Attempt to Impose Registration Regime on ATM Owners in Texas

The sponsor of last session’s failed HB 2629 pre-filed a rehash of the same bill. Although the intent is an honorable one – reducing human trafficking – the “solution” is more than misguided. There is no hope whatsoever that it will have even the tiniest impact on the criminal elements responsible for human trafficking because the sponsors’ assumptions about how the ATM industry “works” are deeply flawed. 

A burdensome registration regime is being proposed for 100% of the independently operated ATMs because an estimated 6% of the businesses they are located in (900) are suspected of illicit activity. Further weakening the argument is the fact that none of those 900 businesses may own or operate the ATM in their location.

Although no reason is given for this requirement, the new regulations would require 30 days' notice to move any ATM, for any reason. Therefore, if a natural disaster takes out a populated area or interrupts power, there will be a 30-day wait to bring in mobile ATMs. Confidential agreements between ATM operators and all of their merchant locations would have to be submitted with the registration application. A striking breach of privacy.

All of this to collect, essentially, the name, address, and phone number of the ATM owner, ATM location, and occupant – none of which is particularly difficult to gather upon very short notice, without need of a registration regime. Critical information, such as the source of cash funds and the cardholder names and transaction details will still require a warrant – just as they do now.