AGO 2000-006.

• Case Date: February 17, 2000
• Court: Connecticut

Connecticut Attorney General Opinions 2000. AGO 2000-006. February 17, 2000Opinion No. 2000-006John P. BurkeCommissionerDepartment of Banking260 Constitution PlazaHartford, CT 06103-1800 Dear Commissioner Burke: You have asked for our opinion as to whether Section 36a-158(a) of the Connecticut General Statutes violates the Commerce Clause of the Unites States Constitution or the Equal Protection Clauses of the state and federal constitutions as to an out-of-state state-chartered bank that wishes to establish an automated teller machine ("ATM") in this state. Based upon the analysis that follows, we believe that Conn. Gen. Stat. § 36a-158a violates neither the Commerce Clause of the United States Constitution nor the Equal Protection Clauses of the state or federal constitutions as applied to an out-of-state state-chartered bank. I. Background Your question arrives in the following context. The Department of Banking received an inquiry from The Trust Company of New Jersey ("Trust Company"), a New Jersey-chartered bank, that has arranged with a supermarket chain to provide ATMs in the chain's stores in New Jersey, New York, and Connecticut. The Trust Company has asked you whether Connecticut's ATM statutes permit it to establish ATMs in this state. Our legal analysis begins with Conn. Gen. Stat. § 36a-158(a), the statute that addresses the establishment of ATMs by out-of-state banks: (a) Except as provided in subsection (b) of this section, no out-of-state bank or out-of-state credit union may directly or indirectly establish or use an automated teller machine or point of sale terminal in this state. This prohibition does not apply to an out-of-state bank or out-of-state credit union that is authorized under the laws of the state or federal law to accept deposits within this state. (Emphasis added). An "out-of-state bank" under Connecticut's banking statutes is defined as "any institution that engages in the business of banking, but does not include a bank, Connecticut credit union, federal credit union or out-of-state credit union." Conn. Gen. Stat. § 36a-2(41)(emphasis added). The term "bank" is defined under Conn. Gen. Stat. § 36a-2(4) as "a Connecticut bank or a federal bank." Because the Trust Company is a New Jersey-chartered bank and is an institution that engages in the banking business, it is an "out-of-state bank" for the purposes of Conn. Gen. Stat. § 36a-158(a). We note that an out-of-state bank may establish a branch in this state with the approval of the Commissioner of Banking pursuant to Conn. Gen. Stat. § 36a-412(a)(2). Conn. Gen. Stat. § 36a-412(a)(4)(A) and (B), as amended by 1999 Conn. Pub. Act No. 99-158, § 7, addresses what activities are permitted at a Connecticut branch of an out-of-state bank. This provision states: (4)(A) Except as provided in this section, [. . . (B) The] the laws of this state shall apply to any branch in this state of [a federally-chartered] an out-of-state bank to the same extent as such laws would apply if the branch were a federal bank, [.The] provided the following laws shall apply to any branch in this state of [a federally-chartered] an out-of-state bank to the same extent as such laws apply to a branch of a Connecticut bank: (i) Community reinvestment laws . . . [citations omitted], (ii) consumer protection laws . . . [citations omitted], (iii) fair lending laws . . . [citations omitted], and (iv) branching laws . . . (B) Except as provided in this section, an out-of-state bank, other than a federally-chartered out-of-state bank, that establishes a branch in this state may conduct any activity at such branch (i) if such activity is permissible under the laws of the home state of such out-of-state bank, and (ii) to the same extent as such activity is permissible for either a Connecticut bank or a branch in this state of a federally-chartered out-of-state bank. ... Connecticut state-chartered banks are empowered to accept deposits under Conn. Gen. Stat. § 36a-250(a)(2)(A). We presume for the purposes of this opinion that the law of New Jersey permits New...