95TH GENERAL ASSEMBLY
State of Illinois
2007 and 2008
SB2856

 

Introduced 2/15/2008, by Sen. Jacqueline Y. Collins

 

SYNOPSIS AS INTRODUCED:
 
205 ILCS 616/50

    Amends the Electronic Fund Transfer Act. Provides that no person operating a terminal in this State shall impose any surcharge exceeding $2 on a consumer for the usage of that terminal. Provides that no financial institution operating a terminal under the laws of this State, or that serves as a depositary of State funds as authorized by the Deposit of State Moneys Act, shall impose any surcharge exceeding $2 on a consumer for the usage of that terminal. Provides that no surcharge may be imposed unless it is first disclosed to the consumer (i) by a sign that is clearly visible to the consumer on or at the terminal being used and (ii) electronically on the terminal screen. Provides that, as used in the provision "surcharge" means any charge imposed by the person or financial institution (instead of just the person) operating the terminal solely for the use of the terminal. Effective immediately.


LRB095 19215 MJR 45470 b

 

 

A BILL FOR

 

SB2856 LRB095 19215 MJR 45470 b

1     AN ACT concerning regulation.
 
2     Be it enacted by the People of the State of Illinois,
3 represented in the General Assembly:
 
4     Section 5. The Electronic Fund Transfer Act is amended by
5 changing Section 50 as follows:
 
6     (205 ILCS 616/50)
7     Sec. 50. Terminal requirements.
8     (a) To assure maximum safety and security against
9 malfunction, fraud, theft, and other accidents or abuses and to
10 assure that all access devices will have the capability of
11 activating all terminals established in this State, no terminal
12 shall accept an access device that does not conform to
13 specifications that are generally accepted. In the case of a
14 dispute concerning the specifications, the Commissioner, in
15 accordance with the provisions of Section 20 of this Act, shall
16 have the authority to determine the specifications.
17     (b) No terminal that does not accept an access device that
18 conforms with those specifications shall be established or
19 operated.
20     (c) A terminal shall bear a logotype or other
21 identification symbol designed to advise customers which
22 access devices may activate the terminal.
23     (d) When used to perform an interchange transaction, a

 

 

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1 terminal shall not bear any form of proprietary advertising of
2 products and services not offered at the terminal; provided,
3 however, that a terminal screen may bear proprietary
4 advertising of products or services offered by a financial
5 institution when a person uses an access device issued by that
6 financial institution.
7     (e) No person operating a terminal in this State shall
8 impose any surcharge exceeding $2 on a consumer for the usage
9 of that terminal, whether or not the consumer is using an
10 access device issued by that person, unless that surcharge is
11 clearly disclosed to the consumer both (i) by a sign that is
12 clearly visible to the consumer on or at the terminal being
13 used and (ii) electronically on the terminal screen. No
14 financial institution operating a terminal under the laws of
15 this State, or that serves as a depositary of State funds as
16 authorized by the Deposit of State Moneys Act, shall impose any
17 surcharge exceeding $2 on a consumer for the usage of that
18 terminal. No surcharge may be imposed unless it is first
19 disclosed to the consumer (i) by a sign that is clearly visible
20 to the consumer on or at the terminal being used and (ii)
21 electronically on the terminal screen. Following presentation
22 of the electronic disclosure on the terminal screen, the
23 consumer shall be provided an opportunity to cancel that
24 transaction without incurring any surcharge or other
25 obligation. If a surcharge is imposed on a consumer using an
26 access device not issued by the person operating the terminal,

 

 

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1 that person shall disclose on the sign and on the terminal
2 screen that the surcharge is in addition to any fee that may be
3 assessed by the consumer's own institution. As used in this
4 subsection, "surcharge" means any charge imposed by the person
5 or financial institution operating the terminal solely for the
6 use of the terminal.
7     (f) A receipt given at a terminal to a person who initiates
8 an electronic fund transfer shall include a number or code that
9 identifies the consumer initiating the transfer, the
10 consumer's account or accounts, or the access device used to
11 initiate the transfer. If the number or code shown on the
12 receipt is a number that identifies the access device, the
13 number must be truncated as printed on the receipt so that
14 fewer than all of the digits of the number or code are printed
15 on the receipt. The Commissioner may, however, modify or waive
16 the requirements imposed by this subsection (f) if the
17 Commissioner determines that the modifications or waivers are
18 necessary to alleviate any undue compliance burden.
19     (g) No terminal shall operate in this State unless, with
20 respect to each interchange transaction initiated at the
21 terminal, the access code entered by the consumer to authorize
22 the transaction is encrypted by the device into which the
23 access code is manually entered by the consumer and is
24 transmitted from the terminal only in encrypted form. Any
25 terminal that cannot meet the foregoing encryption
26 requirements shall immediately cease forwarding information

 

 

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1 with respect to any interchange transaction or attempted
2 interchange transaction.
3     (h) No person that directly or indirectly provides data
4 processing support to any terminal in this State shall
5 authorize or forward for authorization any interchange
6 transaction unless the access code intended to authorize the
7 interchange transaction is encrypted when received by that
8 person and is encrypted when forwarded to any other person.
9     (i) A terminal operated in this State may be designed and
10 programmed so that when a consumer enters his or her personal
11 identification number in reverse order, the terminal
12 automatically sends an alarm to the local law enforcement
13 agency having jurisdiction over the terminal location. The
14 Commissioner shall promulgate rules necessary for the
15 implementation of this subsection (i). The provisions of this
16 subsection (i) shall not be construed to require an owner or
17 operator of a terminal to design and program the terminal to
18 accept a personal identification number in reverse order.
19     (j) A person operating a terminal in this State may not
20 impose a fee upon a consumer for usage of the terminal if the
21 consumer is using a Link Card or other access device issued by
22 a government agency for use in obtaining financial aid under
23 the Illinois Public Aid Code.
24     For the purpose of this subsection (j), the term "person
25 operating a terminal" means the person who has control over and
26 is responsible for a terminal. The term "person operating a

 

 

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1 terminal" does not mean the person who owns or controls the
2 property or building in which a terminal is located, unless he
3 or she also has control over and is responsible for the
4 terminal.
5 (Source: P.A. 93-136, eff. 1-1-04; 93-273, eff. 1-1-04; 93-583,
6 eff. 1-1-04; 93-898, eff. 8-10-04.)
 
7     Section 99. Effective date. This Act takes effect upon
8 becoming law.