BILL NUMBER: S9205
SPONSOR: JACKSON
 
TITLE OF BILL:
An act to amend the mental hygiene law, in relation to requirements for
the appointment of a guardian for personal needs or property management;
and to amend the banking law, in relation to bank statements for Medi-
caid applications
 
SUMMARY OF PROVISIONS:
Section 1 of this bill amends Mental Hygiene Law § 81.05 to allow a
social services official or agency that is nominated or considered for
appointment as guardian, but did not receive required statutory notice,
to provide information to the court regarding the appropriate social
services official or agency for appointment.
Section 2 of this bill amends Mental Hygiene Law § 81.06 to prohibit the
commencement of a guardianship proceeding solely for the purpose of
collecting a debt, discharging an alleged incapacitated person from a
hospital, nursing home, or other institution with a duty of care, or for
any action not in the best interests of the alleged incapacitated
person.
Section 3 of this bill amends Mental Hygiene Law § 81.08 to require the
court to consider requests for protective arrangements or single trans-
actions as less restrictive alternatives to full guardianship and to
support such consideration with specific findings on the record.
Section 4 of this bill adds a new provision to Article 81 requiring
petitioners to disclose to the court, court-appointed counsel, and the
court evaluator any material information relevant to the functional
limitations of the alleged incapacitated person or that may support a
determination that guardianship or the powers sought are unnecessary or
overly restrictive.
Section 5 of this bill amends Mental Hygiene Law § 81.16 to provide that
when a social services official or agency is appointed as guardian,
counsel for that official or agency shall prepare and submit the
proposed order to the court.
Section 6 of this bill adds a new provision to Mental Hygiene Law §
81.17 making a social services official or agency a party to the
proceeding when nominated or considered for appointment as guardian,
granting full participation rights, including the authority to issue
subpoenas and to implead a social services official from another social
services district upon a showing that such district may be the appropri-
ate party.
Section 7 of this bill amends Mental Hygiene Law § 81.19 to prohibit a
court from appointing a social services official or agency as guardian,
temporary guardian, or special guardian without the written consent of
such official or agency, and to ensure full participation rights when
such an appointment is proposed. Section 8 of this bill amends Mental
Hygiene Law § 81.20 to authorize a social services official or agency
appointed as guardian to delegate authority to subordinate employees or
agents acting on its behalf within the scope of the court-granted
powers.
 
JUSTIFICATION:
New York's social services system relies on local districts to adminis-
ter services on behalf of the state, making Local Departments of Social
Services (LDSS) responsible to serve vulnerable populations but also
increasingly treated as the "guardian of last resort" in guardianship
cases. Guardianship transfers significant legal rights, yet LDSS offi-
cials are sometimes appointed as guardians without notice or consent,
creating risks for alleged incapacitated persons and exposing local
agencies to legal liability. This bill seeks to make LDSS true partners
in guardianship proceedings by requiring notice, participation, and a
good-faith basis for their appointment, rather than automatic or default
selection. It clarifies which social services district should serve as
guardian when jurisdiction is unclear and allows commissioners to dele-
gate guardianship duties to appropriate staff. The legislation also aims
to prevent misuse of guardianship proceedings by hospitals, nursing
homes, or other entities to facilitate discharge or collect debt, ensur-
ing that guardianship is used only when it is genuinely in the best
interests of the alleged incapacitated person.
 
LEGISLATIVE HISTORY:
This is a new bill.
 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENT:
No fiscal implications. This bill is changing statute and should not
require any funding.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law. Effective immediately, the addition, amendment
and/or repeal of any rule or regulation necessary for the implementation
of this act on its effective date are authorized to be made and
completed on or before such effective date.

Statutes affected:
S9205: 81.05 mental hygiene law, 81.06 mental hygiene law, 81.08 mental hygiene law, 81.16 mental hygiene law, 81.17 mental hygiene law, 81.19 mental hygiene law, 81.20 mental hygiene law, 81.36 mental hygiene law, 14 banking law, 14(1) banking law