DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 503 Reengrossed 2018 Regular Session Carmody
Abstract: Provides for the protection of eligible adults from financial exploitation and regulates the
ability of covered financial institutions to delay disbursements of certain funds.
Proposed law provides legislative intent and generally authorizes a covered financial institution's
discretion to take certain actions to assist in detecting and preventing financial exploitation of an
eligible adult without liability.
Proposed law defines the following: "adult protection agency", "covered agency", "covered financial
institution", "eligible adult", "financial exploitation", and "financial transaction".
Proposed law authorizes a covered financial institution to notify a covered agency, or any third party
reasonably associated with an eligible adult, if the covered financial institution believes financial
exploitation of the eligible adult is being attempted, may have been attempted, or may have occurred.
Proposed law authorizes a covered financial institution's discretion in refusing to notify a party
reasonably associated with individuals who are suspected of financial exploitation of eligible adults.
Proposed law requires a covered financial institution to make a reasonable effort, at least annually,
to notify all employees of the covered financial institution of their ability to report potential financial
exploitation of an eligible adult to personnel within the covered financial institution.
Proposed law authorizes a covered financial institution to delay completion or execution of a
financial transaction involving the account of an eligible adult, or the account of a person suspected
of perpetrating financial exploitation of the eligible adult, if certain conditions apply. Authorizes the
covered financial institution to provide notice to certain persons regarding the delay.
Proposed law provides if a covered financial institution delays a financial transaction regarding an
eligible adult, the covered financial institution is required to send written notification of the delay,
no later than 2 business days after the delay, to all parties authorized to transact business on the
account, unless any such party is reasonably believed to have engaged in attempted financial
exploitation. Authorizes the notification to be provided electronically.
Except as ordered by a court, proposed law does not require a covered financial institution to delay
a financial transaction, when such institution is provided with information by a covered agency
alleging that financial exploitation of an eligible adult is occurring, has or may have occurred, or is
being attempted, or has or may have been attempted, but may use its discretion to determine whether
to delay a financial transaction based on the information available to the covered financial institution. Proposed law requires the delay of a financial transaction to expire when the earliest of either
circumstances apply:
(1) The covered financial institution reasonably determines that the financial transaction will not
result in financial exploitation of the eligible adult.
(2) 15 business days from the date on which the covered financial institution first initiated the delay
of the financial transaction.
Proposed law authorizes a covered financial institution to extend the delay of a financial transaction
upon receiving such a request from any covered agency, in which case the delay is required to expire
or be terminated no later than 25 business days from the date on which the covered financial
institution first initiated the delay of the financial transaction.
Proposed law authorizes a court of competent jurisdiction to enter an order extending or shortening
a delay, or providing other relief, based on the petition of the covered financial institution, any
covered agency, or other interested party.
Proposed law provides that no covered financial institution, or any of its directors, officers,
employees, attorneys, accountants, or other agents, are civilly or criminally liable to any person for
any act or failure to act pursuant to proposed law.
Nothing in proposed law creates the duty or mandate of a covered financial institution to assist in
detecting and preventing financial exploitation.
Proposed law prohibits persons from bringing claims against any covered agency or the state in
connection with the receipt of or in response to any notice of financial exploitation.
The immunity from liability provided in proposed law does not extend to any individual in a case
when such individual is a principal, conspirator, or an accessory after the fact to a criminal offense
involving the financial exploitation of an eligible adult.
Effective Oct. 1, 2018.
(Adds R.S. 6:1371-1376)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the original bill:
1. Make technical changes and language substitutions to improve clarity and readability.
2. Correct the citation relative to the Adult Protective Services Act.
3. Require a covered financial institution to notify employees of their ability to report potential financial exploitation of an eligible adult to personnel within the respective
covered financial institution.
4. Require a covered financial institution delaying a financial transaction to send, within 2
business days of the delay, written notification of the delay and reasons therefor to all
parties authorized to transact business on the account, unless any such party is reasonably
believed to have engaged in attempted financial exploitation of the eligible adult.
Notification may be made electronically.
5. Clarify the intent of prohibiting persons from bringing claims against any covered agency
or the state in connection with the receipt of or in response to any notice of financial
exploitation.
6. Change the effective date from January 1, 2019 to October 1, 2018.
The House Floor Amendments to the engrossed bill:
1. Provide that immunity from liability provided in proposed law does not extend to any
individual in a case when such individual is a principal, conspirator, or an accessory after
the fact to a criminal offense involving the financial exploitation of an eligible adult.