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

                                   639

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2015
                               ___________

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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01974-01-5
              

S. 639                              2

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
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.