SB 738 — An Act amending the act of November 6, 1987 (P.L.381, No.79), known as the Older Adults Protective Services Act, providing for prevention of financial exploitation.

(2) A reasonable belief that payment of a check will 20250SB0738PN1867 - 18 - facilitate the financial exploitation of an older adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of 12 U.S.C.

41 (relating to expedited funds availability) and 50 (relating to check 20250SB0738PN0763 - 18 - truncation) and 12 CFR Pt.

20250SB0738PN0763SECTION -1. 19 -

THE ACT OF NOVEMBER 6, 1987 (P.L.381, NO.79), <-- KNOWN AS THE OLDER ADULTS PROTECTIVE SERVICES ACT, IS AMENDED BY ADDING A CHAPTER TO READ:

CHAPTER 6 PREVENTION OF FINANCIAL EXPLOITATION SECTION 601.

DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS CHAPTER SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"ACCOUNT OF THE OLDER ADULT." AN ACCOUNT HELD BY A FINANCIAL INSTITUTION IN WHICH THE OLDER ADULT IS THE OWNER, A CO-OWNER, A TRUSTEE, A GUARDIAN, AN AGENT-IN-FACT, A BENEFICIARY, HAS A BENEFICIAL INTEREST OR HAS ANY OTHER INTEREST OR RIGHTS.

"DEPARTMENT." THE DEPARTMENT OF AGING OF THE COMMONWEALTH.

"DESIGNATED REPRESENTATIVE." AN INDIVIDUAL WHO IS:

(1) DESIGNATED BY A FINANCIAL INSTITUTION AS THE 20250SB0738PN1867 - 19 - INDIVIDUAL RESPONSIBLE FOR PROVIDING INFORMATION TO AN AREA AGENCY ON AGING, THE DEPARTMENT OR A LAW ENFORCEMENT AGENCY REGARDING THE SUSPECTED FINANCIAL EXPLOITATION OF OLDER ADULTS;

AND (2) PROVIDED IMMUNITY FROM SUIT UNDER 12 U.S.C.

§ 3423 (RELATING TO IMMUNITY FROM SUIT FOR DISCLOSURE OF FINANCIAL EXPLOITATION OF SENIOR CITIZENS) FOR DISCLOSING THE SUSPECTED FINANCIAL EXPLOITATION OF OLDER ADULTS.

"FINANCIAL EXPLOITATION." AS DEFINED IN 18 PA.C.S.

§ 3922.1 (RELATING TO FINANCIAL EXPLOITATION OF AN OLDER ADULT OR CARE- DEPENDENT PERSON).

"FINANCIAL INSTITUTION." ANY OF THE FOLLOWING CONDUCTING BUSINESS IN THIS COMMONWEALTH:

(1) A DEPOSITORY INSTITUTION AS DEFINED IN 12 U.S.C.

§ 1813(C) (RELATING TO DEFINITIONS).

(2) A FEDERAL CREDIT UNION OR STATE CREDIT UNION AS DEFINED IN 12 U.S.C.

§ 1752 (RELATING TO DEFINITIONS), INCLUDING AN INSTITUTION-AFFILIATED PARTY OF A CREDIT UNION AS DEFINED IN 12 U.S.C.

§ 1786(R) (RELATING TO TERMINATION OF INSURED CREDIT UNION STATUS AND CEASE AND DESIST ORDERS AND REMOVAL OR SUSPENSION FROM OFFICE AND PROCEDURE).

(3) A FINANCIAL INSTITUTION UNDER 31 CFR PT.

1020 (RELATING TO RULES FOR BANKS) THAT IS REQUIRED TO FILE A SUSPICIOUS ACTIVITY REPORT.

(4) A PERSON SUBJECT TO SUPERVISION BY THE DEPARTMENT OF BANKING AND SECURITIES OR COMPARABLE FEDERAL OR STATE BANK SUPERVISORY OR REGULATORY AUTHORITY.

"FINANCIAL INSTITUTION EMPLOYEE." AN EMPLOYEE OF A FINANCIAL INSTITUTION WHO HAS DIRECT CONTACT WITH AN OLDER ADULT.

"GOOD FAITH." AS DEFINED IN 13 PA.C.S.

§ 5102 (RELATING TO 20250SB0738PN1867 - 20 - DEFINITIONS).

"LAW ENFORCEMENT AGENCY." ANY OF THE FOLLOWING:

(1) THE OFFICE OF ATTORNEY GENERAL.

(2) A COUNTY DISTRICT ATTORNEY'S OFFICE.

(3) AN AGENCY THAT EMPLOYS A LAW ENFORCEMENT OFFICER.

"LAW ENFORCEMENT OFFICER." ANY OF THE FOLLOWING:

(1) A MEMBER OF THE PENNSYLVANIA STATE POLICE.

(2) AN INDIVIDUAL EMPLOYED AS A POLICE OFFICER WHO HOLDS A CURRENT CERTIFICATE UNDER 53 PA.C.S.

CH.

21 SUBCH.

D (RELATING TO MUNICIPAL POLICE EDUCATION AND TRAINING).

(3) A SHERIFF OR DEPUTY SHERIFF.

(4) A FEDERAL LAW ENFORCEMENT OFFICER OR AGENT.

"LOCAL PROVIDER OF PROTECTIVE SERVICES." THE AGENCY WHICH IS THE LOCAL PROVIDER OF PROTECTIVE SERVICES UNDER SECTION 302.

