S T A T E O F N E W Y O R K
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4541--A
2011-2012 Regular Sessions
I N A S S E M B L Y
February 4, 2011
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Introduced by M. of A. ENGLEBRIGHT, JACOBS, BENEDETTO, MAISEL,
J. RIVERA, LUPARDO, TITUS, MILLMAN, CYMBROWITZ, PEOPLES-STOKES, DINOW-
ITZ, ROBINSON, MARKEY, CLARK, GABRYSZAK, HOOPER, ROSENTHAL -- Multi-
Sponsored by -- M. of A. ABBATE, BROOK-KRASNY, FARRELL, GOTTFRIED,
JEFFRIES, V. LOPEZ, MAGNARELLI, McENENY, ORTIZ, PERRY, REILLY, SWEE-
NEY, WEISENBERG -- read once and referred to the Committee on Banks --
recommitted to the Committee on Banks in accordance with Assembly Rule
3, sec. 2 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the banking law and the elder law, in relation to finan-
cial exploitation and to amend the state finance law, in relation to
establishing the financial exploitation, outreach, education and
training fund
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. AS USED IN
THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
(A) "FINANCIAL INSTITUTION" SHALL MEAN ANY OF THE FOLLOWING:
(1) A DEPOSITORY INSTITUTION, AS DEFINED IN SECTION 3(C) OF THE FEDER-
AL DEPOSIT INSURANCE ACT (12 U.S.C. SEC. 1813(C)).
(2) AN INSTITUTION-AFFILIATED PARTY, AS DEFINED IN SECTION 3(U) OF THE
FEDERAL DEPOSIT INSURANCE ACT (12 U.S.C. SEC. 1813(U)).
(3) A FEDERAL CREDIT UNION OR STATE CREDIT UNION, AS DEFINED IN
SECTION 101 OF THE FEDERAL CREDIT UNION ACT (12 U.S.C. SEC. 1752),
INCLUDING, BUT NOT LIMITED TO, AN INSTITUTION-AFFILIATED PARTY OF A
CREDIT UNION, AS DEFINED IN SECTION 206(R) OF THE FEDERAL CREDIT UNION
ACT (12 U.S.C. SEC. 1786(R)).
(B) "ELDERLY PERSON" SHALL MEAN A PERSON SIXTY YEARS OF AGE OR OLDER.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07964-03-2
A. 4541--A 2
(C) "FINANCIAL EXPLOITATION" SHALL MEAN IMPROPER USE OF AN ELDERLY
PERSON'S FUNDS, PROPERTY OR RESOURCES BY ANOTHER INDIVIDUAL, INCLUDING
BUT NOT LIMITED TO FRAUD, FALSE PRETENSES, MISREPRESENTATION, EMBEZZLE-
MENT, CONSPIRACY, FORGERY, FALSIFYING RECORDS, COERCED PROPERTY TRANS-
FERS OR DENIAL OF ACCESS TO ASSETS.
2. ANY CERTIFIED PUBLIC ACCOUNTANT OR ATTORNEY LICENSED IN THIS STATE,
ANY PREPARER OF TAXES OPERATING IN THIS STATE, AND ANY OFFICER OR
EMPLOYEE OF A FINANCIAL INSTITUTION LOCATED WITHIN THIS STATE, WHO
REVIEWS OR APPROVES AN ELDERLY PERSON'S FINANCIAL DOCUMENTS, RECORDS OR
TRANSACTIONS, IN CONNECTION WITH PROVIDING FINANCIAL AND/OR LEGAL
SERVICES TO OR ON BEHALF OF AN ELDERLY PERSON SHALL BE REQUIRED TO
REPORT IN ACCORDANCE WITH THIS SECTION WHEN SUCH INDIVIDUAL, WITHIN THE
SCOPE OF HIS OR HER EMPLOYMENT OR PROFESSIONAL PRACTICE, HAS REASONABLE
CAUSE TO BELIEVE THAT SUCH ELDERLY PERSON HAS BEEN OR IS BEING SUBJECTED
TO FINANCIAL EXPLOITATION. A BANK TELLER SHALL BE EXEMPT FROM THE
REQUIREMENTS OF THIS SECTION, PROVIDED THAT BANK TELLERS RECEIVE TRAIN-
ING APPROVED BY THE OFFICE FOR THE AGING ON IDENTIFYING SCAMS AND OTHER
FORMS OF FINANCIAL EXPLOITATION.
3. IN ADDITION TO THOSE PERSONS REQUIRED TO REPORT SUSPECTED FINANCIAL
EXPLOITATION UNDER THIS SECTION, ANY OTHER PERSON MAY MAKE SUCH A REPORT
IF HE OR SHE HAS REASONABLE CAUSE TO BELIEVE THAT AN ELDERLY PERSON HAS
BEEN OR IS BEING SUBJECTED TO FINANCIAL EXPLOITATION.
