NY State Senate Bill 2017-S1093

Senate Bill S1093

2017-2018 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Aging 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2018	referred to aging returned to senate died in assembly
Mar 02, 2017	referred to aging delivered to assembly passed senate
Mar 01, 2017	advanced to third reading
Feb 28, 2017	2nd report cal.
Feb 14, 2017	1st report cal.244
Jan 06, 2017	referred to aging

Votes

- Mar 2, 2017 - Floor Vote
  S1093
  
  59
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  3
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Mar 2, 2017
      
      aye (59)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      Croci
      
      DeFrancisco
      
      Diaz
      
      Felder
      
      Flanagan
      
      Funke
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Latimer
      
      Little
      
      Marcellino
      
      Marchione
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Serino
      
      Serrano
      
      Seward
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (3)
      
      Dilan
      
      Gallivan
      
      Larkin
  Feb 14, 2017 - Aging Committee Vote
  S1093
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Aging Committee Vote: Feb 14, 2017
      
      aye (11)
      
      Addabbo Jr.
      
      Alcantara
      
      Brooks
      
      Diaz
      
      Felder
      
      Funke
      
      Golden
      
      LaValle
      
      Marchione
      
      Serino
      
      Serrano

co-Sponsors

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2017-S1093 (ACTIVE) - Details

Current Committee:: Senate Aging
Law Section:: Social Services Law
Laws Affected:: Amd §473, Soc Serv L; amd §4, Bank L
Versions Introduced in Other Legislative Sessions:: 2013-2014: S6221
2015-2016: S639

2017-S1093 (ACTIVE) - Summary

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

2017-S1093 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S1093

 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 9 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 well-being 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 :

S.6221 of 2014
S.639 of 2016/16 - Passed senate

 FISCAL IMPLICATIONS :

None.

 EFFECTIVE DATE :
This act shall take effect on the 180th day after it shall become a
law.

2017-S1093 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1093
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                              January 6, 2017
                                ___________
 
 Introduced  by  Sens. VALESKY, ADDABBO, AVELLA, CARLUCCI, SERINO -- 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.
                                                            LBD06983-01-7

 S. 1093                             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.
   § 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.
   § 3. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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