"PERSON IN A POSITION OF TRUST TO THE OLDER ADULT." THE TERM SHALL HAVE THE SAME MEANING AS THE TERM "POSITION OF TRUST" AS DEFINED UNDER 18 PA.C.S.

§ 3922.1(F) (RELATING TO FINANCIAL EXPLOITATION OF AN OLDER ADULT OR CARE-DEPENDENT PERSON).

"PERSON WHO IS AUTHORIZED TO HAVE ACCESS TO THE ACCOUNT OF THE OLDER ADULT." THE TERM INCLUDES:

(1) AN AUTHORIZED CONTACT PROVIDED BY AN OLDER ADULT TO A FINANCIAL INSTITUTION OR AN AUTHORIZED SIGNATORY ON THE ACCOUNT OF THE OLDER ADULT.

(2) A FIDUCIARY AUTHORIZED TO MANAGE SOME OR ALL OF THE FINANCIAL AFFAIRS OF THE OLDER ADULT.

(3) A CO-OWNER OF AN ACCOUNT OR OTHER PERSON AUTHORIZED TO TRANSACT BUSINESS OF AN ACCOUNT OF THE OLDER ADULT.

(4) AN ATTORNEY OR FINANCIAL PROFESSIONAL KNOWN TO REPRESENT, OR HAVE REPRESENTED, OR TO ASSIST IN THE MANAGEMENT OF THE FINANCIAL AFFAIRS OF THE OLDER ADULT.

20250SB0738PN1867 - 21 - "TRANSACTION." THE TERM INCLUDES:

(1) A TRANSFER OR DISBURSEMENT OF, OR A REQUEST TO TRANSFER OR DISBURSE, MONEY, ASSETS OR ANY OTHER TANGIBLE OR INTANGIBLE ITEM OF VALUE.

(2) A REQUEST TO INITIATE A WIRE TRANSFER, INITIATE AN AUTOMATED CLEARINGHOUSE TRANSFER OR ISSUE A MONEY ORDER, CASHIER'S CHECK OR OFFICIAL CHECK.

(3) A REQUEST TO NEGOTIATE A CHECK OR OTHER NEGOTIABLE INSTRUMENT.

(4) A REQUEST TO CHANGE THE OWNERSHIP OF, OR ACCESS TO, AN ACCOUNT.

(5) A REQUEST TO SELL OR TRANSFER A SECURITY OR OTHER ASSET OR A REQUEST TO AFFIX A MEDALLION STAMP OR PROVIDE ANY FORM OF GUARANTEE OR ENDORSEMENT IN CONNECTION WITH AN ATTEMPT TO SELL OR TRANSFER A SECURITY OR OTHER ASSET.

(6) A REQUEST FOR A LOAN, EXTENSION OF CREDIT OR DRAW ON A LINE OF CREDIT.

(7) A REQUEST TO ENCUMBER MOVABLE OR IMMOVABLE PROPERTY.

(8) A REQUEST TO DESIGNATE OR CHANGE THE DESIGNATION OF BENEFICIARIES TO RECEIVE ANY PROPERTY, BENEFIT OR CONTRACT RIGHT.

(9) A REQUEST FOR ACCESS TO A SAFE DEPOSIT BOX.

(10) EXCEPT AS AUTHORIZED BY THIS CHAPTER, A REQUEST FOR ACCESS REGARDING NONPUBLIC INFORMATION REGARDING THE OLDER ADULT.

SECTION 602.

REPORTING SUSPECTED FINANCIAL EXPLOITATION.

(A) VOLUNTARY REPORT BY DESIGNATED REPRESENTATIVE.--IF ANY PERSON INVOLVED IN THE OPERATION OF A FINANCIAL INSTITUTION HAS REASON TO BELIEVE THAT FINANCIAL EXPLOITATION OF AN OLDER ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED OR IS BEING 20250SB0738PN1867 - 22 - ATTEMPTED, A DESIGNATED REPRESENTATIVE OF THE FINANCIAL INSTITUTION MAY REPORT THE SUSPECTED FINANCIAL EXPLOITATION TO A LOCAL PROVIDER OF PROTECTIVE SERVICES, A LAW ENFORCEMENT AGENCY OR THE DEPARTMENT.

(B) REQUIRED REPORT BY DESIGNATED REPRESENTATIVE.-- (1) A FINANCIAL INSTITUTION EMPLOYEE SHALL, EXCEPT AS PROVIDED BY SECTION 603(C), MAKE A REPORT WITHIN FIVE BUSINESS DAYS IN WRITING TO A DESIGNATED REPRESENTATIVE OF THE FINANCIAL INSTITUTION, IF THE EMPLOYEE HAS REASON TO BELIEVE THAT FINANCIAL EXPLOITATION OF AN OLDER ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED OR IS BEING ATTEMPTED, IN ONE OR MORE OF THE FOLLOWING CIRCUMSTANCES:

(I) THE EMPLOYEE HAS REASON TO BELIEVE AN OLDER ADULT IS OF DIMINISHED COGNITIVE CAPACITY.

(II) A PERSON BELIEVED TO BE RESPONSIBLE FOR OR PARTICIPATING IN THE FINANCIAL EXPLOITATION IS A PERSON WHO IS AUTHORIZED TO HAVE ACCESS TO THE ACCOUNT OF THE OLDER ADULT, OR IS A PERSON IN A POSITION OF TRUST TO THE OLDER ADULT.

(III) THE FINANCIAL INSTITUTION HAS EXERCISED THE AUTHORITY PROVIDED BY SECTION 603(A) TO HOLD, REFUSE OR PREVENT A TRANSACTION.

