Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB628 Compare Versions

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1		-	Date of enactment: March 21, 2024
2		-	2023 Senate Bill 628 Date of publication*: March 22, 2024
3		-	2023 WISCONSIN ACT 132
4		-	AN ACT to amend 224.45 (1) (d) 3.; and to create 224.45 of the statutes; relating to: financial exploitation of vulner-
5		-	able adults.
6		-	The people of the state of Wisconsin, represented in
7		-	senate and assembly, do enact as follows:
	1	+	LRB-4952/1
	2	+	ARG:amn
	3	+	2023 - 2024 LEGISLATURE
	4	+	2023 SENATE BILL 628
	5	+	November 7, 2023 - Introduced by Senators QUINN, TESTIN and MARKLEIN,
	6	+	cosponsored by Representatives O'CONNOR, MACCO, KATSMA, ARMSTRONG,
	7	+	DONOVAN, NEDWESKI, STEFFEN, CALLAHAN, MAGNAFICI, ROZAR, MELOTIK,
	8	+	WITTKE, MAXEY, PENTERMAN, BEHNKE, RETTINGER, MURSAU, BARE, EDMING,
	9	+	SUBECK and JOERS. Referred to Committee on Financial Institutions and
	10	+	Sporting Heritage.
	11	+	*AUTHORS SUBJECT TO CHANGE*
	12	+	AN ACT to create 224.45 of the statutes; relating to: financial exploitation of
	13	+	vulnerable adults.
	14	+	Analysis by the Legislative Reference Bureau
	15	+	This bill allows financial service providers to refuse or delay financial
	16	+	transactions when financial exploitation of a vulnerable adult is suspected. The bill
	17	+	authorizes financial service providers to take certain other actions to prevent or
	18	+	detect financial exploitation of vulnerable adults.
	19	+	Under current law, upon receiving a report of alleged abuse, financial
	20	+	exploitation, neglect, or self-neglect of any person age 60 or older who has
	21	+	experienced, is experiencing, or is at risk of experiencing abuse, neglect, self-neglect,
	22	+	or financial exploitation (an elder adult at risk), the elder-adult-at-risk agency in
	23	+	a county must respond by investigating or must refer the report to another agency
	24	+	for investigation. Similarly, having reason to believe that an adult who has a
	25	+	physical or mental condition that substantially impairs his or her ability to care for
	26	+	his or her needs and who has experienced, is experiencing, or is at risk of
	27	+	experiencing abuse, neglect, self-neglect, or financial exploitation (an adult at risk)
	28	+	is the subject of abuse, financial exploitation, neglect, or self-neglect, the
	29	+	adult-at-risk agency in a county may respond by investigating to determine
	30	+	whether the adult at risk is in need of protective services. “Financial exploitation”
	31	+	includes obtaining an individual's money or property by deceiving or enticing the
	32	+	individual or by coercing the individual to give, sell at less than fair value, or convey
	33	+	money or property against his or her will without his or her informed consent, and
	34	+	also includes certain crimes such as theft and forgery.
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	37	+	ARG:amn
	38	+	SENATE BILL 628
	39	+	Under this bill, if a financial service provider reasonably suspects that financial
	40	+	exploitation of an adult at risk or an individual who is 65 years of age or older
	41	+	(together, vulnerable adult) has occurred or been attempted, the financial service
	42	+	provider may, but is not required to, refuse or delay a financial transaction on an
	43	+	account of the vulnerable adult or on which the vulnerable adult is a beneficiary or
	44	+	on an account of a person suspected of perpetrating financial exploitation. The
	45	+	definition of “financial service provider” under the bill includes financial
	46	+	institutions, mortgage bankers and brokers, other types of lenders, and check
	47	+	cashing services. In addition, a financial service provider may, but is not required
	48	+	to, refuse or delay a financial transaction if an elder-adult-at-risk agency,
	49	+	adult-at-risk agency, or law enforcement agency provides information to the
	50	+	financial service provider that financial exploitation of a vulnerable adult may have
	51	+	occurred or been attempted. The bill requires certain notice if a financial service
	52	+	provider refuses or delays a financial transaction under these circumstances and
	53	+	establishes certain time limits applicable to the refusal or delay of the financial
	54	+	transaction. In addition, the bill allows a financial service provider to refuse to
	55	+	accept a power of attorney of a vulnerable adult if the financial service provider
	56	+	reasonably suspects that the vulnerable adult may be the victim of financial
	57	+	exploitation.
