Existing law requires certain financial institutions, credit unions, savings banks and thrift companies to: (1) provide training concerning the identification and reporting of the exploitation of older persons and vulnerable persons to certain directors, officers and employees who may interact with or review information of an older person or vulnerable person in providing financial services; and (2) designate a person to whom a director, officer or employee must report known or suspected exploitation of an older person or vulnerable person. (NRS 657.220-657.290, 672.767-672.779, 673.773-673.807, 677.673-677.707) Existing law requires a designated reporter, under certain circumstances, to report known or suspected exploitation of an older person or vulnerable person to the Aging and Disability Services Division of the Department of Health and Human Services, a police department or sheriff's office and any county office for protective services. (NRS 657.290, 672.779, 673.807, 677.707) Existing law also: (1) authorizes a designated reporter for certain financial institutions to delay a requested disbursement or transaction involving an older person or vulnerable person if the designated reporter knows or has reasonable cause to believe that the older person or vulnerable person has been exploited; and (2) sets forth procedures and requirements for the imposition of such a delay. Additionally, existing law provides that a financial institution and its officers, employees and designated reporters are immune from criminal, civil and administrative liability for: (1) making a report concerning the known or suspected exploitation of an older person or vulnerable person in good faith; (2) delaying a requested disbursement or transaction involving such exploitation; and (3) taking certain other actions relating to such exploitation. (NRS 657.290) Sections 20, 30 and 40 of this bill make those provisions similarly applicable to credit unions, savings banks and thrift companies. Sections 2, 12, 22 and 32 of this bill define “covered account” to mean an account for which a financial institution, credit union, savings bank or thrift company has actual knowledge is an account of an older person or vulnerable person or to which an older person or vulnerable person is a beneficiary. Sections 5, 15, 25 and 35 of this bill require a financial institution, credit union, savings bank and thrift company, before opening any covered account, to require the prospective account holder to either complete a form designating a person to serve as an emergency financial contact or complete a form declining to designate an emergency financial contact. Sections 6, 16, 26 and 36 of this bill authorize the account holder of a covered account that was opened in a financial institution, credit union, savings bank or thrift company before October 1, 2025, to, upon request of the account holder, designate an emergency financial contact. Sections 6, 16, 26 and 36 authorize a financial institution, credit union, savings bank or thrift company to notify and provide information to account holders of covered accounts that were opened before October 1, 2025, concerning the designation of an emergency financial contact. Sections 3, 13, 23 and 33 of this bill define “covered transaction” to mean a requested disbursement from or a requested transaction involving a covered account that exceeds $5,000. Sections 7, 17, 27 and 37 of this bill require a financial institution, credit union, savings bank and thrift company to attempt to contact a designated emergency financial contact within 24 hours after a covered transaction is requested involving a covered account for which the account holder has designated an emergency financial contact. Sections 7, 17, 27 and 37 prohibit the entity from proceeding with the covered transaction until 24 hours after attempting such contact or, if applicable, the expiration of any temporary delay, whichever is later. Under sections 7, 17, 27 and 37, if a director, officer or employee of such an entity, after attempting such contact, knows or suspects that exploitation has occurred or is occurring, the director, officer or employee is required to report the known or suspected exploitation to the designated reporter. The designated reporter is required to proceed in accordance with the procedures for handling other reports of known or suspected exploitation, except that, under sections 10, 20, 30 and 40, the designated reporter is required, rather than authorized, to temporarily delay the covered transaction. Sections 10, 20, 30 and 40 provide immunity from criminal, civil and administrative liability to a financial institution, credit union, savings bank and thrift company for taking the actions required by sections 7, 17, 27 and 37. However, if such an entity violates the provisions of sections 7, 17, 27 and 37, and the violation results in the exploitation of an account holder, sections 8, 18, 28 and 38 of this bill authorize the account holder to bring an action against the entity, in which the account holder is entitled to treble damages. Sections 4, 14, 24 and 34 of this bill define “emergency financial contact.” Sections 9, 19, 29 and 39 of this bill make a conforming change to apply the definitions set forth in sections 2-4, 12-14, 22-24 and 32-34 to the provisions of existing law requiring the identification and reporting of exploitation of older persons and vulnerable persons by financial entities. Existing law provides that a designated reporter for certain financial institutions who delays a requested disbursement or transaction due to, or certain other persons who make a report concerning, exploitation of an older person or vulnerable person are not required to accept an acknowledged power of attorney under certain circumstances. (NRS 162A.370) Section 41 of this bill makes those provisions similarly applicable to designated reporters and certain persons who make such reports for credit unions, savings banks and thrift companies.

Statutes affected:
BDR: 657.220, 657.290, 672.767, 672.779, 673.773, 673.807, 677.673, 677.707, 162A.370