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HB26-1110 • 2026

Vulnerable Adult Financial Exploitation Banking

The act creates the 'Adults' Security and Safeguards from Exploitation in Transactions Act' or the 'ASSET Act'. The act requires or authorizes a qualified individual at a bank or credit union (financi

Crime Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Rep. S. Camacho, Rep. J. Jackson, Sen. M. Catlin, Sen. J. Danielson, Sen. C. Simpson, Rep. A. Boesenecker, Rep. K. Brown, Rep. J. Caldwell, Rep. C. Clifford, Rep. M. Duran, Rep. C. Espenoza, Rep. A. Flanell, Rep. M. Froelich, Rep. R. Gonzalez, Rep. E. Hamrick, Rep. J. Joseph, Rep. S. Lieder, Rep. J. Mabrey, Rep. B. Marshall, Rep. J. McCluskie, Rep. K. McCormick, Rep. K. Nguyen, Rep. A. Paschal, Rep. N. Ricks, Rep. M. Rutinel, Rep. E. Sirota, Rep. L. Smith, Rep. K. Stewart, Rep. R. Stewart, Rep. T. Story, Sen. M. Ball, Sen. J. Bridges, Sen. J. Carson, Sen. J. Coleman, Sen. L. Cutter, Sen. T. Exum, Sen. N. Hinrichsen, Sen. I. Jodeh, Sen. C. Kipp, Sen. C. Kolker, Sen. J. Marchman, Sen. R. Rodriguez, Sen. M. Snyder, Sen. T. Sullivan, Sen. K. Wallace
Last action
2026-05-26
Official status
Governor Signed
Effective date
Not listed

Plain English Breakdown

The effective date is listed as empty in the official metadata; while enacted on May 26, 2026, the specific start date for enforcement rules is unknown from this text.

HB26-1110: The ASSET Act for Protecting Vulnerable Adults

This law requires or allows bank staff to report suspected financial exploitation of vulnerable adults and delay money transfers while investigations take place.

What This Bill Does

  • Requires a qualified person at a bank or credit union to notify local police or the county adult protective services agency if they reasonably suspect an older or disabled adult is being financially exploited.
  • Allows banks to contact a trusted third party chosen by or associated with the vulnerable adult about the suspected fraud.
  • Permits banks to delay sending money from an account while they review the situation, notify authorized users within two business days (except those believed to be committing the crime), and wait for investigations.
  • Protects banks and staff from lawsuits if they act in good faith and with reasonable care when following these rules or choosing not to take action.
  • Requires banks to share relevant records with law enforcement and adult protective services agencies, keeping those shared records private.

Who It Names or Affects

  • Banks and credit unions
  • Qualified employees at financial institutions
  • Vulnerable adults who are customers of these institutions
  • Local law enforcement and county adult protective services agencies

Terms To Know

ASSET Act
The official name for this law, standing for Adults' Security and Safeguards from Exploitation in Transactions.
Vulnerable adult
An older or disabled person who may be at risk of having their money taken by others through fraud or abuse.
Disbursement
The act of paying out money from a bank account to someone else.

Limits and Unknowns

  • Banks must make a final decision on the delayed payment within 90 days, or up to 180 days if waiting for an official investigation by law enforcement or adult protective services.
  • The delay ends when the bank believes no exploitation is happening, the investigation concludes, or a court orders it removed.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

H.001

Committee of the Whole

Lost

Plain English: This amendment adds a rule stating that the new law does not apply if a bank already knows money is being taken from an adult through financial exploitation.

  • Adds a specific exception to the bill's rules on page 8.
  • The amendment was voted down and did not pass, so it does not change the final law.
  • The text only shows one new sentence being added without explaining how banks should prove they 'know' about exploitation.
L.002

HOU Finance

Passed [*]

Plain English: This amendment clarifies the definition of a disbursement and updates rules for how banks must notify eligible adults about suspected financial exploitation.

  • It defines 'disbursement' as any transaction made by a bank or credit union to or for an account holder, no matter what method is used.
  • It changes the timing rule so that notifications must be sent as soon as possible but within a specific time limit.
  • It allows banks to send required notices electronically instead of only in paper form.
  • It requires banks to provide a specific reason when they take action and clarifies which records belong to the eligible adult.
  • The amendment text does not specify exactly how many days or hours are allowed for sending notifications, so that detail is unknown.
  • Some technical page numbers and line references in the original bill were adjusted but do not change the meaning of the law.
L.022

SEN Business, Labor, & Technology

Passed [*]

Plain English: This amendment updates the bill to require bank employees to act with both good faith and reasonable care when handling transactions involving vulnerable adults.

  • It changes the legal standard for banks from just acting in 'good faith' to acting in 'faith and exercising reasonable care'.
  • It adds a requirement that financial institutions must use careful judgment, not just honest intentions, when dealing with these accounts.
  • The amendment text only shows the specific words being changed but does not explain exactly what actions count as 'reasonable care' in this situation.
  • Without reading the full bill, it is unclear which specific parts of a bank's daily work these new rules will affect.
L.007

Second Reading

Lost [**]

Plain English: This amendment would remove a specific section of the bill that deals with how banks and credit unions handle reports about vulnerable adults.

  • It deletes lines 7 through 12 on page 8 of the original bill.
  • The official text does not say what words were in the deleted section, so we cannot explain exactly which rule or requirement is being removed.
  • This amendment was voted down and did not pass during the Second Reading stage.
L.009

Second Reading

Lost [**]

Plain English: This amendment adds a rule that stops the new law from applying if a bank already knew or should have known that money was being taken from an adult in need.

