This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0515a.IBS
DATE: 2/2/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 515 Protection of Specified Adults
SPONSOR(S): Insurance & Banking Subcommittee, Silvers and others
TIED BILLS: IDEN./SIM. BILLS: CS/SB 556
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Insurance & Banking Subcommittee 18 Y, 0 N, As CS Fletcher Lloyd
2) Children, Families & Seniors Subcommittee
3) Commerce Committee
SUMMARY ANALYSIS
Florida has been a destination state for senior citizens over the years and has the second highest percentage
of senior residents in the nation. In 2022, Florida had an estimated 4.7 million people age 65 and older,
approximately 21percent of the state’s population. By 2030, this number is projected to increase to 5.9 million,
meaning the elderly will make up approximately one quarter of the state’s population and will account for most
of the state’s growth.
Elder populations are particularly vulnerable to abuse and exploitation due to risk factors associated with
aging, such as physical and mental infirmities and social isolation. Common types of elder abuse include
neglect, physical abuse, psychological abuse, and financial abuse. Up to 5 million older Americans are abused
every year, and the annual loss by victims of financial abuse is estimated to be at least $36.5 billion.
The Adult Protective Services Act, ch. 415, F.S. (Act), codifies Florida’s laws relating to the protection of
vulnerable adults. The bill amends the Act to, among other things:
Create definitions for certain terms;
Provide that if a financial institution reports suspected financial exploitation of a specified adult, it may
delay a disbursement or transaction from an account of a specified adult or an account for which a
specified adult is a beneficiary or beneficial owner, provided certain conditions are met; and
Require financial institutions to:
o Create and maintain for at least 5 years after the date of the delayed disbursement or
transaction a written or electronic record of the delayed disbursement or transaction that
includes certain information,
o Make the required information available for review upon request by DCF, any law enforcement
agency, or any state or federal agency with regulatory authority over the financial institution, and
o Develop certain trainings and policies reasonably designed to educate employees on issues
pertaining to financial exploitation of specified adults before placing a delay on any
disbursement or transaction.
The bill has no impact on state government or local government revenues and expenses. It has an
indeterminate positive and negative impact on the private sector.
The bill provides an effective date of July 1, 2024.
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DATE: 2/2/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Background
Elder Population in Florida
As the country’s “baby-boom” population reaches retirement age and life expectancy increases, the
nation’s elder population is projected to increase from 54.1 million in 2019
1
to 80.8 million by 2040.
2
Florida has long been a destination state for senior citizens and has the second highest percentage of
senior residents in the nation.
3
In 2022, Florida had an estimated 4.7 million people age 65 and older,
approximately 21percent of the state’s population.
4
By 2030, this number is projected to increase to 5.9
million, meaning the elderly will make up approximately one quarter of the state’s population and will
account for most of the state’s growth.
5
Adult Protective Services Act
The Adult Protective Services Act, ch. 415, F.S. (Act), codifies Florida’s laws relating to the protection
of vulnerable adults. The Act defines “vulnerable adult” as a person 18 years of age or older whose
ability to perform the normal activities of daily living or to provide for his or her own care or protection is
impaired due to a mental, emotional, sensory, long-term physical, or developmental disability, or brain
damage, or the infirmities of aging.
6
The term implicitly includes elderly persons, but also incorporates
disabled adults and other adults whom the Legislature has determined to be at risk of abuse, neglect,
and exploitation, and in need of protective services.
7
The Department of Children and Families (DCF) protects vulnerable adults from abuse, neglect, and
exploitation through mandatory reporting and investigation of suspected abuse pursuant to the Act.
8
In
2022, DCF received 30,581 reports of abuse, neglect, or exploitation of persons aged 60 or older.
9
Financial Abuse in Elder Populations
Elder populations are particularly vulnerable to abuse and exploitation due to risk factors associated
with aging, such as physical and mental infirmities and social isolation.