(2) EXCEPT AS PROVIDED IN SECTION 603(C), NOT LATER THAN FIVE BUSINESS DAYS FOLLOWING RECEIPT OF A REPORT UNDER PARAGRAPH (1), THE DESIGNATED REPRESENTATIVE SHALL REVIEW THE REPORT.

(3) IF, AFTER REVIEW OF THE REPORT, THE DESIGNATED REPRESENTATIVE CONCLUDES THAT THERE IS REASONABLE CAUSE TO BELIEVE THAT FINANCIAL EXPLOITATION UNDER THE CIRCUMSTANCES DESCRIBED IN PARAGRAPH (1) MAY HAVE OCCURRED, MAY HAVE BEEN 20250SB0738PN1867 - 23 - ATTEMPTED OR IS BEING ATTEMPTED, THE DESIGNATED REPRESENTATIVE SHALL REPORT THE SUSPECTED FINANCIAL EXPLOITATION TO THE LOCAL PROVIDER OF PROTECTIVE SERVICES.

(C) METHOD OF REPORTING.--A REPORT UNDER THIS SECTION MAY BE MADE:

(1) IN WRITING;

OR (2) ORALLY, IF AUTHORIZED BY THE AGENCY, A LAW ENFORCEMENT AGENCY OR THE DEPARTMENT.

IF A REPORT IS MADE ORALLY, A RECORD OF THE ORAL COMMUNICATION MUST BE CONTEMPORANEOUSLY MADE AND RETAINED BY THE FINANCIAL INSTITUTION.

(D) CONTENTS OF REPORT.--A REPORT MADE UNDER SUBSECTION (B) (3) SHALL PROVIDE ALL OF THE FOLLOWING:

(1) THE NAME, AGE AND ADDRESS OF THE OLDER ADULT.

(2) THE NAME AND ADDRESS, IF KNOWN, OF THE GUARDIAN OR NEXT OF KIN OF THE OLDER ADULT.

(3) THE NAME AND ADDRESS OF THE FINANCIAL INSTITUTION AND THE CONTACT INFORMATION FOR THE INDIVIDUAL SUBMITTING THE REPORT.

(4) THE NATURE OF THE SUSPECTED FINANCIAL EXPLOITATION OF THE OLDER ADULT.

(5) ANY SPECIFIC COMMENTS, OBSERVATIONS OR OTHER INFORMATION DIRECTLY RELATING TO THE SUSPECTED FINANCIAL EXPLOITATION, THE OLDER ADULT AND SUSPECTED PERPETRATOR OF THE FINANCIAL EXPLOITATION THAT THE FINANCIAL INSTITUTION DETERMINES IS NEEDED TO FACILITATE INVESTIGATION OF THE REPORT.

(6) WHETHER A FINANCIAL INSTITUTION TOOK AN ACTION AUTHORIZED UNDER SECTION 605.

(E) RELATED TRANSACTIONS.--A REPORT MADE UNDER SUBSECTION 20250SB0738PN1867 - 24 - (B)(3) MAY INCLUDE A SERIES OF RELATED TRANSACTIONS THAT HAVE OCCURRED OR MAY OCCUR.

A SEPARATE REPORT SHALL NOT BE REQUIRED FOR EACH TRANSACTION.

SECTION 603.

HOLDING, REFUSING OR PREVENTING TRANSACTIONS.

(A) AUTHORIZATION.--IF A FINANCIAL INSTITUTION OR FINANCIAL INSTITUTION EMPLOYEE HAS REASONABLE CAUSE TO BELIEVE THAT FINANCIAL EXPLOITATION OF AN OLDER ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED OR IS BEING ATTEMPTED, FOR THE PURPOSE OF PROTECTING THE OLDER ADULT, THE FINANCIAL INSTITUTION MAY HOLD, REFUSE OR PREVENT:

(1) ONE OR MORE TRANSACTIONS WITH OR INVOLVING THE OLDER ADULT, AN ACCOUNT OF THE OLDER ADULT OR AN ACCOUNT OF A PERSON SUSPECTED TO BE ENGAGED IN THE FINANCIAL EXPLOITATION OF THE OLDER ADULT.

(2) THE WITHDRAWAL OR DISBURSEMENT OF MONEY CONTAINED IN THE ACCOUNT OF THE OLDER ADULT.

(3) A CHANGE IN OWNERSHIP OF THE ACCOUNT OF THE OLDER ADULT.

(4) A TRANSFER OF MONEY FROM THE ACCOUNT OF THE OLDER ADULT TO AN ACCOUNT OWNED WHOLLY OR PARTIALLY BY ANOTHER PERSON.

(5) COMPLIANCE WITH INSTRUCTIONS GIVEN TO THE FINANCIAL INSTITUTION BY AN AGENT, OR A PERSON ACTING FOR OR WITH AN AGENT, UNDER A POWER OF ATTORNEY SIGNED OR PURPORTED TO HAVE BEEN SIGNED BY THE OLDER ADULT.

(B) LENGTH OF HOLD.-- (1) A HOLD OF A TRANSACTION AUTHORIZED BY SUBSECTION (A) MAY NOT LAST FOR MORE THAN SEVEN BUSINESS DAYS, UNLESS:

(I) A REQUEST FOR AN EXTENSION OF UP TO AN ADDITIONAL 15 BUSINESS DAYS IS MADE IN WRITING BY THE 20250SB0738PN1867 - 25 - LOCAL PROVIDER OF PROTECTIVE SERVICES, A LAW ENFORCEMENT AGENCY CONDUCTING THE INVESTIGATION OF THE FINANCIAL EXPLOITATION OR THE DEPARTMENT;

OR (II) A REQUEST FOR AN EXTENSION HAS NOT BEEN MADE UNDER SUBPARAGRAPH (I), AND THE FINANCIAL INSTITUTION AT ITS DISCRETION DETERMINES AN EXTENSION OF UP TO 15 BUSINESS DAYS IS APPROPRIATE.

