S T A T E   O F   N E W   Y O R K
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           S. 2806                                                  A. 4037
                              2015-2016 Regular Sessions
                             S E N A T E - A S S E M B L Y
                                   January 29, 2015
                                      ___________
       IN  SENATE -- Introduced by Sen. GOLDEN -- read twice and ordered print-
         ed, and when printed to be committed to the Committee on Banks
       IN  ASSEMBLY  --  Introduced  by  M.  of  A.  ROBINSON,  BARRETT,  OTIS,
         BROOK-KRASNY,   CAMARA,   PEOPLES-STOKES,   MOSLEY,  ROBERTS,  ARROYO,
         FARRELL, PERRY, SEPULVEDA, SIMANOWITZ -- read once and referred to the
         Committee on Aging
       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:
    1    Section 1. The banking law is amended by adding a new article  2-D  to
    2  read as follows:
    3                                 ARTICLE 2-D
    4                           FINANCIAL EXPLOITATION
    5  SECTION 90. OPT  IN PROGRAM FOR REPORTING OF SUSPECTED FINANCIAL EXPLOI-
    6                TATION.
    7    S 90. OPT IN PROGRAM FOR REPORTING OF  SUSPECTED  FINANCIAL  EXPLOITA-
    8  TION. 1. AS USED IN THIS ARTICLE:
    9    (A)  "ADULT  PROTECTIVE  SERVICES  AGENCY"  SHALL  MEAN A LOCAL SOCIAL
   10  SERVICES OFFICE PROVIDING ADULT PROTECTIVE SERVICES PURSUANT TO  SECTION
   11  FOUR HUNDRED SEVENTY-THREE OF THE SOCIAL SERVICES LAW;
   12    (B)  "FINANCIAL  EXPLOITATION"  SHALL  MEAN IMPROPER USE OF AN ADULT'S
   13  FUNDS, PROPERTY OR RESOURCES BY ANOTHER INDIVIDUAL,  INCLUDING  BUT  NOT
   14  LIMITED  TO,  FRAUD, FALSE PRETENSES, EMBEZZLEMENT, CONSPIRACY, FORGERY,
   15  FALSIFYING RECORDS, COERCED PROPERTY TRANSFERS, OR DENIAL OF  ACCESS  TO
   16  ASSETS; AND
   17    (C) "FINANCIAL INSTITUTION" SHALL MEAN BANKS, TRUST COMPANIES, PRIVATE
   18  BANKERS, SAVINGS BANKS, LICENSED LENDERS, SAVINGS AND LOAN ASSOCIATIONS,
   19  CREDIT  UNIONS, INVESTMENT COMPANIES, MUTUAL TRUST INVESTMENT COMPANIES,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD00937-01-5
       S. 2806                             2                            A. 4037
    1  AND BANKING ORGANIZATIONS AS DEFINED IN SECTION TWO OF THIS CHAPTER THAT
    2  ARE LICENSED BY THE SUPERINTENDENT.
    3    (D) "ACCOUNT HOLDER" SHALL MEAN AN INDIVIDUAL WHO HAS AN INDIVIDUAL OR
    4  JOINT ACCOUNT WITH A FINANCIAL INSTITUTION.
    5    2. THE DEPARTMENT SHALL DEVELOP A PROGRAM WHEREBY A FINANCIAL INSTITU-
    6  TION  SHALL  BE REQUIRED TO REPORT SUSPECTED FINANCIAL EXPLOITATION OF A
    7  PARTICIPATING  ACCOUNT  HOLDER  TO  THE  APPROPRIATE  ADULT   PROTECTIVE
    8  SERVICES  AGENCY  AND  APPROPRIATE  LAW  ENFORCEMENT. THIS PROGRAM SHALL
    9  OPERATE AS FOLLOWS:
   10    (A) PARTICIPATION IN THIS PROGRAM SHALL  BE  OFFERED  TO  ALL  ACCOUNT
   11  HOLDERS;
   12    (B) SUCH PARTICIPATION SHALL BE VOLUNTARY FOR ACCOUNT HOLDERS;
   13    (C)  AN ACCOUNT HOLDER MAY REVOKE HIS OR HER PARTICIPATION AT ANY TIME
   14  IN THE FORM AND MANNER PRESCRIBED BY THE DEPARTMENT;
   15    (D) IF AN OFFICER, DIRECTOR, AGENT OR EMPLOYEE OF A FINANCIAL INSTITU-
