Senate Bill S2162

2013-2014 Legislative Session

Relates to reporting of financial exploitation; and establishes a financial exploitation, outreach, education and training program and fund

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Archive: Last Bill Status - In Senate Committee Banks Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2014	referred to banks
Jan 14, 2013	referred to banks

co-Sponsors

2013-S2162 (ACTIVE) - Details

See Assembly Version of this Bill:: A5604
Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-v, Bank L; amd §202, add §219-a, Eld L; add §99-u, St Fin L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A3886
2011-2012: S6756, A4541
2015-2016: S6243, A2481
2017-2018: S2442

2013-S2162 (ACTIVE) - Summary

Relates to reporting of financial exploitation; establishes a financial exploitation, outreach, education and training program and fund.

2013-S2162 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2162

TITLE  OF  BILL:   An act to amend the banking law and the elder law, in
relation to financial exploitation; and to amend the state finance  law,
in relation to establishing the financial exploitation, outreach, educa-
tion and training fund

PURPOSE  OR  GENERAL IDEA OF BILL:  To ensure that those individuals who
may have access to seniors financial information are trained  to  detect
suspected  financial  abuse  and  report  the suspected abuse so that if
abuse is occurring, it can be  mitigated  and  the  perpetrator  can  be
brought to justice.

SUMMARY OF SPECIFIC PROVISIONS:

Section  1  amends  the  banking  law  by adding a new section 9-v which
creates a reporting process  of  suspected  financial  exploitation  for
individuals ages sixty and older.

Section  2  authorizes the director of the state office for the aging to
conduct outreach, education and training for financial institutions.

Section 3 amends the elder law by  adding  a  new  section  219-a  which
creates  a  financial  exploitation,  outreach,  education:and  training
Program.

Section 4 amends the state finance law by adding a new section 99-u that
creates a financial exploitation, outreach, education and training fund.

JUSTIFICATION:  Financial exploitation and abuse among older adults is a
serious and growing problem. It is stealing. It amounts to someone  -  a
stranger, friend, family member or even a professional - taking property
or  funds  that belong to someone else. While anyone can become a victim
of financial  exploitation,  elder  adults  are  especially  vulnerable.
Nationwide,  it  is  estimated that $40 billion is lost annually through
scams, theft and stolen  property.  Unfortunately,  age  and  disability
often  require  that relatives, friends and others are solicited to help
manage finances, in other words, are given easy access to their  assets.
Often  perceptions of physical and mental limitations can make financial
abuse easy and low risk.

Those older adults who are victims of scams may  be  reluctant  to  come
forward  due to embarrassment and shame. Others may be unaware the abuse
is even taking place due to a lack of capacity  and  where  a  power  of
attorney  is  executed.  The  power  of attorney provides the agent with
great powers of the financial holdings and affairs of the individual.

When an older adult becomes a victim of this type of  abuse,  the  state
often  steps  in  to pay for services such as food, shelter, health care
and other support costing taxpayers money  and  significantly  impacting

the  individuals independence and emotional well-being of having a life-
times worth of savings stolen.

This  legislation  will create a reporting process where individuals who
have access to an older adults financial information, such  as  account-
ants,  banks, attorney's and tax prepares, shall report, without liabil-
ity, suspected financial exploitation to ensure the abuse stops  and  to
bring the perpetrators to justice. It creates an outreach, education and
training  program for individuals working with financial information and
to help the public understand and identify possible abuse.

PRIOR LEGISLATIVE HISTORY:  2007-08: A.3765A - Referred to  Codes  2009-
14: A.3886 - Referred to Banks 2011-12: A.4541 - Referred to Banks

FISCAL IMPLICATIONS: None.

EFFECTIVE  DATE:    The act shall take effect immediately. The reporting
process shall take effect 270 days after it shall become law.

2013-S2162 (ACTIVE) - Bill Text download pdf

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

                                  2162

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 14, 2013
                               ___________

Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
  printed to be committed to the Committee on Banks

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.
  (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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04824-01-3

S. 2162                             2

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,"
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-

S. 2162                             3

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".
  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

S. 2162                             4

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.

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Senate Bill S2162

Sponsored By

Archive: Last Bill Status - In Senate Committee Banks Committee

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co-Sponsors

2013-S2162 (ACTIVE) - Details

2013-S2162 (ACTIVE) - Summary

2013-S2162 (ACTIVE) - Sponsor Memo

2013-S2162 (ACTIVE) - Bill Text download pdf

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Sponsored By

David J. Valesky

Archive: Last Bill Status - In Senate Committee Banks Committee

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co-Sponsors

Joseph P. Addabbo Jr.

2013-S2162 (ACTIVE) - Details

2013-S2162 (ACTIVE) - Summary

2013-S2162 (ACTIVE) - Sponsor Memo

2013-S2162 (ACTIVE) - Bill Text download pdf

Comments