WEST virginia legislature
2019 regular session
Introduced
Senate Bill 634
By Senator Azinger
[Introduced February
15, 2019; Referred
to the Committee on Banking and Insurance]
A BILL to amend and reenact §31A-8-12b of the Code of West Virginia, 1931, as amended, relating to adding “remote service unit” to the definition of customer bank communications terminals; defining “remote service unit”; and requiring that operators of remote service units maintain a physical location in this state.
Be it enacted by the Legislature of West Virginia:
ARTICLE 8. HEARINGS; ADMINISTRATIVE PROCEDURES; JUDICIAL REVIEW; UNLAWFUL ACTS; PENALTIES.
§31A-8-12b. Installation and operation of customer bank communication terminals permitted.
(a) Any banking institution as defined in §31A-1-2 of this code, individually or jointly with one or more other banking institutions or other federally insured financial institutions having their principal offices in this state, or any combination thereof, may upon 10 days prior written notice filed with the commissioner, install, operate and engage in banking business by means of one or more customer bank communication terminals. Any banking institution which installs and operates a customer bank communication terminal:
(1) Shall make such the
customer bank communication terminal available for use by other banking
institutions; and
(2) May make such the
customer bank communication terminal available for use by other federally
insured financial institutions, all in accordance with regulations promulgated
by the commissioner. Such The customer bank communication
terminals shall not be considered to be are not branch banks or
branch offices, agencies or places of business or off-premises walk-in or
drive-in banking facilities; nor shall do the operation of such
customer bank communication terminals to communicate with and permit financial
transactions to be carried out through a nonexclusive access interchange system
be considered to make any banking institution which is part of such a
nonexclusive access interchange system to have illegal branch banks or
branch offices, agencies or places of business or off-premises walk-in or
drive-in banking facilities.
(b) Notwithstanding the provisions of subdivision (1), subsection (a) of this section, a customer bank communication terminal located on the premises of the principal office or branch bank of a banking institution or on the premises of an authorized off-premises facility need not be made available for use by any other banking institution or its customers.
(c) For purposes of this
section, “customer bank communication terminal” means any electronic device or
machine owned, leased, or operated by a bank, together with all associated
equipment, structures and systems, including, without limitation, remote service units, point of sale
terminals, through or by means of which a customer and a banking institution
may engage in any banking transactions, whether transmitted to the banking
institution instantaneously or otherwise, including, without limitation, the
receipt of deposits of every kind, the receipt and dispensing of cash, requests
to withdraw money from an account or pursuant to a previously authorized line
of credit, receiving payments payable at the bank or otherwise transmitting
instructions to receive, transfer or pay funds for a customer’s benefit.
Personal computers, telephones and associated equipment which enable a bank
customer to conduct banking transactions at their home or office through links
to their bank’s computer or telephone network, do not constitute a “customer
bank communication terminal” under this section. All transactions initiated
through a customer bank communication terminal shall be are subject
to verification by the banking institution.
(d) No person, other than:
(1) A banking institution authorized to engage in the banking business in this
state; or (2) a credit union authorized to conduct business in this state, may
operate any automatic teller machine (“ATM”) or automatic loan machine (“ALM”) or remote service unit (“RSU”) located in this
state: Provided, That the
operator of an RSU shall maintain a physical location in this state: Provided,
however, That ATM terminals of
out-of-state banks not having branches in this state shall be are
allowed to operate to the same extent as a West Virginia bank if a national
bank from that state not having branches in West Virginia could do so through a
federal preemption of state law.
(e) For the purposes of this section, “remote service unit” means automated facility, operated by a customer of a bank, that conducts banking functions such as receiving deposits, paying withdrawals, or lending money, and includes an unmanned or automated teller machine, an automated loan machine, and an automated device for receiving deposits. A remote service unit may be equipped with a telephone or video device that allows contact with bank personnel.
(e) (f) For the purposes of this section, “point
of sale terminal” means a customer bank communication terminal used for the
primary purpose of either transferring funds to or from one or more deposit
accounts in a banking institution or segregating funds in one or more deposit
accounts in a banking institution for future transfer, or both, in order to
execute transactions between a person and his or her customers incident to
sales, including, without limitation, devices and machines which may be used to
implement and facilitate check guaranty and check authorization programs.
(f) (g) Nothing in this section prevents point of
sale terminals and associated equipment from being owned, leased or operated by
nonbanking entities: Provided, That such those persons may
not engage in the business of banking by using point of sale devices. The use
of a point of sale terminal to enable a customer or other person to withdraw
and obtain cash of more than $50 in excess of the sales transaction purchase
amount, will be is presumed to constitute engaging in the
business of banking: Provided, however, That cash withdrawals through a
point of sale terminal in excess of $50 shall not constitute is not
engaging in the business of banking if the sales transaction is made with the
use of a West Virginia check card, as provided in §12-3A-1 et seq. of
this code, or with an electronic benefits transfer or other card issued by
state spending units to transmit payments of food benefits, temporary
assistance to needy families, or other assistance, benefit or entitlement
programs mandated or offered by federal or state government: Provided
further, That any retailer, agency or person providing cash withdrawals
with a West Virginia check card or an electronic benefits transfer card through
a POS terminal is limited to charging a fee for the services in the amount of
the higher of $1 or one percent of the amount of cash withdrawn.
(g) (h) Except for customer bank communication
terminals located on the premises of the principal office or a branch bank of
the banking institution or on the premises of an authorized off-premises
walk-in or drive-in banking facility, a customer bank communication terminal
shall be unattended or attended by persons not employed by any banking
institution utilizing the terminal: Provided, That:
(1) Employees of the
banking institution may be present at such the terminal not
located on the premises of an authorized off-premises facility solely for the
purposes of installing, maintaining, repairing and servicing same; and
(2) A banking institution
may provide an employee to instruct and assist customers in the operation
thereof: Provided, That such the employee shall may
not engage in any other banking activity.
(h) (i) The commissioner shall prescribe by regulation
rule the procedures and standards regarding the installation and
operation of customer bank communication terminals, including, without
limitation, the procedure for the sharing thereof.
NOTE: The purpose of this bill is to add remote service unit to the definition of customer bank communications terminals, to define remote service unit, and require operators of remote service units to maintain a physical location in this state.
Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.