S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    177
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 4, 2023
                                ___________
 
 Introduced  by  Sens. GIANARIS, ADDABBO, HINCHEY, KENNEDY, KRUEGER, LIU,
   MANNION, MAY, PARKER, SERRANO, STAVISKY, STEWART-COUSINS -- read twice
   and ordered printed, and when printed to be committed to the Committee
   on Banks
 
 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:
   § 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;
   (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
 NOT  LIMITED TO, THE INTERNET, ONLINE SERVICES, AND ELECTRONIC MAIL) THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00388-02-3
 S. 177                              2
 
 WARNING SHALL APPEAR ON THE SAME FORM AS THE FORM USED TO AUTHORIZE  THE
 TRANSMISSION  OF  FUNDS,  OR IF NO WRITTEN FORM IS USED, VIA A SIGN IN A
 LOCATION REASONABLY DESIGNED TO PROVIDE SUCH NOTICE, 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 SOLELY 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.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.