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A04177 Summary:

BILL NOA04177
 
SAME ASNo Same As
 
SPONSORHunter
 
COSPNSRFahy, Dickens, Dinowitz
 
MLTSPNSR
 
Add §9-aa, Bank L
 
Relates to the reporting 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 third party who reports suspected financial abuse shall have immunity from any civil or criminal liability as a result.
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A04177 Actions:

BILL NOA04177
 
02/10/2023referred to banks
05/23/2023reported referred to codes
01/03/2024referred to codes
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A04177 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A4177
 
SPONSOR: Hunter
  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: Section one creates a new section 9-x of the banking law as follows: * The Superintendent of the Department of Financial Services would develop guidelines for reporting suspected financial exploitation in consulta- tion with the State Office for the Aging, NYS Attorney. General, repre- sentatives 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. Section two provides that the act shall take effect on the ninetieth day after it shall have become a law.   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: 2021: A.7087 referred to banks 2022: A8288 referred to banks   FISCAL IMPLICATIONS: To be determined.   EFFECTIVE DATE: This act shall take effect on the 90th day.
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A04177 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          4177
 
                               2023-2024 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 10, 2023
                                       ___________
 
        Introduced  by M. of A. HUNTER, FAHY, DICKENS, DINOWITZ -- read once and
          referred 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:

     1    Section 1. The banking law is amended by adding a new section 9-aa  to
     2  read as follows:
     3    § 9-aa. Reporting of suspected financial exploitation. 1. For purposes
     4  of this section, the following terms shall have the following meanings:
     5    (a)  "financial  exploitation" shall mean activity prohibited pursuant
     6  to sections 190.25, 190.26,  190.60,  190.65,  190.78,  190.79,  190.80,
     7  190.80-a,  190.81, 190.82, and 190.83 of the penal law or activity meant
     8  to deprive an individual of assets or property by  deceptive,  manipula-
     9  tive, or other illegal means.
    10    (b) "financial institution" shall mean any banking institution, credit
    11  union, investment brokerage, and any other entity licensed by the super-
    12  intendent.
    13    (c)  "superintendent"  shall mean the superintendent of the department
    14  of financial services.
    15    2. The superintendent, in consultation with the director of the office
    16  for the aging, the attorney general, representatives  of  the  financial
    17  services  industry,  law enforcement, senior groups, and district attor-
    18  neys, shall develop guidelines relating to reporting suspected financial
    19  exploitation. Such guidelines shall include, but not be limited to:
    20    (a) the types of warning signs and evidence that would  be  acceptable
    21  indicators of financial exploitation;
    22    (b) when suspected financial exploitation should be reported;
    23    (c) to whom suspected financial exploitation should be reported;
    24    (d)  information  that  should  be  included  in a report of suspected
    25  financial abuse; and
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04138-01-3

        A. 4177                             2
 
     1    (e) the applicable laws, rules and regulations that must  be  followed
     2  while reporting suspected financial abuse.
     3    3.  A financial institution located or doing business in this state or
     4  an employee thereof who, acting reasonably and in good faith in  accord-
     5  ance with these guidelines, reports suspected financial abuse shall have
     6  immunity  from any civil liability that might otherwise result by reason
     7  of such actions.
     8    4. The superintendent is directed to promulgate  any  rules  or  regu-
     9  lations necessary to carry out the provisions of this section.
    10    §  2.  This  act shall take effect on the ninetieth day after it shall
    11  have become a law.
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