Bill S6927-2013

Relates to establishing the opt in program for reporting of suspected financial exploitation

Establishes the opt in program for reporting of suspected financial exploitation.

Details

Actions

  • May 21, 2014: REPORTED AND COMMITTED TO FINANCE
  • Apr 2, 2014: REFERRED TO BANKS

Meetings

Votes

VOTE: COMMITTEE VOTE: - Banks - May 21, 2014
Ayes (15): DeFrancisco, Golden, Marchione, Marcellino, O'Mara, Ranzenhofer, Valesky, Avella, O'Brien, Breslin, Diaz, Parker, Sanders, Gipson, Kennedy
Ayes W/R (4): Griffo, Farley, Bonacic, Martins

Text

STATE OF NEW YORK ________________________________________________________________________ 6927 IN SENATE April 2, 2014 ___________
Introduced by Sen. GOLDEN -- 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 establishing the opt in program for 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 article 2-D to read as follows: ARTICLE 2-D FINANCIAL EXPLOITATION SECTION 90. OPT IN PROGRAM FOR REPORTING OF SUSPECTED FINANCIAL EXPLOI- TATION. S 90. OPT IN PROGRAM FOR REPORTING OF SUSPECTED FINANCIAL EXPLOITA- TION. 1. AS USED IN THIS ARTICLE: (A) "ADULT PROTECTIVE SERVICES AGENCY" SHALL MEAN A LOCAL SOCIAL SERVICES OFFICE PROVIDING ADULT PROTECTIVE SERVICES PURSUANT TO SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL SERVICES LAW; (B) "FINANCIAL EXPLOITATION" SHALL MEAN IMPROPER USE OF AN ADULT'S FUNDS, PROPERTY OR RESOURCES BY ANOTHER INDIVIDUAL, INCLUDING BUT NOT LIMITED TO, FRAUD, FALSE PRETENSES, EMBEZZLEMENT, CONSPIRACY, FORGERY, FALSIFYING RECORDS, COERCED PROPERTY TRANSFERS, OR DENIAL OF ACCESS TO ASSETS; AND (C) "FINANCIAL INSTITUTION" SHALL MEAN BANKS, TRUST COMPANIES, PRIVATE BANKERS, SAVINGS BANKS, LICENSED LENDERS, SAVINGS AND LOAN ASSOCIATIONS, CREDIT UNIONS, INVESTMENT COMPANIES, MUTUAL TRUST INVESTMENT COMPANIES, AND BANKING ORGANIZATIONS AS DEFINED IN SECTION TWO OF THIS CHAPTER THAT ARE LICENSED BY THE SUPERINTENDENT. (D) "ACCOUNT HOLDER" SHALL MEAN AN INDIVIDUAL WHO HAS AN INDIVIDUAL OR JOINT ACCOUNT WITH A FINANCIAL INSTITUTION. 2. THE DEPARTMENT SHALL DEVELOP A PROGRAM WHEREBY A FINANCIAL INSTITU- TION SHALL BE REQUIRED TO REPORT SUSPECTED FINANCIAL EXPLOITATION OF A PARTICIPATING ACCOUNT HOLDER TO THE APPROPRIATE ADULT PROTECTIVE SERVICES AGENCY AND APPROPRIATE LAW ENFORCEMENT. THIS PROGRAM SHALL OPERATE AS FOLLOWS:
(A) PARTICIPATION IN THIS PROGRAM SHALL BE OFFERED TO ALL ACCOUNT HOLDERS; (B) SUCH PARTICIPATION SHALL BE VOLUNTARY FOR ACCOUNT HOLDERS; (C) AN ACCOUNT HOLDER MAY REVOKE HIS OR HER PARTICIPATION AT ANY TIME IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT; (D) IF AN OFFICER, DIRECTOR, AGENT OR EMPLOYEE OF A FINANCIAL INSTITU- TION, ACTING IN HIS OR HER OFFICIAL CAPACITY, HAS CAUSE TO SUSPECT FINANCIAL EXPLOITATION OF AN ACCOUNT HOLDER PARTICIPATING IN SUCH PROGRAM, SUCH OFFICER, DIRECTOR, AGENT OR EMPLOYEE SHALL REPORT, OR CAUSE TO BE REPORTED, SUCH SUSPECTED FINANCIAL EXPLOITATION IN ACCORD- ANCE WITH RULES AND REGULATIONS PROMULGATED BY THE DEPARTMENT ON A FORM PRESCRIBED BY THE DEPARTMENT; (E) THE DEPARTMENT SHALL DEVELOP A FORM FOR USE BY FINANCIAL INSTI- TUTIONS THAT AN ACCOUNT HOLDER MAY COMPLETE IN ORDER TO PARTICIPATE IN THIS PROGRAM AND A FORM BY WHICH AN ACCOUNT HOLDER MAY REVOKE HIS OR HER PARTICIPATION; (F) THE ORIGINAL FORM SHALL BE KEPT ON FILE BY THE FINANCIAL INSTITU- TION AS LONG AS THE ACCOUNT HOLDER MAINTAINS AN ACCOUNT WITH SUCH FINAN- CIAL INSTITUTION AND A COPY SHALL BE FORWARDED TO THE DEPARTMENT AND THE ACCOUNT HOLDER; AND (G) THE DEPARTMENT SHALL PROMULGATE ANY RULES AND REGULATIONS NECES- SARY TO EFFECTUATE THE PROVISIONS OF THIS SECTION INCLUDING, BUT NOT LIMITED TO: (1) GUIDELINES FOR HOW AND TO WHOM SUSPECTED FINANCIAL EXPLOITATION SHALL BE REPORTED, WHETHER TO ADULT PROTECTIVE SERVICES AND/OR APPROPRI- ATE LAW ENFORCEMENT; AND (2) IDENTIFICATION OF INDICATORS THAT MAY BE USED TO DETERMINE A REASONABLE BASIS FOR REPORTING SUSPECTED FINANCIAL EXPLOITATION. 3. AN ACCOUNT HOLDER WHO HAS OPTED TO PARTICIPATE IN THIS PROGRAM AND WHOSE PARTICIPATION HAS NOT BEEN REVOKED SHALL BE DEEMED TO HAVE GIVEN PERMISSION FOR REPORTS OF SUSPECTED FINANCIAL EXPLOITATION TO BE REFERRED TO APPROPRIATE LAW ENFORCEMENT, PROVIDING THAT SUCH REPORTS ARE MADE IN ACCORDANCE WITH RULES AND REGULATIONS PRESCRIBED BY THE DEPART- MENT. 4. IF AN ACCOUNT HOLDER HAS REVOKED PARTICIPATION IN THE PROGRAM, SUCH REVOCATION SHALL BE EFFECTIVE UPON RECEIPT OF SUCH REVOCATION BY THE FINANCIAL INSTITUTION. THEREAFTER, NO REPORT OF SUSPECTED FINANCIAL EXPLOITATION SHALL BE DEEMED REQUIRED BY THIS SECTION UNLESS SUCH ACCOUNT HOLDER CHOOSES TO PARTICIPATE IN THE PROGRAM AGAIN AT A LATER POINT IN TIME. 5. 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 THIS SECTION SHALL HAVE IMMUNITY FROM ANY CIVIL LIABILITY THAT MIGHT OTHERWISE RESULT BY REASON OF SUCH ACTIONS. 6. ANY INFORMATION OR DOCUMENTATION SUBMITTED PURSUANT TO THIS SECTION SHALL NOT BE SUBJECT TO DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFI- CERS LAW. 7. NOTHING IN THIS SECTION SHALL BE DEEMED TO ALTER OR NEGATE THE DUTIES OF ANY FINANCIAL INSTITUTION OR ANY OFFICER, DIRECTOR, AGENT, OR EMPLOYEE THEREOF ESTABLISHED BY ANY OTHER PROVISION OF LAW. S 2. This act shall take effect on the sixtieth day after it shall have become a law.

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