2012 -- H 7357

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LC01011

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STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

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A N A C T

RELATING TO FINANCIAL INSTITUTIONS - POWERS AND OPERATIONS - CREDIT

CARD AND DEBIT CARD FEES

     Introduced By: Representatives McLaughlin, Guthrie, Azzinaro, Petrarca, and Flaherty

     Date Introduced: February 02, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

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     SECTION 1. Section 19-3-13 of the General Laws in Chapter 19-3 entitled "Powers and

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Operations" is hereby amended to read as follows:

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     19-3-13. Use of electronic devices and machines. -- (a) Any financial institution, or

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credit union, may make available for use by its customers one or more electronic devices or

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machines (customer-bank communications terminals/automated teller machines). These devices

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or machines shall not be deemed to be the establishment of a branch of the particular financial

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institution or credit union. All surcharges chargeable No surcharge shall be imposed for use of

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these devices.shall be disclosed prior to completion of any transaction. Disclosure of the

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surcharge shall be displayed electronically by the electronic device or machine and shall not be

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disclosed by means of any stickers or placards placed on the exterior of the electronic device or

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machine.

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      (b) The establishment and use of these devices are subject to approval by the director or

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the director's designee which approval shall not be unreasonably withheld. Any request to

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establish a customer-bank communications terminal/automated teller machine must be sent to the

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director or the director's designee by certified mail, return receipt requested. Any request which is

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received by the director or the director's designee shall be deemed approved, if within five (5)

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business days of receipt by the director or the director's designee of the request, the director or the

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director's designee has not issued a notice of intent to deny the request. The director or the

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director's designee may promulgate rules and regulations not inconsistent with this section.

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      (c) To the extent consistent with the antitrust laws, each financial institution or credit

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union, chartered by this or any other state, is permitted but not required to share these devices

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with one or more other financial institutions or credit unions, chartered by the state or federal

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government.

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      (d) Each financial institution or credit union shall adopt and maintain safeguards on each

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electronic device or machine consistent with the minimum requirements specified under the

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federal Bank Protection Act, 12 U.S.C. section 1881 et seq.

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     SECTION 2. Chapter 19-3 of the General Laws entitled "Powers and Operations" is

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hereby amended by adding thereto the following section:

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     19-3-15. Transaction fees prohibited. – No financial institution chartered by the state of

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Rhode Island shall charge a fee of any kind for the use of a credit card or debit card, for the

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purchase of any item or service or for the receipt of funds from any other source into the account.

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     SECTION 3. This act shall take effect upon passage.

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LC01011

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO FINANCIAL INSTITUTIONS - POWERS AND OPERATIONS - CREDIT

CARD AND DEBIT CARD FEES

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     This act would eliminate transaction fees for the use of ATM cards, credit and debit

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cards.

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     This act would take effect upon passage.

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LC01011

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