In our new building we have the kind where you wave your hand in front of it and it spits out a length of paper towel. We're getting them in the old place too--I don't know what went into the decision, all I know is that the old ones jammed regularly. And like UT says they often managed to put unperforated rolls in them. Why, I don't know. (Though my "nothing worse" would have to go to
no paper towels at all.)
The touchless dispensers have a red LED on the front. In the same building the doors with electronic locks have ID card readers next to them that also feature red LEDs. This inspired me to make a proposal that we could fit the paper towel dispensers with card readers, thereby enabling us to track paper towel usage per person and charge back the appropriate departments.
Sadly, the suggestion was rejected.