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PAG LIN 1 1 Section 1. Section 527.2, subsection 10, Code 1995, is 1 2 amended to read as follows: 1 3 10. "Limited-function terminal" means an on-line point-of- 1 4 sale terminal or an off-line point-of-sale terminal which 1 5 satisfies the requirements of section 527.4, subsection 3, 1 6 paragraph "d", or a multiple use terminal, which is not 1 7 operated in a manner to accept an electronic personal 1 8 identifier, and which is not operated to distinguish between1 9transactions which affect a customer asset account and1 10transactions which do not affect a customer asset account. 1 11 Except as otherwise provided, a limited-function terminal 1 12 shall not be subject to the requirements imposed upon other 1 13 satellite terminals pursuant to sections 527.4 and 527.5, 1 14 subsections 1, 2, 3, 7, and 9. 1 15 Sec. 2. Section 527.3, Code 1995, is amended by adding the 1 16 following new subsection: 1 17 NEW SUBSECTION. 8. An administrator may issue any order 1 18 necessary to secure compliance with or prevent a violation of 1 19 this chapter or the rules adopted pursuant to this chapter, 1 20 regarding the establishment and operation of a satellite 1 21 terminal, limited-function terminal, upgraded, altered, 1 22 modified, or replaced limited-function terminal, and any other 1 23 device or facility with which such terminal is interconnected. 1 24 A person who violates a provision of this chapter or any rule 1 25 or any order issued pursuant to this chapter is subject to a 1 26 civil penalty not to exceed one thousand dollars for each day 1 27 the violation continues. A person aggrieved by an order of an 1 28 administrator may appeal the order by filing a written notice 1 29 of appeal with the administrator within thirty days of the 1 30 issuance of the order. The administrator shall schedule a 1 31 hearing for the purpose of hearing the arguments of the 1 32 aggrieved person within thirty days of the filing of the 1 33 notice of appeal. The provisions of chapter 17A shall apply 1 34 to all matters related to the appeal. The attorney general, 1 35 on request of the administrator, shall institute any legal 2 1 proceedings necessary to obtain compliance with an order of 2 2 the administrator or to prosecute a person for a violation of 2 3 the provisions of this chapter or rules adopted pursuant to 2 4 this chapter. 2 5 Sec. 3. Section 527.5, subsections 5 and 12, Code 1995, 2 6 are amended to read as follows: 2 7 5.A satellite terminal in this state shall bear a sign or2 8label identifying each type of financial institution utilizing2 9the terminal.A satellite terminal location in this state 2 10 shall not be used to advertise individual financial 2 11 institutions or a group of financial institutions. However, a 2 12 satellite terminal shall bear a sign or label no larger than 2 13 three inches by two inches identifying the name, address, and 2 14 telephone number of the owner of the satellite terminal. The 2 15 administrator may authorize methods of identification the 2 16 administrator deems necessary to enable the general public to 2 17 determine the accessibility of a satellite terminal. 2 18 12. a. If at any time, a limited-function terminal at a 2 19 location as defined in section 527.4, subsection 3, paragraph 2 20 "d", is replaced by a device constituting either an on-line or 2 21 an off-line point-of-sale terminal which may be utilized to 2 22 initiate transactions which affect customer asset accounts 2 23 through the use of an electronic personal identifier, or is 2 24 upgraded, altered, or modified to be operated in a mannerto2 25acceptwhich allows the use of an electronic personal 2 26 identifieror to distinguish betweento initiate transactions 2 27 which affect customer asset accountsand transactions which do2 28not affect customer asset accounts, then such upgraded, 2 29 altered, or modified limited-function terminal or replacement 2 30 point-of-sale terminal is deemed to be a full-function point- 2 31 of-sale terminal for purposes of this subsection and all 2 32 requirements of a satellite terminal in this chapter apply to 2 33 the full-function point-of-sale terminal with regard to all 2 34 transactions affecting customer asset accounts which are 2 35 initiated through the use of an electronic personal 3 1 identifier, except for section 527.4, subsections 1, 2, and 4, 3 2 section 527.4, subsection 3, paragraphs "a", "b", and "c", and 3 3 section 527.5, subsections 1, 3, and 7.A financial3 4institution not eligible to establish satellite terminals3 5within this state, which has established a limited-function3 6terminal which is subsequently upgraded, altered, or modified3 7as contemplated in this subsection, shall enter into an3 8agreement with a financial institution which is authorized to3 9establish a satellite terminal within this state to comply3 10with the requirements of section 527.4 and this subsection.3 11 b. A full-function point-of-sale terminal, as identified 3 12 in paragraph "a", which is operated in a manner which permits 3 13 all access devices to be utilized to initiate transactions 3 14 which affect customer asset accounts, and where all such 3 15 transactions can be directly routed for authorization purposes 3 16 as established in this subsection, is also exempt from the 3 17 provisions of section 527.5, subsection 9. However, if a data 3 18 processing center is directly connected to such full-function 3 19 point-of-sale terminal and does not authorize or reject a 3 20 transaction affecting a customer asset account initiated at 3 21 the terminal through the use of an electronic personal 3 22 identifier, the transaction shall be immediately transmitted 3 23 by the data processing center to either of the following: 3 24 (1) A central routing unit approved pursuant to this 3 25 chapter. 