4. REPORTS OF SUSPECTED FINANCIAL EXPLOITATION UNDER THIS SECTION
SHALL BE MADE IMMEDIATELY BY TELEPHONE OR AS SOON AS PRACTICABLY POSSI-
BLE, AND BY WRITTEN REPORT SENT WITHIN TWO WORKING DAYS TO THE ADULT
PROTECTIVE SERVICES UNIT OF THE LOCAL DEPARTMENT OF SOCIAL SERVICES.
5. AN ALLEGATION BY AN ELDERLY PERSON, OR ANY OTHER PERSON, THAT
FINANCIAL EXPLOITATION HAS OCCURRED IS SUFFICIENT TO TRIGGER THE REPORT-
ING REQUIREMENT IN SUBDIVISION TWO OF THIS SECTION.
6. ANY PERSON WHO IN GOOD FAITH MAKES A REPORT UNDER THIS SECTION
SHALL HAVE IMMUNITY FROM ANY LIABILITY, CIVIL OR CRIMINAL, FOR HAVING
MADE SUCH A REPORT. FOR THE PURPOSE OF ANY PROCEEDING, CIVIL OR CRIMI-
NAL, THE GOOD FAITH OF ANY PERSON REQUIRED TO REPORT INSTANCES OF FINAN-
CIAL EXPLOITATION UNDER SUBDIVISION TWO OF THIS SECTION SHALL BE
PRESUMED.
7. IF, AFTER A PROCEEDING WITH NOTICE AND A HEARING, THE SUPERINTEN-
DENT DETERMINES THAT ANY PERSON REQUIRED BY THIS SECTION TO REPORT AN
INSTANCE OF SUSPECTED FINANCIAL EXPLOITATION HAS WILLFULLY FAILED TO
REPORT SUCH INSTANCE, SUCH PERSON SHALL BE DEEMED TO HAVE VIOLATED THIS
SECTION AND SHALL BE SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND
DOLLARS PER VIOLATION.
S 2. Section 202 of the elder law is amended by adding a new subdivi-
sion 16 to read as follows:
16. TO CONDUCT AN OUTREACH, EDUCATION AND TRAINING PROGRAM FOR FINAN-
CIAL INSTITUTIONS AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF
SECTION NINE-V OF THE BANKING LAW.
S 3. The elder law is amended by adding a new section 219-a to read
as follows:
S 219-A. FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING
PROGRAM. 1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE TERM
"DESIGNATED AGENCY" SHALL HAVE THE MEANING ASCRIBED TO IT UNDER SECTION
TWO HUNDRED FOURTEEN OF THIS TITLE.
2. THE DIRECTOR, WITHIN THE AMOUNTS APPROPRIATED THEREFOR, SHALL, IN
CONJUNCTION WITH THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE
BANKING DEPARTMENT, ESTABLISH A FINANCIAL OUTREACH, EDUCATION AND TRAIN-
ING PROGRAM, HEREINAFTER REFERRED TO IN THIS SECTION AS "THE PROGRAM,"
A. 4541--A 3
FOR THE PURPOSE OF PROVIDING AN EDUCATION, OUTREACH AND TRAINING PROGRAM
TO CERTIFIED PUBLIC ACCOUNTANTS LICENSED IN THIS STATE, ATTORNEYS
LICENSED IN THIS STATE, ANY PREPARER OF TAXES OPERATING IN THIS STATE,
AND TO FINANCIAL INSTITUTIONS AS DEFINED IN SECTION NINE-V OF THE BANK-
ING LAW LOCATED WITHIN THIS STATE. THE OUTREACH, EDUCATION AND TRAINING
PROGRAM SHALL BE A VOLUNTARY PROGRAM. THE DIRECTOR, IN CONJUNCTION WITH
THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE DEPARTMENT OF FINAN-
CIAL SERVICES, SHALL COORDINATE ACTIVITIES TO IDENTIFY AND PROVIDE
TRAINING TO THE INSTITUTIONS AND INDIVIDUALS DESCRIBED IN THIS SECTION.
3. (A) AS PART OF THE PROGRAM, THE DIRECTOR MAY AWARD GRANTS TO QUALI-
FIED DESIGNATED AGENCIES TO ESTABLISH LOCAL ELDERLY EXPLOITATION
OUTREACH, EDUCATION AND TRAINING PROGRAMS. QUALIFIED DESIGNATED AGENCIES
SHALL WORK COLLABORATIVELY WITH SUCH INSTITUTIONS AND INDIVIDUALS, AND
THEIR REPRESENTATIVE ASSOCIATIONS.
