SF0024 • 2023

Financial exploitation of vulnerable adults.

AN ACT relating to banks, banking and finance; requiring financial institutions to report financial exploitation of vulnerable adults as specified; authorizing discretionary reporting of suspected financial exploitation of vulnerable adults to third parties; allowing temporary holds on transactions; providing immunity; requiring disclosure of financial records; providing definitions; requiring rulemaking; and providing for effective dates.

Labor

Enacted

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

Sponsor: Judiciary
Last action: 2023-02-15
Official status: enrolled
Effective date: 7/1/2023

Plain English Breakdown

Details on how banks will implement the new rules are not yet clear and depend on future regulations.

Financial Exploitation Reporting by Banks

This law requires financial institutions to report suspected financial exploitation of vulnerable adults and allows them to temporarily stop transactions if needed.

What This Bill Does

Requires financial institutions to notify the Department of Family Services when they suspect a vulnerable adult is being financially exploited.
Allows financial institutions to inform people close to the vulnerable adult about the suspected exploitation, unless those people are also suspects.
Permits financial institutions to temporarily stop transactions involving a vulnerable adult's account if there's reason to believe it involves financial exploitation.
Provides protection from legal action for financial institutions and employees who report or act on suspicions of financial exploitation.
Requires financial institutions to share relevant records with the Department of Family Services, law enforcement, or district attorneys when investigating suspected financial exploitation.

Who It Names or Affects

Financial institutions such as banks and credit unions
Vulnerable adults who may be targets of financial exploitation

Terms To Know

Vulnerable adult: An individual who is at risk due to age, disability, or other factors that make them susceptible to abuse.
Financial exploitation: The misuse of a vulnerable person's money, assets, property, or identifying information without their consent.

Limits and Unknowns

Details on how financial institutions will implement the new rules are not yet clear and depend on future regulations.
It is unclear what happens if a financial institution wrongly suspects financial exploitation.
The effectiveness of this legislation in preventing or addressing financial exploitation remains uncertain.

Amendments

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

SF0024H3001

3rd reading • Representative Knapp

Failed

Plain English: The amendment changes the wording in a bill about reporting financial exploitation of vulnerable adults to alter when and how banks can report such incidents.

Changes 'If' to 'Before' on page 6, line 22.
Removes everything after 'may' on page 7, line 2.

The amendment text does not provide enough context to fully explain the implications of these changes for U.S. grade 6 to 8 readers.

SF0024H3002

3rd reading • Representative Locke

Failed

Plain English: The amendment adds a requirement for financial institutions to document when their customers are considered vulnerable adults.

Adds language requiring financial institutions to keep records of when their customers qualify as vulnerable adults.
Modifies the existing text by removing 'and' and replacing a period with '; and'.
Inserts new text after line 10 on page 6, specifying that documentation must be done according to Wyoming Statute 13-1-701(a)(vii).

The amendment references Wyoming Statute 13-1-701(a)(vii), but does not provide details on what this statute entails, which limits a full understanding of the documentation requirement.

Bill History

2023-02-15 LSO
Assigned Chapter Number 8
2023-02-15 Governor
Governor Signed SEA No. 0018
2023-02-14 House
H Speaker Signed SEA No. 0018
2023-02-14 Senate
S President Signed SEA No. 0018
2023-02-14 LSO
Assigned Number SEA No. 0018
2023-02-14 House
H 3rd Reading:Passed 36-25-1-0-0
2023-02-13 House
H 3rd Reading:Laid Back
2023-02-10 House
H 2nd Reading:Passed
2023-02-09 House
H COW:Passed
2023-02-08 House
H Placed on General File
2023-02-08 House
H01 - Judiciary:Recommend Do Pass 7-2-0-0-0
2023-02-03 House
H Introduced and Referred to H01 - Judiciary
2023-01-26 House
H Received for Introduction
2023-01-26 Senate
S 3rd Reading:Passed 22-9-0-0-0
2023-01-25 Senate
S 2nd Reading:Passed
2023-01-24 Senate
S COW:Passed
2023-01-20 Senate
S Placed on General File
2023-01-20 Senate
S01 - Judiciary:Recommend Do Pass 5-0-0-0-0
2023-01-10 Senate
S Introduced and Referred to S01 - Judiciary
2022-12-28 Senate
S Received for Introduction
2022-12-02 LSO
Bill Number Assigned

Official Summary Text

Bill Summary - 23LSO-0279
Bill No.:

SF0024

Effective:

Multiple Dates

LSO No.:

23LSO-0279

Enrolled Act No.:

SEA No. 0018

Chapter No.:

8

Prime Sponsor:

Joint Judiciary Interim Committee

Catch Title:

Financial exploitation of vulnerable adults.

