Assembly Bill A4037A

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

    S. 2806                                                  A. 4037

                       2015-2016 Regular Sessions

                      S E N A T E - A S S E M B L Y

                            January 29, 2015
                               ___________

IN  SENATE -- Introduced by Sen. GOLDEN -- read twice and ordered print-
  ed, and when printed to be committed to the Committee on Banks

IN  ASSEMBLY  --  Introduced  by  M.  of  A.  ROBINSON,  BARRETT,  OTIS,
  BROOK-KRASNY,   CAMARA,   PEOPLES-STOKES,   MOSLEY,  ROBERTS,  ARROYO,
  FARRELL, PERRY, SEPULVEDA, SIMANOWITZ -- read once and referred to the
  Committee on Aging

AN ACT to amend the banking law, in relation to establishing the opt  in
  program for reporting of suspected financial exploitation

  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 article  2-D  to
read as follows:
                               ARTICLE 2-D
                         FINANCIAL EXPLOITATION
SECTION 90. OPT  IN PROGRAM FOR REPORTING OF SUSPECTED FINANCIAL EXPLOI-
              TATION.
  S 90. OPT IN PROGRAM FOR REPORTING OF  SUSPECTED  FINANCIAL  EXPLOITA-
TION. 1. AS USED IN THIS ARTICLE:
  (A)  "ADULT  PROTECTIVE  SERVICES  AGENCY"  SHALL  MEAN A LOCAL SOCIAL
SERVICES OFFICE PROVIDING ADULT PROTECTIVE SERVICES PURSUANT TO  SECTION
FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL SERVICES LAW;
  (B)  "FINANCIAL  EXPLOITATION"  SHALL  MEAN IMPROPER USE OF AN ADULT'S
FUNDS, PROPERTY OR RESOURCES BY ANOTHER INDIVIDUAL,  INCLUDING  BUT  NOT
LIMITED  TO,  FRAUD, FALSE PRETENSES, EMBEZZLEMENT, CONSPIRACY, FORGERY,
FALSIFYING RECORDS, COERCED PROPERTY TRANSFERS, OR DENIAL OF  ACCESS  TO
ASSETS; AND
  (C) "FINANCIAL INSTITUTION" SHALL MEAN BANKS, TRUST COMPANIES, PRIVATE
BANKERS, SAVINGS BANKS, LICENSED LENDERS, SAVINGS AND LOAN ASSOCIATIONS,
CREDIT  UNIONS, INVESTMENT COMPANIES, MUTUAL TRUST INVESTMENT COMPANIES,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00937-01-5

              

