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2023 - 2024 LEGISLATURE
2023 ASSEMBLY BILL 578
October 31, 2023 - Introduced by Representatives O'CONNOR, MACCO, KATSMA,
ARMSTRONG, DONOVAN, NEDWESKI, STEFFEN, CALLAHAN, MAGNAFICI, ROZAR,
MELOTIK, WITTKE, MAXEY, PENTERMAN, BEHNKE, RETTINGER, MURSAU, BARE and
DITTRICH, cosponsored by Senators QUINN, TESTIN, BALLWEG and MARKLEIN.
Referred to Committee on Financial Institutions.
***AUTHORS SUBJECT TO CHANGE***
AN ACT to create 224.45 of the statutes; relating to: financial exploitation of
vulnerable adults.
Analysis by the Legislative Reference Bureau
This bill allows financial service providers to refuse or delay financial
transactions when financial exploitation of a vulnerable adult is suspected. The bill
authorizes financial service providers to take certain other actions to prevent or
detect financial exploitation of vulnerable adults.
Under current law, upon receiving a report of alleged abuse, financial
exploitation, neglect, or self-neglect of any person age 60 or older who has
experienced, is experiencing, or is at risk of experiencing abuse, neglect, self-neglect,
or financial exploitation (an elder adult at risk), the elder-adult-at-risk agency in
a county must respond by investigating or must refer the report to another agency
for investigation. Similarly, having reason to believe that an adult who has a
physical or mental condition that substantially impairs his or her ability to care for
his or her needs and who has experienced, is experiencing, or is at risk of
experiencing abuse, neglect, self-neglect, or financial exploitation (an adult at risk)
is the subject of abuse, financial exploitation, neglect, or self-neglect, the
adult-at-risk agency in a county may respond by investigating to determine
whether the adult at risk is in need of protective services. “Financial exploitation”
includes obtaining an individual's money or property by deceiving or enticing the
individual or by coercing the individual to give, sell at less than fair value, or convey
money or property against his or her will without his or her informed consent, and
also includes certain crimes such as theft and forgery.
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Under this bill, if a financial service provider reasonably suspects that financial
exploitation of an adult at risk or an individual who is 65 years of age or older
(together, vulnerable adult) has occurred or been attempted, the financial service
provider may, but is not required to, refuse or delay a financial transaction on an
account of the vulnerable adult or on which the vulnerable adult is a beneficiary or
on an account of a person suspected of perpetrating financial exploitation. The
definition of “financial service provider” under the bill includes financial
institutions, mortgage bankers and brokers, other types of lenders, and check
cashing services. In addition, a financial service provider may, but is not required
to, refuse or delay a financial transaction if an elder-adult-at-risk agency,
adult-at-risk agency, or law enforcement agency provides information to the
financial service provider that financial exploitation of a vulnerable adult may have
occurred or been attempted. The bill requires certain notice if a financial service
provider refuses or delays a financial transaction under these circumstances and
establishes certain time limits applicable to the refusal or delay of the financial
transaction. In addition, the bill allows a financial service provider to refuse to
accept a power of attorney of a vulnerable adult if the financial service provider
reasonably suspects that the vulnerable adult may be the victim of financial
exploitation.
The bill also provides a process for a financial service provider to create a list
of persons that a vulnerable adult authorizes to be contacted if the financial service
provider reasonably suspects that the vulnerable adult is a victim of financial
exploitation and authorizes the financial service provider to convey its suspicions of
financial exploitation to certain persons, including persons on this list.
Under the bill, a financial service provider is immune from criminal, civil, and
administrative liability for all of the following: 1) refusing or not refusing, or
delaying or not delaying, a financial transaction; 2) refusing to accept or accepting
a power of attorney; 3) contacting a person or not contacting a person to convey a
suspicion of financial exploitation; and 4) any action based on a reasonable
determination related to the preceding items 1 to 3.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SECTION 1. 224.45 of the statutes is created to read:
224.45 Financial exploitation of vulnerable adults. (1) DEFINITIONS. In
this section:
(a) “Account” means funds or assets held by a financial service provider,
including a deposit account, savings account, share account, certificate of deposit,
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trust account, guardianship or conservatorship account, or retirement account, and
also including an account associated with a loan or other extension of credit.
