senate Bill S6221

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

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Archive: Last Bill Status - Passed Senate


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jun 12, 2014 referred to banks
delivered to assembly
passed senate
May 19, 2014 advanced to third reading
May 14, 2014 2nd report cal.
May 13, 2014 1st report cal.639
Jan 08, 2014 referred to aging

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Co-Sponsors

S6221 - Bill Details

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

S6221 - Bill Texts

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

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BILL NUMBER:S6221

TITLE OF BILL: An act to amend the social services law and the
banking law, in relation to authorizing banking institutions 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, ate 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.

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

                                  6221

                            I N  S E N A T E

                               (PREFILED)

                             January 8, 2014
                               ___________

Introduced  by  Sen. VALESKY -- 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 institutions 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 9 to read as follows:
  9. (A) AS USED IN THIS SUBDIVISION:
  (I) "BANKING INSTITUTION" MEANS ANY STATE OR FEDERALLY CHARTERED BANK,
TRUST COMPANY, SAVINGS BANK, SAVINGS AND  LOAN  ASSOCIATION  OR,  CREDIT
UNION.
  (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 INSTITUTION, SOCIAL SERVICES OFFICIAL OR LAW ENFORCE-
MENT AGENCY REASONABLY BELIEVES THAT FINANCIAL EXPLOITATION OF A VULNER-
ABLE  ADULT  HAS OCCURRED OR MAY OCCUR, THE BANKING INSTITUTION MAY, BUT
SHALL NOT BE REQUIRED TO, REFUSE ANY TRANSACTION REQUIRING THE DISBURSAL
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 INSTITUTION MAY ALSO REFUSE TO DISBURSE MONEYS PURSUANT
TO THIS SUBDIVISION IF A SOCIAL SERVICES  OFFICIAL  OR  LAW  ENFORCEMENT
AGENCY PROVIDES INFORMATION TO SUCH INSTITUTION DEMONSTRATING THAT IT IS
REASONABLE  TO BELIEVE THAT FINANCIAL EXPLOITATION OF A VULNERABLE ADULT
HAS OCCURRED OR MAY OCCUR.
  (D) A BANKING INSTITUTION SHALL NOT BE REQUIRED TO REFUSE TO  DISBURSE
FUNDS  PURSUANT  TO THIS SECTION. SUCH A REFUSAL SHALL BE IN THE BANKING

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD13429-01-4

S. 6221                             2

INSTITUTION'S DISCRETION, BASED ON THE  INFORMATION  AVAILABLE  TO  SUCH
INSTITUTION.
  (E)  ANY BANKING INSTITUTION 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 INSTITUTION 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 DISBURSAL OF THE MONEYS.
  (G) A BANKING INSTITUTION 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 INSTITUTION OR AN EMPLOYEE OF SUCH AN INSTITUTION SHALL
BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR  REFUSING
TO  DISBURSE  MONEYS  OR DISBURSING MONEYS PURSUANT TO THIS SUBDIVISION,
AND FOR ACTIONS TAKEN IN FURTHERANCE OF  THAT  DETERMINATION,  INCLUDING
THE  MAKING OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES OF RELE-
VANT RECORDS TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT AGENCY, IF
SUCH DETERMINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND  IN  ACCORD-
ANCE 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 INSTITUTION OR AN EMPLOYEE OF SUCH AN  INSTITUTION  SHALL
BE  IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR REFUSING
TO DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO SUBDIVISION NINE  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  NINE  OF  SECTION  FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL
SERVICES LAW. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "BANKING INSTI-
TUTION" SHALL MEAN ANY STATE OR FEDERALLY CHARTERED BANK, TRUST COMPANY,
SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION OR, CREDIT UNION.
  S 3. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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