S T A T E O F N E W Y O R K
________________________________________________________________________
5707
2013-2014 Regular Sessions
I N S E N A T E
June 6, 2013
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Introduced by Sens. ADAMS, DIAZ, KLEIN, PARKER -- read twice and ordered
printed, and when printed to be committed to the Committee on Aging
AN ACT to amend the social services law and the banking law, in relation
to authorizing banking organizations to refuse to disburse moneys in
circumstances of the financial exploitation of a vulnerable adult
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 473 of the social services law is amended by adding
a new subdivision 8 to read as follows:
8. (A) AS USED IN THIS SUBDIVISION:
(I) "BANKING ORGANIZATION" MEANS A BANKING ORGANIZATION AS DEFINED IN
SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW.
(II) "VULNERABLE ADULT" MEANS AN INDIVIDUAL WHO BECAUSE OF MENTAL
AND/OR PHYSICAL IMPAIRMENT, IS UNABLE TO MANAGE HIS OR HER OWN
RESOURCES, OR PROTECT HIMSELF OR HERSELF FROM FINANCIAL EXPLOITATION.
(B) IF A BANKING ORGANIZATION, SOCIAL SERVICES OFFICIAL OR LAW
ENFORCEMENT AGENCY REASONABLY BELIEVES THAT FINANCIAL EXPLOITATION OF A
VULNERABLE ADULT HAS OCCURRED OR MAY OCCUR, THE BANKING ORGANIZATION
MAY, BUT SHALL NOT BE REQUIRED TO, REFUSE ANY TRANSACTION REQUIRING THE
DISPERSAL OF MONEYS IN THE ACCOUNT OF:
(I) A VULNERABLE ADULT;
(II) WHICH A VULNERABLE ADULT IS A BENEFICIARY, INCLUDING TRUST AND
GUARDIANSHIP ACCOUNTS; AND
(III) A PERSON WHO IS SUSPECTED OF ENGAGING IN THE FINANCIAL EXPLOITA-
TION OF A VULNERABLE ADULT.
(C) A BANKING ORGANIZATION MAY ALSO REFUSE TO DISBURSE MONEYS PURSUANT
TO THIS SUBDIVISION IF A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT
AGENCY PROVIDES INFORMATION TO SUCH ORGANIZATION DEMONSTRATING THAT IT
IS REASONABLE TO BELIEVE THAT FINANCIAL EXPLOITATION OF A VULNERABLE
ADULT HAS OCCURRED OR MAY OCCUR.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11238-02-3
S. 5707 2
(D) A BANKING ORGANIZATION SHALL NOT BE REQUIRED TO REFUSE TO DISBURSE
FUNDS PURSUANT TO THIS SECTION. SUCH A REFUSAL SHALL BE IN THE BANKING
ORGANIZATION'S DISCRETION, BASED ON THE INFORMATION AVAILABLE TO SUCH
ORGANIZATION.
(E) ANY BANKING ORGANIZATION WHICH REFUSES TO DISBURSE MONEYS PURSUANT
TO THIS SUBDIVISION SHALL:
(I) MAKE A REASONABLE EFFORT TO PROVIDE NOTICE, ORALLY OR IN WRITING,
TO ALL PARTIES AUTHORIZED TO TRANSACT BUSINESS ON THE ACCOUNT FROM WHICH
DISBURSEMENT WAS REFUSED; AND
(II) REPORT THE INCIDENT TO THE SOCIAL SERVICES OFFICIAL RESPONSIBLE
FOR ADMINISTERING ADULT PROTECTIVE SERVICES PURSUANT TO THIS ARTICLE FOR
THE AFFECTED VULNERABLE ADULT.
(F) THE REFUSAL TO DISBURSE MONEYS PURSUANT TO THIS SUBDIVISION SHALL
TERMINATE UPON THE EARLIER OF:
(I) THE TIME AT WHICH THE BANKING ORGANIZATION IS SATISFIED THAT THE
DISBURSEMENT WILL NOT RESULT IN THE FINANCIAL EXPLOITATION OF A VULNER-
ABLE ADULT; OR
(II) THE ISSUANCE OF AN ORDER BY A COURT OF COMPETENT JURISDICTION,
DIRECTING THE DISPERSAL OF THE MONEYS.
(G) A BANKING ORGANIZATION MAY PROVIDE ACCESS TO OR COPIES OF RECORDS
RELEVANT TO SUSPECTED FINANCIAL EXPLOITATION OF A VULNERABLE ADULT TO
LAW ENFORCEMENT AGENCIES AND SOCIAL SERVICES OFFICIALS RESPONSIBLE FOR
ADMINISTERING THE PROVISIONS OF THIS ARTICLE. SUCH RECORDS MAY INCLUDE
RELEVANT HISTORICAL RECORDS AND RECENT TRANSACTIONS RELATING TO
SUSPECTED FINANCIAL EXPLOITATION.
(H) A BANKING ORGANIZATION OR AN EMPLOYEE OF SUCH AN ORGANIZATION
SHALL BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR
REFUSING TO DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO THIS SUBDI-
VISION, AND FOR ACTIONS TAKEN IN FURTHERANCE OF THAT DETERMINATION,
INCLUDING THE MAKING OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES
OF RELEVANT RECORDS TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT
AGENCY, IF SUCH DETERMINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND
IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION.
S 2. Section 4 of the banking law is amended by adding a new subdivi-
sion 4 to read as follows:
4. A BANKING ORGANIZATION OR AN EMPLOYEE OF SUCH AN ORGANIZATION SHALL
BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR REFUSING
TO DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO SUBDIVISION EIGHT OF
SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL SERVICES LAW, AND FOR
ACTIONS TAKEN IN FURTHERANCE OF THAT DETERMINATION, INCLUDING THE MAKING
OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES OF RELEVANT RECORDS
TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT AGENCY, IF SUCH DETER-
MINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND IN ACCORDANCE WITH
SUBDIVISION EIGHT OF SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL
SERVICES LAW.
S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.