HB 2064 — An Act amending the act of November 6, 1987 (P.L.381, No.79), known as the Older Adults Protective Services Act, providing for financial institutions.

THE NOTIFICATION UNDER THIS PARAGRAPH SHALL:

(I) STATE THE FINANCIAL INSTITUTION HAS TEMPORARILY BLOCKED THE DISBURSEMENT OF MONEY OR DELAYED THE EXECUTION OF TRANSACTIONS AS AUTHORIZED BY THIS SECTION TO PROTECT THE OLDER ADULT FROM FINANCIAL EXPLOITATION;

(II) PROVIDE THE NAME OF THE FINANCIAL INSTITUTION AND THE NAME AND TELEPHONE NUMBER OF A CONTACT PERSON REPRESENTING THE FINANCIAL INSTITUTION;

AND (III) IDENTIFY THE ACCOUNT OR TRANSACTION TO WHICH THE NOTIFICATION APPLIES.

(2) WITHIN FIVE BUSINESS DAYS, NOTIFY EACH PERSON THAT HAS BEEN AUTHORIZED BY THE OLDER ADULT TO RECEIVE 20240HB2064PN3462 - 7 - NOTIFICATIONS REGARDING ACCOUNT ACTIVITY, EXCEPT FOR A PERSON REASONABLY BELIEVED TO HAVE ENGAGED IN SUSPECTED OR ATTEMPTED FINANCIAL EXPLOITATION OF THE OLDER ADULT.

THE NOTIFICATION UNDER THIS PARAGRAPH SHALL INCLUDE THE INFORMATION SPECIFIED UNDER PARAGRAPH (1).

(D) ASSISTANCE BY PERSONS REASONABLY ASSOCIATED WITH OLDER ADULT.--NOTWITHSTANDING ANY OTHER PROVISION OF LAW LIMITING OR PROHIBITING DISCLOSURE, A DESIGNATED REPRESENTATIVE OF A FINANCIAL INSTITUTION MAY PROVIDE INFORMATION TO A PERSON REASONABLY ASSOCIATED WITH THE OLDER ADULT SUFFICIENT TO ENABLE THE PERSON TO CONSULT WITH OR ASSIST THE OLDER ADULT IN AVOIDING OR REMEDYING SUSPECTED FINANCIAL EXPLOITATION OR TO ENABLE THE PERSON TO EXERCISE THE PERSON'S AUTHORITY TO PROTECT THE OLDER ADULT, UNLESS THE FINANCIAL INSTITUTION HAS REASON TO BELIEVE THE PERSON IS KNOWINGLY ENGAGED IN OR FACILITATING THE FINANCIAL EXPLOITATION OF THE OLDER ADULT.

EXCEPT WHEN CONTACTING AN AUTHORIZED CONTACT PROVIDED BY AN OLDER ADULT TO A FINANCIAL INSTITUTION, A FIDUCIARY AUTHORIZED TO MANAGE SOME OR ALL OF THE FINANCIAL AFFAIRS OF THE OLDER ADULT OR A CO-OWNER, ADDITIONAL AUTHORIZED SIGNATORY OR OTHER PERSON AUTHORIZED TO TRANSACT BUSINESS ON THE OLDER ADULT'S ACCOUNT, A DESIGNATED REPRESENTATIVE OF A FINANCIAL INSTITUTION:

(1) MAY DISCLOSE ONLY THAT THERE IS REASONABLE CAUSE TO SUSPECT THAT THE OLDER ADULT MAY BE A VICTIM OR TARGET OF FINANCIAL EXPLOITATION AND THE NATURE OF THE SUSPECTED FINANCIAL EXPLOITATION;

AND (2) MAY NOT DISCLOSE OTHER DETAILS OR CONFIDENTIAL PERSONAL INFORMATION REGARDING THE FINANCIAL AFFAIRS OF THE OLDER ADULT.

Model(Reserved) trainingACCESS programTO (RESERVED).RECORDS.

