|SAME AS||SAME AS S06736|
|COSPNSR||D'Urso, Brindisi, Wallace, Sepulveda, McDonough, Raia, Barron, Jean-Pierre, Blake, Hunter, Galef, Jaffee|
|Amd §473, Soc Serv L; amd §4, add §4-d, Bank L|
|Authorizes banking institutions to temporarily refuse or delay disbursement from the account of a vulnerable elderly person if certain criteria are met.|
|02/23/2017||referred to aging|
|06/16/2017||amend (t) and recommit to aging|
|06/16/2017||print number 6099a|
|01/03/2018||referred to aging|
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6099A SPONSOR: Lupardo
TITLE OF BILL: An act to amend the social services law and the bank- ing law, in relation to the role of banking institutions in protecting vulnerable elderly persons from financial exploitation   PURPOSE: This bill permits banking institutions to freeze single financial trans- actions where there is a belief that an elderly persons has been the victim of financial elder abuse. This legislation also provides training to banking officials.   SUMMARY OF PROVISIONS: Amends section 473 of the social services law by adding a new subdivi- sion 9. Defines "banking institution' to include many forms of financial insti- tutions in New York. Defines ''vulnerable elderly adult" by moss-refer- encing section 260.31 of the penal law. Defines "financial exploitation" to includes series of commissions or omissions with the intent to obtain control through deception, intimidation, or malicious influence, a vulnerable elderly person's assets. Defines "qualified individual" to include a person of supervisory authority at a banking institution. A banking, social services, or law enforcement official who reasonably believes that financial exploitation of a vulnerably elderly person has occurred or may occur again may refuse or delay a single transaction from the account of the vulnerable elderly person or the account of which a vulnerable elderly person is a beneficiary. A banking institu- tion shall not be required to refuse or delay funds pursuant to these provisions. If a banking institution refuses to disburse or delays moneys pursuant to these provisions, the bank must; (i)Must make a reasonable effort to notify all parties to the trans- action within 5 days of the refusal or delay; and (ii)Immediately but no later than 1 business day after the refusal or delay report the incident to adult protective services or local enhanced multi-disciplinary. The report shall include the reason for refusing and/or delaying the transaction. The report may include any other facts deemed relevant by the bank. (iii)Adult protective services or law enforcement may request all infor- mation and documentation related to the refusal or delay. The refusal or delay shall terminate upon the earlier of: (i)the issuance of a court order; or (ii)ten business says after the transaction was held or delayed. In no case shall a bank delay or refuse to disburse funds related to ongoing obligations such as housing, medical are, or other emergency expenses. If a bank engages in the practice of delaying or refusing transactions, the bank must designate one qualified individual with the authority to refuse and delay transactions. Such person will be required to file reports. Section 4 of the banking law is amended to provide immunity for banking institutions that engage in refusing or delaying transactions when there is a suspicion of financial elder abuse. Section 3 creates a new section 4-d to require the Department of Finan- cial Services to create training and education materials. The Department of Financial Services in consultation with the Office for Aging, Adult Protective Services, Office of People with Developmental Disabilities, and Office of Victim Services shall develop training materials. The Department of Financial Services shall also consult with a number of advocacy groups as well. Participation in training will be voluntary by the banks.   EXISTING LAW: This is a new section of law.   JUSTIFICATION: Persons over the age of 65 are the fastest growing segment of the. American population, While senior citizens constituted only 4% of the total population in 1900, by 1994 the proportion of seniors in the United States had grown to 12.5%. By 2050 almost 25% of all Americans will be over age 65. This dramatic shift in population distribution has produced tremendous upheavals in family structure and in our societal response to the treatment and care of OUT senior population. One problem faced by many seniors today is how to care for themselves when their traditional network of support, their children and grandchildren, are occupied with raising their own families and are often spread out over a wide geographic area. Evidence suggests that there may be a surprisingly high percentage of senior citizens who are, either intentionally or unintentionally, mistreated by family members or institutional caregivers or who of their own volition, are neglecting in their own basic custodial needs. This maltreatment can take many forms, ranging from physical and psycholog- ical abuse to neglect to financial abuse and exploitation. While phys- ical abuse and neglect would seem to be a more immediate concern for the elderly than protecting their financial assets from potential theft or conversion by relatives and caregivers, the loss of one's financial assets can have an even more severe a long-term impact on a senior's well-being and quality of life as a physical injury or abuse. A 1990 congressional report also concluded that elder abuse is far less likely to be reported than child abuse, estimating that only 1 in 8 cases of elder abuse, as compared with 1 in 3 cases of child abuse, is ever reported to the authorities. Encouraging the reporting of suspected financial exploitation of vulnerable adults, including the elderly is an important public policy goal that should be achieved. Currently, 42 states and the District of Columbia have statutes requiring various professionals (typically health care professionals, psychologists and social workers) to report known and suspected incidents to prescribed public officials.   LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: On the 180th day.