3 26 (2) An electronic funds transfer facility owned or 3 27 operated by a national card association which is engaged in 3 28 the business of administering for the benefit of the 3 29 association's members a program involving electronic funds 3 30 transfer transaction cards or access devices depicting a 3 31 service mark, logo, or trademark associated with the national 3 32 card association. However, if the national card association 3 33 is unable to immediately authorize or reject a transaction 3 34 affecting a customer asset account initiated at that terminal 3 35 through the use of an access device which bears a service 4 1 mark, logo, or trademark associated with a central routing 4 2 unit approved pursuant to this chapter but does not bear a 4 3 service mark, logo, or trademark associated with a national 4 4 card association, or which bears a service mark, logo, or 4 5 trademark other than that associated with either a central 4 6 routing unit approved pursuant to this chapter or a national 4 7 card association, the transaction shall be immediately 4 8 transmitted to a central routing unit approved pursuant to 4 9 this chapter, whether the transaction initiated through the 4 10 use of such access device was transmitted to the national card 4 11 association by a data processing center directly connected to 4 12 the full-function point-of-sale terminal, or the national card 4 13 association received the transmission of transaction data 4 14 directly from the full-function point-of-sale terminal. 4 15 c. If the national card association's electronic funds 4 16 transfer facility directly or indirectly receives a 4 17 transaction affecting a customer asset account initiated at a 4 18 full-function point-of-sale terminal through the use of an 4 19 electronic personal identifier and an access device bearing a 4 20 service mark, logo, or trademark associated with a national 4 21 card association, whether or not the access device also bears 4 22 the service mark, logo, or trademark of an approved central 4 23 routing unit, and the national card association cannot 4 24 immediately authorize or reject the transaction, such 4 25 transaction shall be immediately transmitted to a central 4 26 routing unit approved pursuant to this chapter, or to a 4 27 financial institution, or its data processing center, which is 4 28 capable of immediately authorizing or rejecting the 4 29 transaction. For purposes of this subsection, a national card 4 30 association which is engaged in the business of administering 4 31 for the benefit of the association's members a program 4 32 involving electronic funds transfer cards or access devices 4 33 shall not include a financial institution, bank holding 4 34 company as defined in section 524.1801, or in the federal Bank 4 35 Holding Company Act of 1956, 12 U.S.C. 1842(d), as amended to 5 1 July 1, 1994, association holding company as defined in 5 2 section 534.102, or a supervised organization as defined in 5 3 section 534.102, any other financial institution holding 5 4 company organized under federal or state law, or a subsidiary 5 5 or affiliate corporation owned or controlled by a financial 5 6 institution or financial holding company, which has authorized 5 7 a customer or member to engage in satellite terminal 5 8 transactions. For purposes of this subsection, a national 5 9 card association shall also not include a membership 5 10 corporation or organization which is primarily conducting 5 11 business as a regional or nationwide network of shared 5 12 satellite terminals engaged in satellite terminal transaction 5 13 services and utilizing a common service mark, logo, or 5 14 trademark to identify such terminal services. 5 15 For purposes of this subsection, a national card 5 16 association must be a nonprofit membership corporation or 5 17 organization, wherever incorporated and maintaining a 5 18 principal place of business, with a membership solely 5 19 comprised of insured depository financial institutions, 5 20 organizations directly or indirectly owned or controlled 5 21 solely by insured depository financial institutions, entities 5 22 wholly owned by one or more insured depository financial 5 23 institutions, holding companies having at least two-thirds of 5 24 their assets consisting of the voting stock of insured 5 25 depository financial institutions, organizations wholly owned 5 26 by one or more holding companies having at least two-thirds of 5 27 their assets consisting of the voting stock of insured 5 28 depository financial institutions and which are solely engaged 5 29 in activities related to the programs sponsored by the 5 30 national card association, or such other entities or 5 31 organizations which are authorized by the national card 5 32 association's bylaws to participate in the electronic funds 5 33 transfer card or access device programs or other services and 5 34 programs sponsored by the national card association. 