10
Common types of elderly
abuse include neglect, physical abuse, psychological abuse, and financial abuse.
11
Up to 5 million older
1
U.S. Census Bureau, 65 and Older Population Grows Rapidly as Baby Boomers Age (June 25, 2020), Release Number:
CB20-99, https://www.census.gov/newsroom/press-releases/2020/65-older-population-grows.html (last visited Jan. 10,
2024).
2
U.S. Department of Health and Human Services Administration on Aging, 2020 Profile of Older Americans (May 2021),
https://acl.gov/sites/default/files/Aging%20and%20Disability%20in%20America/2020ProfileOlderAmericans.Final_.pdf
(last visited Jan. 10, 2024)
3
Id.
4
U.S. Census Bureau, Quick Facts – Florida, https://www.census.gov/quickfacts/fact/table/FL# (last visited Jan. 10,
2024).
5
5
Florida Office of Economic & Demographic Research, Florida Population by Age Group. Available at
http://edr.state.fl.us/Content/population-demographics/data/pop_census_day-2020.pdf (last visited Jan. 10, 2024).
6
S. 415.102(28), F.S.
7
S. 415.101(2), F.S.
8
Id.
9
Email from Tarah Yeager, Gubernatorial Fellow, Department of Children and Families, Re: APS Statistics Info Request
(March 22, 2023). On file with the Health and Human Services Committee.
10
U.S. Department of Justice, About Elder Abuse, https://www.justice.gov/elderjustice/about-elder-abuse (last visited Jan.
10, 2024)..
11
U.S. Department of Justice, Types of Elder Abuse, https://www.justice.gov/elderjustice/about-elder-abuse (last visited
Jan. 10, 2024). STORAGE NAME: h0515a.IBS PAGE: 3
DATE: 2/2/2024
Americans are abused every year, and the annual loss by victims of financial abuse is estimated to be
at least $36.5 billion.
12
Financial abuse occurs when someone takes or misuses another person’s money or property for the
benefit of someone other than that person.
13
For example, neighbors, caregivers, professionals, and
even family or friends may take money without permission, fail to repay the money they owe, charge
too much for services, or not even do what they were paid to do.
14
FINANCIAL SCAMS
Fraudulent scams that target elderly individuals are on the rise.
15
The most common fraudulent scams
targeting these populations include:
Government impersonation scams, in which scammers call unsuspecting older adults and
pretend to be from the Internal Revenue Service, Social Security Administration, or Medicare.
They may say the older adult has unpaid taxes and threaten arrest if they do not pay
immediately. Alternatively, the scammers may say Social Security or Medicare benefits will be
cut off if the older adult does not provide personal identifying information, which can later be
used to commit identity theft.
16
Sweepstakes scams, in which scammers call an older adult to tell them have won a lottery or
prize of some kind. If the older adult wants to claim their winnings, the older adult must send
money, cash, or gift cards to cover supposed taxes and processing fees, or the older adult must
send their bank account information to receive the alleged winnings.
17
Computer tech support scams, which prey on older people’s lack of knowledge about
computers and cybersecurity. A pop-up message or blank screen usually appears on a
computer or phone, telling the user their device is damaged and needs fixing. When the older
person calls the support number for help, the scammer may either request remote access to the
older person’s computer and/or demand they pay a fee to have it repaired.
18
“Grandparent” scams, in which a scammer calls a would-be grandparent and says something
along the lines of: “Hi, Grandma, do you know who this is?” When the unaware grandparent
guesses the name of the grandchild the scammer most sounds like, the scammer is able to
instantly secure their trust. The fake grandchild then asks for money to solve some urgent
financial problem (such as overdue rent, car repairs, or jail bond).
19
In 2022, there were 88,262 complaints of fraud from people aged 60 years or older, resulting in $3.1
billion in losses.
20
This was a 82.35percent increase in losses compared to 2021.
