Authorizes banks to refuse payment of moneys when there is reason to believe that a vulnerable adult is being financially exploited

Summary of provisions

Section 1: Amends the Social Services Law 473 that relates to the provision of Adult. Protective Services. This bill adds a new subdivision 8 to authorize that if a banking organization, social services official, or law enforcement agency reasonably believes that the financial exploitation of a vulnerable adult has occurred or may occur, then a banking organization may refuse to conduct any transaction that requires the processing of funds of a vulnerable adult. In addition, a banking organization may provide law enforcement. agencies and social service officials responsible for administering the provisions of this article with access to or copies of historical records or recent transactions relevant to suspected financial exploitation of a vulnerable adult.

A banking organization is not required to refuse to disburse funds pursuant to this act, but if such organization does so based on the reasonable suspicion that financial exploitation may occur or has occurred, or based on the information provided by a social services official or law enforcement. agency, then such banking organization shall report the incident to the responsible social services official.

Section 2: Amends Banking Law section 4 to make conforming amendments to this law so that it is consistent with the new provisions provided for in the Social Services Law.

Section 3: Provides for an effective date of 180 days after this act shall become a law.

Justification

Persons over the age of 65 are the fastest growing segment of the American population. While senior citizens constituted only 4% of the total population in 1900, by 1994 the proportion of seniors in the united States had grown to 12.5%. By 2050 almost 25% of all Americans will be over age 65. This dramatic shift in population distribution has produced tremendous upheavals in family structure and in our societal response to the treatment and care of our senior

population. One problem faced by many seniors today is how to care for themselves when their traditional network of support, their children and grandchildren, are occupied with raising their own families and are often spread out over a wide geographic area.

Evidence suggests that there may be a surprisingly high percentage of senior citizens who are, either intentionally or unintentionally, mistreated by family members or institutional caregivers or who of their own volition, are neglecting in their own basic custodial needs. This maltreatment can take many forms, ranging from physical and psychological abuse to neglect to financial abuse and exploitation. While physical abuse and neglect would seem to be a more immediate concern for the elderly than protecting their financial assets from potential theft or conversion by relatives and caregivers, the loss of one's financial assets can have an even more severe a long-term impact on a senior's wellbeing and quality of life as a physical injury or abuse.

A 1990 congressional report also concluded that elder abuse is far less likely to be reported than child abuse, estimating that only 1 in 8 cases of elder abuse, as compared with 1 in 3 cases of child abuse, is ever reported to the authorities. Encouraging the reporting of suspected financial exploitation of vulnerable adults, including the elderly is an important public policy goal that should be achieved. Currently, 42 states and the District of Columbia have statutes requiring various professionals (typically health care professionals, psychologists and social workers) to report known and suspected incidents to prescribed public officials.

It should be understood that this bill provides protections for all vulnerable adults that are protected under the Adult. Protective Services Programs as provided for under Social Services Law Article 9-B, which includes all vulnerable adults that are 18 years of age or older.

Legislative history

None

Fiscal implications

None.

Effective date

This act shall take effect on the 180th day after it shall become a law.