Texas House Bill HB916

Texas 2017 - 85th Regular

Caption

Relating to requiring financial institutions to report the suspected financial abuse of elderly persons; providing a civil and criminal penalty.

Impact

If enacted, HB 916 will significantly alter the obligations of financial institutions across Texas by legally requiring them to notify appropriate authorities upon any suspicion of financial abuse involving elderly clients. Institutions will have to submit a report to the adult protective services division and notify local law enforcement within a specified timeframe. This creates a more immediate line of defense against financial exploitation, seeking to ensure that incidents are promptly addressed and investigated.

Summary

House Bill 916 focuses on enhancing protections for elderly individuals by mandating that financial institutions report suspected financial abuse. This legislation specifically defines 'financial abuse' as any wrongful or negligent act involving the appropriation or retention of an elderly person's property. It highlights various fraudulent practices, including manipulation via undue influence, breach of fiduciary responsibilities, and improper asset management by caregivers or relatives, thereby establishing a clear framework for intervention when such abuses are suspected.

Contention

While the primary intent of the bill is to protect vulnerable elderly individuals, there may be contention surrounding the practical implications of its implementation. Financial institutions might express concern over the potential for increased liability and operational burdens that come with mandatory reporting requirements. Additionally, there could be debates about privacy issues protected under existing confidentiality laws as they pertain to financial records of elderly clients, warranting a robust discussion on balancing vigilance against exploitation with respecting individual privacy rights.