Relates to the report of suspected financial exploitation; requires the superintendent of the department of financial services to develop guidelines relating to reporting suspected financial exploitation; provides that a financial institution who reports suspected financial abuse shall have immunity from any civil or criminal liability as a result.
TITLE OF BILL: An act to amend the banking law, in relation to reporting of suspected financial exploitation
PURPOSE OR GENERAL IDEA OF BILL: To encourage voluntary reporting of suspected financial exploitation.
SUMMARY OF SPECIFIC PROVISIONS: Creates a new section 9-v of the banking law as follows:
* The Superintendent of the Department of Financial Services would develop guidelines for reporting suspected financial exploitation in consultation with the State Office for the Aging, NYS Attorney General, representatives of the financial services industry, law enforcement, senior groups, and district attorneys; and
* If a report of suspected financial exploitation were to be made in accordance with those guidelines, the individual making the report would be protected from liability resulting from that report.
JUSTIFICATION: Financial exploitation is a large and quickly growing segment of elder abuse. Seniors are not always very savvy with money, and, as their faculties fade, they sometimes become targets for scam artists and undue influence. Financial institutions are often in a prime position to notice changes in behavior or suspicious patterns of withdrawals and investments. Fear of being sued, especially if the abuser is a family member, has been raised as a barrier to voluntary reporting by employees of financial institutions. This bill would protect those who report suspected financial exploitation, but only if the report is made by following guidelines set by the Department of Financial Services.
PRIOR LEGISLATIVE HISTORY: None.
FISCAL IMPLICATIONS: To be determined.
EFFECTIVE DATE: This act shall take effect on the 90th day.
STATE OF NEW YORK ________________________________________________________________________ 5675 2013-2014 Regular Sessions IN SENATE June 3, 2013 ___________Introduced by Sen. ADAMS -- read twice and ordered printed, and when printed to be committed to the Committee on Banks AN ACT to amend the banking law, in relation to reporting of suspected financial exploitation THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The banking law is amended by adding a new section 9-v to read as follows: S 9-V. REPORTING OF SUSPECTED FINANCIAL EXPLOITATION. 1. FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: (A) "FINANCIAL EXPLOITATION" SHALL MEAN ACTIVITY PROHIBITED PURSUANT TO SECTIONS 190.25, 190.26, 190.60, 190.65, 190.78, 190.79, 190.80, 190.80-A, 190.81, 190.82, AND 190.83 OF THE PENAL LAW OR ACTIVITY MEANT TO DEPRIVE AN INDIVIDUAL OF ASSETS OR PROPERTY BY DECEPTIVE, MANIPULA- TIVE, OR OTHER ILLEGAL MEANS. (B) "FINANCIAL INSTITUTION" SHALL MEAN ANY BANKING INSTITUTION, CREDIT UNION, INVESTMENT BROKERAGE, AND ANY OTHER ENTITY LICENSED BY THE SUPER- INTENDENT. (C) "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF THE DEPARTMENT OF FINANCIAL SERVICES. 2. THE SUPERINTENDENT, IN CONSULTATION WITH THE DIRECTOR OF THE OFFICE FOR THE AGING, THE ATTORNEY GENERAL, REPRESENTATIVES OF THE FINANCIAL SERVICES INDUSTRY, LAW ENFORCEMENT, SENIOR GROUPS, AND DISTRICT ATTOR- NEYS, SHALL DEVELOP GUIDELINES RELATING TO REPORTING SUSPECTED FINANCIAL EXPLOITATION. SUCH GUIDELINES SHALL INCLUDE, BUT NOT BE LIMITED TO: (A) THE TYPES OF WARNING SIGNS AND EVIDENCE THAT WOULD BE ACCEPTABLE INDICATORS OF FINANCIAL EXPLOITATION; (B) WHEN SUSPECTED FINANCIAL EXPLOITATION SHOULD BE REPORTED; (C) TO WHOM SUSPECTED FINANCIAL EXPLOITATION SHOULD BE REPORTED; (D) INFORMATION THAT SHOULD BE INCLUDED IN A REPORT OF SUSPECTED FINANCIAL ABUSE; ANDEXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01899-05-3 S. 5675 2
(E) THE APPLICABLE LAWS, RULES AND REGULATIONS THAT MUST BE FOLLOWED WHILE REPORTING SUSPECTED FINANCIAL ABUSE. 3. A FINANCIAL INSTITUTION LOCATED OR DOING BUSINESS IN THIS STATE OR AN EMPLOYEE THEREOF WHO, ACTING REASONABLY AND IN GOOD FAITH IN ACCORD- ANCE WITH THESE GUIDELINES, REPORTS SUSPECTED FINANCIAL ABUSE SHALL HAVE IMMUNITY FROM ANY CIVIL LIABILITY THAT MIGHT OTHERWISE RESULT BY REASON OF SUCH ACTIONS. 4. THE SUPERINTENDENT IS DIRECTED TO PROMULGATE ANY RULES OR REGU- LATIONS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION. S 2. This act shall take effect on the ninetieth day after it shall have become a law.