5 35 d. This subsection does not apply to satellite terminals 6 1 located in this state, other than on-line and off-line full- 6 2 function point-of-sale terminals as identified in this 6 3 subsection, or multiple use terminals located in this state 6 4 which are capable of being operated in a manner to initiate 6 5 transactions affecting customer asset accounts through the use 6 6 of an electronic personal identifier. 6 7 Sec. 4. Sections 527.6 and 527.8, Code 1995, are repealed. 6 8 Sec. 5. This Act, being deemed of immediate importance, 6 9 takes effect upon enactment. 6 10 EXPLANATION 6 11 This bill amends provisions of chapter 527 relating to the 6 12 electronic transfer of funds. 6 13 Section 527.2 is amended by striking from the definition of 6 14 limited-function terminal the requirement that the terminal 6 15 not be operated in a manner to distinguish between 6 16 transactions which affect a customer asset account and 6 17 transactions which do not affect a customer asset account. 6 18 Section 527.3 is amended to provide that an administrator 6 19 may issue an order necessary to secure compliance with or 6 20 prevent a violation of chapter 527, or rules adopted pursuant 6 21 to the chapter, concerning the establishment and operation of 6 22 a satellite terminal, limited-function terminal, upgraded, 6 23 altered, modified, or replaced limited-function terminal, and 6 24 any device connected to such terminal. A person who violates 6 25 a provision of this chapter or rules adopted pursuant to the 6 26 chapter is subject to a civil penalty not to exceed $1,000 for 6 27 each day the violation continues. 6 28 Section 527.5, subsection 5, is amended to strike the 6 29 requirement that a satellite terminal in this state bear a 6 30 sign or label identifying each type of financial institution 6 31 utilizing the terminal. 6 32 Section 527.5, subsection 12, is amended to provide that a 6 33 limited-function terminal which is replaced by a device which 6 34 is an on-line or an off-line point-of-sale terminal which may 6 35 be utilized to initiate transactions which affect customer 7 1 asset accounts through the use of an electronic personal 7 2 identifier, or which is upgraded, altered, or modified to be 7 3 operated in a manner which allows the use of an electronic 7 4 personal identifier to initiate transactions which affect 7 5 customer asset accounts is deemed to be a full-function point- 7 6 of-sale terminal. The subsection is amended to provide that 7 7 all requirements of a satellite terminal in chapter 527 apply 7 8 to such full-function point-of-sale terminals except for 7 9 section 527.4, subsections 1, 2, and 4, section 527.4, 7 10 subsection 3, paragraphs "a", "b", and "c", and section 527.5, 7 11 subsections 1, 3, and 7. The subsection provides for the 7 12 routing of transactions which occur through the use of such 7 13 terminals. The subsection provides that if the data 7 14 processing center is directly connected to such full-function 7 15 point-of-sale terminal and does not authorize or reject a 7 16 transaction affecting a customer asset account initiated at 7 17 the terminal through the use of an electronic personal 7 18 identifier, the transaction is to be immediately transmitted 7 19 by the data processing center to either a central routing unit 7 20 approved pursuant to this chapter or an electronic funds 7 21 transfer facility owned or operated by a national card 7 22 association which is engaged in the business of administering 7 23 for the benefit of the association's members a program 7 24 involving electronic funds transfer transaction cards or 7 25 access devices depicting a service mark, logo, or trademark 7 26 associated with the national card association. The subsection 7 27 is amended to provide that it does not apply to satellite 7 28 terminals in this state, other than on-line and off-line full- 7 29 function point-of-sale terminals as defined in this 7 30 subsection, or multiple use terminals which are capable of 7 31 being operated in a manner to initiate transactions affecting 7 32 customer accounts through the use of an electronic personal 7 33 identifier. 7 34 The bill repeals section 527.6, governing the disclosure of 7 35 terms to a customer or member who is to be permitted to engage 8 1 in transactions through the use of a satellite terminal, and 8 2 section 527.8, relating to liability of a financial 8 3 institution which utilizes satellite terminals. 8 4 LSB 1825SC 76 8 5 mj/cf/24
Text: SSB00211 Text: SSB00213 Text: SSB00200 - SSB00299 Text: SSB Index Bills and Amendments: General Index Bill History: General Index
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