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Committee approves due‑pass for bill giving banks temporary hold authority to curb financial exploitation of vulnerable adults
Summary
House Bill 323 would allow financial institutions to place a temporary hold on transactions when they reasonably suspect financial exploitation of a vulnerable adult, give institutions time to investigate, and provide limited liability protection for those actions. The Senate Commerce Committee voted to send the bill to the floor with a due‑pass.
Representative Jeff Ehlers introduced House Bill 323 to the Senate Commerce Committee as a tool to curb growing financial exploitation. Ehlers said the bill would let a credit union or bank "put a pause on that transaction" when the institution has a reasonable belief that a transaction is fraudulent, then notify other account holders as appropriate and investigate the matter for up to 15 days with a possible 15‑day extension.
"All of us know, probably friends, family, neighbors that have fallen for financial fraud," Representative Ehlers told the committee, and he said the measure targets schemes that often pressure victims to act quickly and to avoid telling family or friends. He said the bill is similar to laws in about 40 other states.
Financial industry and consumer protection witnesses described the problem and how the bill would work in practice. Mike Schenck, CEO of Westmark Credit Union, called financial exploitation an "epidemic" and said credit unions see suspicious transactions frequently; he said staff are trained to identify likely exploitation and to advise members but currently lack a statutory pause to prevent imminent loss. Devin Goodall of LPL Financial described industry training and supervisory structures that enable advisors to spot red flags and noted the bill would add limited immunity and a temporary hold authority.
Law enforcement and victim advocates urged the committee to act. Brad Thorn, who works in cybercrime enforcement, recounted direct experience with victims: "I sat with a lady last night that was 75 years old and, watched her cry for an hour because she lost $90,000." Terry Durden, in‑house counsel for the Ada County Sheriff, said the Ada County Sheriff's Office recorded 249 cases of financial exploitation in the past two years in certain jurisdictions with a combined loss of about $4,000,000.
Witnesses and committee members discussed safeguards and scope. Representative Ehlers said the bill requires a "reasonable belief" of exploitation and expressly targets vulnerable adults, including those age 65 and older and persons with mental or physical impairments. Committee members asked how institutions identify exploitation without profiling; witnesses said long‑standing relationships, training, and ‘‘trusted contact’’ procedures help staff distinguish routine transactions from suspicious ones.
Senator Lenny moved, and Senator Lakey seconded, that the committee send House Bill 323 to the Senate floor with a due‑pass recommendation. The committee approved the motion on a roll call vote; the chair announced the tally as seven in favor and one opposed.
Votes at a glance
- Motion to send House Bill 323 to the floor with a due‑pass recommendation: Motion by Senator Lenny; second by Senator Lakey; outcome: approved on roll call (7 yes, 1 no).
