S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  8145--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               July 7, 2021
                                ___________
 
 Introduced by M. of A. CUSICK, STERN, LUNSFORD, O'DONNELL, GALEF -- read
   once  and referred to the Committee on Consumer Affairs and Protection
   -- committee discharged, bill amended, ordered  reprinted  as  amended
   and recommitted to said committee
 
 AN  ACT  to  amend  the  general  business law, in relation to requiring
   certain people to report suspected financial exploitation of an elder-
   ly, vulnerable elderly  person,  incompetent  or  physically  disabled
   person, or incapacitated person
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 349-g to read as follows:
   § 349-G. 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:
   (I) A DEPOSITORY INSTITUTION, AS DEFINED IN SECTION 3(C) OF THE FEDER-
 AL  DEPOSIT INSURANCE ACT (12 U.S.C. SEC. 1813(C)) AND A BANK DEFINED IN
 SECTION TWO OF THE BANKING LAW;
   (II) AN INSTITUTION-AFFILIATED PARTY, AS DEFINED IN  SECTION  3(U)  OF
 THE FEDERAL DEPOSIT INSURANCE ACT (12 U.S.C. SEC. 1813(U));
   (III)  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 SEVENTY-FIVE YEARS OF AGE OR
 OLDER.
   (C) "INCAPACITATED PERSON" SHALL MEAN A PERSON ADJUDICATED AS INCAPAC-
 ITATED UNDER THE MENTAL HYGIENE LAW OR DEEMED TO BE  MENTALLY  OR  PHYS-
 ICALLY INCAPACITATED BY A PHYSICIAN.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11810-02-1
              

