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House approves bill allowing disclosed ATM transaction fees for rural machines
Summary
On Feb. 5 the House passed substitute HB166, which permits financial institutions to impose a disclosed transaction fee at ATMs (for example in remote or tourist areas) provided users may cancel after being told the fee; the measure passed by recorded vote 54–14 and moves to the Senate.
The House approved substitute House Bill 166, authorizing financial institutions to charge a disclosed transaction fee for the use of automated teller machines in situations where the institution deems a fee necessary to justify placing ATMs in low‑traffic areas.
Sponsor Representative Martin R. Stevens explained the bill’s purpose is to allow rural and tourist locations to gain ATM access by letting institutions recover modest operating costs through a disclosed fee. “They can impose a transaction fee for the use of an automatic teller machine ... if the imposition of the fee is disclosed at the time and in a manner that allows the user to terminate or cancel a transaction without incurring the transaction fee,” Stevens said.
Members questioned the estimated cost to remodel or adapt terminals (a handout cited about $4,000 per site) and whether Americans with Disabilities Act requirements would be implicated. Stevens said the handout came from the Utah Bankers Association and that ADA compliance was a separate requirement handled in practice and rulemaking.
The House opened and closed voting and recorded 54 affirmative votes and 14 negatives; substitute HB166 passed and was forwarded to the Senate.
What’s next: If the Senate agrees, the Division of Financial Institutions and industry stakeholders will implement disclosure rules and terminal standards; ADA and retrofit cost issues were raised and may be addressed in rulemaking or subsequent amendments.
