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A06099 Summary:

BILL NOA06099A
 
SAME ASSAME AS S06736
 
SPONSORLupardo
 
COSPNSRD'Urso, Brindisi, Wallace, Sepulveda, McDonough, Raia, Barron, Jean-Pierre, Blake, Hunter, Galef, Jaffee
 
MLTSPNSRHooper, Lentol
 
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.
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A06099 Actions:

BILL NOA06099A
 
02/23/2017referred to aging
06/16/2017amend (t) and recommit to aging
06/16/2017print number 6099a
01/03/2018referred to aging
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A06099 Memo:

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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A06099 Text:



 
                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.
                                                                   LBD06983-02-7

        A. 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.
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