(B) IN MAKING SUCH GRANTS, THE DIRECTOR SHALL CONSIDER:
(1) THE MANNER IN WHICH THE DESIGNATED AGENCY PROPOSES TO PROVIDE SUCH
EDUCATION, OUTREACH AND TRAINING;
(2) THE CAPACITY OF THE DESIGNATED AGENCY TO COORDINATE ITS SERVICES
WITH BANKING, HUMAN SERVICE AND LAW ENFORCEMENT AND PUBLIC AGENCIES
WHICH PROVIDE SERVICES OR ASSISTANCE TO THE ELDERLY, INCLUDING THE LOCAL
DEPARTMENT OF SOCIAL SERVICES ADULT PROTECTIVE SERVICES UNIT; AND
(3) ANY OTHER CRITERIA DETERMINED BY THE DIRECTOR TO BE APPROPRIATE.
4. THE PROGRAM SHALL, AT A MINIMUM, CONSIST OF THE FOLLOWING ELEMENTS
WHICH SHALL BE PROVIDED BY THE OFFICE FOR THE AGING:
(A) EDUCATIONAL AND INFORMATIONAL MATERIALS IN PRINT, AUDIO, VISUAL,
ELECTRONIC OR OTHER MEDIA;
(B) PUBLIC SERVICE ANNOUNCEMENTS, ADVERTISEMENTS, MEDIA CAMPAIGNS,
WORKSHOPS AND MASS MAILINGS;
(C) CONFERENCES OR PRESENTATIONS DESIGNED TO PROVIDE INFORMATION TO
THOSE INDIVIDUALS IDENTIFIED IN SUBDIVISION TWO OF SECTION NINE-V OF THE
BANKING LAW; AND
(D) INSTRUCTIONS ON HOW TO REPORT KNOWN OR SUSPECTED INCIDENTS OF
FINANCIAL EXPLOITATION OF THE ELDERLY, INCLUDING THE APPROPRIATE TELE-
PHONE NUMBERS TO CALL AND THE TYPES OF INFORMATION THAT WOULD ASSIST THE
OFFICE WITH ITS INVESTIGATION OF THE REPORT.
5. THE DIRECTOR SHALL CONVENE AN ADVISORY COMMITTEE MADE UP OF AT
LEAST TEN BUT NO MORE THAN TWENTY MEMBERS TO ADVISE THE DIRECTOR AND
MAKE RECOMMENDATIONS ON THE ASPECTS OF DEVELOPING AND IMPLEMENTING THE
PROGRAM. MEMBERS OF THE ADVISORY COMMITTEE SHALL INCLUDE BUT NOT BE
LIMITED TO: AT LEAST TWO REPRESENTATIVES FROM STATEWIDE SENIOR ADVOCACY
ORGANIZATIONS, AT LEAST ONE REPRESENTATIVE REPRESENTING A NON-PROFIT
SENIOR ORGANIZATION WHICH OPERATES AN ELDER ABUSE PREVENTION PROGRAM, AT
LEAST ONE ATTORNEY WHOSE PRACTICE CONCENTRATES IN ELDER LAW OR AN INDI-
VIDUAL ACTING ON BEHALF OF THE ELDER LAW SECTION OF THE NEW YORK STATE
BAR ASSOCIATION, AT LEAST ONE BANKER OR A REPRESENTATIVE OF AN ASSOCI-
ATION REPRESENTING BANKERS, AT LEAST ONE CERTIFIED PUBLIC ACCOUNTANT OR
A REPRESENTATIVE OF AN ASSOCIATION REPRESENTING CERTIFIED PUBLIC
ACCOUNTANTS, AT LEAST TWO MEMBERS REPRESENTING PROTECTIVE SERVICES FOR
ADULTS, AND AT LEAST TWO LAW ENFORCEMENT REPRESENTATIVES.
S 4. The state finance law is amended by adding a new section 99-u to
read as follows:
S 99-U. FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND.
1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER
AND THE SUPERINTENDENT OF BANKS A SPECIAL REVENUE FUND TO BE KNOWN AS
THE "FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND".
A. 4541--A 4
2. THE FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND
SHALL CONSIST OF ALL MONEYS RECEIVED BY THE STATE UNDER SECTION NINE-V
OF THE BANKING LAW AND ALL OTHER FEES, FINES, GRANTS, BEQUESTS OR OTHER
MONIES CREDITED, APPROPRIATED OR TRANSFERRED THERETO FROM ANY OTHER FUND
OR SOURCE.
3. THE MONEYS OF THE FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND
TRAINING FUND SHALL BE DISBURSED BY THE COMPTROLLER TO THE STATE OFFICE
FOR THE AGING FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF SECTIONS
TWO HUNDRED NINETEEN AND TWO HUNDRED NINETEEN-A OF THE ELDER LAW.
S 5. This act shall take effect immediately; provided, however, that
subdivisions 2, 3, 4, 5, 6 and 7 of section 9-v of the banking law, as
added by section one of this act, shall take effect on the two hundred
seventieth day after this act shall have become a law.