	58	+	The bill also provides a process for a financial service provider to create a list
	59	+	of persons that a vulnerable adult authorizes to be contacted if the financial service
	60	+	provider reasonably suspects that the vulnerable adult is a victim of financial
	61	+	exploitation and authorizes the financial service provider to convey its suspicions of
	62	+	financial exploitation to certain persons, including persons on this list.
	63	+	Under the bill, a financial service provider is immune from criminal, civil, and
	64	+	administrative liability for all of the following: 1) refusing or not refusing, or
	65	+	delaying or not delaying, a financial transaction; 2) refusing to accept or accepting
	66	+	a power of attorney; 3) contacting a person or not contacting a person to convey a
	67	+	suspicion of financial exploitation; and 4) any action based on a reasonable
	68	+	determination related to the preceding items 1 to 3.
	69	+	The people of the state of Wisconsin, represented in senate and assembly, do
	70	+	enact as follows:
8	71		SECTION 1. 224.45 of the statutes is created to read:
9		-	224.45 Financial exploitation of vulnerable
10		-	adults. (1) DEFINITIONS. In this section:
11		-	(a) “Account” means funds or assets held by a finan-
12		-	cial service provider, including a deposit account, sav-
13		-	ings account, share account, certificate of deposit, trust
14		-	account, guardianship or conservatorship account, or
15		-	retirement account, and also including an account associ-
16		-	ated with a loan or other extension of credit.
17		-	(b) “Financial exploitation” has the meaning given in
18		-	s. 46.90 (1) (ed).
19		-	(c) “Financial institution” means a bank, savings
20		-	bank, savings and loan association, trust company, or
21		-	credit union chartered under the laws of this state.
22		-	(d) “Financial service provider” means any of the fol-
23		-	lowing engaged in or transacting business in this state:
	72	+	224.45 Financial exploitation of vulnerable adults. (1) DEFINITIONS. In
	73	+	this section:
	74	+	(a) “Account” means funds or assets held by a financial service provider,
	75	+	including a deposit account, savings account, share account, certificate of deposit,
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	82	+	ARG:amn
	83	+	SECTION 1
	84	+	SENATE BILL 628
	85	+	trust account, guardianship or conservatorship account, or retirement account, and
	86	+	also including an account associated with a loan or other extension of credit.
	87	+	(b) “Adult at risk” has the meaning given in s. 55.01 (1e).
	88	+	(c) “Adult-at-risk agency” has the meaning given in s. 55.01 (1f).
	89	+	(d) “Elder-adult-at-risk agency” has the meaning given in s. 46.90 (1) (bt).
	90	+	(e) “Financial exploitation” has the meaning given in s. 46.90 (1) (ed).
	91	+	(f) “Financial institution” has the meaning given in s. 214.01 (1) (jn).
	92	+	(g) “Financial service provider” means any of the following engaged in or
	93	+	transacting business in this state:
24	94		1. A financial institution.
25		-	2. A mortgage banker, mortgage broker, or mortgage
26		-	~~loan originator, as defined~~ in s. 224.71 (3), (4), or (6).
	95	+	2. A mortgage banker, mortgage broker, or mortgage loan originator, as defined
	96	+	in s. 224.71 (3), (4), or (6).
27	97		3. A seller of checks, as defined in s. 217.02 (9).
28		-	4. A community currency exchange, as defined in s.
29		-	218.05 (1) (b).
	98	+	4. A community currency exchange, as defined in s. 218.05 (1) (b).
30	99		5. A payday loan licensee under s. 138.14.
31	100		6. A title loan licensee under s. 138.16.
32	101		7. A lender licensed under s. 138.09.
