OMAHA, Neb. (2/12/13)--The Nebraska State Legislature, in a 47-0 vote Monday, passed a bill to eliminate the requirement for a physical disclosure on ATMs notifying consumers of fees they may incur while using the ATM. The bill was supported by Nebraska's credit unions.
"Credit unions appreciate and support sound regulations that protect consumers and promote fair play in the marketplace," said Nebraska Credit Union League Director of Governmental Affairs Brandon Luetkenhaus during testimony at a Jan. 22 public hearing on the measure before the state Banking, Commerce and Insurance Committee.
"However, sometimes well-intended regulation can be unnecessary and burdensome, and we believe that's the case with these physical disclosures," he said.
Luetkenhaus cited that LB 100 would eliminate the physical disclosure but keep in place the requirement for an electronic notification.
LB 100 was introduced on Jan. 10 by state Sen. Dan Watermeier (NP-District 1). It follows legislation passed unanimously by Congress late in 2012 that eliminated the physical disclosure on ATMs. That measure was backed by the Credit Union National Association.
Nebraska, Illinois, Nevada, New York, Vermont and Wyoming were the only states with statutues requiring the dual disclosures. Nebraska is the first to amend its statute to conform with the fedearl law.
Congress' ATM bill, H.R. 4367, was the result of a CUNA/league-sponsored Hike the Hill event. CUNA, leagues and credit unions had noted that outside notices on ATMs were sometimes being intentionally removed or destroyed without the financial institution's knowledge. Perpetrators would then photograph the vandalized ATM and allege the financial institution was not in compliance with Regulation E.
Nebraska's LB 100 included an emergency clause that would cause the bill to go into effect immediately upon receiving the signature of Gov. Dave Heineman.