NY State Senate Bill 2013-S5707

Senate Bill S5707

2013-2014 Legislative Session

Authorizes banks to refuse payment of moneys when there is reason to believe that a vulnerable adult is being financially exploited

download bill text pdf

Archive: Last Bill Status - In Assembly 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 12, 2013	referred to aging delivered to assembly passed senate ordered to third reading cal.1301 committee discharged and committed to rules
Jun 06, 2013	referred to aging

Votes

- Jun 12, 2013 - Floor Vote
  S5707
  
  58
  
  Aye
  
  3
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 12, 2013
      
      aye (58)
      
      Adams
      
      Addabbo Jr.
      
      Avella
      
      Ball
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Espaillat
      
      Felder
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Gianaris
      
      Gipson
      
      Golden
      
      Grisanti
      
      Hannon
      
      Hassell-Thompson
      
      Hoylman-Sigal
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Latimer
      
      Libous
      
      Little
      
      Marchione
      
      Martins
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      O'Brien
      
      O'Mara
      
      Parker
      
      Peralta
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sampson
      
      Sanders Jr.
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tkaczyk
      
      Valesky
      
      Young
      
      Zeldin
      
      nay (3)
      
      Farley
      
      Griffo
      
      Marcellino
      
      excused (2)
      
      Perkins
      
      Ranzenhofer
  Jun 12, 2013 - Rules Committee Vote
  S5707
  
  18
  
  Aye
  
  2
  
  Nay
  
  4
  
  Aye with Reservations
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Rules Committee Vote: Jun 12, 2013
      
      aye (18)
      
      Breslin
      
      Carlucci
      
      Dilan
      
      Espaillat
      
      Flanagan
      
      Gianaris
      
      Hannon
      
      Hassell-Thompson
      
      Krueger
      
      Larkin
      
      Libous
      
      Maziarz
      
      Montgomery
      
      Parker
      
      Seward
      
      Skelos
      
      Stewart-Cousins
      
      Valesky
      
      nay (2)
      
      LaValle
      
      Marcellino
      
      aye wr (4)
      
      Bonacic
      
      Farley
      
      Fuschillo
      
      Nozzolio
      
      excused (1)
      
      Perkins

co-Sponsors

View additional co-sponsors

2013-S5707 (ACTIVE) - Details

Current Committee:: Assembly Aging
Law Section:: Social Services Law
Laws Affected:: Amd §473, Soc Serv L; amd §4, Bank L

2013-S5707 (ACTIVE) - Summary

Authorizes banks to refuse payment of moneys when there is reason to believe that a vulnerable adult is being financially exploited.

2013-S5707 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S5707

TITLE OF BILL:  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

PURPOSE:  This legislation would authorize a banking organization,
social services official, or law enforcement agency that reasonably
believes that the financial exploitation of a vulnerable adult has
occurred or may occur, then a banking organization may refuse to
conduct any transaction that requires the dispersal of moneys in the
account of a vulnerable adult or moneys held for the benefit of such
adult. This legislation also authorizes a banking organization to
provide access to or copies of historical records or recent.
transactions relevant to suspected financial exploitation of a
vulnerable adult to law enforcement agencies and social service
officials responsible for administering the provisions of this
article. The term financial exploitation of an adult is as defined in
Social Services Law section 473.

SUMMARY OF PROVISIONS:

Section 1: Amends the Social Services Law 473 that relates to the
provision of Adult. Protective Services. This bill adds a new
subdivision 8 to authorize that if a banking organization, social

services official, or law enforcement agency reasonably believes that
the financial exploitation of a vulnerable adult has occurred or may
occur, then a banking organization may refuse to conduct any
transaction that requires the processing of funds of a vulnerable
adult. In addition, a banking organization may provide law
enforcement. agencies and social service officials responsible for
administering the provisions of this article with access to or copies
of historical records or recent transactions relevant to suspected
financial exploitation of a vulnerable adult.

A banking organization is not required to refuse to disburse funds
pursuant to this act, but if such organization does so based on the
reasonable suspicion that financial exploitation may occur or has
occurred, or based on the information provided by a social services
official or law enforcement. agency, then such banking organization
shall report the incident to the responsible social services official.

Section 2: Amends Banking Law section 4 to make conforming amendments
to this law so that it is consistent with the new provisions provided
for in the Social Services Law.

Section 3: Provides for an effective date of 180 days after this act
shall become a law.

JUSTIFICATION:  Persons over the age of 65 are the fastest growing
segment of the American population. While senior citizens constituted
only 4% of the total population in 1900, by 1994 the proportion of
seniors in the united States had grown to 12.5%. By 2050 almost 25% of
all Americans will be over age 65. This dramatic shift in population
distribution has produced tremendous upheavals in family structure and
in our societal response to the treatment and care of our senior


population. One problem faced by many seniors today is how to care for
themselves when their traditional network of support, their children
and grandchildren, are occupied with raising their own families and
are often spread out over a wide geographic area.

Evidence suggests that there may be a surprisingly high percentage of
senior citizens who are, either intentionally or unintentionally,
mistreated by family members or institutional caregivers or who of
their own volition, are neglecting in their own basic custodial needs.
This maltreatment can take many forms, ranging from physical and
psychological abuse to neglect to financial abuse and exploitation.
While physical abuse and neglect would seem to be a more immediate
concern for the elderly than protecting their financial assets from
potential theft or conversion by relatives and caregivers, the loss of
one's financial assets can have an even more severe a long-term impact
on a senior's wellbeing and quality of life as a physical injury or
abuse.

A 1990 congressional report also concluded that elder abuse is far
less likely to be reported than child abuse, estimating that only 1 in
8 cases of elder abuse, as compared with 1 in 3 cases of child abuse,
is ever reported to the authorities. Encouraging the reporting of
suspected financial exploitation of vulnerable adults, including the
elderly is an important public policy goal that should be achieved.
Currently, 42 states and the District of Columbia have statutes
requiring various professionals (typically health care professionals,
psychologists and social workers) to report known and suspected
incidents to prescribed public officials.

It should be understood that this bill provides protections for all
vulnerable adults that are protected under the Adult. Protective
Services Programs as provided for under Social Services Law Article
9-B, which includes all vulnerable adults that are 18 years of age or
older.

LEGISLATIVE HISTORY: None

FISCAL IMPLICATIONS: None.

EFFECTIVE DATE:  This act shall take effect on the 180th day after it
shall become a law.

2013-S5707 (ACTIVE) - Bill Text download pdf

                            
                    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
                               ___________

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.

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