BILL NUMBER: SB 586 AMENDED
BILL TEXT
AMENDED IN SENATE MARCH 21, 2011
INTRODUCED BY Senator Pavley
FEBRUARY 17, 2011
An act to add Sections 953.5 and 14409.5 to the Financial Code,
and to amend Section 368 of the Penal Code, relating to banks and
credit unions.
LEGISLATIVE COUNSEL'S DIGEST
SB 586, as amended, Pavley. Banks and credit unions: signature
stamps.
Existing law, the Banking Law, regulates the organization and
operations of state-organized banks, and the California Credit Union
Law regulates the organization and operation of credit unions, the
willful violation of which is a crime. Existing law does not regulate
the issuance or use of a signature stamp in financial transactions.
This bill would define "signature stamp" and regulate the issuance
of a signature stamp by a state-organized bank or credit union to an
accountholder and the use of the signature stamp by the
accountholder in financial transactions with a bank or credit union.
Existing law prohibits various types of elder abuse, punishable by
incarceration, fines, or both incarceration and fines, including
imprisonment in the county jail not exceeding one year, or by a fine
not to exceed $1,000, for specified types of abuse involving theft,
embezzlement, forgery, fraud, or identity theft.
This bill would add to those offenses the use of a signature stamp
in a financial transaction without the express written authorization
of a stampholder who is an elder or dependant adult, as specified.
The bill would increase the amount of each of the fines otherwise
imposed for the existing law offenses, and would provide that the
additional fine amount be allocated to the adult protective services
agency, or equivalent elder abuse prevention agency, of the county
prosecuting the offense. The bill would provide for restitution
for a violation of these provisions.
Because this bill would create new crimes, the bill would create a
state-mandated local program.
The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 953.5 is added to the Financial Code, to read:
953.5. (a) As used in this section, "signature stamp" means a
rubber or other synthetic stamp or device that is used to accurately
imitate the signature of an individual.
(b) A bank shall only issue a signature stamp to an existing
accountholder if either (1) the accountholder is present to request
the stamp and an employee of the bank witnesses and acknowledges
in writing that the signature stamp was requested by the stampholder
, or (2) the requesting accountholder's signature has been
notarized on an appropriate form approved and issued by the bank
.
(c) A bank that issues a signature stamp to an accountholder shall
(1) inform the accountholder of the risks associated with loss or
misuse of the signature stamp, and (2) specify, in
consultation with the accountholder, a maximum dollar amount that
may be withdrawn in a single transaction authorized by the
accountholder by use of the signature stamp , and (3) establish,
in consultation with the accountholder, a limit on the total amount
of funds that may be held in an account that is authorized to be
accessed by use of a signature stamp. If deposits to an account
exceed the limit established pursuant to this subdivision, or if the
account is overdrawn, the bank shall attempt to verify that the
accountholder is aware of the excessive deposits or
overdraft, and shall take all reasonable measures to ensure the
safety of the account, including, but not limited to, freezing the
account until verification is obtained from the accountholder.
Nothing in this section shall be construed to limit the authority of
an accountholder to raise or lower the limit on an account in
consultation with an employee of the bank .
(d) A bank shall only open a new account for a person using a
signature stamp to open the account if an employee of the bank
witnesses the affixing of the stamp by the stampholder or person
assisting the stampholder in the stampholder's presence.
(e) A bank shall only grant a primary accountholder's request to
add an additional signatory authority using a signature stamp
to an existing account if either (1) an employee of the bank
witnesses the affixing of the stamp and acknowledges in writing
that the signature stamp was affixed by the stampholder or
person assisting the stampholder in the stampholder's presence, or
(2) the requesting accountholder's signature has been notarized on an
appropriate form approved and issued by the bank. For purposes
of this section, "signatory authority" means the authority given to
an individual to utilize a signature stamp with the permission of the
primary accountholder .
(f) A bank shall only issue a Medallion Signature Guarantee
requested by use of a signature stamp, if an employee of the bank
witnesses and acknowledges in writing that the signature stamp was
affixed by the stampholder or person assisting the stampholder in the
stampholder's presence. For purposes of this section a
"Medallion Signature Guarantee" means a guarantee of authenticity
issued by a financial institution for an accountholder's signature of
approval for the transfer of a financial securities product,
including, but not limited to, approved signature guarantees issued
pursuant to the Securities Transfer Agents Medallion Program, the
Stock Exchanges Medallion Program, and the New York Stock Exchange
Medallion Signature Program.
(g) Any person who uses a signature stamp in violation of
subdivision (d) or (e) of Section 368 of the Penal Code shall, in
addition to the penalties set forth therein, be liable for
restitution of all funds fraudulently obtained thereby, including the
monetary value of any goods or services so obtained.
SEC. 2. Section 14409.5 is added to the Financial Code, to read:
14409.5. (a) As used in this section, "signature stamp" means a
rubber or other synthetic stamp or device that is used to accurately
imitate the signature of an individual.