21
Financial scams are
devastating to many older adults and can leave them in a vulnerable position, with limited ability to
recover their losses.
22
Regulation of Financial Institutions in Florida
12
National Council on Aging, Get the Facts on Elder Abuse, https://www.ncoa.org/article/get-the-facts-on-elder-abuse
(last visited Jan. 10, 2024).
13
Consumer Financial Protection Bureau, Reporting Elder Financial Abuse, https://www.consumerfinance.gov/consumer-
tools/educator-tools/resources-for-older-adults/reporting-elder-financial-abuse-guide/ (last visited Jan. 10, 2024).
14
Id.
15
U.S. Department of Justice: Office of Victims of Crime, National Elder Fraud Hotline, https://ovc.ojp.gov/program/stop-
elder-fraud/providing-help-restoring-hope#financial-scams-and-abuses-that-target-older-people-are-happenin (last visited
Jan. 29, 2024).
16
National Council on Aging, supra note 12.
17
Id.
18
Id.
19
Id.
20
Federal Bureau of Investigation Internet Crime Complaint Center, 2022 Internet Crime Report,
https://www.ic3.gov/Media/PDF/AnnualReport/2022_IC3Report.pdf (last visited Jan. 10, 2024). See also, National Council
on Aging, supra note 12.
21
Id.
22
National Council on Aging, supra note 12. STORAGE NAME: h0515a.IBS PAGE: 4
DATE: 2/2/2024
The Office of Financial Regulation is responsible for all activities of the Financial Services Commission
(Commission)
23
relating to the regulation of banks, credit unions, other financial institutions, finance
companies, and the securities industry.
24
OFR has four divisions: the Division of Consumer Finance,
the Division of Financial Institutions, the Division of Securities, and the Bureau of Financial
Investigations.
25
Florida law broadly defines the term “financial institution” as a state or federal savings or thrift
association, bank, savings bank, trust company, international bank agency, international banking
corporation, international branch, international representative office, international administrative office,
international trust entity, international trust company representative office, qualified limited service
affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal Reserve
Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal
Reserve Act, 12 U.S.C. ss. 611 et seq.
26
Banks and credit unions in the United States are chartered and regulated under a dual banking
system.
27
These institutions may elect to have a national charter and a federal primary regulator, or
they may choose to be chartered and regulated by the state in which they are headquartered.
28
OFR’s
Division of Financial Institutions:
Conducts periodic risk-based examinations and ensures that each state-chartered financial
institution meets state and federal requirements for safety and soundness;
29
and
Administers Florida’s financial institutions codes,
30
which apply to all state-authorized and state-
chartered financial institutions and to the enforcement of all laws relating to such institutions.
31
Under Florida law, the books and records of a financial institution are confidential and shall be made
available for inspection and examination only:
To OFR or its duly authorized representative;
To any person duly authorized to act for the financial institution;
To any federal or state instrumentality or agency authorized to inspect or examine the books
and records of an insured financial institution;
With respect to an international banking corporation or international trust entity, to the home-
country supervisor of the international banking corporation or international trust entity, provided
certain conditions are met;
As compelled by legislative subpoena as provided by law;
As compelled by a court of competent jurisdiction, pursuant to a subpoena issued pursuant to
certain rules,
32
or pursuant to a subpoena issued in accordance with state or federal law;
33
Pursuant to a subpoena, to any federal or state law enforcement or prosecutorial instrumentality
authorized to investigate suspected criminal activity;
As authorized pursuant to the board of directors of the financial institution;
23
OFR is housed within the Financial Services Commission (Commission). The Commission is comprised of four
members: the Governor, Attorney General, Chief Financial Officer, and the Commissioner of Agriculture. See Office of
Financial Regulation, Financial Services Commission, https://flofr.gov/sitepages/financialservicescommission.htm (last
visited Jan. 26, 2024).
