Relates to reporting of financial exploitation; and establishes a financial exploitation, outreach, education and training program and fund

Title of bill

An act to amend the banking law and the elder law, in relation to financial exploitation; and to amend the state finance law, in relation to establishing the financial exploitation, outreach, education and training fund

Purpose or general idea of bill

To ensure that those individuals who may have access to seniors financial information are trained to detect suspected financial abuse and report the suspected abuse so that if abuse is occurring, it can be mitigated and the perpetrator can be brought to justice.

Summary of specific provisions

Section 1 amends the banking law by adding a new section 9-u which creates a reporting process of suspected financial exploitation for individuals ages sixty and older. Section 2 authorizes the director of the state office for the aging to conduct outreach, education and training for financial institutions. Section 3 amends the elder law by adding a new section 219-a which creates a financial exploitation, outreach, education: and training program. Section 4 amends the state finance law by adding a new section 99-p that creates a financial exploitation, outreach, education and training fund.

Justification

Financial exploitation and abuse among older adults is a serious and growing problem. It is stealing. It amounts to someone - a stranger, friend, family member or even a professional - taking property or funds that belong to someone else. While anyone can become a victim of financial exploitation, older adults are especially vulnerable. Nationwide, it is estimated that $40 billion is lost annually through scams, theft and stolen property. Unfortunately, age and disability often require that relatives, friends and others are solicited to help manage finances, in other words, are given easy access to their assets. Often perceptions of physical and mental limitations can make financial abuse easy and low risk.

Those older adults who are victims of scams may be reluctant to come forward due to embarrassment and shame. Others may be unaware the abuse is even taking place due to a lack of capacity and where a power of attorney is executed. The power of attorney provides the agent with great powers of the financial holdings and affairs of the individual.

When an older adult becomes a victim of this type of abuse, the state often steps in to pay for services such as food, shelter, health care and other support costing taxpayers money and significantly impacting the individuals independence and emotional well-being of having a life- times worth of savings stolen.

This legislation will create a reporting process where individuals who have access to an older adults financial information, such as account- ants, banks, attorney's and tax prepares, shall report, without liability, suspected financial exploitation to ensure the abuse stops and to bring the perpetrators to justice. It creates an outreach, education and training program for individuals working with financial information and to help the public understand and identify possible abuse.

Prior legislative history

2007-08 A.3765 referred to codes 2009-10 A.3886 referred to banks 2011-12 A.4541 referred to banks 2013-14 A.5604 referred to banks

Fiscal implications

none

Effective date

The act shall take effect immediately. The reporting process shall take effect 270 days after it shall become law.