(b) A credit union shall only issue a signature stamp to an
existing accountholder if either (1) the accountholder is present to
request the stamp , and an employee of the credit union
witnesses and acknowledges in writing that the signature stamp was
requested by the stampholder , or (2) the requesting
accountholder's signature has been notarized on an appropriate form
approved and issued by the credit union .
(c) A credit union that issues a signature stamp to an
accountholder shall (1) inform the accountholder of the risks
associated with loss or misuse of the signature stamp, and
(2) specify, in consultation with the accountholder, a
maximum dollar amount that may be withdrawn in a single transaction
authorized by the accountholder by use of the signature stamp ,
and (3) establish, in consultation with the accountholder, a limit on
the t otal amount of funds that may be held in an account
that is authorized to be accessed by use of a signature stamp. If
deposits to an account exceed the limit established pursuant to this
subdivision, or if the account is overdrawn, the credit union shall
attempt to verify that the accountholder is aware of the
excessive deposits or overdraft, and shall take all reasonable
measures to ensure the safety of the account, including, but not
limited to, freezing the account until verification is obtained from
the accountholder. Nothing in this section shall be construed to
limit the authority of an accountholder to raise or lower the dollar
limit on an account in consultation with an employee of the credit
union .
(d) A credit union shall only open a new account for a person
using a signature stamp to open the account if an employee of the
credit union witnesses the affixing of the stamp by the stampholder
or person assisting the stampholder in the stampholder's presence.
(e) A credit union shall only grant a primary accountholder's
request to add an additional signatory authority ,
using a signature stamp, to an existing account if either (1)
an employee of the credit union witnesses the affixing of the stamp
and acknowledges in writing that the signature stamp was affixed
by the stampholder or person assisting the stampholder in the
stampholder's presence, or (2) the requesting accountholder's
signature has been notarized on an appropriate form approved and
issued by the credit union. For purposes of this section, "signatory
authority" means the authority given to an individual to utilize a
signature stamp with the per mission of the primary
accountholder .
(f) A credit union shall only issue a Medallion Signature
Guarantee requested by use of a signature stamp, if an employee of
the credit union witnesses and acknowledges in writing that the
signature stamp was affixed by the stampholder or person assisting
the stampholder in the stampholder's presence. For purposes of
this section a "Medallion Signature Guarantee" means a guarantee of
authenticity issued by a financial institution for an accountholder's
signature of approval for the transfer of a financial securities
product, including, but not limited to, approved signature guarantees
issued pursuant to the Securities Transfer Agents Medallion Program,
the Stock Exchanges Medallion Program, and the New York Stock
Exchange Medallion Signature Program.
(g) Any person who knowingly violates the provisions of this
section, shall be subject to all of the applicable penalties set
forth in subdivisions (d) and (e) of Section 368 of the Penal Code,
and shall be held liable for restitution of all funds fraudulently
obtained in violation of this section, including the monetary value
of any goods or services obtained using funds obtained in violation
of this section.
(g) Any person who uses a signature stamp in violation of
subdivision (d) or (e) of Section 368 of the Penal Code shall, in
addition to the penalties set forth therein, be liable for
restitution of all funds fraudulently obtained thereby, including the
monetary value of any goods or services so obtained.
SEC. 3. Section 368 of the Penal Code is amended to read:
368. (a) The Legislature finds and declares that crimes against
elders and dependent adults are deserving of special consideration
and protection, not unlike the special protections provided for minor
children, because elders and dependent adults may be confused, on
various medications, mentally or physically impaired, or incompetent,
and therefore less able to protect themselves, to understand or
report criminal conduct, or to testify in court proceedings on their
own behalf.
(b) (1) Any person who knows or reasonably should know that a
person is an elder or dependent adult and who, under circumstances or
conditions likely to produce great bodily harm or death, willfully
causes or permits any elder or dependent adult to suffer, or inflicts
thereon unjustifiable physical pain or mental suffering, or having
the care or custody of any elder or dependent adult, willfully causes
or permits the person or health of the elder or dependent adult to
be injured, or willfully causes or permits the elder or dependent
adult to be placed in a situation in which his or her person or
health is endangered, is punishable by imprisonment in a county jail
not exceeding one year, or by a fine not to exceed twelve thousand
dollars ($12,000), 50 percent of which shall be allocated to the
adult protective services agency, or equivalent elder abuse
prevention agency, of the county prosecuting the offense, or by both
that fine and imprisonment, or by imprisonment in the state prison
for two, three, or four years.
(2) If in the commission of an offense described in paragraph (1),
the victim suffers great bodily injury, as defined in Section
12022.7, the defendant shall receive an additional term in the state
prison as follows:
(A) Three years if the victim is under 70 years of age.
(B) Five years if the victim is 70 years of age or older.
(3) If in the commission of an offense described in paragraph (1),
the defendant proximately causes the death of the victim, the
defendant shall receive an additional term in the state prison as
follows:
(A) Five years if the victim is under 70 years of age.