 A. 8145--A                          2
 
   (D)    "VULNERABLE  ELDERLY PERSON" SHALL MEAN A PERSON SIXTY YEARS OF
 AGE OR OLDER WHO IS SUFFERING FROM A  DISEASE  OR  INFIRMITY  ASSOCIATED
 WITH  ADVANCED  AGE  AND  MANIFESTED BY DEMONSTRABLE PHYSICAL, MENTAL OR
 EMOTIONAL DYSFUNCTION TO THE EXTENT THAT  THE  PERSON  IS  INCAPABLE  OF
 ADEQUATELY PROVIDING FOR HIS OR HER OWN HEALTH OR PERSONAL CARE.
   (E) "INCOMPETENT OR PHYSICALLY DISABLED PERSON" SHALL MEAN AN INDIVID-
 UAL  WHO  IS UNABLE   TO CARE FOR HIMSELF OR HERSELF BECAUSE OF PHYSICAL
 DISABILITY, MENTAL DISEASE OR DEFECT.
   (F) "FINANCIAL EXPLOITATION" SHALL MEAN IMPROPER  USE  OF  AN  ELDERLY
 PERSON'S,  VULNERABLE  ELDERLY PERSON'S, INCOMPETENT OR PHYSICALLY DISA-
 BLED PERSON'S, OR INCAPACITATED PERSON'S FUNDS, PROPERTY OR RESOURCES BY
 ANOTHER INDIVIDUAL, INCLUDING BUT NOT LIMITED TO LARCENY,  FRAUD,  FALSE
 PRETENSES,  MISREPRESENTATION, EMBEZZLEMENT, CONSPIRACY, FORGERY, FALSI-
 FYING RECORDS, COERCED PROPERTY TRANSFERS, CHANGES OF TITLE OR BENEFICI-
 ARIES ON ACCOUNTS OR DENIAL OF ACCESS TO ASSETS AND  UNUSUAL  AND  UNEX-
 PLAINED  PATTERNS  OF  WITHDRAWALS  FROM  ANY  ACCOUNT  IN  A  FINANCIAL
 INSTITUTION OR FROM AUTOMATED TELLER MACHINES  IN  OR  MAINTAINED  BY  A
 FINANCIAL INSTITUTION.
   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
 HANDLES,  REVIEWS  OR  APPROVES  AN ELDERLY PERSON'S, VULNERABLE ELDERLY
 PERSON'S, INCOMPETENT OR PHYSICALLY DISABLED PERSON'S, OR  INCAPACITATED
 PERSON'S  FINANCIAL  DOCUMENTS,  RECORDS  OR  MONETARY  TRANSACTIONS, IN
 CONNECTION WITH PROVIDING FINANCIAL  AND/OR  LEGAL  SERVICES  TO  OR  ON
 BEHALF  OF  AN ELDERLY PERSON, VULNERABLE ELDERLY PERSON, INCOMPETENT OR
 PHYSICALLY DISABLED PERSON, OR INCAPACITATED PERSON SHALL BE REQUIRED TO
 REPORT SUSPECTED FINANCIAL EXPLOITATION WHEN SUCH INDIVIDUAL, WITHIN THE
 SCOPE OF HIS OR HER EMPLOYMENT OR PROFESSIONAL PRACTICE:
   (A) HAS DIRECT CONTACT WITH  AN  ELDERLY  PERSON,  VULNERABLE  ELDERLY
 PERSON,  INCOMPETENT  OR  PHYSICALLY  DISABLED  PERSON, OR INCAPACITATED
 PERSON OR REVIEWS OR APPROVES AN ELDERLY  PERSON'S,  VULNERABLE  ELDERLY
 PERSON'S,  INCOMPETENT OR PHYSICALLY DISABLED PERSON'S, OR INCAPACITATED
 PERSON'S FINANCIAL DOCUMENTS, RECORDS,  OR  TRANSACTIONS  IN  CONNECTION
 WITH  FINANCIAL  SERVICES  PROVIDED BY A FIDUCIARY INSTITUTION TO OR FOR
 THE ELDERLY PERSON, VULNERABLE ELDERLY PERSON, INCOMPETENT OR PHYSICALLY
 DISABLED PERSON, OR INCAPACITATED PERSON; AND
   (B) OBSERVES OR OBTAINS KNOWLEDGE OF BEHAVIOR OR UNUSUAL CIRCUMSTANCES
 OR TRANSACTIONS THAT LEADS THE EMPLOYEE TO KNOW OR HAVE REASONABLE CAUSE
 TO SUSPECT THAT THE ELDERLY PERSON, VULNERABLE ELDERLY PERSON,  INCOMPE-
 TENT  OR  PHYSICALLY  DISABLED  PERSON,  OR  INCAPACITATED PERSON IS THE
 VICTIM OF FINANCIAL ABUSE.
   3. IN ADDITION TO THOSE PERSONS REQUIRED TO REPORT SUSPECTED FINANCIAL
 EXPLOITATION UNDER SUBDIVISION TWO OF THIS SECTION, ANY COURT  APPOINTEE
 IN A PROCEEDING UNDER THE MENTAL HYGIENE LAW OR SURROGATE'S COURT PROCE-
 DURE  ACT  AND  ANY  OTHER  PERSON  SHALL MAKE A REPORT IF HE OR SHE HAS
 REASONABLE CAUSE TO BELIEVE THAT AN ELDERLY PERSON,  VULNERABLE  ELDERLY
 PERSON,  INCOMPETENT  OR  PHYSICALLY  DISABLED  PERSON, OR INCAPACITATED
 PERSON HAS BEEN OR IS BEING FINANCIALLY EXPLOITED.
   4. (A) ALL OWNERS, MANAGERS, DIRECTORS, AGENTS, EMPLOYEES OF FINANCIAL
 INSTITUTIONS SHALL RECEIVE TRAINING APPROVED BY THE OFFICE FOR THE AGING
 ON IDENTIFYING SCAMS AND OTHER FORMS OF FINANCIAL EXPLOITATION.  REPORTS
 OF  SUSPECTED  FINANCIAL  EXPLOITATION  UNDER THIS SECTION SHALL BE MADE
 IMMEDIATELY BY THE FINANCIAL INSTITUTION BY  TELEPHONE  OR  AS  SOON  AS
 PRACTICABLY  POSSIBLE  WITHIN  TWO  WORKING DAYS TO THE ADULT PROTECTIVE
 SERVICES UNIT OF THE LOCAL DEPARTMENT OF SOCIAL SERVICES AND THE  ATTOR-

