Bill Text: FL S0556 | 2024 | Regular Session | Enrolled


Bill Title: Protection of Specified Adults

Spectrum: Bipartisan Bill

Status: (Passed) 2024-05-29 - Chapter No. 2024-200 [S0556 Detail]

Download: Florida-2024-S0556-Enrolled.html
       ENROLLED
       2024 Legislature                            CS for CS for SB 556
       
       
       
       
       
       
                                                              2024556er
    1  
    2         An act relating to protection of specified adults;
    3         creating s. 415.10341, F.S.; defining terms; providing
    4         legislative findings and intent; authorizing financial
    5         institutions, under certain circumstances, to delay a
    6         disbursement or transaction from an account of a
    7         specified adult; specifying that a delay on a
    8         disbursement or transaction expires on a certain date;
    9         authorizing the financial institution to extend the
   10         delay under certain circumstances; authorizing a court
   11         of competent jurisdiction to shorten or extend the
   12         delay; providing construction; granting financial
   13         institutions immunity from certain liability;
   14         providing construction; requiring financial
   15         institutions to take certain actions before placing a
   16         delay on a disbursement or transaction; providing
   17         construction; providing an effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Section 415.10341, Florida Statutes, is created
   22  to read:
   23         415.10341 Protection of specified adults.—
   24         (1)As used in this section, the term:
   25         (a)“Financial exploitation” means the wrongful or
   26  unauthorized taking, withholding, appropriation, or use of
   27  money, assets, or property of a specified adult; or any act or
   28  omission by a person, including through the use of a power of
   29  attorney, guardianship, or conservatorship of a specified adult,
   30  to:
   31         1.Obtain control over the specified adult’s money, assets,
   32  or property through deception, intimidation, or undue influence
   33  to deprive him or her of the ownership, use, benefit, or
   34  possession of the money, assets, or property; or
   35         2.Divert the specified adult’s money, assets, or property
   36  to deprive him or her of the ownership, use, benefit, or
   37  possession of the money, assets, or property.
   38         (b)“Financial institution” means a state financial
   39  institution or a federal financial institution as those terms
   40  are defined under s. 655.005(1).
   41         (c)“Specified adult” means a natural person 65 years of
   42  age or older, or a vulnerable adult as defined in s. 415.102.
   43         (d)“Trusted contact” means a natural person 18 years of
   44  age or older whom the account owner has expressly identified and
   45  recorded in a financial institution’s books and records as the
   46  person who may be contacted about either the account or the
   47  account owner to address possible financial exploitation or to
   48  confirm the specifics of the account owner’s current contact
   49  information or health status; to determine the identity of any
   50  conservator, executor, trustee, or individual or entity granted
   51  a power of attorney; or to address any other concern reasonably
   52  related to the administration of the account. The term may
   53  include a joint account owner or an individual or entity who has
   54  been granted a power of attorney.
   55         (2)The Legislature finds that many persons in this state,
   56  because of age or disability, are at increased risk of financial
   57  exploitation and loss of their assets, funds, investments, and
   58  investment accounts. The Legislature further finds that
   59  specified adults in this state are at a statistically higher
   60  risk of being targeted for financial exploitation, regardless of
   61  diminished capacity or other disability, because of their
   62  accumulation of substantial assets and wealth compared to
   63  younger age groups. In enacting this section, the Legislature
   64  recognizes the freedom of specified adults to manage their
   65  assets, make investment choices, and spend their funds, and
   66  intends that such rights may not be infringed absent a
   67  reasonable belief of financial exploitation as provided in this
   68  section. The Legislature therefore intends to provide for the
   69  prevention of financial exploitation of such persons. The
   70  Legislature intends to encourage the constructive involvement of
   71  financial institutions that take action based upon the
   72  reasonable belief that specified adults who have accounts with
   73  such financial institutions have been or are the subject of
   74  financial exploitation, and to provide financial institutions
   75  and their employees immunity from liability for taking actions
   76  as authorized herein. The Legislature intends to balance the
   77  rights of specified adults to direct and control their assets,
   78  funds, and investments and to exercise their constitutional
   79  rights consistent with due process with the need to provide
