Bill Text: HI HB642 | 2023 | Regular Session | Amended
Bill Title: Relating To Consumer Protection.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Engrossed - Dead) 2023-04-05 - The committee on CPN deferred the measure. [HB642 Detail]
Download: Hawaii-2023-HB642-Amended.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
642 |
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THIRTY-SECOND LEGISLATURE, 2023 |
H.D. 2 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO CONSUMER PROTECTION.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
The legislature further finds that elders and vulnerable adults can also be financially exploited in check cashing and money order schemes, and extending protections similar to Act 54 to check cashing and money orders will further enable the State and private financial sectors to work together to prevent and combat cases of financial abuse to elders and vulnerable adults.
Accordingly, the purpose of this Act is to:
(1) Require check cashers to report suspected financial exploitation of elders and vulnerable adults in relation to check cashing;
(2) Provide immunity for good faith reporting;
(3) Authorize a check casher to refuse to cash a check in situations of suspected financial exploitation; and
(4) Clarify that all entities that are within the definition of "check casher" are subject to the requirements for reporting financial exploitation.
SECTION 2. Chapter 480F, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:
"Part
. PROTECTION OF ELDERS
AND VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION
§480F-A
Definitions. As used in this
part, unless the context otherwise requires:
"Director"
means the director of the office of consumer protection.
"Elder"
means an individual sixty-two years of age or older.
"Financial
exploitation" means:
(1) The wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of an elder or a vulnerable adult; or
(2) Any act or omission by a person, including through the use of a power of attorney, guardianship, or conservatorship of an elder or a vulnerable adult, to:
(A) Obtain control through deception, intimidation, or undue influence over the elder's or vulnerable adult's money, assets, or property to deprive the elder or vulnerable adult of the ownership, use, benefit, or possession of the elder's or vulnerable adult's money, assets, or property; or
(B) Convert money, assets, or property of the elder or vulnerable adult to deprive the elder or vulnerable adult of the ownership, use, benefit, or possession of the elder's or vulnerable adult's money, assets, or property.
"Vulnerable adult" means a person eighteen years of age or older who, because of mental, developmental, or physical impairment, is unable to:
(1) Communicate or make responsible decisions to manage the person's own care or resources;
(2) Carry out or arrange for essential activities of daily living; or
(3) Protect oneself from abuse.
§480F-B Governmental disclosures. If a check casher reasonably believes that financial exploitation of an elder or a vulnerable adult may have occurred, may have been attempted, or is being attempted, the check casher shall promptly notify the director.
§480F-C Immunity for governmental disclosures. A check casher who, in good faith and exercising reasonable care, makes a disclosure of information pursuant to section 480F-B shall be immune from administrative or civil liability that might otherwise arise from the disclosure or for any failure to notify the director of the disclosure.
§480F-D Third-party disclosures. (a) If a check casher reasonably believes that financial exploitation of an elder or a vulnerable adult may have occurred, may have been attempted, or is being attempted, a check casher may notify a reasonably associated individual or any third party previously designated by the elder or vulnerable adult. Disclosure shall not be made to any reasonably associated individual or previously designated third party who is suspected of financial exploitation or other abuse of the elder or vulnerable adult.
(b) As used in this section, "reasonably associated individual" means any person known to the check casher to be reasonably associated with the elder or vulnerable adult.
§480F-E Immunity for third-party disclosures. A check casher who, in good faith and exercising reasonable care, makes a disclosure of information pursuant to section 480F-D shall be immune from any administrative or civil liability that might otherwise arise from the disclosure.
§480F-F Refusing to cash checks. A check casher may refuse to cash a check of an elder or a vulnerable adult if the check casher reasonably believes that the requested check cashing may result in financial exploitation of the elder or vulnerable adult.
§480F-G Immunity for refusing to cash checks. A check casher who, in good faith and exercising reasonable care, complies with section 480F-F shall be immune from any administrative or civil liability that might otherwise arise from a refusal to cash a check in accordance with that section.
§480F-H Records. A check casher shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an elder or a vulnerable adult to the director or law enforcement, either as part of a referral to the director or law enforcement, or upon request of the director or law enforcement pursuant to an investigation. The records may include historical records as well as records relating to the most recent transaction or transactions that may comprise financial exploitation of an elder or a vulnerable adult. All records made available under this section shall be exempt from disclosure under chapter 92F.
Nothing in this section shall limit or otherwise impede the authority of the director to access or examine the books and records of a check casher as otherwise provided by law.
§480F-I Multiple duties to report. Compliance with this part shall not discharge the
duty to report suspected abuse under any other law.
§480F-J Exemptions. This part shall not apply to any person authorized to engage in business as a bank, trust
company, savings bank, savings and loan association, financial services loan
company, or credit union under the laws of the United States, any state or
territory of the United States, or the District of Columbia."
SECTION 3. Chapter 480F, Hawaii Revised Statutes, is amended by designating sections 480F-1 to 480F-7 as part I and inserting a title before section 480F-1 to read as follows:
"PART I. GENERAL PROVISIONS"
SECTION 4. Section 480F-5, Hawaii Revised Statutes, is amended to read as follows:
"[[]§480F-5[]]
Exemptions. This [chapter]
part shall not apply to[:] any person:
(1) [Any
person who] Who is principally engaged in the bona fide retail sale
of goods or services, and who, either as incident to or independent of the
retail sale or service, from time to time cashes items for a fee or other
consideration, where [not] no more than $2, or two per cent of
the amount of the check, whichever is greater, is charged for the service; or
(2) [Any
person authorized] Authorized to engage in business as a bank, trust
company, savings bank, savings and loan association, financial services loan
company, or credit union under the laws of the United States, any state or
territory of the United States, or the District of Columbia."
SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.
SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 7. This Act shall take effect on June 30, 3000.
Report Title:
Check Cashers; Elder; Vulnerable Adult; Financial Exploitation; Exemptions
Description:
Requires check cashers to report suspected financial exploitation of elders and vulnerable adults in relation to check cashing. Authorizes a check casher to refuse to cash a check in situations of suspected financial exploitation. Provides immunity for check cashers acting in good faith. Effective 6/30/3000. (HD2)
The summary description
of legislation appearing on this page is for informational purposes only and is
not legislation or evidence of legislative intent.