<-- The20240HB2064PN3462 Department of Aging and the Department of Banking and <-- Securities, in consultation with representatives of the financial services industry, are authorized to jointly develop a 20240HB2064PN3137 - 48 - modelSection training604. program for employees of financial institutions and fiduciaries regarding:

(1)Voluntary therefusal identification of activitiesdisbursements thatand constitute<-- thetransactions. financial exploitation of older adults;

(2) the recognition of the signs of potential financial exploitation of older adults;

(3) when a fiduciary or a financial institution acting through a designated representative may report suspected financial exploitation;

(4) to whom suspected exploitation should be reported;

(5) the information to be included in a report;

and (6) the applicable laws, rules and regulations that must be followed while reporting suspected financial exploitation.

Section 604.

Voluntary refusal of disbursements and transactions.

(b) Request by area agency on aging or law enforcement agency.--In addition to the authorization provided under 20240HB2064PN3137 - 5 - subsection (a), a financial institution or fiduciary may refuse to disburse money or engage in a transaction with respect to the accounts designated in subsection (a) if an area agency on aging or law enforcement official requests the financial institution or fiduciary to do so or provides information to the financial institution or fiduciary demonstrating that it is reasonable to believe that financial exploitation of an older adult may have occurred, may have been attempted or is being attempted.

(c) Discretion.--A financial institution or fiduciary is not required to refuse to disburse money or engage in a transaction as authorized under subsection (a) or (b), but may use its sole discretion to determine whether to refuse to disburse money based on the information available to the financial institution 20240HB2064PN3462 - 9 - or fiduciary.

and (3) within two business days, make a reasonable effort to notify, orally or in writing, each person authorized to transact business on the account, that is a beneficiary of <-- the account or that has been authorized by the older adult to receive notifications regarding account activity, except for 20240HB2064PN3137 - 6 - a person reasonably believed to have engaged in suspected or attempted financial exploitation of the older adult or a payable on death beneficiary designated not to be notified prior to the death of the older adult.

20240HB2064PN3462 - 10 - and (3) identifies the account or transaction to which the notification applies.

or (3) 15seven SEVEN business days after the financial <-- institution or fiduciary first refused to disburse the money or engage in the transaction.

20240HB2064PN3137 - 7 - (g) Extension of expiration.--A financial institution or fiduciary may extend the expiration date of its refusal as provided in subsection (f)(3) by an additional 25 15 business <-- days if a request is made for a court order as authorized by subsection (h) by a financial institution or fiduciary, or by the local agency on aging, the department or a law enforcement agency to block or extend the refused disbursement or transaction.

(i) Recordkeeping.--A request of an area agency on aging or 20240HB2064PN3462 - 11 - a law enforcement official to terminate or extend a refusal to disburse money or engage in a transaction as authorized by this section shall be documented in writing.

20240HB2064PN3137 - 8 - (3) request the appointment of a conservator or guardian of the estate of an older adult;

(b) Notice to area agency on aging.--Prior to initiating a proceeding under this subsection, at least 24 hours' prior notice must be given to the area agency on aging for the county in which the proceeding is initiated and an offer made to consult with the agency regarding the proceeding, unless delaying the initiation of the proceeding will threaten an older 20240HB2064PN3462 - 12 - adult with immediate and irreparable injury pursuant to the standards applicable for an application for special relief before notice of a hearing under Pa.R.C.P Rule 1531 (relating to special relief, injunctions).

(2) A financial institution or fiduciary shall have the right to intervene as a party to a proceeding initiated by an area agency on aging or the department under this act to provide protective services to an older adult customer of a 20240HB2064PN3137 - 9 - financial institution or to an individual to whom a fiduciary owns a duty of care.

20240HB2064PN3462 - 13 - (a) Immunity.--Except as provided under subsection (c), a financial institution or fiduciary and its directors, officers, designated representatives, employees or agents shall not be subject to a claim for damages or other civil or criminal liability for taking or failing to take any action authorized, but not required by this chapter, to:

20240HB2064PN3137 - 10 - (b) Additional immunities and defenses.--Notwithstanding any other law to the contrary:

229 (relating to availability of 20240HB2064PN3462 - 14 - funds and collection of checks).

A FINANCIAL INSTITUTION SHALL PROVIDE, AT NO COST, ACCESS TO <-- OR COPIES OF RECORDS THAT ARE RELEVANT TO THE SUSPECTED FINANCIAL EXPLOITATION OR ATTEMPTED FINANCIAL EXPLOITATION OF AN OLDER ADULT TO AN AREA AGENCY ON AGING, A LAW ENFORCEMENT AGENCY OR THE DEPARTMENT, EITHER AS PART OF A REFERRAL OR UPON WRITTEN REQUEST OF THE AREA AGENCY ON AGING, LAW ENFORCEMENT AGENCY OR DEPARTMENT, FOR THE PURPOSE OF PERFORMING AN INVESTIGATION OF THE SUSPECTED FINANCIAL EXPLOITATION OR ATTEMPTED FINANCIAL EXPLOITATION.

