Bill Text: NY S05707 | 2013-2014 | General Assembly | Introduced
Bill Title: Authorizes banks to refuse payment of moneys when there is reason to believe that a vulnerable adult is being financially exploited.
Spectrum: Moderate Partisan Bill (Democrat 15-3)
Status: (Engrossed - Dead) 2013-06-12 - referred to aging [S05707 Detail]
Download: New_York-2013-S05707-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
5707
2013-2014 Regular Sessions
I N S E N A T E
June 6, 2013
___________
Introduced by Sens. ADAMS, DIAZ, KLEIN, PARKER -- read twice and ordered
printed, and when printed to be committed to the Committee on Aging
AN ACT to amend the social services law and the banking law, in relation
to authorizing banking organizations to refuse to disburse moneys in
circumstances of the financial exploitation of a vulnerable adult
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
1 Section 1. Section 473 of the social services law is amended by adding
2 a new subdivision 8 to read as follows:
3 8. (A) AS USED IN THIS SUBDIVISION:
4 (I) "BANKING ORGANIZATION" MEANS A BANKING ORGANIZATION AS DEFINED IN
5 SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW.
6 (II) "VULNERABLE ADULT" MEANS AN INDIVIDUAL WHO BECAUSE OF MENTAL
7 AND/OR PHYSICAL IMPAIRMENT, IS UNABLE TO MANAGE HIS OR HER OWN
8 RESOURCES, OR PROTECT HIMSELF OR HERSELF FROM FINANCIAL EXPLOITATION.
9 (B) IF A BANKING ORGANIZATION, SOCIAL SERVICES OFFICIAL OR LAW
10 ENFORCEMENT AGENCY REASONABLY BELIEVES THAT FINANCIAL EXPLOITATION OF A
11 VULNERABLE ADULT HAS OCCURRED OR MAY OCCUR, THE BANKING ORGANIZATION
12 MAY, BUT SHALL NOT BE REQUIRED TO, REFUSE ANY TRANSACTION REQUIRING THE
13 DISPERSAL OF MONEYS IN THE ACCOUNT OF:
14 (I) A VULNERABLE ADULT;
15 (II) WHICH A VULNERABLE ADULT IS A BENEFICIARY, INCLUDING TRUST AND
16 GUARDIANSHIP ACCOUNTS; AND
17 (III) A PERSON WHO IS SUSPECTED OF ENGAGING IN THE FINANCIAL EXPLOITA-
18 TION OF A VULNERABLE ADULT.
19 (C) A BANKING ORGANIZATION MAY ALSO REFUSE TO DISBURSE MONEYS PURSUANT
20 TO THIS SUBDIVISION IF A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT
21 AGENCY PROVIDES INFORMATION TO SUCH ORGANIZATION DEMONSTRATING THAT IT
22 IS REASONABLE TO BELIEVE THAT FINANCIAL EXPLOITATION OF A VULNERABLE
23 ADULT HAS OCCURRED OR MAY OCCUR.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11238-02-3
S. 5707 2
1 (D) A BANKING ORGANIZATION SHALL NOT BE REQUIRED TO REFUSE TO DISBURSE
2 FUNDS PURSUANT TO THIS SECTION. SUCH A REFUSAL SHALL BE IN THE BANKING
3 ORGANIZATION'S DISCRETION, BASED ON THE INFORMATION AVAILABLE TO SUCH
4 ORGANIZATION.
5 (E) ANY BANKING ORGANIZATION WHICH REFUSES TO DISBURSE MONEYS PURSUANT
6 TO THIS SUBDIVISION SHALL:
7 (I) MAKE A REASONABLE EFFORT TO PROVIDE NOTICE, ORALLY OR IN WRITING,
8 TO ALL PARTIES AUTHORIZED TO TRANSACT BUSINESS ON THE ACCOUNT FROM WHICH
9 DISBURSEMENT WAS REFUSED; AND
10 (II) REPORT THE INCIDENT TO THE SOCIAL SERVICES OFFICIAL RESPONSIBLE
11 FOR ADMINISTERING ADULT PROTECTIVE SERVICES PURSUANT TO THIS ARTICLE FOR
12 THE AFFECTED VULNERABLE ADULT.
13 (F) THE REFUSAL TO DISBURSE MONEYS PURSUANT TO THIS SUBDIVISION SHALL
14 TERMINATE UPON THE EARLIER OF:
15 (I) THE TIME AT WHICH THE BANKING ORGANIZATION IS SATISFIED THAT THE
16 DISBURSEMENT WILL NOT RESULT IN THE FINANCIAL EXPLOITATION OF A VULNER-
17 ABLE ADULT; OR
18 (II) THE ISSUANCE OF AN ORDER BY A COURT OF COMPETENT JURISDICTION,
19 DIRECTING THE DISPERSAL OF THE MONEYS.
20 (G) A BANKING ORGANIZATION MAY PROVIDE ACCESS TO OR COPIES OF RECORDS
21 RELEVANT TO SUSPECTED FINANCIAL EXPLOITATION OF A VULNERABLE ADULT TO
22 LAW ENFORCEMENT AGENCIES AND SOCIAL SERVICES OFFICIALS RESPONSIBLE FOR
23 ADMINISTERING THE PROVISIONS OF THIS ARTICLE. SUCH RECORDS MAY INCLUDE
24 RELEVANT HISTORICAL RECORDS AND RECENT TRANSACTIONS RELATING TO
25 SUSPECTED FINANCIAL EXPLOITATION.
26 (H) A BANKING ORGANIZATION OR AN EMPLOYEE OF SUCH AN ORGANIZATION
27 SHALL BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR
28 REFUSING TO DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO THIS SUBDI-
29 VISION, AND FOR ACTIONS TAKEN IN FURTHERANCE OF THAT DETERMINATION,
30 INCLUDING THE MAKING OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES
31 OF RELEVANT RECORDS TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT
32 AGENCY, IF SUCH DETERMINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND
33 IN ACCORDANCE WITH THE PROVISIONS OF THIS SUBDIVISION.
34 S 2. Section 4 of the banking law is amended by adding a new subdivi-
35 sion 4 to read as follows:
36 4. A BANKING ORGANIZATION OR AN EMPLOYEE OF SUCH AN ORGANIZATION SHALL
37 BE IMMUNE FROM CRIMINAL, CIVIL OR ADMINISTRATIVE LIABILITY FOR REFUSING
38 TO DISBURSE MONEYS OR DISBURSING MONEYS PURSUANT TO SUBDIVISION EIGHT OF
39 SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL SERVICES LAW, AND FOR
40 ACTIONS TAKEN IN FURTHERANCE OF THAT DETERMINATION, INCLUDING THE MAKING
41 OF A REPORT OR THE PROVIDING OF ACCESS TO OR COPIES OF RELEVANT RECORDS
42 TO A SOCIAL SERVICES OFFICIAL OR LAW ENFORCEMENT AGENCY, IF SUCH DETER-
43 MINATIONS AND ACTIONS WERE MADE IN GOOD FAITH AND IN ACCORDANCE WITH
44 SUBDIVISION EIGHT OF SECTION FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL
45 SERVICES LAW.
46 S 3. This act shall take effect on the one hundred eightieth day after
47 it shall have become a law.
