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S06736 Summary:

BILL NOS06736
 
SAME ASSAME AS A06099-A
 
SPONSORVALESKY
 
COSPNSRSEPULVEDA
 
MLTSPNSR
 
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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S06736 Actions:

BILL NOS06736
 
06/15/2017REFERRED TO RULES
01/03/2018REFERRED TO AGING
03/13/20181ST REPORT CAL.640
03/14/20182ND REPORT CAL.
03/15/2018ADVANCED TO THIRD READING
06/20/2018COMMITTED TO RULES
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S06736 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          6736
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                      June 15, 2017
                                       ___________
 
        Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules
 
        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
    22  vulnerable  elderly  person has occurred or may occur again, the banking
    23  institution may, but shall not be  required  to,  refuse  or  delay  any
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13191-02-7

        S. 6736                             2
 
     1  single  transaction  requiring  the disbursal of moneys from the account
     2  of:
     3    (i) a vulnerable elderly person; or
     4    (ii) which a vulnerable elderly person is a beneficiary.
     5    (c)  A banking institution may also refuse to disburse or delay moneys
     6  pursuant to this subdivision if  a  social  services  official,  or  law
     7  enforcement  agency provides information to such institution demonstrat-
     8  ing that it is reasonable to believe that financial  exploitation  of  a
     9  vulnerable elderly person has occurred or may occur again.
    10    (d)  A banking institution shall not be required to refuse to disburse
    11  or delay funds pursuant to this section. Such a refusal or  delay  shall
    12  be  in  the  banking  institution's discretion, based on the information
    13  available to such institution.
    14    (e) Any banking institution that refuses to disburse moneys or  delays
    15  the disbursement of moneys pursuant to this subdivision shall:
    16    (i)  make a reasonable effort to provide notice, orally or in writing,
    17  to all parties authorized to transact business on the account from which
    18  a disbursement was refused and/or delayed within five business  days  of
    19  such refusal or delay; and
    20    (ii)  immediately,  but no later than one business day after a refusal
    21  or delay was placed on a transaction, report the incident to the  social
    22  services   official   responsible  for  administering  adult  protective
    23  services or enhanced multi-disciplinary teams pursuant to  this  article
    24  for  the affected vulnerable adult. Such report shall include the reason
    25  for refusing and/or delaying a transaction and the banking institution's
    26  basis for refusing and/or delaying a  single  transaction.  Such  report
    27  shall  also contain any facts that the bank deems relevant to establish-
    28  ing that financial exploitation of a vulnerable elderly person may  have
    29  occurred, may have been attempted, or is being attempted; and
    30    (iii)  at  the request of the social services official responsible for
    31  administering adult protective services pursuant to this article for the
    32  affected vulnerable elderly person or a law enforcement agency,  provide
    33  all  information and documents that relate to the transaction refusal or
    34  delay within three business days  of  the  request  for  information  or
    35  documentation.
    36    (f) The delay of or refusal to disburse moneys pursuant to this subdi-
    37  vision shall terminate upon the earlier of:
    38    (i)  the  time  at which the banking institution is satisfied that the
    39  disbursement will not result in the financial exploitation of a  vulner-
    40  able elderly person;
    41    (ii)  the  issuance  of an order by a court of competent jurisdiction,
    42  directing the disbursal of the moneys; or
    43    (iii) ten business days after the day on which the transaction refusal
    44  or delay is applied by the banking institution.
    45    (g) Notwithstanding any other provisions found in  this  article,  the
    46  banking institution shall make funds available that were previously held
    47  or  delayed  because of suspicion of financial exploitation of a vulner-
    48  able elderly person, if such funds are necessary to meet  ongoing  obli-
    49  gations  such  as,  but  not limited to, housing, medical care, or other
    50  emergency expenses as determined by a social services  official  or  law
    51  enforcement  official.  Transactions  related  to  the  maintenance of a
    52  household such  as  rent,  mortgage  payments,  utilities,  and  medical
    53  expenses shall not be delayed or refused by a banking institution.
    54    (h)  If  a banking institution does engage in the practice of delaying
    55  or refusing transactions  based  on  the  financial  exploitation  of  a
    56  vulnerable  elderly  person, such banking institution must designate one