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STATE OF NEW YORK ________________________________________________________________________ 6099--A 2017-2018 Regular Sessions IN ASSEMBLY February 23, 2017 ___________ Introduced by M. of A. LUPARDO, D'URSO, BRINDISI, WALLACE, SEPULVEDA, McDONOUGH, RAIA, BARRON, JEAN-PIERRE, BLAKE, HUNTER -- Multi-Sponsored by -- M. of A. LENTOL -- read once and referred to the Committee on Aging -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the social services law and the banking law, in relation to the role of banking institutions in protecting vulnerable elderly persons from financial exploitation The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Section 473 of the social services law is amended by adding 2 a new subdivision 9 to read as follows: 3 9. (a) When used in this subdivision: (i) "banking institution" means 4 any bank, trust company, savings bank, savings and loan association, or 5 credit union, which is chartered, organized, or licensed under the laws 6 of this state, and in the course of business takes deposit accounts in 7 this state, but shall not include a private banker, a safe deposit 8 company, or an investment company. 9 (ii) "vulnerable elderly person" shall have the same meaning as 10 section 260.31 of the penal law. 11 (iii) "financial exploitation" means (A) a series of improper takings, 12 withholdings, appropriations, or uses of a vulnerable adult's money, 13 assets, or property or (B) a series of acts or omissions to: (1) obtain 14 control, through deception, intimidation, or malicious influence, a 15 vulnerable adult's money, assets, or property or (2) convert the vulner- 16 able adult's money, assets, or property. 17 (iv) "qualified individual" means an individual associated with a 18 banking institution who serves in a supervisory, compliance, or legal 19 capacity as part of the individual's job. 20 (b) If a banking institution, social services official, or law 21 enforcement agency reasonably believes that financial exploitation of a EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06983-02-7A. 6099--A 2 1 vulnerable elderly person has occurred or may occur again, the banking 2 institution may, but shall not be required to, refuse or delay any 3 single transaction requiring the disbursal of moneys from the account 4 of: 5 (i) a vulnerable elderly person; or 6 (ii) which a vulnerable elderly person is a beneficiary. 7 (c) A banking institution may also refuse to disburse or delay moneys 8 pursuant to this subdivision if a social services official, or law 9 enforcement agency provides information to such institution demonstrat- 10 ing that it is reasonable to believe that financial exploitation of a 11 vulnerable elderly person has occurred or may occur again. 12 (d) A banking institution shall not be required to refuse to disburse 13 or delay funds pursuant to this section. Such a refusal or delay shall 14 be in the banking institution's discretion, based on the information 15 available to such institution. 16 (e) Any banking institution that refuses to disburse moneys or delays 17 the disbursement of moneys pursuant to this subdivision shall: 18 (i) make a reasonable effort to provide notice, orally or in writing, 19 to all parties authorized to transact business on the account from which 20 a disbursement was refused and/or delayed within five business days of 21 such refusal or delay; and 22 (ii) immediately, but no later than one business day after a refusal 23 or delay was placed on a transaction, report the incident to the social 24 services official responsible for administering adult protective 25 services or enhanced multi-disciplinary teams pursuant to this article 26 for the affected vulnerable adult. Such report shall include the reason 27 for refusing and/or delaying a transaction and the banking institution's 28 basis for refusing and/or delaying a single transaction. Such report 29 shall also contain any facts that the bank deems relevant to establish- 30 ing that financial exploitation of a vulnerable elderly person may have 31 occurred, may have been attempted, or is being attempted; and 32 (iii) at the request of the social services official responsible for 33 administering adult protective services pursuant to this article for the 34 affected vulnerable elderly person or a law enforcement agency, provide 35 all information and documents that relate to the transaction refusal or 36 delay within three business days of the request for information or 37 documentation. 38 (f) The delay of or refusal to disburse moneys pursuant to this subdi- 39 vision shall terminate upon the earlier of: 40 (i) the time at which the banking institution is satisfied that the 41 disbursement will not result in the financial exploitation of a vulner- 42 able elderly person; 43 (ii) the issuance of an order by a court of competent jurisdiction, 44 directing the disbursal of the moneys; or 45 (iii) ten business days after the day on which the transaction refusal 46 or delay is applied by the banking institution. 