S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         2481
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 16, 2015
                                      ___________
       Introduced  by  M. of A. ENGLEBRIGHT, BENEDETTO, RIVERA, LUPARDO, TITUS,
         CYMBROWITZ, PEOPLES-STOKES, DINOWITZ, ROBINSON, MARKEY, CLARK, HOOPER,
         ROSENTHAL -- Multi-Sponsored by --  M.  of  A.  ABBATE,  BROOK-KRASNY,
         FARRELL, GOTTFRIED, MAGNARELLI, ORTIZ, PERRY -- read once and referred
         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-w  to
    2  read as follows:
    3    S  9-W.  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.
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD06748-01-5
       A. 2481                             2
    1    2. ANY CERTIFIED PUBLIC ACCOUNTANT OR ATTORNEY LICENSED IN THIS STATE,
    2  ANY PREPARER OF TAXES OPERATING  IN  THIS  STATE,  AND  ANY  OFFICER  OR
    3  EMPLOYEE  OF  A  FINANCIAL  INSTITUTION  LOCATED  WITHIN THIS STATE, WHO
    4  REVIEWS OR APPROVES AN ELDERLY PERSON'S FINANCIAL DOCUMENTS, RECORDS  OR
    5  TRANSACTIONS,  IN  CONNECTION  WITH  PROVIDING  FINANCIAL  AND/OR  LEGAL
    6  SERVICES TO OR ON BEHALF OF AN  ELDERLY  PERSON  SHALL  BE  REQUIRED  TO
    7  REPORT  IN ACCORDANCE WITH THIS SECTION WHEN SUCH INDIVIDUAL, WITHIN THE
    8  SCOPE OF HIS OR HER EMPLOYMENT OR PROFESSIONAL PRACTICE, HAS  REASONABLE
    9  CAUSE TO BELIEVE THAT SUCH ELDERLY PERSON HAS BEEN OR IS BEING SUBJECTED
   10  TO  FINANCIAL  EXPLOITATION.  A  BANK  TELLER  SHALL  BE EXEMPT FROM THE
   11  REQUIREMENTS OF THIS SECTION, PROVIDED THAT BANK TELLERS RECEIVE  TRAIN-
   12  ING  APPROVED BY THE OFFICE FOR THE AGING ON IDENTIFYING SCAMS AND OTHER
   13  FORMS OF FINANCIAL EXPLOITATION.
   14    3. IN ADDITION TO THOSE PERSONS REQUIRED TO REPORT SUSPECTED FINANCIAL
   15  EXPLOITATION UNDER THIS SECTION, ANY OTHER PERSON MAY MAKE SUCH A REPORT
   16  IF HE OR SHE HAS REASONABLE CAUSE TO BELIEVE THAT AN ELDERLY PERSON  HAS
   17  BEEN OR IS BEING SUBJECTED TO FINANCIAL EXPLOITATION.
   18    4.  REPORTS  OF  SUSPECTED  FINANCIAL  EXPLOITATION UNDER THIS SECTION
   19  SHALL BE MADE IMMEDIATELY BY TELEPHONE OR AS SOON AS PRACTICABLY  POSSI-
   20  BLE,  AND  BY  WRITTEN  REPORT SENT WITHIN TWO WORKING DAYS TO THE ADULT
   21  PROTECTIVE SERVICES UNIT OF THE LOCAL DEPARTMENT OF SOCIAL SERVICES.
   22    5. AN ALLEGATION BY AN ELDERLY  PERSON,  OR  ANY  OTHER  PERSON,  THAT
   23  FINANCIAL EXPLOITATION HAS OCCURRED IS SUFFICIENT TO TRIGGER THE REPORT-
   24  ING REQUIREMENT IN SUBDIVISION TWO OF THIS SECTION.
   25    6.  ANY  PERSON  WHO  IN  GOOD FAITH MAKES A REPORT UNDER THIS SECTION
   26  SHALL HAVE IMMUNITY FROM ANY LIABILITY, CIVIL OR  CRIMINAL,  FOR  HAVING
   27  MADE  SUCH  A REPORT. FOR THE PURPOSE OF ANY PROCEEDING, CIVIL OR CRIMI-
   28  NAL, THE GOOD FAITH OF ANY PERSON REQUIRED TO REPORT INSTANCES OF FINAN-
   29  CIAL EXPLOITATION  UNDER  SUBDIVISION  TWO  OF  THIS  SECTION  SHALL  BE
   30  PRESUMED.
   31    7.  IF,  AFTER A PROCEEDING WITH NOTICE AND A HEARING, THE SUPERINTEN-