        S. 6736                             3
 
     1  or more qualified individuals with the authority to refuse or delay such
     2  transactions.   Such designee shall make a  record  of  such  action  in
     3  compliance with subparagraph (ii) of paragraph (e) of this subdivision.
     4    (i)  A banking institution or an employee of such an institution shall
     5  be immune from criminal, civil or administrative liability for  delaying
     6  the  disbursement  of moneys, refusing to disburse moneys, or disbursing
     7  moneys pursuant to this subdivision, and for actions taken  in  further-
     8  ance  of  that  determination,  including  the making of a report or the
     9  providing of access to  or  copies  of  relevant  records  to  a  social
    10  services  official or law enforcement agency, if such determinations and
    11  actions were made in good faith and in accordance with the provisions of
    12  this subdivision.
    13    § 2. Section 4 of the banking law is amended by adding a new  subdivi-
    14  sion 4 to read as follows:
    15    4.  A  banking institution or an employee of such an institution shall
    16  be immune from criminal, civil or administrative liability for  refusing
    17  to  disburse moneys or disbursing moneys pursuant to subdivision nine of
    18  section four hundred seventy-three of the social services law,  and  for
    19  actions  taken  in  furtherance of a determination made pursuant to such
    20  section, including making a report or providing access to or  copies  of
    21  relevant  records to a social services official or law enforcement agen-
    22  cy, provided that such determinations and  actions  were  made  in  good
    23  faith  and  in  accordance with subdivision nine of section four hundred
    24  seventy-three of the social services law. For purposes of this  subdivi-
    25  sion, the term "banking institution" shall mean any bank, trust company,
    26  savings bank, savings and loan association, credit union, or branch of a
    27  foreign  banking  corporation, that is chartered, organized, or licensed
    28  under the laws of this state or any other state or  the  United  States,
    29  and  in the course of business takes deposit accounts in this state, but
    30  shall not include a private  banker,  a  safe  deposit  company,  or  an
    31  investment company.
    32    § 3. The banking law is amended by adding a new section 4-d to read as
    33  follows:
    34    §  4-d. Training and education. 1. The superintendent, in consultation
    35  with the director of the office for  the  aging,  the  director  of  the
    36  bureau  of  adult  protective services within the office of children and
    37  family services, the commissioner of the office of people with  develop-
    38  mental  disabilities, and the director of the office of victim services,
    39  shall develop a financial exploitation training  and  education  program
    40  for  banking  institutions  as  defined in section four hundred seventy-
    41  three of the social services law. The superintendent shall also  consult
    42  with  elder  advocacy  groups  and  disability rights organizations that
    43  possess specialized knowledge in the prevention and/or identification of
    44  financial exploitation, advocacy groups  dealing  with  the  effects  of
    45  aging  on cognitive abilities, and advocacy groups that possess special-
    46  ized knowledge in developmental disabilities, diseases and other  condi-
    47  tions that may impair mental and cognitive function.
    48    2.  Participation in the financial exploitation training and education
    49  program shall be voluntary by the banking  institution  and  the  super-
    50  intendent shall not require, by regulation or otherwise, that any direc-
    51  tor,  officer,  employee  or  any other person affiliated with a banking
    52  institution  participate  in  or  attend  such  training  and  education
    53  program.
    54    3.  In  developing  the  financial exploitation training and education
    55  program for  covered  banking  institutions,  the  superintendent  shall
    56  consult  with  and  shall  include  instructors  from organizations that

        S. 6736                             4

     1  provide services to vulnerable adults and may have experience in identi-
     2  fying  financial  exploitation  and  from  organizations  that   provide
     3  services to individuals with developmental disabilities.
     4    4.  It shall be the purpose of the financial exploitation training and
     5  education program to provide information, training and education on  how
     6  to  identify,  help  prevent  and report the financial exploitation of a
     7  vulnerable elderly person.
     8    5. The superintendent shall make the materials and instruction of  the
     9  financial  exploitation  training and education program available to all
    10  banking institutions across the state at no cost, and shall further make
    11  such available via both live instruction platforms as  well  as  through
    12  online  instructional  presentations  accessible through the websites of
    13  the department, the office for the aging, the  office  of  children  and
    14  family  services,  the office of people with developmental disabilities,
    15  and the office of victim services.
    16    § 4. This act shall take effect on the one hundred eightieth day after
    17  it shall have become a law.
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