NY State Senate Bill 2021-S7515

Senate Bill S7515

2021-2022 Legislative Session

Requires certain people to report suspected financial exploitation of an elderly, vulnerable elderly, incompetent or physically disabled, or incapacitated person

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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to aging
Nov 10, 2021	referred to rules

2021-S7515 (ACTIVE) - Details

See Assembly Version of this Bill:: A8145
Current Committee:: Senate Aging
Law Section:: General Business Law
Laws Affected:: Add §349-g, Gen Bus L

2021-S7515 (ACTIVE) - Summary

Requires certain people to report suspected financial exploitation of an elderly, vulnerable elderly, incompetent or physically disabled, or incapacitated person; requires certain people to receive training on identifying scams and other forms of financial exploitation; establishes a fine for willfully failing to report suspected financial exploitation.

2021-S7515 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S7515

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the general business law, in relation to requiring
certain people to report suspected financial exploitation of an elderly,
vulnerable elderly person, incompetent or physically disabled person, or
incapacitated person

 
PURPOSE:

To increase detection of attempted financial exploitation, thereby
reducing the loss of assets of elderly and vulnerable individuals

 
SUMMARY OF PROVISIONS:

Section 1: adds a new section 349-g to the general business law to
require financial institutions, certified public accountants, licensed
attorneys or preparers of taxes to report any suspicion of financial
exploitation of an elderly person, vulnerable elderly person, incompe-
tent or physically disabled person, or incapacitated person.

Section 2: sets the effective date.

 
JUSTIFICATION:

Financial exploitation of the state's elderly and otherwise vulnerable
populations are widely reported and are on the rise, with losses esti-
mated at a staggering $2.9 billion dollars in 2019 alone. The Journal of
the ABA Commission on Law and Aging reported in 2019 that financial
abuse is an exploding problem in our society. A 2011 study by Cornell
University Medical Center, Lifespan of Greater Rochester, and the New
York City Department for the Aging found that 98% of incidents of elder
financial abuse went unreported. Sadly, seniors are often targets of
financial exploitation because they have accumulated wealth during their
lifetime, which they saved for their retirement. Cognitive decline and
dementia also play a role in increasing vulnerability to fraud. By
increasing early detection of attempted fraud, the state can help reduce
losses and costly efforts to recoup lost assets.

This legislation requires financial institutions and certain fiduciaries
to report suspected financial abuse of an elder adult, vulnerable elder-
ly and physically disabled or incapacitated persons under certain
circumstances. It requires financial institutions to establish and
implement a certain training program for employees; and would require a
fiduciary institution or an officer, employee, agent, or director of a
fiduciary institution to provide certain information in connection with
an investigation of suspected financial abuse.  Financial exploitation
of an elder adult, a vulnerable elderly person, an incompetent or phys-
ically disabled person or an incapacitated person is prevalent where
accounts have been accessed and in some cases identities stolen. The
exploitation is ordinarily discovered by a family member after a size-
able amount of property has been stolen or after the victim has passed
away. Most states have enacted some form of financial reporting statute
which require financial institutions to report possible exploitation to
Adult Protective Agencies or prosecutors or law enforcement agencies.
The legislation would require financial institutions to establish proto-
cols, establish training in the detection of potential financial exploi-
tation and report to law enforcement when there is reason to believe
there is financial exploitation. In re Robert Door Servs. of N.Y., 39
Misc.3d 1242, 975 N.Y.S.2d 365 (NY Sup. Ct. 2013) the Supreme Court
called on the legislature to enact proposals reporting potential finan-
cial exploitation where an incapacitated person's life savings of
hundreds of thousands of dollars were taken when his wife brought him to
many financial institutions over the course of months.

 
FISCAL IMPACT:

None

 
LEGISLATIVE HISTORY:

New bill; Same As with A.8145A (Cusick)

 
EFFECTIVE DATE:
90 days after enactment; 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.

2021-S7515 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7515
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             November 10, 2021
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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.
   (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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11810-03-1

 S. 7515                             2
 
 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-
 NEY  GENERAL'S  OFFICE  AND  DISTRICT ATTORNEY'S OFFICE IN THE COUNTY IN
 WHICH THE ACCOUNTS ARE LOCATED.
 S. 7515                             3
 
   (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.

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