Providing for financial institutions and fiduciaries.
Impact
The bill significantly alters existing state laws concerning the responsibilities of financial institutions and fiduciaries when faced with suspected financial exploitation of older adults. It allows these entities to exercise discretion in blocking transactions that may lead to exploitation and mandates the reporting of any suspicions to relevant authorities. This change reflects a commitment to state-led protection initiatives that prioritize the wellbeing of vulnerable populations, particularly seniors, who are often targets of financial fraud.
Summary
House Bill 2066 aims to enhance the protection of older adults in Pennsylvania from financial exploitation by equipping financial institutions and fiduciaries with the necessary tools and protocols for identifying, reporting, and preventing such exploitation. The bill amends the Older Adults Protective Services Act, introducing a specific chapter dedicated to these entities. By creating a framework for voluntary reporting and protection measures, the bill intends to create a comprehensive approach to safeguard elderly individuals from financial harm.
Sentiment
The sentiment surrounding HB 2066 is largely supportive, particularly among advocates for the elderly who see the need for stronger safeguards against financial exploitation. However, concerns have been raised regarding the scope and implementation of the new requirements. Some stakeholders worry that financial institutions may face undue pressure or liability from being compelled to make challenging judgments about potential exploitation without adequate training or resources.
Contention
Nevertheless, while the intent of the legislation is to protect elders, opposition may arise from financial institutions worried about increased scrutiny and liability. Critics may argue that the bill could lead to over-reporting and result in unnecessary blocking of transactions that could cause inconvenience for older adults and their financial activities. Thus, the bill highlights a tension between ensuring safety for the elderly and maintaining the operational ease of financial institutions, creating a complex dialogue around the legislation's potential impact.
In theft and related offenses, further providing for the offense of financial exploitation of an older adult or care-dependent person and providing for the offense of financial exploitation of a family or household member and for civil causes of action in cases of financial exploitation; and imposing penalties.
Updating provisions of the technology-enabled fiduciary financial institutions (TEFFI) act by making the act part of the state banking code, adjusting and providing certain definitions, reducing the TEFFI charter application fee, authorizing the issuance of certificates and trust certificates, providing for the supervision of TEFFIs by the state bank commissioner and including Kansas nonprofit corporations as qualified charities for the TEFFI income tax credit.
Providing that fiduciary financial institutions shall be overseen, supervised and examined by the office of the state bank commissioner as a chartered trust company, allowing a fiduciary financial institution to refer to itself as a trust company in legal or regulatory filings or disclosures to existing or prospective customers or investors and authorizing a fiduciary financial institution to exercise fiduciary powers and full trust powers and to engage as a trust company under state and federal law.
Suspending fidfin transactions, custodial services and trust business of technology-enabled fiduciary financial institutions until the legislature expressly consents to and approves such activities by an act of the legislature and requiring the legislature to conduct a forensic audit of technology-enabled fiduciary financial institutions.
Enacting the Kansas money transmission act and the Kansas earned wage access services act, providing when applications under the state banking code are considered abandoned or expired, allowing an originating trustee to have such trustee's principal place of business outside of Kansas, authorizing any person to become a depositor or lessor of a safe deposit box, providing methods in which bank deposits may be withdrawn by a depositor and prohibiting banks from requiring a cosigner for an account of a child in the custody of the secretary for children and families, secretary of corrections or a federally recognized Indian tribe.