May 4, 2004

TO THE MISSISSIPPI HOUSE OF REPRESENTATIVES:

Governor's Veto Message for House Bill 550

I am returning House Bill Number 550, "AN ACT TO AMEND SECTION 75-24-5, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE OPERATION OF CERTAIN ELECTRONIC TERMINALS BY ANY PARTY OTHER THAN A FEDERALLY INSURED BANK OR THRIFT SHALL BE PROHIBITED UNDER THE CONSUMER PROTECTION LAWS IF THAT OPERATION DOES NOT COMPLY WITH THE REQUIREMENTS APPLICABLE TO THOSE BANKS OR THRIFTS; AND FOR RELATED PURPOSES" without my approval and assign the following reasons for my veto.

House Bill 550 attempts to standardize the rates that consumers can be charged for ATM services. Protecting the consumer from exorbitant fees is a worthy goal. However, the combination of existing federal and state laws preempts the application of this bill to a large portion of the ATM industry. Current federal law imposes neither a prohibition on charging ATM fees nor a cap on how much a national bank may charge. National banks are free to set the prices for their services, subject only to the oversight of the Office of the Comptroller of the Currency. Mississippi law provides state banks the same powers, privileges, and immunities as those national banks located in Mississippi. The practical result of this bill being enacted would be that non-bank ATMs would be subject to its restrictions, while bank-owned ATMs would not be similarly limited. Therefore, House Bill 550 would create an uneven playing field.

House Bill 550 also would allow for a private right of action for its enforcement in addition to state regulation. This bill, therefore, would lead to more lawsuits clogging our court system. It is for these reasons that I have applied my veto to House Bill 550. I urge the members to sustain the veto and reject House Bill 550.

Respectfully submitted,

HALEY BARBOUR

GOVERNOR