   32  DENT DETERMINES THAT ANY PERSON REQUIRED BY THIS SECTION  TO  REPORT  AN
   33  INSTANCE  OF  SUSPECTED  FINANCIAL  EXPLOITATION HAS WILLFULLY FAILED TO
   34  REPORT SUCH INSTANCE, SUCH PERSON SHALL BE DEEMED TO HAVE VIOLATED  THIS
   35  SECTION  AND  SHALL  BE  SUBJECT TO A PENALTY NOT TO EXCEED ONE THOUSAND
   36  DOLLARS PER VIOLATION.
   37    S 2. Section 202 of the elder law is amended by adding a new  subdivi-
   38  sion 16 to read as follows:
   39    16.  TO CONDUCT AN OUTREACH, EDUCATION AND TRAINING PROGRAM FOR FINAN-
   40  CIAL INSTITUTIONS AS DEFINED IN PARAGRAPH  (A)  OF  SUBDIVISION  ONE  OF
   41  SECTION NINE-W OF THE BANKING LAW.
   42    S  3.   The elder law is amended by adding a new section 219-a to read
   43  as follows:
   44    S 219-A. FINANCIAL  EXPLOITATION,  OUTREACH,  EDUCATION  AND  TRAINING
   45  PROGRAM.  1.  DEFINITIONS.  FOR  THE  PURPOSES OF THIS SECTION, THE TERM
   46  "DESIGNATED AGENCY" SHALL HAVE THE MEANING ASCRIBED TO IT UNDER  SECTION
   47  TWO HUNDRED FOURTEEN OF THIS TITLE.
   48    2.  THE  DIRECTOR, WITHIN THE AMOUNTS APPROPRIATED THEREFOR, SHALL, IN
   49  CONJUNCTION WITH THE OFFICE OF CHILDREN  AND  FAMILY  SERVICES  AND  THE
   50  DEPARTMENT OF FINANCIAL SERVICES, ESTABLISH A FINANCIAL OUTREACH, EDUCA-
   51  TION  AND  TRAINING  PROGRAM, HEREINAFTER REFERRED TO IN THIS SECTION AS
   52  "THE PROGRAM," FOR THE PURPOSE OF PROVIDING AN EDUCATION,  OUTREACH  AND
   53  TRAINING PROGRAM TO CERTIFIED PUBLIC ACCOUNTANTS LICENSED IN THIS STATE,
   54  ATTORNEYS  LICENSED  IN  THIS  STATE, ANY PREPARER OF TAXES OPERATING IN
   55  THIS STATE, AND TO FINANCIAL INSTITUTIONS AS DEFINED IN  SECTION  NINE-W
   56  OF  THE  BANKING  LAW LOCATED WITHIN THIS STATE. THE OUTREACH, EDUCATION
       A. 2481                             3
    1  AND TRAINING PROGRAM SHALL BE A  VOLUNTARY  PROGRAM.  THE  DIRECTOR,  IN
    2  CONJUNCTION  WITH  THE  OFFICE  OF  CHILDREN AND FAMILY SERVICES AND THE
    3  DEPARTMENT OF FINANCIAL SERVICES, SHALL COORDINATE ACTIVITIES TO IDENTI-
    4  FY AND PROVIDE TRAINING TO THE INSTITUTIONS AND INDIVIDUALS DESCRIBED IN
    5  THIS SECTION.
    6    3. (A) AS PART OF THE PROGRAM, THE DIRECTOR MAY AWARD GRANTS TO QUALI-
    7  FIED   DESIGNATED  AGENCIES  TO  ESTABLISH  LOCAL  ELDERLY  EXPLOITATION
    8  OUTREACH, EDUCATION AND TRAINING PROGRAMS. QUALIFIED DESIGNATED AGENCIES
    9  SHALL WORK COLLABORATIVELY WITH SUCH INSTITUTIONS AND  INDIVIDUALS,  AND
   10  THEIR REPRESENTATIVE ASSOCIATIONS.
   11    (B) IN MAKING SUCH GRANTS, THE DIRECTOR SHALL CONSIDER:
   12    (1) THE MANNER IN WHICH THE DESIGNATED AGENCY PROPOSES TO PROVIDE SUCH
   13  EDUCATION, OUTREACH AND TRAINING;
   14    (2)  THE  CAPACITY OF THE DESIGNATED AGENCY TO COORDINATE ITS SERVICES
   15  WITH BANKING, HUMAN SERVICE AND  LAW  ENFORCEMENT  AND  PUBLIC  AGENCIES
   16  WHICH PROVIDE SERVICES OR ASSISTANCE TO THE ELDERLY, INCLUDING THE LOCAL
   17  DEPARTMENT OF SOCIAL SERVICES ADULT PROTECTIVE SERVICES UNIT; AND
   18    (3) ANY OTHER CRITERIA DETERMINED BY THE DIRECTOR TO BE APPROPRIATE.