(b) “Adult at risk” has the meaning given in s. 55.01 (1e).
(c) “Adult-at-risk agency” has the meaning given in s. 55.01 (1f).
(d) “Elder-adult-at-risk agency” has the meaning given in s. 46.90 (1) (bt).
(e) “Financial exploitation” has the meaning given in s. 46.90 (1) (ed).
(f) “Financial institution” has the meaning given in s. 214.01 (1) (jn).
(g) “Financial service provider” means any of the following engaged in or
transacting business in this state:
1. A financial institution.
2. A mortgage banker, mortgage broker, or mortgage loan originator, as defined
in s. 224.71 (3), (4), or (6).
3. A seller of checks, as defined in s. 217.02 (9).
4. A community currency exchange, as defined in s. 218.05 (1) (b).
5. A payday loan licensee under s. 138.14.
6. A title loan licensee under s. 138.16.
7. A lender licensed under s. 138.09.
8. An insurance premium finance company, as defined in s. 138.12 (1) (b).
9. A sales finance company, as defined in s. 218.0101 (34).
(h) “Financial transaction" means any of the following as applicable to the
business of, or services provided by, a financial service provider:
1. A transfer or disbursement of, or request to transfer or disburse, funds or
assets in an account.
2. A request to initiate a wire transfer, initiate an automated clearinghouse
transfer, or issue a money order, cashier's check, or teller's check.
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3. A request to negotiate a check or other negotiable instrument.
4. A request to change the ownership of an account.
5. A request for a loan or other extension of credit or to draw on a line of credit.
6. A request to modify a loan or other extension of credit or add an authorized
signer on a line of credit.
7. A request to issue a debit card or initiate a debit card transaction.
8. A request to transfer the title to any real property, manufactured home, or
motor vehicle, or to encumber any real property, manufactured home, or motor
vehicle.
(i) “Law enforcement agency” has the meaning given in s. 165.77 (1) (b).
(j) “Vulnerable adult” means an adult at risk or an individual who is at least
65 years of age.
(2) FINANCIAL SERVICE PROVIDERS MAY REFUSE OR DELAY TRANSACTIONS. (a)
Notwithstanding any provision of ch. 403, 404, or 410, if a financial service provider
has reasonable cause to suspect that financial exploitation of a vulnerable adult may
have occurred, may have been attempted, or is being attempted, the financial service
provider may, but is not required to, refuse or delay any of the following:
1. A financial transaction on an account of the vulnerable adult.
2. A financial transaction on an account on which the vulnerable adult is a
beneficiary, including a trust, guardianship, or conservatorship account.
3. A financial transaction on an account of a person suspected of perpetrating
financial exploitation.
(b) 1. Notwithstanding any provision of ch. 403, 404, or 410, a financial service
provider may also refuse or delay a financial transaction under this subsection if an
elder-adult-at-risk agency, adult-at-risk agency, or law enforcement agency
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provides information to the financial service provider demonstrating that it is
reasonable to suspect that financial exploitation of a vulnerable adult may have
occurred, may have been attempted, or is being attempted.
2. Except as ordered by a court, a financial service provider is not required to
refuse or delay a financial transaction when provided with information by an
elder-adult-at-risk agency, adult-at-risk agency, or law enforcement agency
alleging that financial exploitation of a vulnerable adult may have occurred, may
have been attempted, or is being attempted, but may use its discretion to determine
whether to refuse or delay a financial transaction based on the information available
to the financial service provider.
(c) A financial service provider that refuses or delays a financial transaction
based on reasonable cause to suspect that financial exploitation of a vulnerable adult
may have occurred, may have been attempted, or is being attempted shall do all of
the following:
1. Except with regard to an account administered by a financial institution in
a fiduciary capacity, make a reasonable effort to notify, orally or in writing, one or
more parties authorized to transact business on the account.
2. If the incident involves financial exploitation of a vulnerable adult, report
the incident to the applicable elder-adult-at-risk agency or adult-at-risk agency.