24
S. 20.121(3)(a)2., F.S.
25
Office of Financial Regulation, Our Agency Divisions, https://flofr.gov/default.htm (last visited Jan. 26, 2024).
26
S. 655.005(1)(i), F.S.
27
Office of Financial Regulation, Agency Analysis of 2024 House Bill 515, p. 2 (Jan. 4, 2025).
28
Id.
29
Office of Financial Regulation, Division of Financial Institutions: What We Do,
https://flofr.gov/sitePages/DivisionOfFinancialInstitutions.htm (last visited Jan. 26, 2024).
30
Chs. 655-667, F.S.
31
Ss. 655.001(1) and 655.012(1), F.S.
32
Specifically, the Florida Rules of Civil Procedure, the Florida Rules of Criminal Procedure, or the Federal Rules of Civil
Procedure. See s. 655.059(1)(e), F.S.
33
Before the production of the books and records of a financial institution under these circumstances, the party seeking
production must reimburse the financial institution for the reasonable costs and fees incurred in compliance with the
production. If the parties disagree regarding the amount of reimbursement, the party seeking the records may request the
court or agency having jurisdiction to set the amount of reimbursement. STORAGE NAME: h0515a.IBS PAGE: 5
DATE: 2/2/2024
As otherwise provided by law.
34
A person who willfully violates the provisions of Florida law described above relating to unlawful
disclosure of confidential information is guilty of a felony of the third degree, punishable as provided by
Florida’s criminal laws.
35
Effect of the Bill
The bill amends the Act to create definitions for the following terms:
“Financial exploitation” means the wrongful or unauthorized taking, withholding, appropriation,
or use of money, assets, or property of a specified adult; or any or omission by a person,
including through the use of a power of attorney, guardianship, or conservatorship of a specified
adult, to:
o Obtain control over the specified adult’s money, assets, or property through deception,
intimidation, or undue influence to deprive him or her of the ownership, use, benefit, or
possession of the money, assets, or property; or
o Divert the specified adult’s money, assets, or property to deprive him or her of the
ownership, use, benefit, or possession of the money, assets, or property.
“Financial institution” means a state financial institution or a federal financial institution as those
terms are defined under s. 655.005(1), F.S.
36
“Specified adult” means a natural person 70 years of age or older, or a vulnerable adult as
defined in s. 415.102, F.S.
37
“Trusted contact” means a natural person 18 years of age or older whom the account owner has
expressly identified and recorded in a financial institution’s books and records as the person
who may be contacted about the account.
The bill provides that if a financial institution reports suspected financial exploitation of a specified adult
pursuant to s. 415.1034, F.S.,
38
it may delay a disbursement or transaction from an account of a
specified adult or an account for which a specified adult is a beneficiary or beneficial owner if two
conditions are met. First, the financial institution must immediately initiate an internal review of the facts
and circumstances that caused the employee of the financial institution to report the suspected financial
exploitation.
Second, not later than 3 business days after the date on which the delay was first placed, the financial
institution must:
Notify in writing all parties authorized to transact business on the account and any trusted
contact on the account, using the contact information provided for the account, with the
exception of any party an employee of the financial institution reasonably believes has engaged
in, is engaging in, has attempted to engage in, or will attempt to engage in the suspected
34
S. 655.059(1), F.S. See s. 655.059(2) for a list of other persons that are authorized by Florida law to inspect the books
and records of a financial institution.
35
S. 655.059(1)(c), F.S. The specific provisions of Florida’s criminal laws under which a person may be punished for a
violation includes ss. 755.802, 755.083, and 755.084, F.S.
36
S. 655.005(1) defines “financial institution” as a state or federal savings or thrift association, bank, savings bank, trust
company, international bank agency, international banking corporation, international branch, international representative
office, international administrative office, international trust entity, international trust company representative office,
qualified limited service affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal
Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal Reserve Act,
12 U.S.C. ss. 611 et seq. “State financial institution” means a state-chartered or state-organized financial institution, and
“federal financial institution” means a federally or nationally chartered or organized financial institution. See ss.