S. 2806                             2                            A. 4037

AND BANKING ORGANIZATIONS AS DEFINED IN SECTION TWO OF THIS CHAPTER THAT
ARE LICENSED BY THE SUPERINTENDENT.
  (D) "ACCOUNT HOLDER" SHALL MEAN AN INDIVIDUAL WHO HAS AN INDIVIDUAL OR
JOINT ACCOUNT WITH A FINANCIAL INSTITUTION.
  2. THE DEPARTMENT SHALL DEVELOP A PROGRAM WHEREBY A FINANCIAL INSTITU-
TION  SHALL  BE REQUIRED TO REPORT SUSPECTED FINANCIAL EXPLOITATION OF A
PARTICIPATING  ACCOUNT  HOLDER  TO  THE  APPROPRIATE  ADULT   PROTECTIVE
SERVICES  AGENCY  AND  APPROPRIATE  LAW  ENFORCEMENT. THIS PROGRAM SHALL
OPERATE AS FOLLOWS:
  (A) PARTICIPATION IN THIS PROGRAM SHALL  BE  OFFERED  TO  ALL  ACCOUNT
HOLDERS;
  (B) SUCH PARTICIPATION SHALL BE VOLUNTARY FOR ACCOUNT HOLDERS;
  (C)  AN ACCOUNT HOLDER MAY REVOKE HIS OR HER PARTICIPATION AT ANY TIME
IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT;
  (D) IF AN OFFICER, DIRECTOR, AGENT OR EMPLOYEE OF A FINANCIAL INSTITU-
TION, ACTING IN HIS OR HER  OFFICIAL  CAPACITY,  HAS  CAUSE  TO  SUSPECT
FINANCIAL  EXPLOITATION  OF  AN  ACCOUNT  HOLDER  PARTICIPATING  IN SUCH
PROGRAM, SUCH OFFICER, DIRECTOR, AGENT  OR  EMPLOYEE  SHALL  REPORT,  OR
CAUSE  TO  BE REPORTED, SUCH SUSPECTED FINANCIAL EXPLOITATION IN ACCORD-
ANCE WITH RULES AND REGULATIONS PROMULGATED BY THE DEPARTMENT ON A  FORM
PRESCRIBED BY THE DEPARTMENT;
  (E)  THE  DEPARTMENT  SHALL DEVELOP A FORM FOR USE BY FINANCIAL INSTI-
TUTIONS THAT AN ACCOUNT HOLDER MAY COMPLETE IN ORDER TO  PARTICIPATE  IN
THIS PROGRAM AND A FORM BY WHICH AN ACCOUNT HOLDER MAY REVOKE HIS OR HER
PARTICIPATION;
  (F)  THE ORIGINAL FORM SHALL BE KEPT ON FILE BY THE FINANCIAL INSTITU-
TION AS LONG AS THE ACCOUNT HOLDER MAINTAINS AN ACCOUNT WITH SUCH FINAN-
CIAL INSTITUTION AND A COPY SHALL BE FORWARDED TO THE DEPARTMENT AND THE
ACCOUNT HOLDER; AND
  (G) THE DEPARTMENT SHALL PROMULGATE ANY RULES AND  REGULATIONS  NECES-
SARY  TO  EFFECTUATE  THE  PROVISIONS OF THIS SECTION INCLUDING, BUT NOT
LIMITED TO:
  (1) GUIDELINES FOR HOW AND TO WHOM  SUSPECTED  FINANCIAL  EXPLOITATION
SHALL BE REPORTED, WHETHER TO ADULT PROTECTIVE SERVICES AND/OR APPROPRI-
ATE LAW ENFORCEMENT; AND
  (2)  IDENTIFICATION  OF  INDICATORS  THAT  MAY  BE USED TO DETERMINE A
REASONABLE BASIS FOR REPORTING SUSPECTED FINANCIAL EXPLOITATION.
  3. AN ACCOUNT HOLDER WHO HAS OPTED TO PARTICIPATE IN THIS PROGRAM  AND
WHOSE  PARTICIPATION  HAS NOT BEEN REVOKED SHALL BE DEEMED TO HAVE GIVEN
PERMISSION  FOR  REPORTS  OF  SUSPECTED  FINANCIAL  EXPLOITATION  TO  BE
REFERRED TO APPROPRIATE LAW ENFORCEMENT, PROVIDING THAT SUCH REPORTS ARE
MADE  IN ACCORDANCE WITH RULES AND REGULATIONS PRESCRIBED BY THE DEPART-
MENT.
  4. IF AN ACCOUNT HOLDER HAS REVOKED PARTICIPATION IN THE PROGRAM, SUCH
REVOCATION SHALL BE EFFECTIVE UPON RECEIPT OF  SUCH  REVOCATION  BY  THE
FINANCIAL  INSTITUTION.  THEREAFTER,  NO  REPORT  OF SUSPECTED FINANCIAL
EXPLOITATION SHALL BE  DEEMED  REQUIRED  BY  THIS  SECTION  UNLESS  SUCH
ACCOUNT  HOLDER  CHOOSES  TO PARTICIPATE IN THE PROGRAM AGAIN AT A LATER
POINT IN TIME.
  5. A FINANCIAL INSTITUTION LOCATED OR DOING BUSINESS IN THIS STATE  OR
AN  EMPLOYEE THEREOF WHO ACTS REASONABLY AND IN GOOD FAITH IN ACCORDANCE
WITH THIS SECTION SHALL HAVE IMMUNITY  FROM  ANY  CIVIL  LIABILITY  THAT
MIGHT OTHERWISE RESULT BY REASON OF SUCH ACTIONS.
  6. ANY INFORMATION OR DOCUMENTATION SUBMITTED PURSUANT TO THIS SECTION
SHALL NOT BE SUBJECT TO DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFI-
CERS LAW.

S. 2806                             3                            A. 4037

  7.  NOTHING  IN  THIS  SECTION  SHALL BE DEEMED TO ALTER OR NEGATE THE
DUTIES OF ANY FINANCIAL INSTITUTION OR ANY OFFICER, DIRECTOR, AGENT,  OR
EMPLOYEE THEREOF ESTABLISHED BY ANY OTHER PROVISION OF LAW.
  S  2.  This  act  shall take effect on the sixtieth day after it shall
have become a law.