CORRECTIVE REPRINT TO A05334
H2064B3137A05381 NAD:CMH 07/01/24 #90 A05381
AMENDMENTS TO HOUSE BILL NO. 2064
Sponsor: REPRESENTATIVE HOGAN
Printer's No. 3137
Amend Bill, page 1, lines 7 and 8, by striking out "and
fiduciaries"
Amend Bill, page 1, line 15, by striking out "AND
FIDUCIARIES"
Amend Bill, page 2, lines 17 through 24, by striking out all
of said lines and inserting
"Designated representative of a financial institution." An
individual provided immunity from suit for disclosing suspected
financial exploitation by 12 U.S.C. § 3423 (relating to immunity
from suit for disclosure of financial exploitation of senior
citizens) who is designated by a financial institution as the
individual responsible for providing information to an area
agency on aging and a law enforcement agency or the department.
Amend Bill, page 2, lines 26 through 29, by striking out all
of said lines and inserting
"Financial institution." A covered financial institution as
defined in 12 U.S.C. § 3423(a)(1)(D).
"Financial institution employee." An employee of a financial
institution that has either:
(1) direct contact with an older adult; or
(2) access to or direct knowledge of an older adult's
financial records or accounts with the financial institution.
"Law enforcement agency." The Office of Attorney General, a
district attorney's office or an agency that employs a law
enforcement officer.
"Law enforcement officer." A member of the Pennsylvania
State Police, 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), a sheriff
or a deputy sheriff.
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Amend Bill, page 2, line 30, by striking out "Voluntary
reporting of financial exploitation." and inserting
Duties of financial institutions.
Amend Bill, page 3, lines 1 through 3, by striking out "law
limiting or" in line 1, all of line 2 and "of a financial
institution having" in line 3 and inserting
other provision of law, if a financial institution employee
has
Amend Bill, page 3, line 5, by striking out "may" where it
occurs the second time and inserting
a designated representative of the financial institution
shall promptly, but not later than five business days,
Amend Bill, page 3, lines 6 and 7, by striking out "which is
the local provider of protective services, or may " and inserting
and shall
Amend Bill, page 3, lines 8 through 30; page 4, lines 1
through 26; by striking out "A report made to an agency" in line
8 on page 3, all of lines 9 through 30 on page 3 and lines 1
through 26 on page 4 and inserting
The following shall apply:
(1) If a 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, that financial institution employee shall
immediately follow the financial institution's compliance
policies, programs, plans and procedures to report the
suspected financial exploitation to the designated
representative of the financial institution. A financial
institution shall comply with all Federal and State laws
governing the reporting of older adult financial exploitation
and sharing of relevant records with the area agency on
aging.
(2) A report made to an agency under this subsection
shall provide:
(i) the name, age and address of the older adult;
(ii) the name and address, if known, of the older
adult's guardian or next of kin;
(iii) the name and address of the financial
institution and contact information for the individual
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submitting the report;
(iv) the nature of the suspected financial
exploitation of the older adult; and
(v) any specific comments, observations or other
information directly related to the alleged incident, the
older adult and suspected perpetrator of the financial
exploitation the financial institution determines is
needed to facilitate investigation of the report.
(b) Hold on proposed transactions.--If a 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, the financial
institution may place a hold on a proposed transaction for a
period of up to seven business days as necessary to determine
the legitimacy of the transaction. If a financial institution
places a hold on a proposed transaction, the financial
institution must file a report under subsection (a) no later
than the next business day. A financial institution may hold a
proposed transaction for an additional 15 business days at the
request of an area agency on aging, a law enforcement agency or
a legal representative of the older adult or if the financial
institution has not received a response from an area agency on
aging, a law enforcement official or a legal representative of
the older adult. A request by an area agency on aging, a law
enforcement agency or a legal representative of an older adult
to hold or authorize a transaction shall require cause and be
documented in writing.
(c) Notification.--Except as provided under Federal or State
law, if a financial institution places a hold on a proposed
transaction to protect an older adult from financial
exploitation, a designated representative of the financial
institution shall have the following duties:
(1) Within one business day, notify the older adult and
each person authorized to transact business on the account,
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:
(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
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
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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.
Amend Bill, page 4, line 27, by striking out "(RESERVED)" and
inserting
Access to records
Amend Bill, page 4, lines 28 through 30; pages 5 through 10,
lines 1 through 30; page 11, lines 1 through 27; by striking out
all of said lines on said pages and inserting
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
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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
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
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
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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
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.
Amend Bill, page 11, line 28, by striking out "in 60 days."
and inserting
as follows:
(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.
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