senate Bill S5675

Relates to the report of suspected financial exploitation

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Bill Status


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

  • 03 / Jun / 2013
    • REFERRED TO BANKS

Summary

Relates to the report of suspected financial exploitation; requires the superintendent of the department of financial services to develop guidelines relating to reporting suspected financial exploitation; provides that a financial institution who reports suspected financial abuse shall have immunity from any civil or criminal liability as a result.

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Bill Details

See Assembly Version of this Bill:
A1783B
Versions:
S5675
Legislative Cycle:
2013-2014
Current Committee:
Senate Banks
Law Section:
Banking Law
Laws Affected:
Add ยง9-v, Bank L
Versions Introduced in 2011-2012 Legislative Cycle:
A10358, A10358

Sponsor Memo

BILL NUMBER:S5675

TITLE OF BILL: An act to amend the banking law, in relation to
reporting of suspected financial exploitation

PURPOSE OR GENERAL IDEA OF BILL: To encourage voluntary reporting of
suspected financial exploitation.

SUMMARY OF SPECIFIC PROVISIONS: Creates a new section 9-v of the
banking law as follows:

* The Superintendent of the Department of Financial Services would
develop guidelines for reporting suspected financial exploitation in
consultation with the State Office for the Aging, NYS Attorney
General, representatives of the financial services industry, law
enforcement, senior groups, and district attorneys; and

* If a report of suspected financial exploitation were to be made in
accordance with those guidelines, the individual making the report
would be protected from liability resulting from that report.

JUSTIFICATION: Financial exploitation is a large and quickly growing
segment of elder abuse. Seniors are not always very savvy with money,
and, as their faculties fade, they sometimes become targets for scam
artists and undue influence. Financial institutions are often in a
prime position to notice changes in behavior or suspicious patterns of
withdrawals and investments. Fear of being sued, especially if the
abuser is a family member, has been raised as a barrier to voluntary
reporting by employees of financial institutions. This bill would
protect those who report suspected financial exploitation, but only if
the report is made by following guidelines set by the Department of
Financial Services.

PRIOR LEGISLATIVE HISTORY: None.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the 90th day.

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

                                  5675

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              June 3, 2013
                               ___________

Introduced  by  Sen.  ADAMS  -- 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 reporting  of  suspected
  financial exploitation

  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  9-v  to
read as follows:
  S  9-V. REPORTING OF SUSPECTED FINANCIAL EXPLOITATION. 1. FOR PURPOSES
OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "FINANCIAL EXPLOITATION" SHALL MEAN ACTIVITY  PROHIBITED  PURSUANT
TO  SECTIONS  190.25,  190.26,  190.60,  190.65, 190.78, 190.79, 190.80,
190.80-A, 190.81, 190.82, AND 190.83 OF THE PENAL LAW OR ACTIVITY  MEANT
TO  DEPRIVE  AN INDIVIDUAL OF ASSETS OR PROPERTY BY DECEPTIVE, MANIPULA-
TIVE, OR OTHER ILLEGAL MEANS.
  (B) "FINANCIAL INSTITUTION" SHALL MEAN ANY BANKING INSTITUTION, CREDIT
UNION, INVESTMENT BROKERAGE, AND ANY OTHER ENTITY LICENSED BY THE SUPER-
INTENDENT.
  (C) "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF  THE  DEPARTMENT
OF FINANCIAL SERVICES.
  2. THE SUPERINTENDENT, IN CONSULTATION WITH THE DIRECTOR OF THE OFFICE
FOR  THE  AGING,  THE ATTORNEY GENERAL, REPRESENTATIVES OF THE FINANCIAL
SERVICES INDUSTRY, LAW ENFORCEMENT, SENIOR GROUPS, AND  DISTRICT  ATTOR-
NEYS, SHALL DEVELOP GUIDELINES RELATING TO REPORTING SUSPECTED FINANCIAL
EXPLOITATION. SUCH GUIDELINES SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A)  THE  TYPES OF WARNING SIGNS AND EVIDENCE THAT WOULD BE ACCEPTABLE
INDICATORS OF FINANCIAL EXPLOITATION;
  (B) WHEN SUSPECTED FINANCIAL EXPLOITATION SHOULD BE REPORTED;
  (C) TO WHOM SUSPECTED FINANCIAL EXPLOITATION SHOULD BE REPORTED;
  (D) INFORMATION THAT SHOULD BE  INCLUDED  IN  A  REPORT  OF  SUSPECTED
FINANCIAL ABUSE; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01899-05-3

S. 5675                             2

  (E)  THE  APPLICABLE LAWS, RULES AND REGULATIONS THAT MUST BE FOLLOWED
WHILE REPORTING SUSPECTED FINANCIAL ABUSE.
  3.  A FINANCIAL INSTITUTION LOCATED OR DOING BUSINESS IN THIS STATE OR
AN EMPLOYEE THEREOF WHO, ACTING REASONABLY AND IN GOOD FAITH IN  ACCORD-
ANCE WITH THESE GUIDELINES, REPORTS SUSPECTED FINANCIAL ABUSE SHALL HAVE
IMMUNITY  FROM ANY CIVIL LIABILITY THAT MIGHT OTHERWISE RESULT BY REASON
OF SUCH ACTIONS.
  4. THE SUPERINTENDENT IS DIRECTED TO PROMULGATE  ANY  RULES  OR  REGU-
LATIONS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  S  2.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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