STATE OF NEW YORK ________________________________________________________________________ 1293 2025-2026 Regular Sessions IN SENATE January 9, 2025 ___________ Introduced by Sens. BORRELLO, OBERACKER, SANDERS -- read twice and ordered printed, and when printed to be committed to the Committee on Consumer Protection AN ACT to amend the general business law, in relation to preventing the financial exploitation of older and vulnerable adults The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The general business law is amended by adding a new section 2 359-eeee to read as follows: 3 § 359-eeee. Prevention of financial exploitation of elderly and 4 vulnerable adults. 1. For purposes of this section, the following terms 5 shall have the following meanings: 6 (a) "Eligible adult" means: 7 (i) a person sixty-five years of age or older; or 8 (ii) a person subject to adult protective services. 9 (b) "Financial exploitation" means: 10 (i) the wrongful or unauthorized taking, withholding, appropriation, 11 or use of money, assets or property of an eligible adult; or 12 (ii) any act or omission taken by a person, including through the use 13 of a power of attorney, guardianship, or conservatorship of an eligible 14 adult, to: 15 (1) obtain control, through deception, intimidation or undue influ- 16 ence, over such eligible adult's money, assets or property to deprive 17 such eligible adult of the ownership, use, benefit or possession of such 18 eligible adult's money, assets or property; or 19 (2) convert money, assets or property of such eligible adult to 20 deprive such eligible adult of the ownership, use, benefit or possession 21 of such eligible adult's money, assets or property. 22 (c) "Qualified individual" means any agent, representative or person 23 who serves in a supervisory, compliance, or legal capacity for a brok- 24 er-dealer or investment adviser. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD01685-01-5
S. 1293 2 1 (d) "Investment advisor" shall have the same meaning as such term is 2 defined pursuant to paragraph (a) of subdivision one of section three 3 hundred fifty-nine-eee of this article. 4 (e) "Broker" and "dealer" shall have the same meaning as such terms 5 are defined pursuant to paragraphs (a) and (b) of subdivision one of 6 section three hundred fifty-nine-e of this article. 7 2. (a) If a qualified individual reasonably believes that financial 8 exploitation of an eligible adult may have occurred, may have been 9 attempted, or is being attempted, such qualified individual may promptly 10 notify adult protective services and the commissioner of the department 11 of financial services. 12 (b) A qualified individual that in good faith and exercising reason- 13 able care makes a disclosure of information pursuant to paragraph (a) of 14 this subdivision shall be immune from administrative or civil liability 15 that might otherwise arise from such disclosure or for any failure to 16 notify the customer of the disclosure. 17 3. (a) If a qualified individual reasonably believes that financial 18 exploitation of an eligible adult may have occurred, may have been 19 attempted, or is being attempted, such qualified individual may notify 20 any third-party previously designated by the eligible adult. Disclosure 21 shall not be made to any designated third-party that is suspected of 22 financial exploitation or other abuse of the eligible adult. 23 (b) A qualified individual that, in good faith and exercising reason- 24 able care, complies with paragraph (a) of this subdivision shall be 25 immune from any administrative or civil liability that might otherwise 26 arise from such disclosure. 27 4. (a) A broker-dealer or investment adviser may delay a disbursement 28 from an account of an eligible adult or an account on which an eligible 29 adult is a beneficiary if: 30 (i) the broker-dealer, investment adviser, or qualified individual 31 reasonably believes, after initiating an internal review of the 32 requested disbursement and the suspected financial exploitation, that 33 the requested disbursement may result in financial exploitation of an 34 eligible adult; and 35 (ii) the broker-dealer or investment adviser: 36 (1) immediately, but in no event more than two business days after the 37 requested disbursement, provides written notification of the delay and 38 the reason for the delay to all parties authorized to transact business 39 on the account, unless any such party is reasonably believed to have 40 engaged in suspected or attempted financial exploitation of the eligible 41 adult; 42 (2) immediately, but in no event more than two business days after the 43 requested disbursement, notifies the commissioner of the department of 44 financial services; and 45 (3) continues its internal review of the suspected or attempted finan- 46 cial exploitation of the eligible adult, as necessary, and reports the 47 investigation's results to the commissioner of the department of finan- 48 cial services within seven business days after the requested disburse- 49 ment. 50 (b) Any delay of a disbursement as authorized pursuant to this section 51 shall expire upon the sooner of: 52 (i) a determination by the broker-dealer or investment adviser that 53 the disbursement will not result in financial exploitation of the eligi- 54 ble adult; or 55 (ii) fifteen business days after the date on which the broker-dealer 56 or investment adviser first delayed disbursement of the funds, unless
S. 1293 3 1 the department of financial services requests that the broker-dealer or 2 investment adviser extend the delay, in which case the delay shall 3 expire no more than twenty-five business days after the date on which 4 the broker-dealer or investment adviser first delayed disbursement of 5 the funds unless sooner terminated by either the department of financial 6 services or an order of a court of competent jurisdiction. 7 (c) A court of competent jurisdiction may enter an order extending the 8 delay of the disbursement of funds or may order other protective relief 9 based on a petition of the commissioner of the department of financial 10 services, adult protective services, the broker-dealer or investment 11 adviser that initiated the delay pursuant to this subdivision, or anoth- 12 er interested party. 13 (d) A broker-dealer or investment adviser that, in good faith and 14 exercising reasonable care, complies with this subdivision shall be 15 immune from any administrative or civil liability that might otherwise 16 arise from such delay in a disbursement in accordance with this subdivi- 17 sion. 18 5. A broker-dealer or investment adviser shall provide access to or 19 copies of records that are relevant to the suspected or attempted finan- 20 cial exploitation of an eligible adult to agencies charged with adminis- 21 tering state adult protective services laws and to law enforcement, 22 either as part of a referral to an agency or to law enforcement, or upon 23 request of an agency or law enforcement pursuant to an investigation. 24 The records shall include historical records as well as records relating 25 to the most recent transaction or transactions that may comprise finan- 26 cial exploitation of an eligible adult. All records made available to 27 agencies under this section shall not be considered a public record. 28 Nothing in this subdivision shall limit or otherwise impede the authori- 29 ty of the commissioner of the department of financial services to access 30 or examine the books and records of broker-dealers and investment advis- 31 ers as otherwise provided by law. 32 § 2. This act shall take effect immediately.