NY State Senate Bill 2017-S9026

Senate Bill S9026

Signed By Governor

2017-2018 Legislative Session

Directs the department of financial services to study consumer protection issues regarding ATMs that accept EVM-enabled chip cards

download bill text pdf

Archive: Last Bill Status Via A10157 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 07, 2018	signed chap.367
Nov 26, 2018	delivered to governor
Jun 18, 2018	returned to assembly passed senate 3rd reading cal.1906 substituted for s9026
Jun 18, 2018	substituted by a10157a ordered to third reading cal.1906
Jun 14, 2018	referred to rules

Votes

- Jun 18, 2018 - Floor Vote
  A10157
  
  59
  
  Aye
  
  3
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 18, 2018
      
      aye (59)
      
      Addabbo Jr.
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      nay (3)
      
      Akshar
      
      Griffo
      
      Murphy
      
      excused (1)
      
      Croci
  Jun 18, 2018 - Rules Committee Vote
  S9026
  
  25
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 18, 2018
      
      aye (25)
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Flanagan
      
      Gianaris
      
      Griffo
      
      Hannon
      
      Kennedy
      
      Klein
      
      Krueger
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Montgomery
      
      Parker
      
      Ranzenhofer
      
      Rivera
      
      Robach
      
      Savino
      
      Seward
      
      Stewart-Cousins
      
      Valesky
      
      Young

2017-S9026 (ACTIVE) - Details

See Assembly Version of this Bill:: A10157
Law Section:: Commissions

2017-S9026 (ACTIVE) - Summary

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.

2017-S9026 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S9026

SPONSOR: COMRIE
 
TITLE OF BILL:  An act to direct the department of financial services
to study consumer protection issues regarding ATMs that accept EVM-ena-
bled chip cards

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require the department of financial services to study
the very important consumer protection issues associated with chip-ena-
bled ATM's, which include the persistent and reoccurring issue of indi-
viduals leaving their cards in the machines-specifically the ones that
are designed to disburse the money first before printing a receipt and,
lastly, finally releasing the card-which is often locked in the machine
for the life of the transaction.

 
SUMMARY OF PROVISIONS:

Section 1 provides legislative intent outlining why the bill is neces-
sary, timely and needed.

Section 2 contains various definitions, including: "EVM Chip;" "Chip
Card;" "Dipping;" and "Department."

Section 3 authorizes and delineates the parameters of the DFS study on
this issue.

Section 4 requires the submission of a report within 180 days of enact-
ment.

Section 5 empowers DFS to acquire information necessary for the report
form any instrumentality of the executive branch of government.

Section 6 provides an immediate effective date to commence the study and
report.

 
JUSTIFICATION:

In recent years, the prevalence of "chip cards" that contain Europay,
Visa, Mastercard (EVM) chips that store customer data, has led to new
problems that need to be addressed. One of these problems is customers
leaving their chip card in an ATM machine after taking their money from
the ATM. In the event that people forget to retrieve their card, a host
of negative outcomes may be visited upon consumers, including, without
limitation: the card may be taken by another for the purposes of theft,
larceny, fraud, identity assumption and other unlawful purposes.

This bill would address this issue, in part, by requiring a DFS study,
to focus on the prevalence, incidence and effect of this specific occur-
rence and in general, focus on what measures may be necessary and proper
to ensure that the cards and corresponding personal data of others is
protected from falling into the hands of others.

Among the issues for DFS to consider are:

1. The prevalence and incidence of people leaving their cards behind in
ATM machines.

2. To what extent the general public, including vulnerable populations
such as seniors and low-income individuals are affected by this issue.

3. The correlation, if any, between such cards being left behind and the
design of such ATM machines which hold the card within the very body of
the machine until the last step of the transaction.

4. The availability and efficacy of alternative ATM design that would
release the card earlier in the transaction or allow for dipping of the
cards, such as is available in most major stores and at gas stations and
other businesses, so that the card never leaves the consumers hands.

5. Any other related issues that the DFS Superintendent shall deem
advisable to create the report.

 
DIFFERENCE BETWEEN ORIGINAL AND AMENDED VERSION (IF APPLICABLE):

Instead of mandating that ATM companies prospectively change the design
and sequencing of their machines, this bill has DFS study the issue to
understand the true scope and nature of the underlying public policy
concern.

 
PRIOR LEGISLATIVE HISTORY:

New iteration.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to state or local governments.

 
EFFECTIVE DATE:
This act shall take effect immediately and the DFS Report shall be
completed and submitted to the legislature within one hundred eighty
days.

2017-S9026 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9026
 
                             I N  S E N A T E
 
                               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:

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

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