Relates to reporting requirements of banking institutions regarding ATM safety.
- Jan 4, 2012: REFERRED TO BANKS
- May 25, 2011: REFERRED TO BANKS
BILL NUMBER:S5488 TITLE OF BILL: An act to amend the banking law, in relation to ATM safety PURPOSE OF BILL: The purpose of the bill is to improve compliance with banking law Article II-AA while reducing the cost to the Banking Department of examining ATM Facilities for compliance with the camera, videotape, lighting, locking door, mirror and signage requirements. SUMMARY OF PROVISIONS: Section 1 of the bill makes a number of amendments to Section 75-g of the banking law. First, it amends subdivision 1 of Section 75-g to increase the number of ATM compliance reports that must be filed by banking institutions from 1 to 4 per year. It also requires such reports to be filed electronically, unless the Superintendent waives the electronic filing requirement for good cause shown. It adds new Subdivision 1-a of Section 75-g, which requires a banking institution whose quarterly compliance report indicated any failure to comply with the ATM safety standards to file an additional written report by the eleventh business day after the original report, indicating whether each failure has been corrected. In addition, for each failure that was not corrected within 10 business days of the original report, the institution must report, promptly after correcting the failure, the date of correction. Section 2 of the bill amends the penalty provisions of Section 75-j of the banking law to make clear that the obligation to correct violations within 10 business days applies equally to each of the quarterly compliance reports. Section 3 of the bill provides that the amendments will become effective on March 1 of the year following enactment, or such later date as the Superintendent may determine is necessary for the Department to develop a system for automated filing of quarterly compliance reports. EXISTING LAW: Section 75-g of the banking law provides that banking institutions must file a compliance report once a year. The current reports are made in hard copy by mail. Section 75-j of the banking law currently authorizes the Banking Department to impose civil penalties after the banking institution has been "found to be in violation," and the institution fails to correct the violation within 10 business days. That section also contains penalties for failure to file required reports or for filing reports with inaccurate information or omissions. PRIOR LEGISLATIVE HISTORY: This is a new proposal. In both 2009 and 2010, the Banking Department proposed, as part of a larger regulatory reform effort, legislation that would have allowed the Banking Department by regulation to require electronic filing of compliance reports, but the bill was not passed. STATEMENT IN SUPPORT: The ATM Safety Act is very prescriptive in directing the Banking Department on how to administer its provisions. Over time, the cost of administering these provisions has increased. The Banking Department has divided the state into 10 regions and has assigned ATM Safety Inspectors to conduct inspections of ATM Facilities within those regions, At least part of those inspections must occur at night, since the inspection involves measuring whether the lighting in the ATM facility meets the appropriate number of foot candles required by the act's illuminance standards. Over time, as banks have become more familiar with the standards, instances of non-compliance have decreased. Consequently, the Banking Department believes that its resources could beneficially be reallocated to other pressing issues, without detracting from ATM safety, if financial institutions were required to make the appropriate inspections, take the appropriate measurements and report the results to the Banking Department. Because the bill would increase the number of compliance reports required of banking institutions from one annual report to four quarterly reports, the Banking Department believes that compliance with the ATM Safety Act's standards could actually increase. BUDGET IMPLICATIONS: There are no budget implications from this bill. EFFECTIVE DATE: The bill would take effect on the March 1st next succeeding the effective date of the bill or such later date as the superintendent of banks may determine is necessary for the Banking Department to develop a system for the automated reporting of compliance with the requirements of article 2-AA of the banking law.