(2) A REQUEST FROM THE LOCAL PROVIDER OF PROTECTIVE SERVICES OR LAW ENFORCEMENT AGENCY TO EXTEND A HOLD SHALL PROVIDE CAUSE, DOCUMENTED IN WRITING, FOR THE NEED FOR THE EXTENSION.

(C) DUTY TO REPORT.--IF ANY EMPLOYEE, AUTHORIZED REPRESENTATIVE OR AGENT OF A FINANCIAL INSTITUTION TAKES AN ACTION ON BEHALF OF THE INSTITUTION UNDER SUBSECTION (A), THE ACTION MUST BE REPORTED TO A DESIGNATED REPRESENTATIVE OF THE FINANCIAL INSTITUTION ON THE DAY THE ACTION IS TAKEN, BUT NOT LATER THAN THE NEXT BUSINESS DAY, AND REPORTED BY THE DESIGNATED REPRESENTATIVE TO THE LOCAL PROVIDER OF PROTECTIVE SERVICES IN ACCORDANCE WITH SECTION 602.

(D) NOTIFICATION.-- (1) EXCEPT AS PROVIDED UNDER FEDERAL OR STATE LAW, IF A FINANCIAL INSTITUTION TAKES AN ACTION UNDER SUBSECTION (A) TO PROTECT AN OLDER ADULT FROM FINANCIAL EXPLOITATION, THE DESIGNATED REPRESENTATIVE OF THE FINANCIAL INSTITUTION SHALL:

(I) WITHIN ONE BUSINESS DAY, NOTIFY THE OLDER ADULT AND EACH PERSON AUTHORIZED TO TRANSACT BUSINESS ON THE ACCOUNT OF THE OLDER ADULT, EXCEPT THE PERSON REASONABLY BELIEVED TO HAVE ENGAGED IN SUSPECTED OR ATTEMPTED FINANCIAL EXPLOITATION OF THE OLDER ADULT.

(II) WITHIN FIVE BUSINESS DAYS, NOTIFY EACH PERSON 20250SB0738PN1867 - 26 - THAT THE OLDER ADULT HAS AUTHORIZED TO RECEIVE NOTIFICATIONS REGARDING ACTIVITY ON THE ACCOUNT OF THE OLDER ADULT, EXCEPT THE PERSON REASONABLY BELIEVED TO HAVE ENGAGED IN SUSPECTED OR ATTEMPTED FINANCIAL EXPLOITATION OF THE OLDER ADULT.

(2) A NOTIFICATION UNDER PARAGRAPH (1):

(I) MUST STATE THAT THE FINANCIAL INSTITUTION HAS TEMPORARILY HELD, REFUSED OR PREVENTED THE EXECUTION OF TRANSACTIONS AS AUTHORIZED BY THIS CHAPTER TO PROTECT THE OLDER ADULT FROM FINANCIAL EXPLOITATION.

(II) MUST PROVIDE THE NAME OF THE FINANCIAL INSTITUTION AND THE TELEPHONE NUMBER OR OTHER CONTACT INFORMATION OF THE FINANCIAL INSTITUTION FOR DETAILS ABOUT AN ACTION TAKEN.

(III) MUST IDENTIFY THE ACCOUNT OF THE OLDER ADULT OR TRANSACTION TO WHICH THE NOTIFICATION APPLIES.

(IV) MAY BE GIVEN:

(A) IN WRITING;

OR (B) ORALLY, IF A RECORD OF THE ORAL COMMUNICATION IS CONTEMPORANEOUSLY MADE AND IS RETAINED BY THE FINANCIAL INSTITUTION.

(E) PRESERVATION OF OTHER AUTHORITY.--NOTHING IN THIS CHAPTER MAY BE CONSTRUED TO LIMIT, QUALIFY OR IMPOSE CONDITIONS ON THE ABILITY OF A FINANCIAL INSTITUTION TO HOLD, PREVENT OR REFUSE THE PERFORMANCE OF TRANSACTIONS INVOLVING AN OLDER ADULT AS AUTHORIZED BY:

(1) EXISTING FEDERAL OR STATE LAW.

(2) AN ACCOUNT AGREEMENT BETWEEN THE FINANCIAL INSTITUTION AND THE OLDER ADULT.

SECTION 604.

ASSISTANCE BY PERSONS AUTHORIZED TO HAVE ACCESS TO 20250SB0738PN1867 - 27 - AN ACCOUNT OF AN OLDER ADULT.

(A) INFORMATION PROVIDED BY DESIGNATED REPRESENTATIVE.-- NOTWITHSTANDING ANY OTHER PROVISION OF LAW LIMITING OR PROHIBITING DISCLOSURE, AND EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (B), A DESIGNATED REPRESENTATIVE MAY PROVIDE INFORMATION REGARDING AN OLDER ADULT TO A PERSON THAT IS AUTHORIZED TO HAVE ACCESS TO THE OLDER ADULT'S ACCOUNT SUFFICIENT TO ENABLE THE PERSON TO:

(1) CONSULT WITH OR ASSIST THE OLDER ADULT IN AVOIDING OR REMEDYING SUSPECTED FINANCIAL EXPLOITATION;

OR (2) EXERCISE THE AUTHORITY OF THE PERSON TO PROTECT THE OLDER ADULT.

