Attorney General to Look at ATM Ban

By Jim Stebinger

Tuesday, July 13 -- Controversial efforts to create a local ban on certain ATM surcharges are under scrutiny by the California Attorney General, according to the city attorney's office.

Meanwhile, the principal statewide effort to ban the surcharges is dead for the remainder of this legislative session.

Deputy City Attorney Adam Radinsky said a northern California legislator has asked the state's top law enforcement official to draft a formal opinion letter giving his view whether cities have the legal authority to implement such legislation.

Radinsky said Santa Monica's debate over proposed legislation is off the city council calendar for the moment. The attorney general's opinion letter is due to be released later this summer, Radinsky said.

Meanwhile, according to a spokesman for the author, SB270 is dead for this year.

The bill, authored by Long Beach State Senator Betty Karnette failed to get out of committee earlier this year. She has not given up on the issue, her spokesman said, and expects to bring it back next year.

The surcharges in question are those charged by banks to people using so-called "foreign" ATMs, teller machines which do not belong to a customer's bank.

Proponents, including various consumer groups, argue that the surcharges are a double fee. Opponents, including the banking industry and the Santa Monica Chamber of Commerce, say it is unfair to try to prevent banks from charging the fees because ATMs that are not owned by banks are allowed to charge them. They also say that banning the fees would actually hurt consumers by reducing their financial choices.