(B) Seven years if the victim is 70 years of age or older.
(c) Any person who knows or reasonably should know that a person
is an elder or dependent adult and who, under circumstances or
conditions other than those likely to produce great bodily harm or
death, willfully causes or permits any elder or dependent adult to
suffer, or inflicts thereon unjustifiable physical pain or mental
suffering, or having the care or custody of any elder or dependent
adult, willfully causes or permits the person or health of the elder
or dependent adult to be injured or willfully causes or permits the
elder or dependent adult to be placed in a situation in which his or
her person or health may be endangered, is guilty of a misdemeanor. A
second or subsequent violation of this subdivision is punishable by
a fine not to exceed four thousand dollars ($4,000), 50 percent of
which shall be allocated to the adult protective services agency, or
equivalent elder abuse prevention agency, of the county prosecuting
the offense, or by imprisonment in a county jail not to exceed one
year, or by both that fine and imprisonment.
(d) Any person who is not a caretaker who violates any provision
of law proscribing theft, embezzlement, forgery, or fraud, or who
violates Section 530.5 proscribing identity theft, or who uses a
signature stamp, as defined in subdivision (a) of Sections 953.5 and
14409.5 of the Financial Code, in a financial transaction without the
knowledge and express written authorization of the stampholder
, in each case, with respect to the property or
personal identifying information of an elder or a dependent adult,
and who knows or reasonably should know that the victim is an elder
or a dependent adult, is punishable by imprisonment in a county jail
not exceeding one year, or in the state prison for two, three, or
four years, when the moneys, labor, goods, services, or real or
personal property taken or obtained is of a value exceeding nine
hundred fifty dollars ($950); and by a fine not exceeding two
thousand dollars ($2,000), 50 percent of which shall be allocated to
the adult protective services agency, or equivalent elder abuse
prevention agency, of the county prosecuting the offense, by
imprisonment in a county jail not exceeding one year, or by both that
fine and imprisonment, when the moneys, labor, goods, services, or
real or personal property taken or obtained is of a value not
exceeding nine hundred fifty dollars ($950).
(e) Any caretaker of an elder or a dependent adult who violates
any provision of law proscribing theft, embezzlement, forgery, or
fraud, or who violates Section 530.5 proscribing identity theft, or
who uses a signature stamp, as defined in subdivision (a) of Sections
953.5 and 14409.5 of the Financial Code, in a financial transaction
without the express written authorization of the stampholder
, in each case, with respect to the property or personal
identifying information of that elder or dependent adult, is
punishable by imprisonment in a county jail not exceeding one year,
or in the state prison for two, three, or four years when the moneys,
labor, goods, services, or real or personal property taken or
obtained is of a value exceeding nine hundred fifty dollars ($950),
and by a fine not exceeding two thousand dollars ($2,000), 50 percent
of which shall be allocated to the adult protective services agency,
or equivalent elder abuse prevention agency, of the county
prosecuting the offense, by imprisonment in a county jail not
exceeding one year, or by both that fine and imprisonment, when the
moneys, labor, goods, services, or real or personal property taken or
obtained is of a value not exceeding nine hundred fifty dollars
($950).
(f) Any person who commits the false imprisonment of an elder or a
dependent adult by the use of violence, menace, fraud, or deceit is
punishable by imprisonment in the state prison for two, three, or
four years.
(g) As used in this section, "elder" means any person who is 65
years of age or older.
(h) As used in this section, "dependent adult" means any person
who is between the ages of 18 and 64, who has physical or mental
limitations which restrict his or her ability to carry out normal
activities or to protect his or her rights, including, but not
limited to, persons who have physical or developmental disabilities
or whose physical or mental abilities have diminished because of age.
"Dependent adult" includes any person between the ages of 18 and 64
who is admitted as an inpatient to a 24-hour health facility, as
defined in Sections 1250, 1250.2, and 1250.3 of the Health and Safety
Code.
(i) As used in this section, "caretaker" means any person who has
the care, custody, or control of, or who stands in a position of
trust with, an elder or a dependent adult.
(j) Nothing in this section shall preclude prosecution under both
this section and Section 187 or 12022.7 or any other provision of
law. However, a person shall not receive an additional term of
imprisonment under both paragraphs (2) and (3) of subdivision (b) for
any single offense, nor shall a person receive an additional term of
imprisonment under both Section 12022.7 and paragraph (2) or (3) of
subdivision (b) for any single offense.
(k) In any case in which a person is convicted of violating these
provisions, the court may require him or her to receive appropriate
counseling as a condition of probation. Any defendant ordered to be
placed in a counseling program shall be responsible for paying the
expense of his or her participation in the counseling program as
determined by the court. The court shall take into consideration the
ability of the defendant to pay, and no defendant shall be denied
probation because of his or her inability to pay.
SEC. 4. No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIII B of the California
Constitution.