2020 -- S 2857

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LC005335

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- THE ELDER ADULT FINANCIAL

EXPLOITATION PREVENTION ACT

     Introduced By: Senator Cynthia Armour Coyne

     Date Introduced: June 10, 2020

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

     SECTION 1. Title 19 of the General Laws entitled "FINANCIAL INSTITUTIONS" is

hereby amended by adding thereto the following chapter:

CHAPTER 34

THE ELDER ADULT FINANCIAL EXPLOITATION PREVENTION ACT

     19-34-1. Definitions.

     As used in this chapter:

     (1) "Department" means the Rhode Island office of healthy aging.

     (2) "Elder adult" means a person who is sixty (60) years of age or older.

     (3) "Exploitation" means the fraudulent or otherwise illegal, unauthorized or improper act

or process of an individual, including, but not limited to, a caregiver or fiduciary that uses the

resources of an elder adult for monetary or personal benefit, profit, gain, or that results in depriving

an elder adult of rightful access to, or use of benefits, resources, belongings, or assets by use, undue

influence, harassment, duress, deception, false representation or false pretenses, or conduct in

violation of § 11-68-2.

     (4) "Financial exploitation'' means:

     (i) The wrongful or unauthorized taking, withholding, appropriation, or use of the money,

assets, or other property or the identifying information of a person; or

     (ii) Any act or omission taken by a person, including through the use of a power of attorney,

guardianship or any other legal authority, regarding an elder adult to:

     (A) Obtain, control through deception, intimidation, fraud or undue influence, over the

other person's money, assets, or property to deprive the other person of the ownership, use, benefit

or possession of the property; or

     (B) Convert the money, assets, or other property of the other person to deprive the other

person of the ownership, use, benefit, or possession of the property.

     (5) "Regulated institution" means any financial institution, credit union, or other insured

deposit-taking institution, that is authorized to do business in this state, including one authorized

by operation of an interstate banking statute that allowed it original entry.

     19-34-2. Reporting suspected financial exploitation of elder adults.

     (a) If an employee of a regulated institution has reasonable cause to believe that financial

exploitation of an elder adult who is an account holder with the regulated institution has occurred,

is occurring, or has been attempted, the employee shall notify the regulated institution of the

suspected financial exploitation.

     (b)(1) If a regulated institution is notified of suspected financial exploitation under

subsection (a) of this section or otherwise has reasonable cause to believe that financial exploitation

of an elder adult who is an account holder with the regulated institution has occurred, is occurring,

or has been attempted, the regulated institution shall assess the suspected financial exploitation and

submit a report to the department identifying the name, address and, if known, the age of the elder

adult; the name and address of any person responsible for the care of the elder adult; the nature and

extent of the facts of the suspected activity; the basis of the reporter's knowledge; and any other

relevant information; or any other reporting requirements consistent with the provisions of § 42-

66-8.

     (2) The regulated institution shall submit the required report no later than the earlier of:

     (i) The date the regulated institution completes the regulated institution's assessment of the

suspected financial exploitation; or

     (ii) The fifth business day after the date the regulated institution is notified of the suspected

financial exploitation under subsection (a) of this section or otherwise has reasonable cause to

believe that the suspected financial exploitation has occurred, is occurring, or has been attempted.

     (c) A regulated institution that submits a report to the department of suspected financial

exploitation of an elder adult under subsection (b) of this section is not required to make any

additional report of suspected abuse, neglect, or exploitation, for the same conduct constituting the

reported suspected financial exploitation.

     (d) Each regulated institution shall adopt internal policies, programs, plans, or procedures

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for:

     (1) The employees of the regulated institution to make the notification required under

subsection (a) of this section; and

     (2) The regulated institution to conduct the assessment and submit the report required under

subsection (b) of this section.

     (e) The policies, programs, plans, or procedures adopted under subsection (d) of this

section may authorize the regulated institution to report the suspected financial exploitation to other

appropriate agencies and entities in addition to the department, including the attorney general, the

Federal Trade Commission, and the appropriate law enforcement agency.

     19-34-3. Notifying third parties of suspected financial exploitation or abuse.

     lf a regulated institution submits a report of suspected financial exploitation or abuse of an

elder adult to the department pursuant to § 19-34-2, the regulated institution may at the time the

regulated institution submits the report also notify a third party reasonably associated with the elder

adult of the suspected financial exploitation or abuse, unless the regulated institution suspects the

third party of financial exploitation or abuse of the elder adult.

