senate Bill S606A

2013-2014 Legislative Session

Requires transmitters of money to provide a certain warning to consumers

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 07, 2014 reported and committed to finance
Feb 26, 2014 notice of committee consideration - requested
Jan 08, 2014 referred to banks
Jun 10, 2013 print number 606a
amend and recommit to commerce, economic development and small business
Apr 23, 2013 reported and committed to commerce, economic development and small business
Mar 08, 2013 notice of committee consideration - requested
Jan 09, 2013 referred to banks

Votes

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May 7, 2014 - Banks committee Vote

S606A
9
5
committee
9
Aye
5
Nay
5
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Banks committee vote details

Apr 24, 2013 - Banks committee Vote

S606
9
5
committee
9
Aye
5
Nay
5
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show committee vote details

Bill Amendments

Original
A (Active)
Original
A (Active)

Co-Sponsors

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S606 - Bill Details

See Assembly Version of this Bill:
A156A
Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §652-c, Bank L
Versions Introduced in 2011-2012 Legislative Session:
A8928, A8928B, S6276B

S606 - Bill Texts

view summary

Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

view sponsor memo
BILL NUMBER:S606

TITLE OF BILL:
An act
to amend the banking law, in relation to requiring transmitters of money
to provide a certain warning to consumers

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require a transmitter of money to provide a warning
about fraud to consumers.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this act would amend the banking law by adding a new
section, requiring a person engaged in the business of receiving
money for transmission or transmitting money to clearly and
prominently warn the consumers about fraud prior to completing the
transfer.

Section 2 makes this act effective on the one hundred eightieth day
after it shall have become a law.

JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly, however,
are especially vulnerable to scams that call for the transferring of
money. People receive calls or emails informing them that they won
the lottery, that they have been offered a great deal, or that they
can apply for a credit card if they simply transfer funds to an
unspecified address. People have lost hundreds of thousands of
dollars when they electronically transfer funds to individuals they
do not know. This bill would require a financial institution to alert
their customers to the dangers of consumer fraud. It would help them
make better decisions before things go terribly wrong.

PRIOR LEGISLATIVE HISTORY:
2012: Senate Sill *6275-B (Gianaris) - Died in Senate Rules Committee
2012: Assembly Bill *8928-B (Nolan) - Passed Assembly 101-41 (6/19/12)

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

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                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                   606

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. GIANARIS, ADAMS, ADDABBO, AVELLA, HASSELL-THOMPSON,
  KENNEDY, KRUEGER, MONTGOMERY,  PARKER,  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:
  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 CONTAIN AT THE MINIMUM THE FOLLOWING STATEMENTS:
  (A) "WARNING: DO NOT FALL VICTIM TO CONSUMER FRAUD."
  (B) "ARE YOU SENDING MONEY TO CLAIM LOTTERY WINNINGS?"
  (C) "ARE YOU SENDING MONEY BECAUSE YOU WERE GUARANTEED A  CREDIT  CARD
OR LOAN?"
  (D) "ARE YOU RESPONDING TO AN INTERNET OR PHONE OFFER THAT YOU ARE NOT
SURE IS HONEST?"
  (E) "ARE YOU SENDING MONEY TO SOMEONE YOU DO NOT KNOW OR WHOSE IDENTI-
TY YOU CANNOT VERIFY?"
  (F) "ASK THE SALES CLERK OR REPRESENTATIVE TO STOP YOUR TRANSFER RIGHT
AWAY  IF  YOU  HAVE ANY QUESTIONS OR ARE UNSURE ABOUT THE NATURE OF YOUR
TRANSACTION. IT COULD BE FRAUD."
  2. FOR THE PURPOSES OF THIS SECTION, "CLEARLY AND PROMINENTLY"  MEANS:
(A) IN WRITTEN COMMUNICATIONS, INCLUDING PRINT AND THOSE MADE THROUGH AN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00134-01-3

S. 606                              2

ELECTRONIC  MEDIUM  (SUCH  AS VIDEO AND INTERACTIVE MEDIA INCLUDING, BUT
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.

Co-Sponsors

view additional co-sponsors

S606A (ACTIVE) - Bill Details

See Assembly Version of this Bill:
A156A
Current Committee:
Law Section:
Banking Law
Laws Affected:
Add §652-c, Bank L
Versions Introduced in 2011-2012 Legislative Session:
A8928, A8928B, S6276B

S606A (ACTIVE) - Bill Texts

view summary

Requires transmitters of money to provide a warning which informs consumers of certain fraudulent activities that may occur.

view sponsor memo
BILL NUMBER:S606A

TITLE OF BILL: An act to amend the banking law, in relation to
requiring transmitters of money to provide a certain warning to
consumers

PURPOSE OR GENERAL IDEA OF BILL:
This bill would require a transmitter of money to provide a warning
about fraud to consumers.

SUMMARY OF SPECIFIC PROVISIONS:
Section 1 of this act would amend the banking law by adding a new
section, requiring a person engaged in the business of receiving money
for transmission or transmitting money to clearly and prominently warn
the consumers about fraud prior to completing the transfer.

Section 2 makes this act effective on the one hundred eightieth day
after it shall have become a law.

JUSTIFICATION:
Consumer fraud hurts everyone regardless of age. The elderly, however,
are especially vulnerable to scams that call for the transferring of
money. People receive calls or emails informing them that they won the
lottery, that they have been offered a great deal, or that they can
apply for a credit card if they simply transfer funds to an
unspecified address. People have lost hundreds of thousands of dollars
when they electronically transfer funds to individuals they do not
know. This bill would require a financial institution to alert their
customers to the dangers of consumer fraud. It would help them make
better decisions before things go terribly wrong.

PRIOR LEGISLATIVE HISTORY:
2012: Senate Sill *6275-B (Gianaris) - Died in Senate Rules Committee
2012: Assembly Bill *8928-B (Nolan) - Passed Assembly 101-41 (6/19/12)

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law.

view full text
download pdf
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 606--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sens. GIANARIS, ADAMS, ADDABBO, AVELLA, HASSELL-THOMPSON,
  KENNEDY, KRUEGER, MONTGOMERY,  PARKER,  STAVISKY,  STEWART-COUSINS  --
  read  twice  and  ordered printed, and when printed to be committed to
  the Committee on Banks -- reported favorably from said  committee  and
  committed to the Committee on Commerce, Economic Development and Small
  Business  --  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.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00134-03-3

S. 606--A                           2

  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
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.

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