S T A T E   O F   N E W   Y O R K
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                                 156--A

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced by M. of A. NOLAN, JACOBS, JAFFEE, MILLER, DINOWITZ, MILLMAN,
  WEPRIN,  O'DONNELL  --  Multi-Sponsored  by  -- M. of A. COOK, CRESPO,
  GABRYSZAK, GLICK, ORTIZ, PERRY  --  read  once  and  referred  to  the
  Committee  on  Banks  --  committee  discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the banking law, in relation to  requiring  transmitters
  of money to provide a certain warning to consumers

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The banking law is amended by adding a new section 652-c to
read as follows:
  S 652-C. REQUIRED WARNING. 1.   A PERSON ENGAGED IN  THE  BUSINESS  OF
RECEIVING  MONEY FOR TRANSMISSION OR TRANSMITTING MONEY BY WIRE OR ELEC-
TRONIC TRANSFER WHICH, AT THE REQUEST OF AN INDIVIDUAL WHO IN PERSON, BY
TELEPHONE OR ELECTRONIC MEANS TRANSMITS FUNDS TO ANOTHER  PERSON,  BUSI-
NESS OR ENTITY, SHALL CLEARLY AND PROMINENTLY WARN THE PERSON REQUESTING
THE  TRANSMISSION  PRIOR  TO COMPLETING SUCH TRANSMISSION OF FUNDS. SUCH
WARNING SHALL INCLUDE, BUT NOT BE LIMITED TO, THE FOLLOWING INFORMATION:
  (A) A TITLE IN BOLD, CAPITAL LETTERS  SAYING  "WARNING:  DO  NOT  FALL
VICTIM TO CONSUMER FRAUD;"
  (B)  QUESTIONS  OR INFORMATION THAT ALERT A CONSUMER ABOUT THE DANGERS
OF SENDING FUNDS FOR LOTTERY WINNINGS, CREDIT CARD GUARANTEES OR  LOANS,
INTERNET  OR PHONE OFFERS, TO PERSONS UNKNOWN TO THE CONSUMER OR PERSONS
WHOSE IDENTITY THE CONSUMER CANNOT VERIFY AND ANY OTHER FRAUD ALERT; AND
  (C) INFORMATION ABOUT HOW TO ASK  QUESTIONS  OF  THE  SALES  CLERK  OR
REPRESENTATIVE; AND
  (D) INFORMATION ABOUT HOW TO STOP A TRANSFER.
  2.  FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY" MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN
ELECTRONIC MEDIUM (SUCH AS VIDEO AND INTERACTIVE  MEDIA  INCLUDING,  BUT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD00134-02-3

A. 156--A                           2

NOT  LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL) THE
WARNING SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE  THE
TRANSMISSION  OF  FUNDS, SHALL BE IN A TYPE SIZE SUFFICIENTLY NOTICEABLE
FOR  AN ORDINARY CONSUMER TO READ AND COMPREHEND THE WRITTEN WARNING AND
SHALL BE IN A TYPE THAT CONTRASTS WITH THE BACKGROUND AGAINST WHICH  THE
WRITTEN  WARNING  APPEARS;  AND  (B) IN ORAL COMMUNICATIONS, THE WARNING
SHALL BE DELIVERED IN A VOLUME AND CADENCE SUFFICIENT  FOR  AN  ORDINARY
CONSUMER TO HEAR AND COMPREHEND. IF ANY COMMUNICATION IS PRESENTED SOLE-
LY  THROUGH  ORAL,  WRITTEN  OR  VISUAL MEANS, THE WARNING SHALL BE MADE
THROUGH THE SAME MEANS.
  3. THE WARNING REQUIRED BY THIS SECTION SHALL NOT APPLY  TO  AN  ELEC-
TRONIC  FUNDS  TRANSFER  IN  WHICH FUNDS ARE NOT TRANSFERRED DIRECTLY TO
ANOTHER PERSON AND ARE NOT AVAILABLE FOR IMMEDIATE USE,  NOR  SHALL  ANY
WARNING  BE  REQUIRED  IN  AN ELECTRONIC FUNDS TRANSFER MADE WITH A GIFT
CERTIFICATE AS DEFINED IN SECTION  THREE  HUNDRED  NINETY-SIX-I  OF  THE
GENERAL BUSINESS LAW.
  4.  A  VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE PUNISHABLE
BY A CIVIL PENALTY OF NOT MORE THAN TWO HUNDRED FIFTY  DOLLARS  FOR  THE
FIRST VIOLATION AND FIVE HUNDRED DOLLARS FOR EACH SUBSEQUENT VIOLATION.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.