Subject:

Financial exploitation of vulnerable adults

Summary/Major Elements:

This act requires financial institutions who are notified of suspected financial exploitation of a vulnerable adult to assess the suspected financial exploitation and, if warranted, submit a report to the department of family services.

This act allows financial institutions to notify third parties reasonably associated with the vulnerable adult of the suspected financial exploitation unless the financial institution suspects the third party of financial exploitation of that vulnerable adult.

This act authorizes financial institutions to place temporary holds on any transaction that involves an account of a vulnerable adult or that contains the vulnerable adult's assets or property. This hold shall not exceed five (5) business days after the date the hold is place unless the hold is extended for a period not to exceed thirty (30) days.

This act provides immunity to financial institutions and other qualified persons from civil liability and requires financial institutions to disclose financial records relevant to the suspected financial exploitation of a vulnerable adult.

The above summary is not an official publication of the Wyoming Legislature and is not an official statement of legislative intent.

While the Legislative Service Office endeavored to provide accurate information in this summary, it should not be relied upon as a comprehensive abstract of the bill.

Current Bill Text

Read the full stored bill text

23LSO-0279

ORIGINAL Senate

File No
.
SF0024

ENROLLED ACT NO. 18,

SENATE

SIXTY-SEVENTH LEGISLATURE OF THE STATE OF WYOMING
2023 General Session

AN ACT relating to banks, banking and finance; requiring financial institutions to report financial exploitation of vulnerable adults as specified; authorizing discretionary reporting of suspected financial exploitation of vulnerable adults to third parties; allowing temporary holds on transactions; providing immunity; requiring disclosure of financial records; providing definitions; requiring rulemaking; and providing for effective dates.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 13
‑
1
‑
701 through 13
‑
1
‑
706 are created to read:

ARTICLE 7
PROTECTION OF VULNERABLE ADULTS

13
‑
1
‑
701.

Definitions.

(a)

As used in this article:

(i)

"Agent" means as defined in W.S. 17
‑
4
‑
102(a)(ii);

(ii)

"Department" means the department of family services;

(iii)

"Financial exploitation" means:

(A)

The wrongful or unauthorized taking, withholding, appropriation or use of the money, assets or other property or the identifying information of a person; or

(B)

An act or omission by a person, including through the use of a power of attorney on behalf of, or as the conservator or guardian of, another person, to:

(I)

Obtain control, through deception, intimidation, fraud or undue influence, over the other person's money, assets or other property to deprive the other person of the ownership, use, benefit or possession of the property; or

(II)

Convert the money, assets or other property of the other person to deprive the other person of the ownership, use, benefit or possession of the property.

(iv)

"Financial institution" means as defined by W.S. 13
‑
1
‑
401(a)(ii) and, for purposes of this article, shall include broker
‑
dealers as defined in W.S. 17
‑
4
‑
102(a)(iv) and investment advisers as defined in W.S. 17
‑
4
‑
102(a)(xv);

(v)

"Investment adviser representative" means as defined in W.S. 17
‑
4
‑
102(a)(xvi);

(vi)

"Qualified person" means any agent, investment adviser representative or person who serves in a supervisory, compliance or legal capacity for a financial institution;

(vii)

"Vulnerable adult" means as defined by W.S. 35
‑
20
‑
102(a)(xviii).

13
‑
1
‑
702.

Reporting financial exploitation of vulnerable adults.

(a)

If a qualified person has cause to believe that financial exploitation of a vulnerable adult has occurred, is occurring or has been attempted, the qualified person shall notify the financial institution of the suspected financial exploitation.

(b)

If a financial institution is notified of suspected financial exploitation under subsection (a) of this section or otherwise has cause to believe that financial exploitation of a vulnerable adult has occurred, is occurring or has been attempted, the financial institution shall assess the suspected financial exploitation and, if warranted, submit a report to the department containing the same information under W.S. 35
‑
20
‑
103(b).

The financial institution shall submit the report required by this subsection not later than the earlier of:

(i)

The date the financial institution completes its assessment of the suspected financial exploitation; or

(ii)

Five (5) business days after the date the financial institution is notified of the suspected financial exploitation under subsection (a) of this section or otherwise has cause to believe that the financial exploitation of a vulnerable adult has occurred, is occurring or has been attempted.