  • It creates an exception to the bill's rules for financial institutions.
  • The amendment did not pass and is marked as 'Lost', so it does not change the law.
  • The text uses legal phrases like 'should have known' which might be hard to define in real situations without more details from courts or regulators.
L.011

Second Reading

Lost [**]

Plain English: This amendment adds a rule stating that the new law does not apply if a bank already knows money is being taken from an adult through financial exploitation.

  • Adds a specific exception to the bill's requirements on page 8.
  • The amendment was lost and did not become part of the final law.
  • The text does not explain how banks should prove they 'know' about exploitation or what steps they must take in those cases.
L.014

Second Reading

Lost [**]

Plain English: This amendment changes the number of days mentioned in the bill from seventy to sixty.

  • The text on page 3, line 14 is changed by removing the word 'SEVENTY'.
  • The word 'SIXTY' replaces 'SEVENTY' in that same spot.
  • The amendment does not explain what specific time period or deadline this number refers to.
  • Because the full context of page 3 is missing, it is unclear exactly how changing this number affects banks or vulnerable adults.
L.015

Second Reading

Lost [**]

Plain English: This amendment changes the number of days mentioned in the bill from seventy to sixty-five.

  • The text on page 3, line 14 is changed by removing the word 'SEVENTY'.
  • The new text replaces it with the words 'SIXTY-FIVE'.
  • The amendment does not explain what specific time period or deadline this number refers to.
  • This amendment was lost and did not become part of the final bill.
L.019

Second Reading

Lost [**]

Plain English: This amendment adds a specific legal definition for 'good faith' and requires banks to prove they acted in good faith with strong evidence if they want to use it as an excuse against accusations of financial exploitation.

  • It defines the term "good faith" by pointing readers to another existing law section (11-101-401(38)).
  • It requires banks or credit unions to officially claim they acted in good faith if they want to use that as a defense.
  • It sets a high standard of proof, meaning the bank must show clear and convincing evidence that their actions were honest.
  • The amendment text does not explain what specific rules are inside section 11-101-401(38) to define "good faith".
  • This amendment was marked as 'Lost', meaning it did not pass and these changes were not made to the final bill.
L.021

Second Reading

Passed [**]

Plain English: This amendment adds a clear definition for the term 'good faith' to explain what banks must believe when handling transactions involving vulnerable adults.

  • It defines 'good faith' as being honest and having reasonable reasons to think a transaction is correct or allowed.
  • The amendment text only shows the new definition and numbering changes, so it does not explain how this rule will be enforced in real situations.
  • Because the full bill text was not provided, we cannot see exactly where else 'good faith' is used or if other parts of the law change.

Bill History

  1. 2026-05-26 Governor

    Governor Signed

  2. 2026-05-20 Governor

    Sent to the Governor

  3. 2026-05-20 Senate

    Signed by the President of the Senate

  4. 2026-05-20 House

    Signed by the Speaker of the House

  5. 2026-04-21 House

    House Considered Senate Amendments - Result was to Concur - Repass

  6. 2026-04-20 Senate

    Senate Third Reading Passed - No Amendments

  7. 2026-04-17 Senate

    Senate Second Reading Special Order - Passed with Amendments - Committee

  8. 2026-04-14 Senate

    Senate Committee on Business, Labor, & Technology Refer Amended - Consent Calendar to Senate Committee of the Whole

  9. 2026-04-06 Senate

    Introduced In Senate - Assigned to Business, Labor, & Technology

  10. 2026-03-09 House

    House Third Reading Passed - No Amendments

  11. 2026-03-06 House

    House Second Reading Special Order - Passed with Amendments - Committee, Floor

  12. 2026-03-04 House

    House Second Reading Laid Over Daily with Amendments - Committee

  13. 2026-03-03 House

    House Second Reading Special Order - Laid Over Daily with Amendments - Committee

  14. 2026-02-26 House

    House Committee on Finance Refer Amended to House Committee of the Whole

  15. 2026-02-03 House

    Introduced In House - Assigned to Finance

Official Summary Text

The act creates the 'Adults' Security and Safeguards from Exploitation in Transactions Act' or the 'ASSET Act'. The act requires or authorizes a qualified individual at a bank or credit union (financial institution) to do the following when the individual reasonably and in good faith suspects that a vulnerable adult is the victim of financial exploitation:
The qualified individual must notify appropriate local law enforcement or the county agency handling adult protective services; and
The qualified individual may notify a third party previously designated by or reasonably associated with the vulnerable adult.
A financial institution or qualified individual may delay a disbursement from an account if the financial institution or qualified individual:
Reasonably believes that the vulnerable adult is subject to financial exploitation;
Provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account within 2 business days after the requested disbursement; except that a party who is reasonably believed to have engaged in financial exploitation of the vulnerable adult need not be notified; and
Continues its internal review of the suspected or attempted financial exploitation.
The delay may continue until:
The financial institution or qualified individual reasonably believes that the vulnerable adult is not subject to financial exploitation;
Local law enforcement or the county agency handling adult protective services concludes its investigation; or
A court orders that the delay be removed.
A financial institution or qualified individual must make a determination within 90 days after beginning the delay of a disbursement or, if waiting on the investigation of local law enforcement or a county agency handling adult protective services, within 180 days. The disbursement must be made or refused based on the conclusions of the investigation or the expiration of the time.
A financial institution and qualified individual are immune from liability arising from the actions or from failing to take the actions authorized in the act if the act or failure to act was made in good faith and exercising reasonable care.
A financial institution must provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an vulnerable adult to agencies charged with administering state adult protective services laws and to law enforcement. The records made available to agencies are not public records, as defined in the 'Colorado Open Records Act'.
(Note: This summary applies to this bill as enacted.)