HOUSE BILL No. 4698

 

May 15, 2003, Introduced by Reps. Bisbee, McConico, Palsrok, DeRoche, Tobocman, Elkins, Sak, Gieleghem, Vagnozzi, Minore, Gillard, Brandenburg, Law, Spade, Rivet, Koetje, Amos, Pappageorge, Stahl, Byrum, Gleason and Stewart 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                   

    discrimination among financial institutions and monopolistic                

    practices in the use and availability of electronic funds                   

    transfer terminals; to prescribe remedies; and to prescribe                 

    penalties,"                                                                 

                                                                                

    by amending sections 2 and 3 (MCL 488.2 and 488.3).                         

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 2.  (1) "Available" means and includes all deposit                     

                                                                                

2   account functions which are performed from time to time by the              

                                                                                

3   particular electronic funds transfer terminal.                              

                                                                                

4       (2) "Bank" means  a state banking corporation established                   

                                                                                

5   under Act No. 319 of the Public Acts of 1969, as amended, being             

                                                                                

6   sections 487.301 to 487.598 of the Michigan Compiled Laws,  that            

                                                                                

7   term as defined in section 1201 of the banking code of 1999, 1999           

                                                                                

8   PA 276, MCL 487.11201, or a national banking association                    

                                                                                


                                                                                

1   established under the laws of the United States having its main             

                                                                                

2   office in this state.                                                       

                                                                                

3       (3) "Branch", as it applies to:                                             

                                                                                

4       (a) A state credit union,  includes  means a branch as                      

                                                                                

5   defined in section 102 of the credit union act and a service                

                                                                                

6   center as defined in section  1a of Act No. 285 of the Public               

                                                                                

7   Acts of 1925, being section 490.1a of the Michigan Compiled Laws            

                                                                                

8   103 of the credit union act.                                                

                                                                                

9       (b) A federal credit union, means a branch place of business                

                                                                                

10  as defined in section 101 of the federal credit union act,                  

                                                                                

11  chapter 750, 48 Stat. 1216, 12 U.S.C. 1752, and applicable                  

                                                                                

12  regulations.                                                                

                                                                                

13      (c) A state savings and loan association, means a branch                    

                                                                                

14  office as defined in section  115 of Act No. 156 of the Public              

                                                                                

15  Acts of 1964, being section 489.515 of the Michigan Compiled                

                                                                                

16  Laws  112 of the savings and loan act of 1980, 1980 PA 307,                 

                                                                                

17  MCL 491.112, and also includes an agency as defined in section              

                                                                                

18  111 of Act No. 156 of the Public Acts of 1964, being section               

                                                                                

19  489.511 of the Michigan Compiled Laws  106 of the savings and               

                                                                                

20  loan act of 1980, 1980 PA 307, MCL 491.106, that is established             

                                                                                

21  before the effective date of this act.                                      

                                                                                

22      (d) A federal savings and loan association, means a branch                  

                                                                                

23  office as defined by the regulations of the federal home loan               

                                                                                

24  bank board pursuant to the federal home loan bank act,  12                  

                                                                                

25  U.S.C. 1421 to 1449  chapter 522, 47 Stat. 725, but does not                

                                                                                

26  include a mobile facility, satellite office, or an agency                   

                                                                                

27  established after the effective date of this act.                           


                                                                                

1       (e) A state bank, means a branch  place of business  as                     

                                                                                

2   defined in section  5 of Act No. 319 of the Public Acts of 1969,            

                                                                                

3   being section 487.305 of the Michigan Compiled Laws  1201 of the            

                                                                                

4   banking code of 1999, 1999 PA 276, MCL 487.11201.                           

                                                                                

5       (f) A national banking association, means a branch place of                 

                                                                                

6   business as defined in 12 U.S.C. 36.                                        

                                                                                

7       (4) "Consumer finance company" means a licensee under  Act                  

                                                                                

8   No. 21 of the Public Acts of 1939, as amended, being sections               

                                                                                

9   493.1 to 493.26 of the Michigan Compiled Laws  the regulatory               

                                                                                

10  loan act, 1939 PA 21, MCL 493.1 to 493.24.                                  

                                                                                

11      Sec. 3.  (1) "Credit union" means a domestic credit union                   

                                                                                

12  established under Act No. 285 of the Public Acts of 1925, as               

                                                                                

13  amended, being sections 490.1 to 490.31 of the Michigan Compiled            

                                                                                

14  Laws  as that term is defined in section 102 of the credit union            

                                                                                

15  act, or a federal credit union established under the laws of the            

                                                                                

16  United States having its main office in this state.                         

                                                                                

17      (2) "Customer" means a person, but does not include a                       

                                                                                

18  financial institution or a financial institution holding                    

                                                                                

19  company.                                                                    

                                                                                

20      (3) "Deposit account" includes share, deposit, member, and                  

                                                                                

21  savings accounts of financial institutions.                                 

                                                                                

22      (4) "Electronic fund transfer" is any transaction  , the                    

                                                                                

23  effectuation of which is dependent  that depends upon  a  an                

                                                                                

24  electronic funds transfer terminal to complete.                             

                                                                                

25      (5) "Electronic funds transfer terminal" means an                           

                                                                                

26  information processing device used for the purpose of executing             

                                                                                

27  deposit account transactions between financial institutions and             


                                                                                

1   their customers by either the direct transmission of electronic             

                                                                                

2   impulses or the recording of electronic impulses for delayed                

                                                                                

3   processing.   The fact that a  A device  is  used for other                 

                                                                                

4   purposes  does not prevent it from being  may be an electronic              

                                                                                

5   funds transfer terminal, but a terminal  shall not be considered            

                                                                                

6   to be  is not an electronic funds transfer terminal while being             

                                                                                

7   used for those other purposes.  Electronic funds transfer                   

                                                                                

8   terminal does not include a device at the time it is used to                

                                                                                

9   perform the functions of check guaranty, check authorization, or            

                                                                                

10  credit card programs, or a combination of any of those programs,            

                                                                                

11  and does not include a device located on the premises of a                  

                                                                                

12  customer of a financial institution  which  that is used to                 

                                                                                

13  execute transactions only between that customer and the financial           

                                                                                

14  institution.                                                                

                                                                                

15      Enacting section 1.  This amendatory act does not take                      

                                                                                

16  effect unless Senate Bill No. _____ or House Bill No. 4694                  

                                                                                

17  (request no. 00398'03) of the 92nd Legislature is enacted into              

                                                                                

18  law.