A FINANCIAL INSTITUTION SHALL PROVIDE ACCESS TO OR COPIES OF RECORDS UNDER THIS SECTION WITHIN TWO BUSINESS DAYS.

RECORDS UNDER THIS SECTION MAY INCLUDE HISTORICAL RECORDS AND RECORDS REGARDING THE MOST RECENT TRANSACTION OR TRANSACTIONS THAT MAY CONSTITUTE FINANCIAL EXPLOITATION, NOT TO EXCEED 60 CALENDAR DAYS PRIOR TO THE FIRST TRANSACTION THAT WAS REPORTED OR 60 CALENDAR DAYS AFTER THE LAST TRANSACTION THAT WAS REPORTED.

RECORDS UNDER THIS SECTION MAY ALSO INCLUDE, OR MAY BE SUBSEQUENTLY SUPPLEMENTED BY, RECORDS OF THE OLDER ADULT THAT A 20240HB2064PN3462 - 15 - FINANCIAL INSTITUTION BELIEVES, UPON CONSULTATION WITH AN AREA AGENCY ON AGING, ARE NEEDED TO PROVIDE PROTECTIVE SERVICES TO THE OLDER ADULT.

SECTION 604.

COMPLIANCE POLICIES OF FINANCIAL INSTITUTIONS.

A FINANCIAL INSTITUTION SHALL CREATE AND IMPLEMENT INTERNAL COMPLIANCE POLICIES, PROGRAMS, PLANS AND PROCEDURES TO COMPLY WITH THIS CHAPTER.

SECTION 605.

MODEL TRAINING PROGRAM.

THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF BANKING AND SECURITIES AND REPRESENTATIVES OF THE FINANCIAL SERVICES INDUSTRY, MAY JOINTLY DEVELOP A MODEL TRAINING PROGRAM FOR FINANCIAL INSTITUTION EMPLOYEES AND DESIGNATED REPRESENTATIVES OF FINANCIAL INSTITUTIONS REGARDING THE IDENTIFICATION OF ACTIVITIES THAT CONSTITUTE FINANCIAL EXPLOITATION OF OLDER ADULTS.

SECTION 606.

ENFORCEMENT.

(A) AUTHORIZATION.--THE ATTORNEY GENERAL AND THE DEPARTMENT SHALL ENFORCE THE PROVISIONS OF THIS CHAPTER.

THE ATTORNEY GENERAL OR THE DEPARTMENT MAY BRING AN ACTION BEFORE A COURT WITH COMPETENT JURISDICTION TO ENFORCE THE PROVISIONS OF THIS CHAPTER.

FOR A VIOLATION OF THIS CHAPTER THAT RESULTS IN A FINANCIAL LOSS TO AN OLDER ADULT, A COURT MAY ORDER A FINANCIAL INSTITUTION TO PAY A CIVIL PENALTY NOT TO EXCEED $10,000 PER VIOLATION TO THE COMMONWEALTH.

A COURT MAY ORDER A FINANCIAL INSTITUTION TO RESTORE TO ANY PERSON INTEREST FOR LOSSES THAT RESULT FROM A VIOLATION OF THIS CHAPTER, AS FOLLOWS:

(1) FOR A VIOLATION OF SECTION 602(A)(1), AN AMOUNT NOT TO EXCEED ACTUAL DAMAGES UP TO $10,000.

(2) FOR ANY OTHER VIOLATION OF THIS ACT, AN AMOUNT OF ACTUAL DAMAGES UP TO A MAXIMUM OF THE DEPOSIT INSURANCE LIMIT 20240HB2064PN3462 - 16 - APPLICABLE TO THE OWNER OF AN OLDER ADULT'S ACCOUNT AT THE FINANCIAL INSTITUTION IN ACCORDANCE WITH 12 U.S.C.

§ 1821(A) (RELATING TO INSURANCE FUNDS).

