HOUSE BILL No. 5276


     October 14, 1997, Introduced by Reps. Goschka, McBryde, Willard and Bodem and referred to the Committee on Commerce.


        A bill to amend 1978 PA 322, entitled

   "An act to authorize financial institutions to make electronic
   funds transfer terminals available to their customers; to protect
   the privacy and security of customers; to prohibit unfair dis-
   crimination among financial institutions and monopolistic prac-
   tices in the use and availability of electronic funds transfer
   terminals; to prescribe remedies; and to prescribe penalties,"

   by amending sections 4 and 5 (MCL 488.4 and 488.5) and by adding

   section 7a.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 4.  (1) "Financial institution" means a bank, SAVINGS

 2    BANK, savings and loan association, consumer finance company,

 3    credit union, and includes a corporation wholly owned by a finan-

 4    cial institution or by a holding company parent of any financial

 5    institution.

 6         (2) "Funds transfer facility" means an electronic funds

 7    transfer terminal or a funds transmission facility.


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 1         (3) "Funds transmission facility" means all devices and

 2    equipment, regardless of where located, which are interconnected

 3    with an electronic funds transfer terminal and while they are

 4    being used to transmit electronic impulses to enable the terminal

 5    to perform deposit account functions.

 6         (4) "Merchant" means a person primarily engaged in the

 7    retail sale of goods or services.

 8         Sec. 5.  (1) "Person" means an individual, sole proprietor-

 9    ship, corporation, partnership, association, joint stock company,

10    trust,  or  unincorporated organization, OR ANY OTHER LEGAL

11    ENTITY.

12         (2) "Reasonable fees" means transaction, rental, or other

13    periodic charges  which  THAT are directly related to the cost of

14    furnishing a particular service, and which are proportionate to

15    actual usage of the service by all persons using the service com-

16    peting in the same market area and may include a return on

17    invested capital and an initial entry fee charged for the purpose

18    of recovering noncapitalized development costs.  The fees shall

19    be negotiated on a fair and equitable basis between the parties

20    who shall not conspire to set a fee with the purpose of destroy-

21    ing or preventing competition.

22         (3) "SAVINGS BANK" MEANS A SAVINGS BANK ORGANIZED UNDER THE

23    SAVINGS BANK ACT, 1996 PA 354, MCL 487.3101 TO 487.3804, OR A

24    FEDERAL SAVINGS BANK ORGANIZED UNDER THE LAWS OF THE UNITED

25    STATES.

26         (4)  (3)  "Savings and loan association" means an

27    association established under  Act No. 156 of the Public Acts of



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 1    1964, as amended, being sections 489.501 to 489.920 of the

 2     Michigan Compiled Laws  1964 PA 156, MCL 489.501 TO 489.920, or a

 3    federal savings and loan association established under the laws

 4    of the United States having its main office in this state.

 5         (5)  (4)  "Unauthorized use" means either of the following:

 6         (a) Any transaction not known to the customer and not effec-

 7    tuated with the express permission of the customer.

 8         (b) Any transaction effectuated under physical duress.

 9         SEC. 7A.  FOR EACH TRANSACTION INVOLVING AN ELECTRONIC FUNDS

10    TRANSFER TERMINAL, THE PERSON USING THE TERMINAL SHALL BE PRO-

11    VIDED A PRINTED STATEMENT INDICATING THE NATURE AND AMOUNTS

12    INVOLVED IN THE TRANSACTION AND THE RESULTING BALANCES OF THE

13    ACCOUNTS AFFECTED BY THE TRANSACTION.































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