Colorado Legislative Council Staff

NO FISCAL IMPACT

TITLE:            CONCERNING THE REPEAL OF PROVISIONS OF THE “BANK ELECTRONIC FUNDS ACT” THAT MAY CREATE DISPARITIES IN THE REGULATORY BURDENS IMPOSED ON BANKS WITH REGARD TO THEIR USE OF COMMUNICATION FACILITIES.

Summary of Assessment

            The provisions of this bill would repeal statutory controls on “communication facilities”, as used in Colorado statutes to regulate state banks, that may be preempted under recent federal legislation. Communication facilities include automated teller machines (ATMs). Current statutory controls include a prohibition on certain forms of advertising and signage and a requirement for 30 days’ advance notice to state regulators before communication facilities can be placed in operation.

            The bill will become effective at 12:01 a.m. on the day following the ninety-day period after adjournment sine die of the General Assembly, or on the date of the official declaration of the vote of the people as proclaimed by the Governor, if a referendum petition is filed pursuant to Article V, Section 1 (3) of the State Constitution.

            Passage of the bill will relieve state chartered banks from notification requirements not presently required of national banks. The repeal of the notification procedure is administrative in nature and will have an insignificant impact on Division of Banking. The repeal of the bank advertising prohibition would only change banking practices and would not affect the division. The provisions of the bill would not affect any other agency of the state, or unit of local government. Therefore, this bill is assessed as having no fiscal impact.

Departments Contacted

            Regulatory Agencies