SRC-MWN S.B. 991 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 991
77R2548 CLG-DBy: Sibley
Business & Commerce
3/5/2001
As Filed


DIGEST AND PURPOSE 

Currently,  Texas state law dictates that the operator of an automated
teller machine (ATM) is authorized to charge a fee if there is disclosure
that a fee is charged and the disclosure is made in a manner that allows
the customer to cancel the transaction with no fee. The federal ATM Fee
Reform Act of 1999 is more specific concerning the notification of the
existence of the fee and the amount of the fee, and requires the disclosure
to appear on both the machine itself and on the screen or in a paper
document printed out by the ATM at a point that allows the customer to
cancel the transaction without a fee. As proposed, S.B. 991 amends existing
state law to conform with the federal requirements. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 59.202, Finance Code, as follows:

Sec. 59.202. USER FEE FOR SHARED ELECTRONIC TERMINAL. Authorizes the owner
of an electronic terminal that is located in this state and that is
connected to a shared network, subject to Subsection (b), to impose a fee
for the use of that terminal if imposition of the fee is disclosed at a
time and in a manner that allows a user to avoid the transaction without
incurring the transaction fee. Prohibits an automatic teller machine
operator who is required to provide notice under the Electronic Fund
Transfer Act (15 U.S.C. Section 1693 et seq.), as amended, for providing
services in connection with an electronic fund transfer initiated by a
certain user at the machine, from imposing a fee for the use of that
machine unless the operator complies with the disclosure and other
requirements of that Act and regulations adopted under that Act. Defines
"electronic transfer of money." Makes a conforming change. 

SECTION 2. Effective date: September 1, 2001.
                      Makes application of this Act prospective.