S T A T E O F N E W Y O R K ________________________________________________________________________ 5488 2011-2012 Regular Sessions I N SENATE May 25, 2011 ___________ Introduced by Sen. MARCELLINO -- (at request of the Banking Department) -- 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 ATM safety THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 1 of section 75-g of the banking law, as added by chapter 9 of the laws of 1996 and as designated by section 4-a of part A of chapter 57 of the laws of 1998, is amended and a new subdivi- sion 1-a is added to read as follows:
Within one year after the effective date of this article, and each year thereafter] BY THE FIFTEENTH DAY OF JANUARY, APRIL, JULY AND OCTO- BER EACH YEAR (OR THE FOLLOWING BUSINESS DAY IF SUCH DAY IS NOT A BUSI- NESS DAY), every banking institution which [ has] HAD an automated teller machine facility which [ is] WAS in operation on [ such date and such date every year thereafter] THE FIFTEENTH DAY OF THE PRECEDING MONTH shall submit a written COMPLIANCE report to the department on a form prescribed by the superintendent, certifying that such automated teller machine facility is in compliance with the provisions of this article or any variance or exemption that has been granted, or if such facility is not in compliance with such provisions, [ such report shall state] STAT- ING the manner in which such facility fails to meet such requirements[ , the reasons for such non-compliance and a plan to remedy any such non- compliance]. NOTWITHSTANDING ARTICLE THREE OF THE STATE TECHNOLOGY LAW OR ANY OTHER LAW TO THE CONTRARY, SUCH REPORTS AND ANY OTHER REPORTS REQUIRED BY THIS SECTION SHALL BE MADE BY ELECTRONIC MEANS, UNLESS THE SUPERINTENDENT, IN HIS OR HER SOLE DISCRETION, GRANTS A WAIVER OF SUCH ELECTRONIC FILING REQUIREMENT, UPON GOOD CAUSE SHOWN. 1-A. IF ANY QUARTERLY COMPLIANCE REPORT REQUIRED BY SUBDIVISION ONE OF THIS SECTION INDICATES ANY FAILURE TO MEET THE REQUIREMENTS OF THIS ARTICLE, SUCH BANKING INSTITUTION SHALL SUBMIT A WRITTEN REPORT TO THE EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD09433-02-1 S. 5488 2 DEPARTMENT, ON A FORM PRESCRIBED BY THE SUPERINTENDENT, NO LATER THAN THE ELEVENTH BUSINESS DAY FOLLOWING SUCH QUARTERLY COMPLIANCE REPORT, INDICATING WHETHER EACH SUCH FAILURE HAS BEEN CORRECTED AND, FOR ANY FAILURE THAT HAS NOT BEEN CORRECTED, THE REASON FOR SUCH FAILURE AND THE EXPECTED CORRECTION DATE. IF ANY SUCH FAILURE SHALL NOT HAVE BEEN CORRECTED WITHIN TEN BUSINESS DAYS OF THE FILING DATE OF THE APPLICABLE QUARTERLY COMPLIANCE REPORT, SUCH BANKING INSTITUTION SHALL, PROMPTLY AFTER CORRECTING SUCH FAILURE, SUBMIT A WRITTEN REPORT TO THE DEPARTMENT WITH THE DATE OR DATES OF EACH SUCH CORRECTION. S 2. Subdivision 1 of section 75-j of the banking law, as amended by section 11 of part O of chapter 59 of the laws of 2006, is amended to read as follows:
1. Any banking institution THAT REPORTS A VIOLATION OF ANY PROVISION OF SECTION SEVENTY-FIVE-C OF THIS ARTICLE IN A QUARTERLY COMPLIANCE REPORT UNDER SECTION SEVENTY-FIVE-G OF THIS ARTICLE OR IS OTHERWISE found BY THE DEPARTMENT to be in violation of any provision of section seventy-five-c of this article shall correct the violation within ten business days after such REPORT OR finding. Where a banking institution fails to correct [
said violation within such period of time] ANY VIOLATION OF A PROVISION OF SECTION SEVENTY-FIVE-C OF THIS ARTICLE WITH- IN TEN BUSINESS DAYS AFTER THE FILING OF SUCH REPORT OR A FINDING OF VIOLATION BY THE DEPARTMENT, the superintendent may, in a proceeding after notice and a hearing, require [ any] SUCH banking institution to pay a civil penalty in an amount as determined pursuant to section forty-four of this chapter, provided, however, that the aggregate penal- ty for all offenses with respect to any one automated teller machine facility in any one proceeding shall not exceed an amount as determined pursuant to section forty-four of this chapter. For the purposes of this article, each violation of section seventy-five-c of this article shall be considered a separate and distinct violation. S 3. This act shall take effect on the first of March next succeeding the date on which it shall have become a law or such later date as the superintendent of banks may determine is necessary for the banking department to develop a system for the automated reporting of compliance with the requirements of article 2-AA of the banking law; provided that the superintendent of banks shall notify the legislative bill drafting commission upon the development of such system of automated reporting in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effectuating the provisions of section 44 of the legisla- tive law and section 70-b of the public officers law.