     19-34-4. Temporary hold on transactions in certain cases of suspected financial

exploitation.

     (a) Notwithstanding any other law, if a regulated institution submits a report of suspected

financial exploitation of an elder adult to the department pursuant to § 19-34-2 the regulated

institution:

     (1) May place a temporary hold on any transaction that:

     (i) Involves an account of the elder adult; and

     (ii) The regulated institution has reasonable cause to believe that financial exploitation of

an elder adult has occurred, is occurring, has been attempted, or will be attempted.

     (2) Shall place a hold on any transaction involving the account of the elder adult if the hold

is requested by the department, the elder abuse unit of the office of attorney general or a law

enforcement agency.

     (b) Subject to subsection (c) of this section, a hold placed on any transaction under

subsection (a) of this section shall expire on the fifteenth business day after the date the regulated

institution submits its report pursuant to § 19-34-2.

     (c) The regulated institution may extend a hold placed on any transaction under subsection

(a) of this section for a period not to exceed thirty (30) business days after the expiration of the

fifteen (15) business day period prescribed by subsection (b) of this section if requested by a state

or federal agency or a law enforcement agency investigating the suspected financial exploitation.

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The regulated institution may also petition a court to extend a hold placed on any transaction

pursuant to subsection (a) of this section beyond the fifteenth business day period prescribed by

subsection (b) of this section. A court may enter an order extending or shortening a hold or

providing other relief.

     (d) Each regulated institution shall adopt internal policies, programs, plans, or procedures

for placing a hold on a transaction involving an account of an elder adult pursuant to this section.

     19-34-5. Immunity.

     (a) An employee of a regulated institution who makes a notification pursuant to § 19-34-2,

or a regulated institution that submits a report pursuant to § 19-34-2 or makes a notification to a

third party pursuant to § 19-34-3, or an employee or regulated institution that testifies or otherwise

participates in a judicial proceeding arising from a notification or report shall be immune from any

civil or criminal liability arising from the notification, report, testimony, or participation in the

judicial proceeding, unless the employee or regulated institution acted in bad faith or with a

malicious purpose.

     (b) A regulated institution that in good faith and with the exercise of reasonable care places

or does not place a hold on any transaction pursuant to § 19-34-4 shall be immune from any civil

or criminal liability or disciplinary action resulting from that action or failure to act.

     19-34-6. Records.

     To the extent permitted by state or federal law, a regulated institution shall provide, on

request, access to or copies of records relevant to the suspected financial exploitation of an elder

adult to the department, a law enforcement agency, or the office of attorney general, either as part

of a report to the department, law enforcement agency, or the elder abuse unit of the office of

attorney general or at the request of the department, law enforcement agency, or the office of

attorney general in accordance with an investigation. The records may include historical records as

well as records relating to the most recent transaction or transactions that may comprise financial

exploitation not to exceed sixty (60) calendar days prior to the first transaction that was reported or

sixty (60) days after the last transaction that was reported. An extension of the request for records

may be made by the department, law enforcement agency, or the office of attorney general if after

receipt of the records, it is determined the suspected financial exploitation has occurred outside the

scope of the original request.

     19-34-7. Training.

     (a) Commencing July 1, 2020, regulated institutions shall provide training concerning the

financial exploitation of elder adults to employees of regulated institutions as defined in § 19-34-1

by July 1, 2021, and shall provide such training to new employees within the first three (3) months

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of their employment.

     (2) The training shall include recognition of indicators of financial exploitation of an elder

adult, the manner in which employees may report suspected financial exploitation to the department

and law enforcement as mandatory reporters, and steps employees may take to prevent suspected

financial exploitation of an elder adult as authorized by law or agreement between the regulated

institution and customers of the regulated institution. The elder abuse unit of the office of attorney

general and the department shall develop standardized training that the regulated institutions may

offer, or the regulated institutions may develop their own training.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS -- THE ELDER ADULT FINANCIAL

EXPLOITATION PREVENTION ACT

***

     This act would require employees of regulated financial institutions to report suspected

financial exploitation of elder adults to the office of healthy aging and provide authority to the

regulated financial institutions to place a temporary hold on transactions.

     This act would take effect upon passage.

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