(d) No notice under this subsection is required to be provided to any party
authorized to conduct business on the account if the party is the suspected
perpetrator of financial exploitation.
(e) Except as provided in par. (f), any refusal by a financial service provider to
conduct a financial transaction or delay a financial transaction as authorized by this
subsection based on the financial service provider's reasonable cause to suspect that
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financial exploitation of a vulnerable adult may have occurred, may have been
attempted, or is being attempted expires upon the earliest of any of the following:
1. The time when the financial service provider reasonably believes that the
financial transaction will not result in financial exploitation of a vulnerable adult.
2. The time when the customer requesting the transaction has been advised of
a potential risk in the transaction and the customer has requested the transaction
to continue as long as the customer is not the suspected perpetrator of financial
exploitation.
3. Five business days after the date on which the financial service provider first
refused or delayed the financial transaction, unless the division or an agency to
which the incident was reported under par. (c) 2. requests that the financial service
provider extends the refusal or delay, in which case the refusal or delay shall expire
no more than 15 business days after the date on which the financial service provider
first refused or delayed the financial transaction unless it is otherwise terminated
or extended by the division or court order.
(f) A court may enter an order extending the time that a financial service
provider shall refuse or delay a financial transaction based on reasonable cause to
suspect that financial exploitation of a vulnerable adult may have occurred, may
have been attempted, or is being attempted.
(g) Notwithstanding any provision of ch. 403, 404, or 410, a financial service
provider, or an employee of a financial service provider, acting in good faith is
immune from all criminal, civil, and administrative liability for any of the following:
1. Refusing or not refusing, or delaying or not delaying, a financial transaction
under this subsection.
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2. Actions taken in furtherance of the determination made under subd. 1. if the
determination was based on a reasonable suspicion.
(3) LIST OF AUTHORIZED CONTACTS. (a) A financial service provider may offer to
a vulnerable adult the opportunity to submit and periodically update a list of persons
that the vulnerable adult authorizes the financial service provider to contact when
the financial service provider has reasonable cause to suspect that the vulnerable
adult is a victim or a target of financial exploitation.
(b) A financial service provider, or an officer or employee of the financial service
provider, that has reasonable cause to suspect that a vulnerable adult is the victim
or target of financial exploitation may convey the suspicion to any of the following
if the person is not the suspected perpetrator:
1. Any person on the list described in par. (a) if a list has been provided by the
vulnerable adult.
2. Any co-owner, additional authorized signatory, or beneficiary on the account
of the vulnerable adult.
3. Any person known by the financial service provider to be a family member,
including a parent, spouse, adult child, or sibling.
(c) When providing information under this subsection, the financial service
provider may limit the information and disclose only that the financial service
provider has reasonable cause to suspect that the vulnerable adult may be a victim
or target of financial exploitation without disclosing any other details or confidential
personal information regarding the financial affairs of the vulnerable adult.
(d) The financial service provider may choose not to contact any person on the
list provided under par. (a) if the financial service provider suspects that the person
is engaged in financial exploitation.
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(e) The financial service provider may rely on information provided by the
customer in compiling a list of contact persons.
(f) A financial service provider, or an employee of a financial service provider,
acting in good faith is immune from all criminal, civil, and administrative liability
for contacting a person or electing not to contact a person under this subsection and
for actions taken in furtherance of that determination if the determination was made
based on reasonable suspicion.
(4) FINANCIAL SERVICE PROVIDERS MAY REFUSE POWER OF ATTORNEY. (a)
Notwithstanding s. 244.20, a financial service provider may refuse to accept an
acknowledged power of attorney if the principal is a vulnerable adult and the
financial service provider has reasonable cause to suspect that the principal is or may
be the victim or target of financial exploitation by the agent or person acting for or
with the agent.
(b) A financial service provider, or an employee of a financial service provider,
acting in good faith is immune from all criminal, civil, and administrative liability
for refusing to accept a power of attorney or for accepting a power of attorney under
this subsection and for actions taken in furtherance of that determination if the
determination was based on reasonable suspicion.
(END)
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