Chapter 074
2021 -- S 0264 SUBSTITUTE A
Enacted 06/23/2021

A N   A C T
RELATING TO FINANCIAL INSTITUTIONS -- THE ELDER ADULT FINANCIAL EXPLOITATION PREVENTION ACT

Introduced By: Senators Coyne, Sosnowski, Valverde, Burke, Seveney, and Euer

Date Introduced: February 10, 2021

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 second business day following the date the regulated institution completes the
regulated institution's assessment of the suspected financial exploitation; or
     (ii) The seventh 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
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 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 (15) 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. 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 fifteen-business-day (15)
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 no later than 45 days following passage of the Act, regulated institutions
shall provide training concerning the financial exploitation of elder adults to employees of regulated
institutions as defined in § 19-34-1, and shall provide such this training to new employees within
the first three (3) months of their employment.
     (b) 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.
     19-34-8. Disclosure.
     Notwithstanding any provision of law, the attorney general and local law enforcement may
disclose to a mandated reporter of suspected elder financial abuse, upon request, the general status
or final disposition of any investigation that arose from a report made by that mandated reporter of
suspected financial abuse of an elder adult pursuant to this section.
     SECTION 2. This act shall take effect upon passage.
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LC001005/SUB A
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