Rep. Norm Thurston — Voting Record

Bill

Number

H.B. 459 Fifth Substitute (2020GS)

Sponsor

Rep. Andersen, K.

Final action

Governor Signed 3/28/2020

Outcome

Became law — signed by Gov. Gary R. Herbert

Summary

What it does

• This bill:
• defines terms;
• permits a covered financial institution to delay certain transactions under certain circumstances;
• permits a covered financial institution to notify a law enforcement agency or Adult Protective Services under certain circumstances;
• grants immunity to a covered financial institution, except under certain circumstances; and
• requires the Office of the Attorney General to provide certain information regarding financial exploitation on the attorney general's website.

Every vote on this bill

Bill text

FINANCIAL EXPLOITATION PREVENTION ACT
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: Kyle R. Andersen
Senate Sponsor: 
Lyle W. Hillyard
Cosponsors:
Susan Duckworth
Steve Eliason
Suzanne Harrison
Marsha Judkins
Karen Kwan
Kelly B. Miles
Travis M. Seegmiller
Jeffrey D. Stenquist
Andrew Stoddard
Elizabeth Weight
LONG TITLE
General Description:
This bill enacts the Financial Exploitation Prevention Act.
Highlighted Provisions:
This bill:
▸ defines terms;
▸ permits a covered financial institution to delay certain transactions under certain
circumstances;
▸ permits a covered financial institution to notify a law enforcement agency or Adult
Protective Services under certain circumstances;
▸ grants immunity to a covered financial institution, except under certain
circumstances; and
▸ requires the Office of the Attorney General to provide certain information regarding
financial exploitation on the attorney general's website.
Money Appropriated in this Bill:
None
Other Special Clauses:
None
Utah Code Sections Affected:
ENACTS:
7-26-101
, Utah Code Annotated 1953
7-26-102
, Utah Code Annotated 1953
7-26-201
, Utah Code Annotated 1953
7-26-202
, Utah Code Annotated 1953
7-26-301
, Utah Code Annotated 1953
7-26-302
, Utah Code Annotated 1953
7-26-401
, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
7-26-101
 is enacted to read:
CHAPTER 26. FINANCIAL EXPLOITATION PREVENTION ACT
Part 1. General Provisions
 7-26-101.
Title.
This chapter is known as the "Financial Exploitation Prevention Act."
Section 2. Section 
7-26-102
 is enacted to read:
 7-26-102.
Definitions.
As used in this chapter:
(1) "Adult Protective Services" means the same as that term is defined in Section
62A-3-301
.
(2) "Covered financial institution" means any of the following that operate in the state:
(a) a state or federally chartered:
(i) bank;
(ii) savings and loan association;
(iii) savings bank;
(iv) industrial bank;
(v) credit union;
(vi) trust company; or
(vii) depository institution; or
(b) a financial institution.
(3) "Financial exploitation" means:
(a) the wrongful or unauthorized taking, withholding, appropriation, or use of money,
assets, or other property of an individual; or
(b) an act or omission, including through a power of attorney, guardianship, or
conservatorship of an individual, to:
(i) obtain control, through deception, intimidation, or undue influence, over the
individual's money, assets, or other property to deprive the individual of the ownership, use,
benefit, or possession of the individual's money, assets, or other property; or
(ii) convert the individual's money, assets, or other property to deprive the individual of
the ownership, use, benefit, or possession of the individual's money, assets, or other property.
(4) "Law enforcement agency" means the same as that term is defined in Section
53-1-102
.
(5) "Qualified individual" means:
(a) a branch manager of a covered financial institution; or
(b) a director, officer, employee, agent, or other representative that a covered financial
institution designates.
(6) "Third party associated with a vulnerable adult" means an individual:
(a) who is a parent, spouse, adult child, sibling, or other known family member of a
vulnerable adult;
(b) whom a vulnerable adult authorizes the financial institution to contact;
(c) who is a co-owner, additional authorized signatory, or beneficiary on a vulnerable
adult's account; or
(d) who is an attorney, trustee, conservator, guardian or other fiduciary whom a court
or a government agency selects to manage some or all of the financial affairs of the vulnerable
adult.
(7) "Transaction" means any of the following services that a covered financial
institution provides:
(a) a transfer or request to transfer or disburse funds or assets in an account;
(b) a request to initiate a wire transfer, initiate an automated clearinghouse transfer, or
issue a money order, cashier's check, or official check;
(c) a request to negotiate a check or other negotiable instrument;
(d) a request to change the ownership of, or access to, an account;
(e) a request to sell or transfer a security or other asset, or a request to affix a medallion
stamp or provide any form of guarantee or endorsement in connection with an attempt to sell or
transfer a security or other asset, if the person selling or transferring the security or asset is not
required to obtain a license under Section 
61-1-3
;
(f) a request for a loan, extension of credit, or draw on a line of credit;
(g) a request to encumber any movable or immovable property; or
(h) a request to designate or change the designation of beneficiaries to receive any
property, benefit, or contract right.
(8) "Vulnerable adult" means:
(a) an individual who is 65 years of age or older; or
(b) the same as that term is defined in Section 
62A-3-301
.
Section 3. Section 
7-26-201
 is enacted to read:
Part 2. General Prevention of Financial Exploitation
 7-26-201.
Permitted delay of wire transfers.
(1) This section applies to a wire transfer that transfers money from a consumer
account at a covered financial institution.
(2) If a qualified individual reasonably believes that executing a requested wire transfer
will result in financial exploitation, the covered financial institution may:
