News

Wyoming bill will require non-bank ATM operators to get sponsorship from state bank

January 15, 2003

CHEYENNE, Wyo. -- A bill that would require non-bank ATM operators to obtain a bank sponsorship will move to the floor of the House of Representatives for a second reading after clearing a committee on Jan. 14.

As originally written, House Bill 2 would have allowed out-of-state banks to sponsor ATMs in the state, according to a report in the Cheyenne Tribune-Eagle.

However, lawmakers on the House Minerals, Business and Economic Development changed the bill after hearing a statement from Dave Johnson, executive director of the Wyoming Bankers Association. Johnson argued that banks in the state are available to sponsor out-of-state ATM providers and that business should be limited to Wyoming banks.

Also included in the bill are penalties for wrongdoing, such as lying or hiding the condition of financial institutions from state regulators. The law calls for a fine of between $100 and $1,000 for misdemeanor infractions, and up to $5,000 for felonies.

According to the Tribune-Eagle, Rep. Floyd Esquibel, D-Cheyenne, said he would like to see the penalties increased. 'I would think that lying or misleading the banking commission on the health of the bank would cause something more serious,' he said.

However, Banking Commissioner Jeff Vogel said the fine schedule is consistent with penalties elsewhere in state law.

'We also have provisions to do a cease-and-desist order if anything harms the safety of bank,' Vogel said. 'We can also impose civil penalties of up to $1 million a day.'