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Committee approves substitute to let depository institutions pause suspicious transactions to protect eligible adults
Summary
Lawmakers advanced a committee substitute for SB 617 that would allow banks to delay, refuse or prevent transactions suspected of financially exploiting eligible adults for up to 15 days, require certain notifications and replace a private cause of action with stakeholder‑agreed immunity and recordkeeping requirements.
The Senate Finance Committee heard counsel explain a committee substitute for SB 617 that gives depository institutions authority to delay, refuse or prevent transactions when they reasonably suspect financial exploitation of an 'eligible adult' — defined as someone 65 or older or an adult with substantial impairment. Counsel said the hold is permissible for a maximum 15 days unless the institution is satisfied no exploitation is occurring or a court orders release.
The substitute permits disclosure to designated state officials such as the attorney general and the Department of Human Services and contains notification provisions for third parties with exceptions. Counsel said language inserting a private cause of action was removed and replaced with limited immunity agreed upon by stakeholders. The committee voted to report the measure to the full Senate with a recommendation that it pass.
