It is enacted by the General Assembly as follows:

SECTION 1. Section 19-3-13 of the General Laws in Chapter 19-3 entitled "Powers and Operations" is hereby amended to read as follows:

19-3-13. Use of electronic devices and machines. -- (a) Any financial institution, or credit union, may make available for use by its customers one or more electronic devices or machines (customer-bank communications terminals/automated teller machines). These devices or machines shall not be deemed to be the establishment of a branch of the particular financial institution or credit union. All surcharges chargeable for use of these devices shall be disclosed prior to completion of any transaction. Disclosure of the surcharge shall be displayed electronically by the electronic device or machine and shall not be disclosed by means of any stickers or placards placed on the exterior of the electronic device or machine.

(b) The establishment and use of these devices are subject to approval by the director or the director's designee which approval shall not be unreasonably withheld. Any request to establish a customer-bank communications terminal/automated teller machine must be sent to the director or the director's designee by certified mail, return receipt requested. Any request which is received by the director or the director's designee shall be deemed approved, if within five (5) business days of receipt by the director or the director's designee of the request, the director or the director's designee has not issued a notice of intent to deny the request. The director or the director's designee may promulgate rules and regulations not inconsistent with this section.

(c) To the extent consistent with the antitrust laws, each financial institution or credit union, chartered by this or any other state, is permitted but not required to share these devices with one (1) or more other financial institutions or credit unions, chartered by the state or federal government.

(d) Each financial institution or credit union shall adopt and maintain safeguards on each electronic device or machine consistent with the minimum requirements specified under the federal Bank Protection Act, 12 U.S.C. section 1881 et seq.

SECTION 2. Section 19-5-8 of the General Laws in Chapter 19-5 entitled "Credit Unions" is hereby amended to read as follows:

19-5-8. Election and terms of directors. -- (a) At the annual meeting the members shall elect a board of directors, the number of which shall be fixed from time to time by the by-laws, provided, however, that there shall be a minimum of five (5) directors. The number in any event shall be some multiple of three (3), to be elected in classes so that the term of office of one-third (1/3) of the whole number shall expire one year from the date of their election, the term of office of one-third (1/3) shall expire two (2) years from the date of their election, and the term of office of one-third (1/3) shall expire three (3) years from the date of their election. At each succeeding annual meeting directors shall be elected each for a term of three (3) years to succeed that class of directors whose term then expires. The directors shall be elected to staggered three (3) year terms so that one-third (1/3) of the whole number, or a close approximation of one-third (1/3), shall be elected at each succeeding annual meeting.

(b) In case of any increase in the number of directors, one-third (1/3) of the additional number shall be elected for the then unexpired portion of the term of those directors whose term expires in the year in which the increase is made, one-third (1/3) for the unexpired portion of the term of those directors whose term expires in the year following that in which the increase is made, and one-third (1/3) for the unexpired portion of the term of those directors whose term expires in the second year next after that in which the increase is made. the length of the initial term of the new director(s) shall be determined in accordance with the requirement that one-third (1/3) of the whole number, or a close approximation of one-third (1/3) shall be elected at each succeeding annual meeting.

(c) No more than two (2) employees of the credit union shall be permitted to serve as members of the board of directors at any one time.

SECTION 3. This act shall take effect upon passage.