Impact and Considerations
- Pros: Expanded access to banking services with potentially extended hours; improved convenience for customers; clearer regulatory guidance for ITMs.
- Cons/Risks: Increased cybersecurity and fraud risk, implementation and compliance costs for institutions, need for robust consumer protection and dispute processes.
- Implementation: Depending on the final text, institutions may need to adjust ITM technology, security protocols, disclosures, and staff training.
Next Steps
- Obtain the actual bill text to verify provisions, definitions, and specifics.
- Monitor future updates on LC 4256 for final language, effective dates, and any amendments.
- For detailed analysis, consult the bill’s fiscal notes, impact statements, and any accompanying summaries once released.
Compiled from official sources — confirm details with the bill’s official record.
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