33		-	8. An insurance premium finance company, as
34		-	defined in s. 138.12 (1) (b).
35		-	9. A sales finance company, as defined in s. 218.0101
36		-	(34).
37		-	(e) “Vulnerable adult” means an adult at risk, as
38		-	defined in s. 55.01 (1e), or an individual who is at least
	102	+	8. An insurance premium finance company, as defined in s. 138.12 (1) (b).
	103	+	9. A sales finance company, as defined in s. 218.0101 (34).
	104	+	(h) “Financial transaction" means any of the following as applicable to the
	105	+	business of, or services provided by, a financial service provider:
	106	+	1. A transfer or disbursement of, or request to transfer or disburse, funds or
	107	+	assets in an account.
	108	+	2. A request to initiate a wire transfer, initiate an automated clearinghouse
	109	+	transfer, or issue a money order, cashier's check, or teller's check.
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	135	+	ARG:amn
	136	+	SECTION 1 SENATE BILL 628
	137	+	3. A request to negotiate a check or other negotiable instrument.
	138	+	4. A request to change the ownership of an account.
	139	+	5. A request for a loan or other extension of credit or to draw on a line of credit.
	140	+	6. A request to modify a loan or other extension of credit or add an authorized
	141	+	signer on a line of credit.
	142	+	7. A request to issue a debit card or initiate a debit card transaction.
	143	+	8. A request to transfer the title to any real property, manufactured home, or
	144	+	motor vehicle, or to encumber any real property, manufactured home, or motor
	145	+	vehicle.
	146	+	(i) “Law enforcement agency” has the meaning given in s. 165.77 (1) (b).
	147	+	(j) “Vulnerable adult” means an adult at risk or an individual who is at least
39	148		65 years of age.
40		-	(2) LIST OF AUTHORIZED CONTACTS. (a) A financial
41		-	service provider may offer to a vulnerable adult the
42		-	opportunity to submit and periodically update a list of
43		-	persons that the vulnerable adult authorizes the financial
44		-	service provider to contact when the financial service
45		-	provider has reasonable cause to suspect that the vulnera-
46		-	ble adult is a victim or a target of financial exploitation.
47		-	(b) A financial service provider, or an officer or
48		-	employee of the financial service provider, that has rea-
49		-	sonable cause to suspect that a vulnerable adult is the vic-
50		-	tim or target of financial exploitation may convey the sus-
51		-	picion to any of the following if the person is not the
52		-	suspected perpetrator:
53		-	1. Any person on the list described in par. (a) if a list
54		-	has been provided by the vulnerable adult.
55		-	2. Any co−owner, additional authorized signatory, or
56		-	beneficiary on the account of the vulnerable adult.
57		-	* Section 991.11, WISCONSIN STATUTES: Effective date of acts. “Every act and every portion of an act enacted by the legislature over the governor’s
58		-	partial veto which does not expressly prescribe the time when it takes effect shall take effect on the day after its date of publication.” − 2 −2023 Wisconsin Act 132 2023 Senate Bill 628
59		-	3. Any person known by the financial service
60		-	provider to be a family member, including a parent,
61		-	spouse, adult child, or sibling.
62		-	(c) When providing information under this subsec-
63		-	tion, the financial service provider may limit the informa-
64		-	tion and disclose only that the financial service provider
65		-	has reasonable cause to suspect that the vulnerable adult
66		-	may be a victim or target of financial exploitation without
67		-	disclosing any other details or confidential personal
68		-	information regarding the financial affairs of the vulnera-
69		-	ble adult.
70		-	(d) The financial service provider may choose not to
71		-	contact any person on the list provided under par. (a) if the
72		-	financial service provider suspects that the person is
73		-	engaged in financial exploitation.
74		-	(e) The financial service provider may rely on infor-
75		-	mation provided by the customer in compiling a list of
76		-	contact persons.