 A. 8145--A                          3
 
 NEY  GENERAL'S  OFFICE  AND  DISTRICT ATTORNEY'S OFFICE IN THE COUNTY IN
 WHICH THE ACCOUNTS ARE LOCATED.
   (B) IF A FINANCIAL INSTITUTION HAS REASONABLE CAUSE TO BELIEVE THAT AN
 ELDERLY  PERSON,  VULNERABLE  ELDERLY  PERSON, INCOMPETENT OR PHYSICALLY
 DISABLED PERSON, OR INCAPACITATED PERSON  IS  THE  VICTIM  OF  FINANCIAL
 EXPLOITATION,  THE  FINANCIAL INSTITUTION SHALL HAVE THE RIGHT TO REFUSE
 TO COMPLETE THE TRANSACTION AND PLACE A HOLD ON THE ACCOUNT.
   (C) A FINANCIAL INSTITUTION SHALL NOT BE REQUIRED TO:
   (I) INVESTIGATE AN ALLEGATION BY  AN  ELDERLY  PERSON  THAT  FINANCIAL
 EXPLOITATION OF THE ELDERLY PERSON HAS OCCURRED; OR
   (II) REPORT FINANCIAL EXPLOITATION PURSUANT TO THIS SUBDIVISION IF THE
 SAME MATTER ALREADY HAS BEEN REPORTED PURSUANT TO THIS SUBDIVISION.
   (D)  A REPORT OF FINANCIAL EXPLOITATION MADE PURSUANT TO THIS SUBDIVI-
 SION SHALL BE CONFIDENTIAL AND THE INFORMATION CONTAINED IN SUCH  REPORT
 MAY  BE  DISCLOSED  ONLY  TO A LAW ENFORCEMENT AGENCY, THE OFFICE OF THE
 ATTORNEY GENERAL, OR THE OFFICE OF A STATE'S ATTORNEY.
   5. (A) IN CONNECTION WITH  AN  INVESTIGATION  OF  SUSPECTED  FINANCIAL
 EXPLOITATION, NOTICE OF POSSIBLE EXPLOITATION SHALL BE GIVEN TO:
   (I) AN ADULT PROTECTIVE SERVICES AGENCY;
   (II) A LONG-TERM CARE OMBUDSMAN;
   (III) A LAW ENFORCEMENT AGENCY; AND
   (IV)  THE  OFFICE  OF  THE ATTORNEY GENERAL OR THE OFFICE OF A STATE'S
 ATTORNEY; OR
   (V) ANOTHER PERSON OR OFFICE AS AUTHORIZED BY THE  ELDERLY  PERSON  OR
 THE  LEGAL  GUARDIAN  OF  THE ELDERLY PERSON, VULNERABLE ELDERLY PERSON,
 INCOMPETENT OR PHYSICALLY DISABLED PERSON, OR INCAPACITATED PERSON.
   (B) THIS SUBDIVISION SHALL NOT PROHIBIT OR  LIMIT  THE  DISCLOSURE  OF
 FINANCIAL RECORDS OTHERWISE PERMITTED UNDER STATE LAW.
   6.  AN  ALLEGATION  BY  AN  ELDERLY  PERSON, OR ANY OTHER PERSON, THAT
 FINANCIAL EXPLOITATION HAS OCCURRED SHALL BE SUFFICIENT TO  TRIGGER  THE
 REPORTING REQUIREMENT IN SUBDIVISION TWO OF THIS SECTION.
   7.  ANY PERSON WHO IN GOOD FAITH MAKES A REPORT OF FINANCIAL EXPLOITA-
 TION, REFUSES TO COMPLETE A TRANSACTION, OR PLACES A HOLD ON AN  ACCOUNT
 PURSUANT  TO  THIS SECTION SHALL HAVE IMMUNITY FROM ANY LIABILITY, CIVIL
 OR CRIMINAL, FOR HAVING MADE SUCH A REPORT. FOR THE PURPOSE OF ANY CIVIL
 OR CRIMINAL PROCEEDING, THE GOOD FAITH OF ANY PERSON REQUIRED TO  REPORT
 INSTANCES  OF  FINANCIAL  EXPLOITATION  UNDER  SUBDIVISION  TWO  OF THIS
 SECTION SHALL BE PRESUMED.
   8. IF, AFTER A PROCEEDING WITH NOTICE AND A HEARING, IT IS  DETERMINED
 THAT  ANY  PERSON  REQUIRED  TO  REPORT SUSPECTED FINANCIAL EXPLOITATION
 PURSUANT TO THIS SECTION HAS WILLFULLY FAILED TO REPORT  SUCH  SUSPECTED
 FINANCIAL  EXPLOITATION,  SUCH  PERSON  SHALL BE DEEMED TO HAVE VIOLATED
 THIS SECTION AND SHALL BE SUBJECT TO A PENALTY NOT TO EXCEED  ONE  THOU-
 SAND DOLLARS PER VIOLATION.
   §  2.  This  act shall take effect on the ninetieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.