NY State Senate Bill 2017-S2442

Senate Bill S2442

2017-2018 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to banks
Jan 13, 2017	referred to banks

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2017-S2442 (ACTIVE) - Details

Current Committee:: Senate Banks
Law Section:: Banking Law
Laws Affected:: Add §9-x, Bank L; amd §202, add §219-a, Eld L; add §99-aa, St Fin L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S6756
2013-2014: S2162
2015-2016: S6243

2017-S2442 (ACTIVE) - Summary

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

2017-S2442 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S2442

 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,
education 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-x 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-aa 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, older 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
accountants, banks, attorney's and tax prepares, shall report, without
liability, 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.3765 referred to codes
2009-10 A.3886 referred to banks
2011-12 A.4541 referred to banks
2013-14 A.5604 referred to banks
2015-16 S. 6243 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.

2017-S2442 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2442
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 13, 2017
                                ___________
 
 Introduced  by Sen. HAMILTON -- 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-x to
 read as follows:
   § 9-X. 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.

                                                            LBD00709-02-7

 S. 2442                             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.
   § 2. Section 202 of the elder law is amended by adding a new  subdivi-
 sion 17 to read as follows:
   17.  TO CONDUCT AN OUTREACH, EDUCATION AND TRAINING PROGRAM FOR FINAN-
 CIAL INSTITUTIONS AS DEFINED IN PARAGRAPH  (A)  OF  SUBDIVISION  ONE  OF
 SECTION NINE-X OF THE BANKING LAW.
   §  3.   The elder law is amended by adding a new section 219-a to read
 as follows:
   § 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
 DEPARTMENT OF FINANCIAL SERVICES, ESTABLISH A FINANCIAL OUTREACH, EDUCA-
 TION  AND  TRAINING  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-X
 OF  THE  BANKING  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 FINANCIAL SERVICES, SHALL COORDINATE ACTIVITIES TO IDENTI-

 S. 2442                             3
 
 FY 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-X 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.
   § 4. The state finance law is amended by adding a new section 99-aa to
 read as follows:
   §  99-AA.  FINANCIAL  EXPLOITATION,  OUTREACH,  EDUCATION AND TRAINING
 FUND. 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF  THE  COMP-
 TROLLER  AND  THE SUPERINTENDENT OF FINANCIAL SERVICES 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-X
 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. 2442                             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.
   §  5.  This act shall take effect immediately; provided, however, that
 subdivisions 2, 3, 4, 5, 6 and 7 of section 9-x 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 S2442

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