The banking industry is voicing support for a bill that would prohibit panhandling within 15 feet of New York City ATMs.
The bill, introduced May 25 by two city councilmen, takes aim at many of the same customer safety issues as an ATM security law the city council enacted in 1993. The new measure would affect 2,500 ATMs in the city's five boroughs.
"My preliminary reaction to the bill is favorable, because it appears to reflect a recognition that the problem of crime at ATMs is not something that entirely within our control as an industry," said David L. Glass, general counsel at the New York State Bankers Association. "It appears to be a constructive attempt to deal with the problem."
The bill's sponsors said it is a response to a rise in panhandling in and around ATMs. Violators could be fined up to $25 or jailed for up to 10 days, the same as panhandlers in New York City subways.
Opinions vary on whether panhandlers represent a significant threat to bank customers, but the bill's sponsors said panhandling creates a "hostile and intimidating environment" tha infringes on a bank customer's right to unimpeded use of an ATM.
In addition, the sponsors note, the presence of panhandlers can deter potential customers from using a particular ATM. This assertion is supported by research conducted several years ago by Carmody & Bloom, a consulting firm based in Woodcliff Lake, N.J.
One sponsor, Councilman Andrew S. Eristoff, said a survey of his constituents showed that 83% of respondents agreed that the city should make it a crime to panhandle near ATMs.
Since panhandlers make customers uncomfortable with ATM use, it should come as little surprise that bankers support the bill.
However, bankers have not always seen eye to eye with the city council on the subject of ATM security.
Cooperation Replaces Antagonism
In 1992, the two groups clashed over the contents of an ATM security bill, which was eventually signed into law. That law requires the installation of surveillance cameras and special door access mechanisms at all New York ATMs.
While some of the banks' differences with the city council on this matter remain, the tension between the two groups has been gradually replaced by a more cooperative attitude, paving the way for legislation such as the panhandling bill.
Bankers still have some questions about enforcement of the proposed law and about its constitutionality. But the bill's sponsors are confident that they can pass the measure.
"This legislation, tailored to conform with recent state and federal court decisions interpreting the First Amendment, will give law enforcement officers the ability to ask panhandlers to move away from ATM facilities," said Councilman Eristoff.
