Bill Text: NY S06756 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to reporting of financial exploitation; establishes a financial exploitation, outreach, education and training program and fund.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2012-03-19 - REFERRED TO BANKS [S06756 Detail]
Download: New_York-2011-S06756-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 6756 I N S E N A T E March 19, 2012 ___________ Introduced by Sen. VALESKY -- 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: 1 Section 1. The banking law is amended by adding a new section 9-v to 2 read as follows: 3 S 9-V. REPORTING OF SUSPECTED FINANCIAL EXPLOITATION. 1. AS USED IN 4 THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 5 (A) "FINANCIAL INSTITUTION" SHALL MEAN ANY OF THE FOLLOWING: 6 (1) A DEPOSITORY INSTITUTION, AS DEFINED IN SECTION 3(C) OF THE FEDER- 7 AL DEPOSIT INSURANCE ACT (12 U.S.C. SEC. 1813(C)). 8 (2) AN INSTITUTION-AFFILIATED PARTY, AS DEFINED IN SECTION 3(U) OF THE 9 FEDERAL DEPOSIT INSURANCE ACT (12 U.S.C. SEC. 1813(U)). 10 (3) A FEDERAL CREDIT UNION OR STATE CREDIT UNION, AS DEFINED IN 11 SECTION 101 OF THE FEDERAL CREDIT UNION ACT (12 U.S.C. SEC. 1752), 12 INCLUDING, BUT NOT LIMITED TO, AN INSTITUTION-AFFILIATED PARTY OF A 13 CREDIT UNION, AS DEFINED IN SECTION 206(R) OF THE FEDERAL CREDIT UNION 14 ACT (12 U.S.C. SEC. 1786(R)). 15 (B) "ELDERLY PERSON" SHALL MEAN A PERSON SIXTY YEARS OF AGE OR OLDER. 16 (C) "FINANCIAL EXPLOITATION" SHALL MEAN IMPROPER USE OF AN ELDERLY 17 PERSON'S FUNDS, PROPERTY OR RESOURCES BY ANOTHER INDIVIDUAL, INCLUDING 18 BUT NOT LIMITED TO FRAUD, FALSE PRETENSES, MISREPRESENTATION, EMBEZZLE- 19 MENT, CONSPIRACY, FORGERY, FALSIFYING RECORDS, COERCED PROPERTY TRANS- 20 FERS OR DENIAL OF ACCESS TO ASSETS. 21 2. ANY CERTIFIED PUBLIC ACCOUNTANT OR ATTORNEY LICENSED IN THIS STATE, 22 ANY PREPARER OF TAXES OPERATING IN THIS STATE, AND ANY OFFICER OR 23 EMPLOYEE OF A FINANCIAL INSTITUTION LOCATED WITHIN THIS STATE, WHO 24 REVIEWS OR APPROVES AN ELDERLY PERSON'S FINANCIAL DOCUMENTS, RECORDS OR 25 TRANSACTIONS, IN CONNECTION WITH PROVIDING FINANCIAL AND/OR LEGAL 26 SERVICES TO OR ON BEHALF OF AN ELDERLY PERSON SHALL BE REQUIRED TO 27 REPORT IN ACCORDANCE WITH THIS SECTION WHEN SUCH INDIVIDUAL, WITHIN THE 28 SCOPE OF HIS OR HER EMPLOYMENT OR PROFESSIONAL PRACTICE, HAS REASONABLE 29 CAUSE TO BELIEVE THAT SUCH ELDERLY PERSON HAS BEEN OR IS BEING SUBJECTED EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD07964-02-2 S. 6756 2 1 TO FINANCIAL EXPLOITATION. A BANK TELLER SHALL BE EXEMPT FROM THE 2 REQUIREMENTS OF THIS SECTION, PROVIDED THAT BANK TELLERS RECEIVE TRAIN- 3 ING APPROVED BY THE OFFICE FOR THE AGING ON IDENTIFYING SCAMS AND OTHER 4 FORMS OF FINANCIAL EXPLOITATION. 5 3. IN ADDITION TO THOSE PERSONS REQUIRED TO REPORT SUSPECTED FINANCIAL 6 EXPLOITATION UNDER THIS SECTION, ANY OTHER PERSON MAY MAKE SUCH A REPORT 7 IF HE OR SHE HAS REASONABLE CAUSE TO BELIEVE THAT AN ELDERLY PERSON HAS 8 BEEN OR IS BEING SUBJECTED TO FINANCIAL EXPLOITATION. 9 4. REPORTS OF SUSPECTED FINANCIAL EXPLOITATION UNDER THIS SECTION 10 SHALL BE MADE IMMEDIATELY BY TELEPHONE OR AS SOON AS PRACTICABLY POSSI- 11 BLE, AND BY WRITTEN REPORT SENT WITHIN TWO WORKING DAYS TO THE ADULT 12 PROTECTIVE SERVICES UNIT OF THE LOCAL DEPARTMENT OF SOCIAL SERVICES. 