47 (g) Notwithstanding any other provisions found in this article, the 48 banking institution shall make funds available that were previously held 49 or delayed because of suspicion of financial exploitation of a vulner- 50 able elderly person, if such funds are necessary to meet ongoing obli- 51 gations such as, but not limited to, housing, medical care, or other 52 emergency expenses as determined by a social services official or law 53 enforcement official. Transactions related to the maintenance of a 54 household such as rent, mortgage payments, utilities, and medical 55 expenses shall not be delayed or refused by a banking institution.A. 6099--A 3 1 (h) If a banking institution does engage in the practice of delaying 2 or refusing transactions based on the financial exploitation of a 3 vulnerable elderly person, such banking institution must designate one 4 or more qualified individuals with the authority to refuse or delay such 5 transactions. Such designee shall make a record of such action in 6 compliance with subparagraph (ii) of paragraph (e) of this subdivision. 7 (i) A banking institution or an employee of such an institution shall 8 be immune from criminal, civil or administrative liability for delaying 9 the disbursement of moneys, refusing to disburse moneys, or disbursing 10 moneys pursuant to this subdivision, and for actions taken in further- 11 ance of that determination, including the making of a report or the 12 providing of access to or copies of relevant records to a social 13 services official or law enforcement agency, if such determinations and 14 actions were made in good faith and in accordance with the provisions of 15 this subdivision. 16 § 2. Section 4 of the banking law is amended by adding a new subdivi- 17 sion 4 to read as follows: 18 4. A banking institution or an employee of such an institution shall 19 be immune from criminal, civil or administrative liability for refusing 20 to disburse moneys or disbursing moneys pursuant to subdivision nine of 21 section four hundred seventy-three of the social services law, and for 22 actions taken in furtherance of a determination made pursuant to such 23 section, including making a report or providing access to or copies of 24 relevant records to a social services official or law enforcement agen- 25 cy, provided that such determinations and actions were made in good 26 faith and in accordance with subdivision nine of section four hundred 27 seventy-three of the social services law. For purposes of this subdivi- 28 sion, the term "banking institution" shall mean any bank, trust company, 29 savings bank, savings and loan association, credit union, or branch of a 30 foreign banking corporation, that is chartered, organized, or licensed 31 under the laws of this state or any other state or the United States, 32 and in the course of business takes deposit accounts in this state, but 33 shall not include a private banker, a safe deposit company, or an 34 investment company. 35 § 3. The banking law is amended by adding a new section 4-d to read as 36 follows: 37 § 4-d. Training and education. 1. The superintendent, in consultation 38 with the director of the office for the aging, the director of the 39 bureau of adult protective services within the office of children and 40 family services, the commissioner of the office of people with develop- 41 mental disabilities, and the director of the office of victim services, 42 shall develop a financial exploitation training and education program 43 for banking institutions as defined in section four hundred seventy- 44 three of the social services law. The superintendent shall also consult 45 with elder advocacy groups and disability rights organizations that 46 possess specialized knowledge in the prevention and/or identification of 47 financial exploitation, advocacy groups dealing with the effects of 48 aging on cognitive abilities, and advocacy groups that possess special- 49 ized knowledge in developmental disabilities, diseases and other condi- 50 tions that may impair mental and cognitive function. 51 2. Participation in the financial exploitation training and education 52 program shall be voluntary by the banking institution and the super- 53 intendent shall not require, by regulation or otherwise, that any direc- 54 tor, officer, employee or any other person affiliated with a banking 55 institution participate in or attend such training and education 56 program.A. 6099--A 4 1 3. In developing the financial exploitation training and education 2 program for covered banking institutions, the superintendent shall 3 consult with and shall include instructors from organizations that 4 provide services to vulnerable adults and may have experience in identi- 5 fying financial exploitation and from organizations that provide 6 services to individuals with developmental disabilities. 7 4. It shall be the purpose of the financial exploitation training and 8 education program to provide information, training and education on how 9 to identify, help prevent and report the financial exploitation of a 10 vulnerable elderly person. 11 5. The superintendent shall make the materials and instruction of the 12 financial exploitation training and education program available to all 13 banking institutions across the state at no cost, and shall further make 14 such available via both live instruction platforms as well as through 15 online instructional presentations accessible through the websites of 16 the department, the office for the aging, the office of children and 17 family services, the office of people with developmental disabilities, 18 and the office of victim services. 19 § 4. This act shall take effect on the one hundred eightieth day after 20 it shall have become a law.