(B) LIABILITY.--A FINANCIAL INSTITUTION SHALL BE LIABLE TO AN OLDER ADULT AND THE OLDER ADULT'S JOINT ACCOUNT HOLDERS, IF ANY, FOR FINANCIAL LOSSES SUFFERED BY THE OLDER ADULT DUE TO FINANCIAL EXPLOITATION UP TO A MAXIMUM OF THE DEPOSIT INSURANCE LIMIT APPLICABLE TO THE OWNER OF THE OLDER ADULT'S ACCOUNT AT THE FINANCIAL INSTITUTION IN ACCORDANCE WITH 12 U.S.C.

§ 1821(A)M (RELATING TO INSURANCE FUNDS) IF ALL OF THE FOLLOWING CONDITIONS ARE MET:

(1) A DESIGNATED REPRESENTATIVE OF THE FINANCIAL INSTITUTION KNEW OR HAD REASONABLE CAUSE TO BELIEVE THAT THE OLDER ADULT WAS SUBJECT TO PAST, CURRENT OR ATTEMPTED FINANCIAL EXPLOITATION.

(2) DESPITE THE DESIGNATED REPRESENTATIVE OF THE FINANCIAL INSTITUTION KNOWING OR HAVING REASONABLE CAUSE TO BELIEVE THAT THE OLDER ADULT WAS SUBJECT TO PAST, CURRENT OR ATTEMPTED FINANCIAL EXPLOITATION, THE DESIGNATED REPRESENTATIVE FAILED TO HOLD A PROPOSED TRANSACTION UNDER SECTION 602(B).

(3) BEGINNING NO LATER THAN 60 DAYS OF THE DESIGNATED REPRESENTATIVE FAILING TO HOLD A PROPOSED TRANSACTION UNDER SECTION 602(B), FUNDS OR SECURITIES WORTH MORE THAN $10,000 IN THE AGGREGATE WERE TRANSFERRED FROM THE OLDER ADULT'S ACCOUNT HELD BY THE FINANCIAL INSTITUTION DUE TO FINANCIAL EXPLOITATION, OVER A PERIOD OF 31 DAYS OR LESS.

(4) WITHIN 180 DAYS OF THE LAST TRANSFER UNDER PARAGRAPH (3), THE FINANCIAL INSTITUTION WAS NOTIFIED IN WRITING BY THE OLDER ADULT OR THE OLDER ADULT'S LEGALLY AUTHORIZED 20240HB2064PN3462 - 17 - REPRESENTATIVE, AN AREA AGENCY ON AGING OR A LAW ENFORCEMENT AGENCY THAT THE TRANSFER WAS THE RESULT OF FINANCIAL EXPLOITATION.

THE WRITTEN NOTICE SHALL CONTAIN A SIGNED DECLARATION NOT GIVEN UNDER OATH BUT GIVEN UNDER PENALTY OF PERJURY IN ACCORDANCE WITH 42 PA.C.S.

CH.

62 (RELATING TO UNIFORM UNSWORN DECLARATIONS ACT).

(C) ASSESSMENT.--IN ASSESSING THE DAMAGES FOR A FAILURE TO COMPLY WITH THIS CHAPTER, A COURT SHALL ASSESS DAMAGES USING EITHER THE LIABILITY SPECIFIED UNDER SUBSECTION (A) OR (B), BUT NOT BOTH SUBSECTIONS (A) AND (B).

(D) CLASS ACTION PROHIBITED.--ONLY AN INDIVIDUAL ACTION MAY BE BROUGHT UNDER THIS SECTION.

A CLASS ACTION MAY NOT BE BROUGHT UNDER THIS SECTION.

SECTION 607.

IMMUNITY.

A PERSON ACTING IN GOOD FAITH IN ACCORDANCE WITH THIS CHAPTER SHALL HAVE IMMUNITY FROM LIABILITY SOLELY FOR PROVIDING ACCESS TO RECORDS OR HOLDING A TRANSACTION THAT MIGHT OTHERWISE EXIST.

20240HB2064PN3137AS -<-- 11FOLLOWS: -

(1) THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.

(2) THE ADDITION OF SECTION 604 OF THE ACT SHALL TAKE EFFECT IN 90 DAYS.

(3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 180 DAYS.

20240HB2064PN3462 - 18 -