House Banking's financial institutions subcommittee approved an automated-teller-machine disclosure bill Tuesday.

The measure would require ATM operators to post a notice on machines and video screens informing consumers of any surcharge.

"We owe it to the consumer to deal with the genuine need for proper disclosure while not placing additional and unwarranted regulatory burdens on financial institutions and ATM network operators," said Rep. Marge Roukema, R-N.J., the subcommittee chairwoman.

The panel dropped a provision requiring banks to report information about their surcharges to regulators. Still, industry representatives were disappointed with Tuesday's outcome. Ron Ence, director of legislative affairs for the Independent Bankers Association of America, predicted that the surcharge bill would not get out of the House.

"The bottom line is that there is no vehicle for this, and the legislative year is running out, so we would hope that this bill just goes away quietly," Mr. Ence said.

Senate Banking Chairman Alfonse M. D'Amato, who has introduced legislation that would ban surcharges, criticized Tuesday's action as an implicit sanction of the fees.

"The House Banking subcommittee vote to require surcharge disclosures in essence gives the seal of approval to an unfair double charge on the consumer," the New York Republican said in a statement. "Double ATM charges are wrong."

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