   16  TION, ACTING IN HIS OR HER  OFFICIAL  CAPACITY,  HAS  CAUSE  TO  SUSPECT
   17  FINANCIAL  EXPLOITATION  OF  AN  ACCOUNT  HOLDER  PARTICIPATING  IN SUCH
   18  PROGRAM, SUCH OFFICER, DIRECTOR, AGENT  OR  EMPLOYEE  SHALL  REPORT,  OR
   19  CAUSE  TO  BE REPORTED, SUCH SUSPECTED FINANCIAL EXPLOITATION IN ACCORD-
   20  ANCE WITH RULES AND REGULATIONS PROMULGATED BY THE DEPARTMENT ON A  FORM
   21  PRESCRIBED BY THE DEPARTMENT;
   22    (E)  THE  DEPARTMENT  SHALL DEVELOP A FORM FOR USE BY FINANCIAL INSTI-
   23  TUTIONS THAT AN ACCOUNT HOLDER MAY COMPLETE IN ORDER TO  PARTICIPATE  IN
   24  THIS PROGRAM AND A FORM BY WHICH AN ACCOUNT HOLDER MAY REVOKE HIS OR HER
   25  PARTICIPATION;
   26    (F)  THE ORIGINAL FORM SHALL BE KEPT ON FILE BY THE FINANCIAL INSTITU-
   27  TION AS LONG AS THE ACCOUNT HOLDER MAINTAINS AN ACCOUNT WITH SUCH FINAN-
   28  CIAL INSTITUTION AND A COPY SHALL BE FORWARDED TO THE DEPARTMENT AND THE
   29  ACCOUNT HOLDER; AND
   30    (G) THE DEPARTMENT SHALL PROMULGATE ANY RULES AND  REGULATIONS  NECES-
   31  SARY  TO  EFFECTUATE  THE  PROVISIONS OF THIS SECTION INCLUDING, BUT NOT
   32  LIMITED TO:
   33    (1) GUIDELINES FOR HOW AND TO WHOM  SUSPECTED  FINANCIAL  EXPLOITATION
   34  SHALL BE REPORTED, WHETHER TO ADULT PROTECTIVE SERVICES AND/OR APPROPRI-
   35  ATE LAW ENFORCEMENT; AND
   36    (2)  IDENTIFICATION  OF  INDICATORS  THAT  MAY  BE USED TO DETERMINE A
   37  REASONABLE BASIS FOR REPORTING SUSPECTED FINANCIAL EXPLOITATION.
   38    3. AN ACCOUNT HOLDER WHO HAS OPTED TO PARTICIPATE IN THIS PROGRAM  AND
   39  WHOSE  PARTICIPATION  HAS NOT BEEN REVOKED SHALL BE DEEMED TO HAVE GIVEN
   40  PERMISSION  FOR  REPORTS  OF  SUSPECTED  FINANCIAL  EXPLOITATION  TO  BE
   41  REFERRED TO APPROPRIATE LAW ENFORCEMENT, PROVIDING THAT SUCH REPORTS ARE
   42  MADE  IN ACCORDANCE WITH RULES AND REGULATIONS PRESCRIBED BY THE DEPART-
   43  MENT.
   44    4. IF AN ACCOUNT HOLDER HAS REVOKED PARTICIPATION IN THE PROGRAM, SUCH
   45  REVOCATION SHALL BE EFFECTIVE UPON RECEIPT OF  SUCH  REVOCATION  BY  THE
   46  FINANCIAL  INSTITUTION.  THEREAFTER,  NO  REPORT  OF SUSPECTED FINANCIAL
   47  EXPLOITATION SHALL BE  DEEMED  REQUIRED  BY  THIS  SECTION  UNLESS  SUCH
   48  ACCOUNT  HOLDER  CHOOSES  TO PARTICIPATE IN THE PROGRAM AGAIN AT A LATER
   49  POINT IN TIME.
   50    5. A FINANCIAL INSTITUTION LOCATED OR DOING BUSINESS IN THIS STATE  OR
   51  AN  EMPLOYEE THEREOF WHO ACTS REASONABLY AND IN GOOD FAITH IN ACCORDANCE
   52  WITH THIS SECTION SHALL HAVE IMMUNITY  FROM  ANY  CIVIL  LIABILITY  THAT
   53  MIGHT OTHERWISE RESULT BY REASON OF SUCH ACTIONS.
   54    6. ANY INFORMATION OR DOCUMENTATION SUBMITTED PURSUANT TO THIS SECTION
   55  SHALL NOT BE SUBJECT TO DISCLOSURE UNDER ARTICLE SIX OF THE PUBLIC OFFI-
   56  CERS LAW.
       S. 2806                             3                            A. 4037
    1    7.  NOTHING  IN  THIS  SECTION  SHALL BE DEEMED TO ALTER OR NEGATE THE
    2  DUTIES OF ANY FINANCIAL INSTITUTION OR ANY OFFICER, DIRECTOR, AGENT,  OR
    3  EMPLOYEE THEREOF ESTABLISHED BY ANY OTHER PROVISION OF LAW.
    4    S  2.  This  act  shall take effect on the sixtieth day after it shall
    5  have become a law.