(B) FINANCIAL EXPLOITATION.--SUBSECTION (A) DOES NOT APPLY IF THE FINANCIAL INSTITUTION HAS REASON TO BELIEVE THE PERSON IS KNOWINGLY ENGAGED IN OR FACILITATING THE FINANCIAL EXPLOITATION OF THE OLDER ADULT.

SECTION 605.

RECORDS.

(A) INCLUSION OF AND ACCESS TO RECORDS.-- (1) EXCEPT AS PROVIDED IN PARAGRAPH (2), A FINANCIAL INSTITUTION THAT SUBMITTED A REPORT UNDER SECTION 602(A) MAY, IN ACCORDANCE WITH THIS SECTION, IN THE FINANCIAL INSTITUTION'S SOLE DISCRETION, VOLUNTARILY INCLUDE IN THE REPORT, OR SEPARATELY PROVIDE TO THE AGENCY TO WHICH THE REPORT WAS MADE, COPIES OF OR ACCESS TO RECORDS THAT ARE REASONABLY RELEVANT TO THE SUSPECTED FINANCIAL EXPLOITATION OR ATTEMPTED FINANCIAL EXPLOITATION OF THE OLDER ADULT.

(2) AFTER WRITTEN REQUEST FOR ACCESS TO OR COPIES OF THE RECORDS DESCRIBED IN PARAGRAPH (1) BY THE LOCAL PROVIDER OF PROTECTIVE SERVICES TO WHICH THE REPORT UNDER SECTION 604(B) IS SUBMITTED, A DESIGNATED REPRESENTATIVE OF A FINANCIAL 20250SB0738PN1867 - 28 - INSTITUTION SHALL PROVIDE TO THE PROVIDER, WITHIN 10 BUSINESS DAYS, ACCESS TO OR COPIES OF THE RECORDS, FOR THE PURPOSE OF PERFORMING AN INVESTIGATION OF THE SUSPECTED FINANCIAL EXPLOITATION OR ATTEMPTED FINANCIAL EXPLOITATION.

THE RECORDS SHALL BE LIMITED TO A PERIOD NOT TO EXCEED 60 DAYS PRIOR TO THE FIRST REPORTED INCIDENT OF ACTUAL, SUSPECTED OR ATTEMPTED FINANCIAL EXPLOITATION AND 60 DAYS AFTER THE LAST REPORTED INCIDENT, UNLESS THE PROVISION OF ADDITIONAL RECORDS IS REQUIRED BY A COURT ORDER ISSUED PURSUANT TO A PETITION FILED BY THE AGENCY UNDER THE CONDITIONS PROVIDED IN SECTION 304(H).

(3) THE LOCAL PROVIDER OF PROTECTIVE SERVICES MAY COMPENSATE A FINANCIAL INSTITUTION REQUIRED TO PROVIDE COPIES OF RECORDS UNDER PARAGRAPH (2) FOR THE REASONABLE COSTS OF PRODUCING RECORDS IN A MANNER CONSISTENT WITH THE REQUIREMENTS OF 12 U.S.C.

§ 3415 (RELATING TO COST REIMBURSEMENT).

(B) CONFIDENTIALITY.-- (1) SECTION 306 SHALL NOT APPLY TO THE PRODUCTION OF RECORDS UNDER THIS SECTION.

(2) RECORDS SUBMITTED OR MADE ACCESSIBLE UNDER SUBSECTION (A) SHALL BE PRIVILEGED AND GIVEN CONFIDENTIAL TREATMENT AND:

(I) SHALL NOT BE SUBJECT TO DISCOVERY OR ADMISSIBLE AS EVIDENCE IN A PRIVATE CIVIL ACTION.

(II) SHALL NOT BE SUBJECT TO SUBPOENA.

(III) SHALL BE EXEMPT FROM ACCESS UNDER THE ACT OF FEBRUARY 14, 2008 (P.L.6, NO.3), KNOWN AS THE RIGHT-TO- KNOW LAW.

(IV) EXCEPT AS PROVIDED IN PARAGRAPH (4), SHALL NOT 20250SB0738PN1867 - 29 - BE MADE PUBLIC BY AN ENTITY THAT RECEIVES ACCESS TO OR COPIES OF THE RECORDS IN ACCORDANCE WITH THIS CHAPTER OR BY ANY OTHER PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF THE FINANCIAL INSTITUTION.

(3) AN EMPLOYEE OF AN ENTITY OR OTHER PERSON THAT RECEIVES ACCESS TO OR COPIES OF THE RECORDS IN ACCORDANCE WITH THIS CHAPTER, WHILE ACTING UNDER THE AUTHORITY OF THE ENTITY OR PERSON, MAY NOT BE PERMITTED OR REQUIRED TO TESTIFY IN A PRIVATE CIVIL ACTION CONCERNING CONFIDENTIAL INFORMATION IN THE RECORDS.

(4) TO ASSIST IN THE PERFORMANCE OF REGULATORY DUTIES, AN AREA AGENCY ON AGING, THE DEPARTMENT OR A LAW ENFORCEMENT AGENCY MAY:

(I) USE INFORMATION SUBMITTED UNDER THIS SECTION IN FURTHERANCE OF A REGULATORY OR LEGAL ACTION BROUGHT UNDER THIS ACT OR THE LAWS OF THIS COMMONWEALTH.

