Federal ATM Surcharge Ban Efforts

Several bills to ban ATM surcharges have been introduced in Congress since surcharging began in 1996, but none have proceeded beyond committee. HR 3503, introduced by Representative Maxine Waters, was before the House Committee on Banking and Financial Services. In addition to eliminating surcharges, the bill would provide for certain low-cost, lifetime bank accounts and authorize the continuation of the Federal Reserve's annual study of bank fees. In 2001 and 2003 Representative Robert Andrews of New Jersey introduced a short amendment to the Electronic Fund Transfer Act that would ban ATM surcharges.

To provide for basic low-cost banking accounts, to eliminate certain automated teller machine surcharges, and to reauthorize a bank fee survey conducted by the Board of Governors of the Federal Reserve System, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `ATM Surcharge Elimination and Consumer Empowerment Act'.

SEC. 2. LIFELINE BANKING REQUIREMENT FOR FINANCIAL HOLDING COMPANIES AND FINANCIAL SUBSIDIARIES.

(a) FINANCIAL HOLDING COMPANIES-

(1) IN GENERAL- Section 4(l)(1) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(l)(1)), as added by the Gramm-Leach-Bliley Act, is amended--

(A) by striking `and' at the end of subparagraph (B);

(B) by redesignating subparagraph (C) as subparagraph (D);

(C) by inserting after subparagraph (B) the following new subparagraph:

`(C) all of the subsidiary depository institutions of the bank holding company have a demonstrable record of performance in the provision of low-cost lifeline bank accounts; and'; and

(D) in subparagraph (D) (as so redesignated by subparagraph (B) of this paragraph), by striking `and (B)' and inserting `, (B), and (C)'.

(2) TECHNICAL AND CONFORMING AMENDMENTS-

(A) Section 5(a) of the Bank Holding Company Act of 1956 (12 U.S.C. 1844(a)), as amended by the Gramm-Leach-Bliley Act, is amended by striking `4(l)(1)(C)' and inserting `4(l)(1)(D)'.

(B) Section 8(c) of the International Banking Act of 1978 (12 U.S.C. 3106(c)), as amended by the Gramm-Leach-Bliley Act, is amended by striking `4(l)(1)(C)' and inserting `4(l)(1)(D)'.

(C) Section 4(c) of the Community Reinvestment Act of 1977 (12 U.S.C. 2903(c)), as added by the Gramm-Leach-Bliley Act, is amended in paragraphs (1)(A) and (2) by striking `4(l)(1)(C)' and inserting `4(l)(1)(D)'.

(b) FINANCIAL SUBSIDIARIES- Section 5136A(a)(2)(C) of the Revised Statutes of the United States, as added by the Gramm-Leach-Bliley Act, is amended to read as follows:

`(C) the national bank and each insured depository institution affiliate of the national bank--

`(i) are well capitalized;

`(ii) are well managed: and

`(iii) have a demonstrable record of performance in the provision of low-cost lifeline bank accounts;'.

SEC. 3. PRESERVATION OF BANK FEE REPORT REQUIREMENTS.

(a) IN GENERAL- Section 3003(a)(1) of the Federal Reports Elimination and Sunset Act of 1995 (31 U.S.C. 1113 note) shall not apply to any report required to be submitted under section 1002(b) of Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

(b) SUNSET OF REPORT- Section 1002(b) of Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended by adding at the end the following new paragraph:

`(4) SUNSET- Notwithstanding section 108(b) of the Riegle-Neil Interstate Banking and Branching Efficiency Act of 1994, no report shall be required under this subsection after the end of the 10-year period beginning on the date of the enactment of the Financial Services Modernization Act of 1999.'.

(c) CREDIT UNIONS INCLUDED IN SURVEY- Section 1002(a)(1) of Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is amended by inserting `, including credit unions' after `insured depository institutions'.

SEC. 4. PROHIBITION ON CERTAIN FEES.

The Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.) is amended--

(1) by redesignating sections 918, 919, 920, and 921 as sections 919, 920, 921, and 922, respectively; and

(2) by inserting after section 917 the following new section:

`SEC. 918. FEES.

`In the case of any electronic fund transfer which--

`(1) is initiated by a consumer from an electronic terminal operated by a person other than the financial institution holding the account of the consumer; and

`(2) utilizes a national or regional communication network to effect the transaction between such person and the financial institution holding the account of the consumer,

no fee may be imposed on the consumer with respect to such transaction by the person operating the electronic terminal at which the transfer is initiated.'.