(a) delay the wire transfer; and
(b) contact:
(i) a law enforcement agency;
(ii) Adult Protective Services; or
(iii) a joint co-owner on the account.
(3) The delay of a wire transfer described in Subsection (2) expires when the earlier of
the following occurs:
(a) the covered financial institution reasonably determines that the wire transfer is not
financial exploitation; or
(b) 15 business days pass after the day on which the covered financial institution first
initiated the delay of the wire transfer.
Section 4. Section 
7-26-202
 is enacted to read:
 7-26-202.
Office of the Attorney General website.
The Office of the Attorney General shall post on the Office of the Attorney General's
website up-to-date information regarding financial scams, including:
(1) the most prominent and common characteristics of financial scams;
(2) current or trending financial scams;
(3) resources for a vulnerable adult who suspects a financial scam; and
(4) resources for an individual who suspects the financial exploitation of a vulnerable
adult.
Section 5. Section 
7-26-301
 is enacted to read:
Part 3. Permitted Acts to Prevent Financial Exploitation of Vulnerable Adults
 7-26-301.
Delay of a transaction involving a vulnerable adult.
(1) A covered financial institution may delay a transaction involving a vulnerable adult,
if:
(a) a qualified individual reasonably believes that executing the requested transaction
will result in financial exploitation of the vulnerable adult; or
(b) a law enforcement agency provides the covered financial institution information
demonstrating that it is reasonable to believe that financial exploitation of a vulnerable adult is
occurring, has or may have occurred, is being attempted, or has been or may have been
attempted.
(2) (a) A covered financial institution that delays a transaction in accordance with
Subsection (1):
(i) except as provided in Subsection (2)(b), shall no later than two business days after
the day on which the transaction is delayed, send notice of the delay and the reason for the
delay to each party:
(A) authorized to transact business on the account; and
(B) for which the covered financial institution has contact information;
(ii) may send notice of the delay, the reason for the delay, or any additional information
about the transaction to:
(A) a law enforcement agency; or
(B) Adult Protective Services.
(b) A covered financial institution may:
(i) decide not to provide notice to a party described in Subsection (2)(a)(i) if a qualified
individual reasonably believes the party has engaged in attempted financial exploitation of the
vulnerable adult; or
(ii) send a notice described in Subsection (2)(a) electronically.
(3) (a) Except as provided in Subsection (3)(b), the delay of a transaction described in
Subsection (1) expires when the earlier of the following occurs:
(i) the covered financial institution reasonably determines that the transaction will not
result in financial exploitation of a vulnerable adult; or
(ii) 15 business days pass after the day on which the covered financial institution first
initiated the delay of the transaction.
(b) (i) If a covered financial institution receives a request from a law enforcement
agency to extend the delay of a transaction beyond the expiration date established in Subsection
(3)(a), the covered financial institution may extend the delay no more than 25 business days
after the day on which the covered financial institution first initiated the delay.
(ii) A court of competent jurisdiction may enter an order:
(A) extending or shortening the delay of a transaction; or
(B) providing relief based on the petition of the covered financial institution, law
enforcement agency, or an interested party.
Section 6. Section 
7-26-302
 is enacted to read:
 7-26-302.
Permitted notifications.
(1) A covered financial institution may notify a law enforcement agency or Adult
Protective Services if a qualified individual believes that the financial exploitation of a
vulnerable adult is occurring, has or may have occurred, is being attempted, or has been or may
have been attempted.
(2) A covered financial institution may notify a third party associated with a vulnerable
adult if a qualified individual believes that the financial exploitation of the vulnerable adult is
occurring, has or may have occurred, is being attempted, or has been or may have been
attempted.
(3) A covered financial institution may choose not to notify a third party associated
with a vulnerable adult as described in Subsection (2), if a qualified individual reasonably
believes that the third party is, may be, or may have been engaged in the financial exploitation
of the vulnerable adult.
Section 7. Section 
7-26-401
 is enacted to read:
Part 4. Immunity
 7-26-401.
Immunity.
(1) A covered financial institution or a director, officer, employee, attorney,
accountant, agent, or other representative of the covered financial institution:
(a) has no duty to act under this chapter to protect a vulnerable adult from financial
exploitation by a third person; and
(b) is immune from all criminal, civil, and administrative liability for not taking a
permissive action under this chapter.
(2) A covered financial institution or a director, officer, employee, attorney,
accountant, agent, or other representative of the covered financial institution who chooses to
act as described in:
(a) Subsection 
7-26-201
(2), is immune from all criminal, civil, and administrative
liability for the act, unless the act is done in bad faith; and
(b) Section 
7-26-301
 or 
7-26-302
, is immune from all criminal, civil, and
administrative liability for the act, unless the act:
(i) is done in bad faith; and
(ii) causes pecuniary loss to a vulnerable adult suspected of being a victim of financial
exploitation.
(3) The immunity described in this section does not extend to an individual that is a
principal, a conspirator, or an accessory after the fact to a criminal offense involving the
financial exploitation of a vulnerable adult.