(c)

A financial institution that submits a report to the department of suspected financial exploitation of a vulnerable adult under subsection (b) of this section is not required to make an additional report of suspected abuse, neglect or exploitation under W.S. 35
‑
20
‑
103 for the same conduct constituting the reported suspected financial exploitation.

(d)

Each financial institution shall adopt internal policies, programs, plans or procedures for:

(i)

The qualified persons of the financial institution to make the notifications required under subsection (a) of this section; and

(ii)

The financial institution to conduct the assessment and submit the report required under subsection (b) of this section.

(e)

The policies, programs, plans or procedures adopted under subsection (d) of this section may authorize the financial institution to report the suspected financial exploitation of a vulnerable adult to any appropriate state or federal agency in addition to the department, including any appropriate law enforcement agency.

13
‑
1
‑
703.

Notifying third parties of suspected financial exploitation of vulnerable adults.

If a financial institution submits a report of suspected financial exploitation of a vulnerable adult to the department under this article, the financial institution may, at the time the financial institution submits the report, also notify a third party reasonably associated with the vulnerable adult of the suspected financial exploitation of the vulnerable adult, unless the financial institution suspects the third party of financial exploitation of the vulnerable adult.

13
‑
1
‑
704.

Temporary hold on transactions.

(a)

Notwithstanding any other state law, a financial institution:

(i)

May place a hold on any transaction that involves an account of a vulnerable adult or that contains the vulnerable adult's assets or property if the financial institution:

(A)

Submits a report of suspected financial exploitation of the vulnerable adult to the department as required under this article; and

(B)

Has cause to believe the transaction is related to the suspected financial exploitation alleged in the report.

(ii)

Shall place a hold on any transaction involving an account of a vulnerable adult if the hold is requested by the department or a law enforcement agency.

(b)

Subject to subsection (c) of this section, a hold placed on any transaction under subsection (a) of this section shall not exceed five (5) business days after the date the hold is placed.

(c)

A financial institution may extend a hold placed on any transaction under subsection (a) of this section for a period not to exceed thirty (30) business days after the expiration of the period prescribed by subsection (b) of this section if requested by a state or federal agency or a law enforcement agency investigating the suspected financial exploitation of a vulnerable adult. The financial institution may also petition a court to extend a hold placed on any transaction under subsection (a) of this section beyond the period prescribed by subsection (b) of this section. A court may enter an order extending a hold or providing other relief.

(d)

Each financial institution shall adopt internal policies, programs, plans or procedures for placing a hold on a transaction involving an account of a vulnerable adult under this section.

13
‑
1
‑
705.

Immunity.

(a)

A qualified person who provides notification under W.S. 13
‑
1
‑
702(a), a financial institution that submits a report under W.S. 13
‑
1
‑
702(b) or provides notification to a third party under W.S. 13
‑
1
‑
703 and a qualified person or financial institution that testifies or otherwise participates in a judicial proceeding arising from a notification or report under this article is immune from any civil liability arising from the notification, report, testimony or participation in the judicial proceeding, unless the qualified person or financial institution acted in bad faith or with a malicious purpose.

(b)

A financial institution that in good faith and with the exercise of reasonable care places or does not place a hold on any transaction under W.S. 13
‑
1
‑
704(a) is immune from any civil liability or disciplinary action resulting from that action or failure to act.

13
‑
1
‑
706.

Records.

To the extent permitted by state and federal law, a financial institution shall provide, on request, access to or copies of records relevant to the suspected financial exploitation of a vulnerable adult to the department, a law enforcement agency or a district attorney's office, either as part of a report to the department, law enforcement agency or district attorney's office or at the request of the department, law enforcement agency or district attorney's office in accordance with an investigation.

Access to records of transactions provided under this section shall be limited to sixty (60) days before the first transaction suspected of involving financial exploitation to sixty (60) days after the last transaction suspected of involving financial exploitation.

Section 2
.

The department of family services shall promulgate any rules necessary to implement this act.

Section 3.

(a)

Except as provided in subsection (b) of this section,

this act is effective July 1, 2023
.

(b)

Sections 2 and 3 of this act are effective immediately upon completion of all acts necessary for a bill to become law as provided by Article 4, Section 8 of the Wyoming Constitution.

(END)

Speaker of the House

President of the Senate

Governor

TIME APPROVED: _________

DATE APPROVED: _________

I hereby certify that this act originated in the Senate.

Chief Clerk

1