The New York State Senate

                    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.