655.005(1)(h), (i), and (w), F.S.
37
S. 415.102, F.S., defines “vulnerable adult” as a person 18 years of age or older whose ability to perform the normal
activities of daily living or to provide for his or her own care or protection is impaired due to a mental, emotional, sensory,
long-term physical, or developmental disability or dysfunction, or brain damage, or the infirmities of aging.
38
S. 415.1034, F.S., relates to mandatory reporting of abuse, neglect, or exploitation of vulnerable adults, and other
mandatory reports of death. STORAGE NAME: h0515a.IBS PAGE: 6
DATE: 2/2/2024
financial exploitation of the specified adult (the notice, which may be provided electronically,
must provide the reason for the delay); and
Create and maintain for at least 5 years after the date of the delayed disbursement or
transaction a written or electronic record of the delayed disbursement or transaction that
includes, at a minimum, the following information:
o The date on which the delay was first placed;
o The name and address of the specified adult;
o The business location of the financial institution;
o The name and title of the employee who reported suspected financial exploitation of the
specified adult pursuant to s. 415.1034, F.S.;
39
and
o The facts and circumstances that caused the employee to report suspected financial
exploitation.
The financial institution must make the required information available for review upon request by DCF,
any law enforcement agency conducting an investigation under s. 417.104, F.S., or any state or federal
agency with regulatory authority over the financial institution. This proposed requirement appears to
eliminate the necessity for a subpoena under certain circumstances.
40
While law enforcement is
generally required to obtain a subpoena to access books and records,
41
the bill requires financial
institutions to make these records available for review by law enforcement agencies that are engaged
in an investigation under s. 417.104, F.S., regardless of whether the law enforcement agency has a
subpoena or search warrant.
42
The bill provides that a delay on a disbursement or transaction expires 5 business days after the date
on which the delay was first placed. However, the financial institution may extend the delay for up to 7
additional calendar days if the financial institution’s review of the available facts and circumstances
continues to support the reasonable belief that financial exploitation of the specified adult has occurred,
is occurring, has been attempted, or will be attempted.
The length of the delay may be shortened or extended at any time by a court of competent jurisdiction.
However, a financial institution is not prevented from terminating a delay after communicating with the
parties authorized to transact business on the account and any trusted contact on the account.
Before placing a delay on any disbursement or transaction pursuant to the bill, a financial institution
must:
Develop training policies or programs reasonably designed to educate employees on issues
pertaining to financial exploitation of specified adults;
Conduct training for all employees at least annually and maintain a written record of all trainings
conducted; and
Develop, maintain, and enforce written procedures regarding the manner in which suspected
financial exploitation is reviewed internally, including, if applicable, the manner in which
suspected financial exploitation is required to be reported to supervisory personnel.
The bill provides that, absent a reasonable belief of financial exploitation, a financial institution’s
obligations to parties authorized to transact business on an account or any trusted contact named on
such account are not otherwise altered. Further, the bill does not create new rights for or impose new
obligations on financial institutions under other applicable law.
The bill also provides legislative intent.
B. SECTION DIRECTORY:
39
S. 415.104, F.S., relates to protective investigations of cases of abuse, neglect, or exploitation of vulnerable adults, and
the transmittal of records to state attorneys pursuant to such investigations.
40
Office of Financial Regulation, supra note 27, p. 4.
41
See s. 655.059(1)(e), F.S.
42
Office of Financial Regulation, supra note 27, p. 4. STORAGE NAME: h0515a.IBS PAGE: 7
DATE: 2/2/2024
Section 1. Creates s. 415.10341, F.S., relating to protection of specified adults.
Section 2. Provides an effective date of July 1, 2024.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
The bill has an indeterminate positive impact on specified adults to the extent the bill allows financial
institutions to delay a financial transaction if an employee at the institution reasonably suspects
financial abuse of a specified adult. Accordingly, it is foreseeable that fewer specified adults will be able
to effectuate a financial transaction procured by improper methods.
