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
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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
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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
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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 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 or a payable on death beneficiary designated
not to be notified prior to the death of the older adult.
(e) Notice of refused disbursement or transaction.--A
notification required by subsection (d)(3) shall be sufficient
if it:
(1) states that the financial institution or fiduciary
has temporarily blocked the disbursement of money or delayed
the execution of transactions as authorized by this section
to protect an older adult from financial exploitation;
(2) provides the name of the financial institution or
fiduciary and the name and telephone number of a contact
person representing the financial institution or fiduciary;
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and
(3) identifies the account or transaction to which the
notification applies.
(f) Expiration.--Except as provided under subsection (h), a
refusal to disburse money or engage in a transaction as
authorized by this section shall expire upon the sooner of the
following:
(1) issuance of a court order directing the financial
institution or fiduciary to make the disbursement or engage
in the transaction;
(2) a determination by the financial institution or
fiduciary based on its sole review and discretion to
authorize the disbursement or transaction; or
(3) seven business days after the financial institution
or fiduciary first refused to disburse the money or engage in
the transaction.
(g) Extension of expiration.--A financial institution or
fiduciary may extend the expiration date of its refusal as
provided in subsection (f)(3) by an additional 15 business days
if a request is made for a court order as authorized by
subsection (h) by a financial institution or fiduciary, or by
the local agency on aging, the department or a law enforcement
agency to block or extend the refused disbursement or
transaction.
(h) Order.--A court of competent jurisdiction may enter an
order blocking a disbursement or transaction, or further
delaying a disbursement or transaction, to protect an older
adult from suspected financial exploitation or order other
actions to protect the older adult.
(i) Recordkeeping.--A request of an area agency on aging or
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a law enforcement official to terminate or extend a refusal to
disburse money or engage in a transaction as authorized by this
section shall be documented in writing.
Section 605. Standing of financial institutions and
fiduciaries.
(a) Initiation of proceedings.--If a financial institution
or fiduciary has a reasonable cause to believe an older adult is
subject to an imminent and substantial risk of financial
exploitation, the financial institution or fiduciary may
initiate a proceeding in a court of competent jurisdiction to:
(1) extend the period of time the disbursement of money
or transactions may be refused under section 604, or prohibit
specific disbursements or transactions;
(2) request an order necessary to protect the accounts
or assets of an older adult, or in which the older adult has
interests;
(3) request the appointment of a conservator or guardian
of the estate of an older adult;
(4) remove the powers of a fiduciary engaged in the
financial exploitation of an older adult;
(5) modify an order issued by an area agency on aging or
the department issued under this act or other law to protect
an older adult from suspected financial exploitation; or
(6) grant other appropriate relief.
(b) Notice to area agency on aging.--Prior to initiating a
proceeding under this subsection, at least 24 hours' prior
notice must be given to the area agency on aging for the county
in which the proceeding is initiated and an offer made to
consult with the agency regarding the proceeding, unless
delaying the initiation of the proceeding will threaten an older
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adult with immediate and irreparable injury pursuant to the
standards applicable for an application for special relief
before notice of a hearing under Pa.R.C.P Rule 1531 (relating to
special relief, injunctions). A copy of a petition initiating a
proceeding under this section shall be provided to the area
agency on aging for the county in which a proceeding is
initiated.
(c) Intervention.--
(1) The area agency on aging in the county in which a
petition is filed under this section and the department
shall have a right to intervene as a party to the
proceeding.
(2) A financial institution or fiduciary shall have the
right to intervene as a party to a proceeding initiated by
an area agency on aging or the department under this act to
provide protective services to an older adult customer of a
financial institution or to an individual to whom a
fiduciary owns a duty of care.
Section 606. Access to reports and communications regarding
investigations.
Notwithstanding the requirements of section 304, an area
agency on aging may disclose and discuss with a financial
institution or fiduciary reports of the suspected financial
exploitation of an older adult and the results of the
investigation of such reports to the extent reasonably necessary
to facilitate the financial institution's or fiduciary's
decision under section 604 to refuse to disburse money or engage
in a transaction or to terminate or seek an extension of its
refusal to do so.
Section 607. Immunity and defenses.
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(a) Immunity.--Except as provided under subsection (c), a
financial institution or fiduciary and its directors, officers,
designated representatives, employees or agents shall not be
subject to a claim for damages or other civil or criminal
liability for taking or failing to take any action authorized,
but not required by this chapter, to:
(1) identify and report financial exploitation under
section 602(a);
(2) notify a person reasonably associated with an older
adult under section 602(b);
(3) provide access to records and information under
sections 602(c)(1) and (2) and 606;
(4) refuse to allow the disbursement of funds or a
transaction under section 604; or
(5) initiate or participate in judicial proceedings
under section 605.
(b) Additional immunities and defenses.--Notwithstanding any
other law to the contrary:
(1) The refusal by a financial institution to engage in
a transaction authorized under this chapter shall not
constitute the wrongful dishonor of an item under 13 Pa.C.S.
§ 4402 (relating to liability of bank to customer for
wrongful dishonor; time of determining insufficiency of
account).
(2) A reasonable belief that payment of a check will
facilitate the financial exploitation of an older adult shall
constitute reasonable grounds to doubt the collectability of
the item for purposes of 12 U.S.C. Chs. 41 (relating to
expedited funds availability) and 50 (relating to check
truncation) and 12 CFR Pt. 229 (relating to availability of
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funds and collection of checks).
(c) Limitation.--The immunities and defenses provided under
this section shall not apply to a financial institution or
fiduciary or a director, officer, designated representative,
employee or agent of a financial institution or fiduciary that
intentionally or knowingly engages in the financial exploitation
of an older adult.
Section 608. Electronic records and signatures.
Any requirements of this chapter requiring a written request,
authorization or report may be satisfied by the use of
electronic records and signatures as authorized by the act of
December 16, 1999 (P.L.971, No.69), known as the Electronic
Transactions Act.
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
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
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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
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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
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
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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.
Section 2. This act shall take effect in 60 days. 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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