(II) SHARE INFORMATION SUBMITTED UNDER THIS SECTION WITH OTHER REGULATORY OR LAW ENFORCEMENT OFFICIALS OF THIS COMMONWEALTH OR OTHER JURISDICTIONS AND THIRD-PARTY CONSULTANTS IF, PRIOR TO RECEIVING THE REPORTS FROM A FINANCIAL INSTITUTION UNDER THIS CHAPTER, THE RECIPIENT DEMONSTRATES BY WRITTEN STATEMENT THE NECESSARY AUTHORITY AND INTENT TO GIVE CONFIDENTIAL TREATMENT TO THE INFORMATION AS REQUIRED BY THIS SECTION.

(5) THE SHARING OF RECORDS OR INFORMATION CONTAINED IN RECORDS BY A FINANCIAL INSTITUTION UNDER THIS SECTION WITH A LOCAL PROVIDER OF PROTECTIVE SERVICES, THE DEPARTMENT OR A LAW ENFORCEMENT AGENCY, OR THE SHARING OF THE RECORDS OR INFORMATION CONTAINED IN THE RECORDS WITH OFFICIALS OR CONSULTANTS AS AUTHORIZED BY PARAGRAPH (4)(II) IN ACCORDANCE 20250SB0738PN1867 - 30 - WITH THIS CHAPTER DOES NOT CONSTITUTE A WAIVER OF ANY APPLICABLE PRIVILEGE OR CLAIM OF CONFIDENTIALITY.

(C) DISCLOSURES REGARDING INVESTIGATIONS.--NOTWITHSTANDING THE REQUIREMENTS OF SECTION 306, THE DEPARTMENT OR A LAW ENFORCEMENT AGENCY THAT RECEIVES A REPORT UNDER SECTION 602 AND CONDUCTS AN INVESTIGATION REGARDING THE SUSPECTED FINANCIAL EXPLOITATION DESCRIBED IN THE REPORT MAY DISCLOSE AND DISCUSS WITH A FINANCIAL INSTITUTION INFORMATION REGARDING THE SUSPECTED FINANCIAL EXPLOITATION AND THE RESULTS OF THE INVESTIGATION, TO THE EXTENT REASONABLY NECESSARY TO FACILITATE THE FINANCIAL INSTITUTION'S AUTHORITY TO:

(1) TAKE AN ACTION IN ACCORDANCE WITH SECTION 603.

(2) CONSULT AND PROVIDE ASSISTANCE IN ACCORDANCE WITH SECTION 604.

(3) PROVIDE RECORDS AND ACCESS TO RECORDS IN ACCORDANCE WITH THIS SECTION.

SECTION 606.

MODEL TRAINING PROGRAM.

THE DEPARTMENT, IN CONSULTATION WITH THE DEPARTMENT OF BANKING AND SECURITIES AND REPRESENTATIVES OF THE FINANCIAL SERVICES INDUSTRY, SHALL DEVELOP OR DESIGNATE 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 607.

AFFIDAVIT, CERTIFICATION OR LEGAL OPINION.

A FINANCIAL INSTITUTION MAY RELY ON AN AFFIDAVIT THAT IS EXECUTED BY AN ATTORNEY FOR AN OLDER ADULT, OR CERTIFICATION OR LEGAL OPINION BY AN ATTORNEY ACTING AS AN AGENT FOR AN OLDER ADULT PROVIDED UNDER 20 PA.C.S.

§ 5608 (RELATING TO ACCEPTANCE OF AND RELIANCE UPON POWER OF ATTORNEY) AS CONCLUSIVE PROOF THAT 20250SB0738PN1867 - 31 - A TRANSACTION DOES NOT REPRESENT FINANCIAL EXPLOITATION IF:

(1) THE ATTORNEY IS LICENSED TO PRACTICE LAW AND IS IN GOOD STANDING IN THIS COMMONWEALTH.

(2) THE AFFIDAVIT STATES THAT THE TRANSACTION IS FOR THE PURPOSE OF ESTABLISHING, IMPLEMENTING OR CONTINUING AN ESTATE PLAN INTENDED TO REDUCE TAXES OR QUALIFY THE OLDER ADULT OR THE SPOUSE OF THE OLDER ADULT FOR PUBLIC OR PRIVATE BENEFITS.

(3) THE ATTORNEY FURNISHES THE AFFIDAVIT, UPON REQUEST, TO A DESIGNATED REPRESENTATIVE OF THE FINANCIAL INSTITUTION.

SECTION 608.

PENALTIES.

(A) PROSECUTION.--A DIRECTOR, OFFICER, DESIGNATED REPRESENTATIVE, EMPLOYEE OR AGENT OF A FINANCIAL INSTITUTION COMMITS A SUMMARY OFFENSE FOR THE FIRST VIOLATION AND A MISDEMEANOR OF THE SECOND DEGREE FOR A SECOND OR SUBSEQUENT VIOLATION AND SHALL, UPON CONVICTION, BE SENTENCED TO PAY A FINE OF NOT MORE THAN $5,000 OR TO IMPRISONMENT FOR NOT MORE THAN ONE YEAR, OR BOTH, FOR:

(1) WILLFULLY OR INTENTIONALLY AIDING IN THE FINANCIAL EXPLOITATION OF AN OLDER ADULT;

OR (2) ENGAGING IN RETALIATORY ACTION AGAINST A DIRECTOR, OFFICER, DESIGNATED REPRESENTATIVE, EMPLOYEE OR AGENT OF A FINANCIAL INSTITUTION BECAUSE OF AN ATTEMPT TO COMPLY WITH THIS CHAPTER.