The bill has an indeterminate negative impact on financial institutions to the extent that such institutions
decide to delay disbursements as provided by the bill. Further, if the financial institution does decide to
delay disbursements, the institution must first comply with the conditions provided by the bill.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not applicable. This bill does not appear to affect county or municipal governments.
2. Other:
None.
B. RULE-MAKING AUTHORITY:
Not applicable. The rule does not amend or create rule-making authority.
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DATE: 2/2/2024
C. DRAFTING ISSUES OR OTHER COMMENTS:
Lines 49-77: The language relating to legislative intent may be used unfavorably by courts in statutory
interpretation. An amendment could address this possibility by removing the language from the bill.
Lines 98-99: The requirement that a financial institution create and maintain for at least 5 years after
the date of a delayed disbursement or transaction a written or electronic record of certain information
seemingly creates a future obligation to a condition precedent. An amendment could address this issue
by moving the requirement to maintain the records for 5 years to a new subsection of proposed s.
415.10341, F.S.
Lines 110-114: The provisions of the bill authorize a financial institution to make the name and address
of a specified adult available to “any law enforcement agency” conducting an investigation under s.
415.104, F.S. The following issues were pointed out by OFR in their formal analysis of these lines of
the bill:
The information required to be made available may be protected by the Right to Financial
Privacy Act (RFPA),12 U.S.C. § 3401 et seq.
43
Pursuant to RFPA, a federal government
authority generally must seek a subpoena to access such books and records, and may only
request financial records pursuant to a formal written request under certain conditions, one of
which includes serving a copy of the request upon the customer.
44
As the bill is drafted to
govern “any law enforcement agency,” it may be read to expand the powers of federal law
enforcement agencies to the extent they may be involved with such an investigation.
45
Further,
state-chartered banks and credit unions are subject to federal regulation from the Federal
Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA),
respectively.
46
The lack of a subpoena requirement in lines 110-114 may conflict with various
regulations of FDIC and NCUA governing confidentiality.
47
As such, state-chartered banks and
credit unions may be forced to determine whether to comply with federal law or state law upon a
request from a law enforcement agency which is unaccompanied by a subpoena.
48
It is unclear whether the “request” referenced in these lines of the bill must be in writing and
whether, and how, the financial institution should maintain the request as a record.
49
As such, it
may be difficult or impossible for an OFR examiner to make a determination about which law
should apply to the release of records pertaining to specified adults, and whether the financial
institution acted in compliance.
50
An amendment could address the first issue by removing the requirement that the financial institution
make the information available for review by the specified entities. An amendment could address the
second issue by clarifying how the referenced request should be made.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On February 1, 2024, the Insurance & Banking Subcommittee considered the bill, adopted one
amendment, and reported the bill favorably as a committee substitute. The amendment made the
following changes:
Changed the definition of a “specified adult” to mean a natural person 70 years of age or older,
rather than 65 years of age or older;
Provided that a delay on a disbursement or transaction expires 5 business days after date on
which the delay was first placed, rather than 15 business days;
Allowed a financial institution to extend a delay for up to 7 additional calendar days under
certain circumstances, rather than 10 additional business days; and
43
Office of Financial Regulation, supra note 27, p. 7.
44
See 12 U.S.C. s. 3408. See also, Office of Financial Regulation, supra note 27, p. 7.
45
Office of Financial Regulation, supra note 27, p. 7.
46
Id.
47
Id.
48
Id.
49
Id.
50
Id. STORAGE NAME: h0515a.IBS PAGE: 9
DATE: 2/2/2024
Removed the proposed grant of administrative and civil immunity to a financial institution based
on certain circumstances.
The analysis is drafted to the committee substitute as passed by the Insurance & Banking
Subcommittee.