   19    4.  THE PROGRAM SHALL, AT A MINIMUM, CONSIST OF THE FOLLOWING ELEMENTS
   20  WHICH SHALL BE PROVIDED BY THE OFFICE FOR THE AGING:
   21    (A) EDUCATIONAL AND INFORMATIONAL MATERIALS IN PRINT,  AUDIO,  VISUAL,
   22  ELECTRONIC OR OTHER MEDIA;
   23    (B)  PUBLIC  SERVICE  ANNOUNCEMENTS,  ADVERTISEMENTS, MEDIA CAMPAIGNS,
   24  WORKSHOPS AND MASS MAILINGS;
   25    (C) CONFERENCES OR PRESENTATIONS DESIGNED TO  PROVIDE  INFORMATION  TO
   26  THOSE INDIVIDUALS IDENTIFIED IN SUBDIVISION TWO OF SECTION NINE-W OF THE
   27  BANKING LAW; AND
   28    (D)  INSTRUCTIONS  ON  HOW  TO  REPORT KNOWN OR SUSPECTED INCIDENTS OF
   29  FINANCIAL EXPLOITATION OF THE ELDERLY, INCLUDING THE  APPROPRIATE  TELE-
   30  PHONE NUMBERS TO CALL AND THE TYPES OF INFORMATION THAT WOULD ASSIST THE
   31  OFFICE WITH ITS INVESTIGATION OF THE REPORT.
   32    5.  THE  DIRECTOR  SHALL  CONVENE  AN ADVISORY COMMITTEE MADE UP OF AT
   33  LEAST TEN BUT NO MORE THAN TWENTY MEMBERS TO  ADVISE  THE  DIRECTOR  AND
   34  MAKE  RECOMMENDATIONS  ON THE ASPECTS OF DEVELOPING AND IMPLEMENTING THE
   35  PROGRAM. MEMBERS OF THE ADVISORY COMMITTEE  SHALL  INCLUDE  BUT  NOT  BE
   36  LIMITED  TO: AT LEAST TWO REPRESENTATIVES FROM STATEWIDE SENIOR ADVOCACY
   37  ORGANIZATIONS, AT LEAST ONE  REPRESENTATIVE  REPRESENTING  A  NON-PROFIT
   38  SENIOR ORGANIZATION WHICH OPERATES AN ELDER ABUSE PREVENTION PROGRAM, AT
   39  LEAST  ONE ATTORNEY WHOSE PRACTICE CONCENTRATES IN ELDER LAW OR AN INDI-
   40  VIDUAL ACTING ON BEHALF OF THE ELDER LAW SECTION OF THE NEW  YORK  STATE
   41  BAR  ASSOCIATION,  AT LEAST ONE BANKER OR A REPRESENTATIVE OF AN ASSOCI-
   42  ATION REPRESENTING BANKERS, AT LEAST ONE CERTIFIED PUBLIC ACCOUNTANT  OR
   43  A   REPRESENTATIVE  OF  AN  ASSOCIATION  REPRESENTING  CERTIFIED  PUBLIC
   44  ACCOUNTANTS, AT LEAST TWO MEMBERS REPRESENTING PROTECTIVE  SERVICES  FOR
   45  ADULTS, AND AT LEAST TWO LAW ENFORCEMENT REPRESENTATIVES.
   46    S  4. The state finance law is amended by adding a new section 99-w to
   47  read as follows:
   48    S 99-W. FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND.
   49  1. THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF  THE  COMPTROLLER
   50  AND  THE  SUPERINTENDENT OF FINANCIAL SERVICES A SPECIAL REVENUE FUND TO
   51  BE KNOWN AS THE "FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND  TRAIN-
   52  ING FUND".
   53    2.  THE  FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND TRAINING FUND
   54  SHALL CONSIST OF ALL MONEYS RECEIVED BY THE STATE UNDER  SECTION  NINE-W
   55  OF  THE BANKING LAW AND ALL OTHER FEES, FINES, GRANTS, BEQUESTS OR OTHER
       A. 2481                             4
    1  MONIES CREDITED, APPROPRIATED OR TRANSFERRED THERETO FROM ANY OTHER FUND
    2  OR SOURCE.
    3    3.  THE  MONEYS OF THE FINANCIAL EXPLOITATION, OUTREACH, EDUCATION AND
    4  TRAINING FUND SHALL BE DISBURSED BY THE COMPTROLLER TO THE STATE  OFFICE
    5  FOR THE AGING FOR THE PURPOSE OF CARRYING OUT THE PROVISIONS OF SECTIONS
    6  TWO HUNDRED NINETEEN AND TWO HUNDRED NINETEEN-A OF THE ELDER LAW.
    7    S  5.  This act shall take effect immediately; provided, however, that
    8  subdivisions 2, 3, 4, 5, 6 and 7 of section 9-w of the banking  law,  as
    9  added  by  section one of this act, shall take effect on the two hundred
   10  seventieth day after this act shall have become a law.