(B) CIVIL PENALTY.--IF A FINANCIAL INSTITUTION EMPLOYEE OR A DESIGNATED REPRESENTATIVE WILLFULLY OR INTENTIONALLY FAILS TO FILE A REPORT AS REQUIRED UNDER SECTION 602(B) OR 603(C), PROVIDE A NOTIFICATION REQUIRED BY SECTION 603(D), OR TO PRODUCE COPIES OF RECORDS OR PROVIDE ACCESS TO RECORDS AS REQUIRED BY SECTION 605(A)(2), THE FINANCIAL INSTITUTION SHALL BE SUBJECT TO A CIVIL PENALTY LEVIED BY THE DEPARTMENT, WHICH SHALL NOT BE 20250SB0738PN1867 - 32 - LESS THAN $500 OR EXCEED $2,500.

THE ASSESSMENT OF PENALTIES BY THE DEPARTMENT SHALL BE SUBJECT TO 2 PA.C.S.

CHS.

5 SUBCH.

A (RELATING TO PRACTICE AND PROCEDURE OF COMMONWEALTH AGENCIES) AND 7 SUBCH.

A (RELATING TO JUDICIAL REVIEW OF COMMONWEALTH AGENCY ACTION).

(C) PENALTY MATRIX.--PENALTIES SHALL BE ASSESSED UTILIZING A MATRIX FOR DETERMINING THE AMOUNT A FINANCIAL INSTITUTION MAY BE PENALIZED UNDER THIS SECTION.

THE MATRIX USED IN THE ASSESSMENT OF PENALTIES UNDER THIS SECTION SHALL BE DEVELOPED IN COORDINATION WITH THE DEPARTMENT OF BANKING AND SECURITIES.

(D) CONSULTATION.--THE ATTORNEY GENERAL OR A DISTRICT ATTORNEY PROSECUTING A VIOLATION OF THIS SECTION AND ANY LAW ENFORCEMENT AGENCY INVESTIGATING A FINANCIAL INSTITUTION FOR POTENTIAL VIOLATIONS OF THIS SECTION, SHALL CONSULT WITH AND COORDINATE ITS INVESTIGATION WITH THE DEPARTMENT, THE DEPARTMENT OF BANKING AND THE FINANCIAL INSTITUTION'S PRIMARY REGULATOR.

(E) CONSTRUCTION.-- (1) FOR PURPOSES OF SUBSECTION (A), THE IMPOSITION OF REASONABLE DISCIPLINARY ACTION FOR THE FAILURE OF AN EMPLOYEE OF A FINANCIAL INSTITUTION TO FOLLOW THE INSTITUTION'S POLICIES AND PROCEDURES RELATING TO THE IMPLEMENTATION OF THIS CHAPTER SHALL NOT BE CONSIDERED A RETALIATORY ACTION.

(2) SECTION 302(C) AND (C.1) SHALL NOT APPLY TO A PERSON SUBJECT TO PROSECUTION UNDER SUBSECTION (A)(2).

(3) THE AUTHORIZATION FOR THE DEPARTMENT TO ASSESS CIVIL PENALTIES IN SUBSECTION (C) IS NOT SUBJECT TO SECTION 506(D), (F) AND (G) OF THE ACT OF MAY 15, 1933 (P.L.565, NO.111), KNOWN AS THE DEPARTMENT OF BANKING AND SECURITIES CODE.

SECTION 609.

IMMUNITY.

(A) IMMUNITY GENERALLY.--EXCEPT AS PROVIDED IN SECTION 608, 20250SB0738PN1867 - 33 - A FINANCIAL INSTITUTION AND A DESIGNATED REPRESENTATIVE, OFFICER, EMPLOYEE AND AGENT OF THE FINANCIAL INSTITUTION SHALL HAVE IMMUNITY FROM CIVIL AND CRIMINAL LIABILITY FOR ACTIONS TAKEN IN GOOD FAITH IN ACCORDANCE WITH THIS CHAPTER BY THE FINANCIAL INSTITUTION OR A DESIGNATED REPRESENTATIVE, OFFICER, EMPLOYEE OR AGENT OF THE FINANCIAL INSTITUTION, INCLUDING:

(1) THE IDENTIFICATION AND REPORTING OF FINANCIAL EXPLOITATION UNDER SECTIONS 602 AND 603(C).

(2) TAKING OR NOT TAKING AN ACTION TO HOLD, REFUSE OR PREVENT A TRANSACTION UNDER SECTION 603.

(3) PROVIDING NOTIFICATIONS UNDER SECTION 603(D).

(4) TAKING OR NOT TAKING ACTION UNDER SECTION 604 TO DISCLOSE INFORMATION TO AND CONSULT WITH A PERSON WHO IS AUTHORIZED TO HAVE ACCESS TO AN ACCOUNT OF AN OLDER ADULT.

(5) PROVIDING OR NOT PROVIDING COPIES OF RECORDS OR ACCESS TO RECORDS AS AUTHORIZED BY SECTION 605(A)(1).

(6) PROVIDING COPIES OF OR ACCESS TO RECORDS UNDER SECTION 605(A)(2).

(7) RECEIVING DISCLOSURES AS AUTHORIZED BY SECTION 605(C).

(8) RELYING ON AN AFFIDAVIT, CERTIFICATION OR OPINION PROVIDED UNDER SECTION 607.