   80  financial institutions the ability to place narrow, time-limited
   81  restrictions on these rights in an effort to decrease specified
   82  adults’ risk of loss due to abuse, neglect, or financial
   83  exploitation.
   84         (3)If a financial institution reports suspected financial
   85  exploitation of a specified adult pursuant to s. 415.1034, it
   86  may delay a disbursement or transaction from an account of a
   87  specified adult or an account for which a specified adult is a
   88  beneficiary or beneficial owner if all of the following apply:
   89         (a)The financial institution promptly initiates an
   90  internal review of the facts and circumstances that caused an
   91  employee of the financial institution to report suspected
   92  financial exploitation.
   93         (b)Not later than 3 business days after the date on which
   94  the delay was first placed, the financial institution:
   95         1.Notifies in writing all parties authorized to transact
   96  business on the account and any trusted contact on the account,
   97  using the contact information provided for the account, with the
   98  exception of any party an employee of the financial institution
   99  reasonably believes has engaged in, is engaging in, has
  100  attempted to engage in, or will attempt to engage in the
  101  suspected financial exploitation of the specified adult. The
  102  notice, which may be provided electronically, must provide the
  103  reason for the delay.
  104         2.Creates and maintains for at least 5 years from the date
  105  of the delayed disbursement or transaction a written or
  106  electronic record of the delayed disbursement or transaction
  107  that includes, at minimum, the following information:
  108         a.The date on which the delay was first placed.
  109         b.The name and address of the specified adult.
  110         c.The business location of the financial institution.
  111         d.The name and title of the employee who reported
  112  suspected financial exploitation of the specified adult pursuant
  113  to s. 415.1034.
  114         e.The facts and circumstances that caused the employee to
  115  report suspected financial exploitation.
  116         (4)A delay on a disbursement or transaction under
  117  subsection (3) expires 15 business days after the date on which
  118  the delay was first placed. However, the financial institution
  119  may extend the delay for up to 30 additional business days if
  120  the financial institution’s review of the available facts and
  121  circumstances continues to support the reasonable belief that
  122  financial exploitation of the specified adult has occurred, is
  123  occurring, has been attempted, or will be attempted. The length
  124  of the delay may be shortened or extended at any time by a court
  125  of competent jurisdiction. This subsection does not prevent a
  126  financial institution from terminating a delay after
  127  communication with the parties authorized to transact business
  128  on the account and any trusted contact on the account.
  129         (5)A financial institution that acts in good faith and
  130  exercises reasonable care to comply with this section is immune
  131  from any administrative or civil liability that might otherwise
  132  arise from such delay in a disbursement or transaction in
  133  accordance with this section. This subsection does not supersede
  134  or diminish any immunity granted elsewhere in this chapter.
  135         (6)Before placing a delay on a disbursement or transaction
  136  pursuant to this section, a financial institution must do all of
  137  the following:
  138         (a)Develop training policies or programs reasonably
  139  designed to educate employees who perform or approve
  140  transactions on behalf of customers on issues pertaining to
  141  financial exploitation of specified adults.
  142         (b)Conduct training for employees described in paragraph
  143  (a) as soon as reasonably practicable and maintain a written
  144  record of all trainings conducted. With respect to an individual
  145  who begins employment with a covered financial institution after
  146  July 1, 2024, such training must be conducted within 1 year
  147  after the date on which the individual becomes employed by or
  148  affiliated or associated with the covered financial institution.
  149         (c)Develop, maintain, and enforce written procedures
  150  regarding the manner in which suspected financial exploitation
  151  is reviewed internally, including, if applicable, the manner in
  152  which suspected financial exploitation is required to be
  153  reported to supervisory personnel.
  154         (7)Absent a reasonable belief of financial exploitation as
  155  provided in this section, this section does not otherwise alter
  156  a financial institution’s obligations to all parties authorized
  157  to transact business on an account and any trusted contact named
  158  on such account.
  159         (8)This section does not create new rights for or impose
  160  new obligations or new duties on a financial institution under
  161  other applicable law.
  162         Section 2. This act shall take effect January 1, 2025.

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