13 5. AN ALLEGATION BY AN ELDERLY PERSON, OR ANY OTHER PERSON, THAT 14 FINANCIAL EXPLOITATION HAS OCCURRED IS SUFFICIENT TO TRIGGER THE REPORT- 15 ING REQUIREMENT IN SUBDIVISION TWO OF THIS SECTION. 16 6. ANY PERSON WHO IN GOOD FAITH MAKES A REPORT UNDER THIS SECTION 17 SHALL HAVE IMMUNITY FROM ANY LIABILITY, CIVIL OR CRIMINAL, FOR HAVING 18 MADE SUCH A REPORT. FOR THE PURPOSE OF ANY PROCEEDING, CIVIL OR CRIMI- 19 NAL, THE GOOD FAITH OF ANY PERSON REQUIRED TO REPORT INSTANCES OF FINAN- 20 CIAL EXPLOITATION UNDER SUBDIVISION TWO OF THIS SECTION SHALL BE 21 PRESUMED. 22 7. IF, AFTER A PROCEEDING WITH NOTICE AND A HEARING, THE SUPERINTEN- 23 DENT DETERMINES THAT ANY PERSON REQUIRED BY THIS SECTION TO REPORT AN 24 INSTANCE OF SUSPECTED FINANCIAL EXPLOITATION HAS WILLFULLY FAILED TO 25 REPORT SUCH INSTANCE, SUCH PERSON SHALL BE DEEMED TO HAVE VIOLATED THIS 26 SECTION AND SHALL BE SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND 27 DOLLARS PER VIOLATION. 28 S 2. Section 202 of the elder law is amended by adding a new subdivi- 29 sion 16 to read as follows: 30 16. TO CONDUCT AN OUTREACH, EDUCATION AND TRAINING PROGRAM FOR FINAN- 31 CIAL INSTITUTIONS AS DEFINED IN PARAGRAPH (A) OF SUBDIVISION ONE OF 32 SECTION NINE-V OF THE BANKING LAW. 33 S 3. The elder law is amended by adding a new section 219-a to read 34 as follows: 35 S 219-A. FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING 36 PROGRAM. 1. DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE TERM 37 "DESIGNATED AGENCY" SHALL HAVE THE MEANING ASCRIBED TO IT UNDER SECTION 38 TWO HUNDRED FOURTEEN OF THIS TITLE. 39 2. THE DIRECTOR, WITHIN THE AMOUNTS APPROPRIATED THEREFOR, SHALL, IN 40 CONJUNCTION WITH THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE 41 BANKING DEPARTMENT, ESTABLISH A FINANCIAL OUTREACH, EDUCATION AND TRAIN- 42 ING PROGRAM, HEREINAFTER REFERRED TO IN THIS SECTION AS "THE PROGRAM," 43 FOR THE PURPOSE OF PROVIDING AN EDUCATION, OUTREACH AND TRAINING PROGRAM 44 TO CERTIFIED PUBLIC ACCOUNTANTS LICENSED IN THIS STATE, ATTORNEYS 45 LICENSED IN THIS STATE, ANY PREPARER OF TAXES OPERATING IN THIS STATE, 46 AND TO FINANCIAL INSTITUTIONS AS DEFINED IN SECTION NINE-V OF THE BANK- 47 ING LAW LOCATED WITHIN THIS STATE. THE OUTREACH, EDUCATION AND TRAINING 48 PROGRAM SHALL BE A VOLUNTARY PROGRAM. THE DIRECTOR, IN CONJUNCTION WITH 49 THE OFFICE OF CHILDREN AND FAMILY SERVICES AND THE DEPARTMENT OF FINAN- 50 CIAL SERVICES, SHALL COORDINATE ACTIVITIES TO IDENTIFY AND PROVIDE 51 TRAINING TO THE INSTITUTIONS AND INDIVIDUALS DESCRIBED IN THIS SECTION. 52 3. (A) AS PART OF THE PROGRAM, THE DIRECTOR MAY AWARD GRANTS TO QUALI- 53 FIED DESIGNATED AGENCIES TO ESTABLISH LOCAL ELDERLY EXPLOITATION 54 OUTREACH, EDUCATION AND TRAINING PROGRAMS. QUALIFIED DESIGNATED AGENCIES 55 SHALL WORK COLLABORATIVELY WITH SUCH INSTITUTIONS AND INDIVIDUALS, AND 56 THEIR REPRESENTATIVE ASSOCIATIONS. S. 6756 3 1 (B) IN MAKING SUCH GRANTS, THE DIRECTOR SHALL CONSIDER: 2 (1) THE MANNER IN WHICH THE DESIGNATED AGENCY PROPOSES TO PROVIDE SUCH 3 EDUCATION, OUTREACH AND TRAINING; 4 (2) THE CAPACITY OF THE DESIGNATED AGENCY TO COORDINATE ITS SERVICES 5 WITH BANKING, HUMAN SERVICE AND LAW ENFORCEMENT AND PUBLIC AGENCIES 6 WHICH PROVIDE SERVICES OR ASSISTANCE TO THE ELDERLY, INCLUDING THE LOCAL 7 DEPARTMENT OF SOCIAL SERVICES ADULT PROTECTIVE SERVICES UNIT; AND 8 (3) ANY OTHER CRITERIA DETERMINED BY THE DIRECTOR TO BE APPROPRIATE. 