(B) ADDITIONAL IMMUNITIES AND DEFENSES.-- (1) THE HOLDING, REFUSAL OR PREVENTION BY A FINANCIAL INSTITUTION OF A TRANSACTION AUTHORIZED UNDER THIS CHAPTER SHALL NOT CONSTITUTE THE WRONGFUL DISHONOR OF AN ITEM UNDER 13 PA.C.S.

§ 4402 (RELATING TO LIABILITY OF BANK TO CUSTOMER FOR WRONGFUL DISHONOR;

TIME OF DETERMINING INSUFFICIENCY OF ACCOUNT).

(2) A REASONABLE BELIEF THAT PAYMENT OF A CHECK WILL 20250SB0738PN1867 - 34 - FACILITATE THE FINANCIAL EXPLOITATION OF AN OLDER ADULT SHALL CONSTITUTE REASONABLE GROUNDS TO DOUBT THE COLLECTABILITY OF THE ITEM FOR PURPOSES OF 12 U.S.C.

CHS.

41 (RELATING TO EXPEDITED FUNDS AVAILABILITY) AND 50 (RELATING TO CHECK TRUNCATION) AND 12 CFR PT.

229 (RELATING TO AVAILABILITY OF FUNDS AND COLLECTION OF CHECKS (REGULATION CC)).

(C) SCOPE OF IMMUNITY.--THE IMMUNITIES AND DEFENSES PROVIDED UNDER THIS SECTION APPLY TO A FINANCIAL INSTITUTION AND TO A DIRECTOR, OFFICER, DESIGNATED REPRESENTATIVE, EMPLOYEE OR AGENT OF A FINANCIAL INSTITUTION THAT DOES NOT WILLFULLY OR INTENTIONALLY VIOLATE ANY REQUIREMENTS OF THIS ACT OR ENGAGE IN THE WILLFUL OR INTENTIONAL FINANCIAL EXPLOITATION OF AN OLDER ADULT.

SECTION 610.

REPORTS.

NO LATER THAN THE NEXT DECEMBER 31 OCCURRING AT LEAST SIX MONTHS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION AND BY EACH DECEMBER 31 THEREAFTER, THE DEPARTMENT SHALL PREPARE AND ISSUE A REPORT THAT INCLUDES INFORMATION FOR THE PRIOR 12-MONTH PERIOD REGARDING:

(1) THE NUMBER OF REPORTS MADE BY A FINANCIAL INSTITUTION UNDER SECTION 603, INCLUDING:

(I) THE NUMBER OF OCCASIONS IN WHICH A FINANCIAL INSTITUTION WAS CONTACTED AS PART OF AN INVESTIGATION OF POTENTIAL FINANCIAL EXPLOITATION BY AN AREA AGENCY ON AGING OR LAW ENFORCEMENT AGENCY RESULTING FROM A REPORT MADE BY THE FINANCIAL INSTITUTION.

(II) THE AVERAGE TIME IN BETWEEN A FINANCIAL INSTITUTION MAKING A REPORT UNDER SECTION 603 AND THE FIRST CONTACT BY AN AREA AGENCY ON AGING OR LAW ENFORCEMENT AGENCY.

20250SB0738PN1867 - 35 - (2) THE TOTAL NUMBER, DOLLAR VALUE AND TYPES OF TRANSACTIONS HELD BY A FINANCIAL INSTITUTION UNDER SECTION 605, INCLUDING:

(I) EACH CATEGORY OF TRANSACTIONS.

(II) THE NUMBER AND DOLLAR VALUE OF THE TRANSACTIONS THAT WERE CONFIRMED AFTER INVESTIGATION TO REPRESENT FINANCIAL EXPLOITATION OR ATTEMPTED FINANCIAL EXPLOITATION.

(III) THE NUMBER AND DOLLAR VALUE OF THE TRANSACTIONS THAT WERE CONFIRMED AFTER INVESTIGATION TO NOT REPRESENT FINANCIAL EXPLOITATION OR ATTEMPTED FINANCIAL EXPLOITATION.

(IV) THE NUMBER AND CATEGORIES OF TRANSACTIONS IN WHICH AN EXTENSION WAS REQUESTED IN ACCORDANCE WITH SECTION 605(B).

(V) THE NUMBER AND VALUE OF TRANSACTIONS THAT WERE RELEASED IN SEVEN BUSINESS DAYS OR LESS.

SECTION 611.

CULPABILITY.

A REFERENCE TO "INTENTIONALLY," "KNOWINGLY" OR "WILLFULLY" IN THIS CHAPTER SHALL BE INTERPRETED IN A MANNER CONSISTENT WITH 18 PA.C.S.

§ 302 (RELATING TO GENERAL REQUIREMENTS OF CULPABILITY).

SECTION 612.

USE OF ELECTRONIC RECORDS.

ANY PROVISION OF THIS CHAPTER REQUIRING A PERSON TO MAKE A REPORT OR GIVE NOTICE TO ANOTHER PERSON MAY BE SATISFIED BY USING AN ELECTRONIC RECORD IN THE MANNER AUTHORIZED BY SECTION 304 OF THE ACT OF DECEMBER 16, 1999 (P.L.971, NO.69), KNOWN AS THE ELECTRONIC TRANSACTIONS ACT.

SECTION 2.

THIS ACT SHALL TAKE EFFECT AS FOLLOWS:

(1) THE ADDITION OF SECTIONS 602(B), 603, 606, 608 AND 610 OF THE ACT SHALL TAKE EFFECT IN 180 DAYS.

20250SB0738PN1867 - 36 - (2) THIS SECTION SHALL TAKE EFFECT IMMEDIATELY.

(3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IMMEDIATELY.

20250SB0738PN1867 - 37 -