NY State Senate Bill 2023-S2881

Senate Bill S2881

2023-2024 Legislative Session

Requires ATM machines to release ATM cards with EVM chips prior to disbursing cash or a receipt

download bill text pdf

Current Bill Status - In Senate Committee Banks Committee

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
Jan 03, 2024	referred to banks
Jan 25, 2023	referred to banks

2023-S2881 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Amd §§75-b & 75-c, Bank L
Versions Introduced in Other Legislative Sessions:: 2017-2018: S8387
2019-2020: S2402
2021-2022: S5848

2023-S2881 (ACTIVE) - Summary

Requires ATM machines to release ATM cards with EVM chips prior to disbursing cash or a receipt; defines EVM chip and related terms.

2023-S2881 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S2881

SPONSOR: COMRIE
 
TITLE OF BILL:

An act to amend the banking law, in relation to requiring ATM machines
to release ATM cards with EVM chips prior to disbursing cash or a
receipt

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill would require all newly installed chip-enabled ATM's to
release the EVM chip card prior to disbursing cash or printing a deposit
receipt in order to reduce the chance that a customer may leave their
ATM card in the machine at the end of the transaction

 
SUMMARY OF PROVISIONS:

This bill would amend the banking law to require all newly installed
chip enabled ATM's to release the EVM chip card prior to disbursing cash
or printing a deposit receipt.

 
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. This bill would address that issue by requiring the ATM to
release the card from the machine before disbursing cash or printing the
deposit receipt. Customers would be much less likely to leave their card
behind since they will be to prompted to remove the card before waiting
for their money or deposit slip to be disbursed. This simple change in
the order of operation for ATM's is very consumer-friendly and an impor-
tant piece of legislation to solve this common problem.

 
PRIOR LEGISLATIVE HISTORY:

2022 S5848

Senate Bill 8387 of 2017-18 I Referred to Banks.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law and shall apply to any ATM installed after such
date

2023-S2881 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2881
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 25, 2023
                                ___________
 
 Introduced  by  Sen.  COMRIE -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the banking law, in relation to requiring  ATM  machines
   to  release  ATM  cards  with  EVM chips prior to disbursing cash or a
   receipt

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Section 75-b of the banking law is amended by adding four
 new subdivisions 10, 11, 12, and 13 to read as follows:
   10. "EVM CHIP" MEANS A DATA STORAGE CHIP THAT IMPLEMENTS THE  EUROPAY,
 MASTERCARD AND VISA TECHNICAL STANDARD.
   11.  "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.
   12.  "CARD  DIPPING"  MEANS  THE  INSERTION OF A CHIP CARD INTO A CARD
 READER TO ENABLE CUSTOMER DATA TO BE READ OFF THE EVM CHIP.
   13. "CHIP ENABLED AUTOMATIC TELLER MACHINE" MEANS AN AUTOMATIC  TELLER
 MACHINE THAT READS CUSTOMER DATA FROM A CHIP CARD AND USES CARD DIPPING.
   § 2. Section 75-c of the banking law is amended by adding a new subdi-
 vision 4 to read as follows:
   4.  NOTWITHSTANDING  THE  PROVISIONS OF SECTION SEVENTY-FIVE-I OF THIS
 ARTICLE, NO NEWLY INSTALLED CHIP ENABLED AUTOMATIC TELLER MACHINE  SHALL
 DISBURSE  CASH  OR  PRINT  A DEPOSIT RECEIPT WITHOUT FIRST RELEASING THE
 CARD TO THE CUSTOMER AND THE CUSTOMER  WITHDRAWING  THE  CARD  FROM  THE
 READER.
   § 3. This act shall take effect on the one hundred eightieth day after
 it  shall  have  become a law and shall apply to any ATM installed after
 such date.
 
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04678-01-3

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