Bill Summary – FastDemocracy

PRIOR PRINTER'S NOS. 2635, 3137                   PRINTER'S NO.     3462
                     THE GENERAL ASSEMBLY OF PENNSYLVANIA
                         HOUSE BILL
                         No. 2064
                                                Session of
                                                  2024
     INTRODUCED BY HOGAN, LABS, MARCELL, STAATS, TOMLINSON, JOZWIAK,
        MOUL, HEFFLEY, GILLEN, SCHEUREN, GROVE, GREEN, McNEILL,
        MULLINS, MENTZER AND MADSEN, FEBRUARY 27, 2024
     AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES,
        JULY 1, 2024
                                     AN ACT
 Amending the act of November 6, 1987 (P.L.381, No.79), entitled
    "An act relating to the protection of the abused, neglected,
    exploited or abandoned elderly; establishing a uniform
    Statewide reporting and investigative system for suspected
    abuse, neglect, exploitation or abandonment of the elderly;
    providing protective services; providing for funding; and
    making repeals," providing for financial institutions and         <--
    fiduciaries.
    The General Assembly of the Commonwealth of Pennsylvania
 hereby enacts as follows:
    Section 1.    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
                 FINANCIAL INSTITUTIONS AND FIDUCIARIES               <--
 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:
    "A person reasonably associated with the older adult."     The
 term includes:
        (1)   an authorized contact provided by an older adult to
    a financial institution;
        (2)   a fiduciary authorized to manage some or all of the
    financial affairs of the older adult;
        (3)   a co-owner, additional authorized signatory or
    beneficiary on an older adult's account;
        (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;
        (5)   a parent, spouse, adult child, sibling or other
    known family member or close associate of an older adult; or
        (6)   any other person in a position of trust with respect
    to the older adult as provided by 18 Pa.C.S. § 3922.1(f)
    (relating to financial exploitation of an older adult or
    care-dependent person).
    "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).
    "Fiduciary."   A guardian, custodian, trustee, agent, personal
 representative or other person authorized or required to act on
 behalf of an older adult.
    "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
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 AGENCY ON AGING AND A LAW ENFORCEMENT AGENCY OR THE DEPARTMENT.
    "Financial exploitation."     As defined in 18 Pa.C.S. § 3922.1.
    "Financial institution."     Any person defined as a "financial    <--
 institution" under 31 CFR Subt. B Ch. X (relating to Financial
 Crimes Enforcement Network, Department of the Treasury) that is
 required to file suspicious activity reports.
    "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.
 Section 602.     Voluntary reporting of financial exploitation.       <--
                DUTIES OF FINANCIAL INSTITUTIONS.                      <--
    (a)   Reporting.--Notwithstanding any law limiting or              <--
 prohibiting disclosure, a fiduciary or designated representative
 of a financial institution having OTHER PROVISION OF LAW, 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, may A DESIGNATED       <--
 REPRESENTATIVE OF THE FINANCIAL INSTITUTION SHALL PROMPTLY, BUT
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 NOT LATER THAN FIVE BUSINESS DAYS, report such information to
 the agency which is the local provider of protective services,        <--
 or may AND SHALL report the information to a law enforcement          <--
 agency or the department. A report made to an agency under this       <--
 subsection shall provide:
          (1)   the name, age and address of the older adult;
          (2)   the name and address, if known, of the older adult's
    guardian or next of kin;
          (3)   the name and address of the financial institution or
    fiduciary and contact information for the individual
    submitting the report;
          (4)   the nature of the suspected financial exploitation
    of the older adult; and
          (5)   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 or fiduciary
    determines is needed to facilitate investigation of the
    report.
    (b)   Assistance by persons reasonably associated with an
 older adult.--At the same time a report is made under subsection
 (a) regarding the older adult, notwithstanding any law limiting
 or prohibiting disclosure, the fiduciary or designated
 representative may provide information regarding the report 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 the suspected financial exploitation, or
 exercise any fiduciary powers it possesses to protect the older
 adult, unless the financial institution has reason to believe
 the person is knowingly engaged in or facilitating the financial
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 exploitation of the older adult.
    (c)   Access to records.--Notwithstanding the provisions of
 section 304:
          (1)   A report authorized by this section may include, or
    may be subsequently supplemented by, records of the older
    adult the financial institution or fiduciary believes are
    needed to provide protective services to the older adult.
          (2)   If records needed to determine if an older adult
    subject to a report as authorized by this section are
    provided by a financial institution or fiduciary as
    authorized by paragraph (1), and the older adult, or a
    fiduciary acting on behalf of the older adult, does not
    provide consent to the agency to access such records, the
    agency may issue an order, 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), directing the production of such
    records that relate to the financial transactions of the
    older adult for a period of time up to 60 days prior to the
    date of the report and the first reported incident of actual
    or suspected financial exploitation. Other records shall only
    be available to the extent provided by section 304. 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
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    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
          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
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 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
20240HB2064PN3462                       - 7 -
    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
    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.
 Section 603.    (Reserved) ACCESS TO RECORDS.                        <--
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 Section 604.     Voluntary refusal of disbursements and             <--
                transactions.
    (a)   Reasonable belief.--If a designated representative or
 other employee of a financial institution or a fiduciary
 reasonably believes, after initiating an internal review of a
 disbursement or transaction, that financial exploitation of an
 older adult may have occurred, may have been attempted or is
 being attempted, the financial institution or fiduciary may
 refuse to disburse money, or engage in a transaction, to prevent
 financial exploitation of an older adult with respect to:
          (1)   an account of the older adult;
          (2)   an account on which the older adult is a
    beneficiary, including a trust or guardianship account; and
          (3)   an account of a person suspected of perpetrating
    financial exploitation of an older adult.
    (b)   Request by area agency on aging or law enforcement
 agency.--In addition to the authorization provided under
 subsection (a), a financial institution or fiduciary may refuse
 to disburse money or engage in a transaction with respect to the
 accounts designated in subsection (a) if an area agency on aging
 or law enforcement official requests the financial institution
 or fiduciary to do so or provides information to the financial
 institution or fiduciary demonstrating that it is reasonable to
 believe that financial exploitation of an older adult may have
 occurred, may have been attempted or is being attempted.
    (c)   Discretion.--A financial institution or fiduciary is not
 required to refuse to disburse money or engage in a transaction
 as authorized under subsection (a) or (b), but may use its sole
 discretion to determine whether to refuse to disburse money
 based on the information available to the financial institution
20240HB2064PN3462                    - 9 -
 or fiduciary.
    (d)   Duties.--Except as provided under Federal or State law,
 if a financial institution or fiduciary refuses to disburse
 money or engage in a transaction as authorized by this section
 to protect an older adult, the designated representative of the
 financial institution or the fiduciary shall:
          (1)   make an immediate oral report and file a written
    report containing the information required for a voluntary
    report under section 602(a) within two business days;
          (2)   notify the older adult, and if requested provide
    additional information, in the manner provided for
    notification by an agency under section 308(a); and
          (3)   within two business days, make a reasonable effort
    to notify, orally or in writing, each person authorized to
    transact business on the account or that has been authorized
    by