9 4. THE PROGRAM SHALL, AT A MINIMUM, CONSIST OF THE FOLLOWING ELEMENTS 10 WHICH SHALL BE PROVIDED BY THE OFFICE FOR THE AGING: 11 (A) EDUCATIONAL AND INFORMATIONAL MATERIALS IN PRINT, AUDIO, VISUAL, 12 ELECTRONIC OR OTHER MEDIA; 13 (B) PUBLIC SERVICE ANNOUNCEMENTS, ADVERTISEMENTS, MEDIA CAMPAIGNS, 14 WORKSHOPS AND MASS MAILINGS; 15 (C) CONFERENCES OR PRESENTATIONS DESIGNED TO PROVIDE INFORMATION TO 16 THOSE INDIVIDUALS IDENTIFIED IN SUBDIVISION TWO OF SECTION NINE-V OF THE 17 BANKING LAW; AND 18 (D) INSTRUCTIONS ON HOW TO REPORT KNOWN OR SUSPECTED INCIDENTS OF 19 FINANCIAL EXPLOITATION OF THE ELDERLY, INCLUDING THE APPROPRIATE TELE- 20 PHONE NUMBERS TO CALL AND THE TYPES OF INFORMATION THAT WOULD ASSIST THE 21 OFFICE WITH ITS INVESTIGATION OF THE REPORT. 22 5. THE DIRECTOR SHALL CONVENE AN ADVISORY COMMITTEE MADE UP OF AT 23 LEAST TEN BUT NO MORE THAN TWENTY MEMBERS TO ADVISE THE DIRECTOR AND 24 MAKE RECOMMENDATIONS ON THE ASPECTS OF DEVELOPING AND IMPLEMENTING THE 25 PROGRAM. MEMBERS OF THE ADVISORY COMMITTEE SHALL INCLUDE BUT NOT BE 26 LIMITED TO: AT LEAST TWO REPRESENTATIVES FROM STATEWIDE SENIOR ADVOCACY 27 ORGANIZATIONS, AT LEAST ONE REPRESENTATIVE REPRESENTING A NON-PROFIT 28 SENIOR ORGANIZATION WHICH OPERATES AN ELDER ABUSE PREVENTION PROGRAM, AT 29 LEAST ONE ATTORNEY WHOSE PRACTICE CONCENTRATES IN ELDER LAW OR AN INDI- 30 VIDUAL ACTING ON BEHALF OF THE ELDER LAW SECTION OF THE NEW YORK STATE 31 BAR ASSOCIATION, AT LEAST ONE BANKER OR A REPRESENTATIVE OF AN ASSOCI- 32 ATION REPRESENTING BANKERS, AT LEAST ONE CERTIFIED PUBLIC ACCOUNTANT OR 33 A REPRESENTATIVE OF AN ASSOCIATION REPRESENTING CERTIFIED PUBLIC 34 ACCOUNTANTS, AT LEAST TWO MEMBERS REPRESENTING PROTECTIVE SERVICES FOR 35 ADULTS, AND AT LEAST TWO LAW ENFORCEMENT REPRESENTATIVES. 36 S 4. The state finance law is amended by adding a new section 99-u to 37 read as follows: 38 S 99-U. FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND. 39 1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMPTROLLER 40 AND THE SUPERINTENDENT OF BANKS A SPECIAL REVENUE FUND TO BE KNOWN AS 41 THE "FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND". 42 2. THE FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND 43 SHALL CONSIST OF ALL MONEYS RECEIVED BY THE STATE UNDER SECTION NINE-V 44 OF THE BANKING LAW AND ALL OTHER FEES, FINES, GRANTS, BEQUESTS OR OTHER 45 MONIES CREDITED, APPROPRIATED OR TRANSFERRED THERETO FROM ANY OTHER FUND 46 OR SOURCE. 47 3. THE MONEYS OF THE FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND 48 TRAINING FUND SHALL BE DISBURSED BY THE COMPTROLLER TO THE STATE OFFICE 49 FOR THE AGING FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF SECTIONS 50 TWO HUNDRED NINETEEN AND TWO HUNDRED NINETEEN-A OF THE ELDER LAW. 51 S 5. This act shall take effect immediately; provided, however, that 52 subdivisions 2, 3, 4, 5, 6 and 7 of section 9-v of the banking law, as 53 added by section one of this act, shall take effect on the two hundred 54 seventieth day after this act shall have become a law.