77		-	(f) A financial service provider, or an employee of a
78		-	financial service provider, acting in good faith is immune
79		-	from all criminal, civil, and administrative liability for
80		-	contacting a person or electing not to contact a person
81		-	under this subsection and for actions taken in furtherance
82		-	of that determination if the determination was made
	149	+	(2) FINANCIAL SERVICE PROVIDERS MAY REFUSE OR DELAY TRANSACTIONS. (a)
	150	+	Notwithstanding any provision of ch. 403, 404, or 410, if a financial service provider
	151	+	has reasonable cause to suspect that financial exploitation of a vulnerable adult may
	152	+	have occurred, may have been attempted, or is being attempted, the financial service
	153	+	provider may, but is not required to, refuse or delay any of the following:
	154	+	1. A financial transaction on an account of the vulnerable adult.
	155	+	2. A financial transaction on an account on which the vulnerable adult is a
	156	+	beneficiary, including a trust, guardianship, or conservatorship account.
	157	+	3. A financial transaction on an account of a person suspected of perpetrating
	158	+	financial exploitation.
	159	+	(b) 1. Notwithstanding any provision of ch. 403, 404, or 410, a financial service
	160	+	provider may also refuse or delay a financial transaction under this subsection if an
	161	+	elder-adult-at-risk agency, adult-at-risk agency, or law enforcement agency
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	187	+	LRB-4952/1
	188	+	ARG:amn
	189	+	SECTION 1
	190	+	SENATE BILL 628
	191	+	provides information to the financial service provider demonstrating that it is
	192	+	reasonable to suspect that financial exploitation of a vulnerable adult may have
	193	+	occurred, may have been attempted, or is being attempted.
	194	+	2. Except as ordered by a court, a financial service provider is not required to
	195	+	refuse or delay a financial transaction when provided with information by an
	196	+	elder-adult-at-risk agency, adult-at-risk agency, or law enforcement agency
	197	+	alleging that financial exploitation of a vulnerable adult may have occurred, may
	198	+	have been attempted, or is being attempted, but may use its discretion to determine
	199	+	whether to refuse or delay a financial transaction based on the information available
	200	+	to the financial service provider.
	201	+	(c) A financial service provider that refuses or delays a financial transaction
	202	+	based on reasonable cause to suspect that financial exploitation of a vulnerable adult
	203	+	may have occurred, may have been attempted, or is being attempted shall do all of
	204	+	the following:
	205	+	1. Except with regard to an account administered by a financial institution in
	206	+	a fiduciary capacity, make a reasonable effort to notify, orally or in writing, one or
	207	+	more parties authorized to transact business on the account.
	208	+	2. If the incident involves financial exploitation of a vulnerable adult, report
	209	+	the incident to the applicable elder-adult-at-risk agency or adult-at-risk agency.
	210	+	(d) No notice under this subsection is required to be provided to any party
	211	+	authorized to conduct business on the account if the party is the suspected
	212	+	perpetrator of financial exploitation.
	213	+	(e) Except as provided in par. (f), any refusal by a financial service provider to
	214	+	conduct a financial transaction or delay a financial transaction as authorized by this
	215	+	subsection based on the financial service provider's reasonable cause to suspect that
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	241	+	ARG:amn
	242	+	SECTION 1 SENATE BILL 628
	243	+	financial exploitation of a vulnerable adult may have occurred, may have been
	244	+	attempted, or is being attempted expires upon the earliest of any of the following:
	245	+	1. The time when the financial service provider reasonably believes that the
	246	+	financial transaction will not result in financial exploitation of a vulnerable adult.
	247	+	2. The time when the customer requesting the transaction has been advised of
	248	+	a potential risk in the transaction and the customer has requested the transaction
	249	+	to continue as long as the customer is not the suspected perpetrator of financial
	250	+	exploitation.
	251	+	3. Five business days after the date on which the financial service provider first
	252	+	refused or delayed the financial transaction, unless the division or an agency to
	253	+	which the incident was reported under par. (c) 2. requests that the financial service
	254	+	provider extends the refusal or delay, in which case the refusal or delay shall expire
	255	+	no more than 15 business days after the date on which the financial service provider
	256	+	first refused or delayed the financial transaction unless it is otherwise terminated
	257	+	or extended by the division or court order.
	258	+	(f) A court may enter an order extending the time that a financial service
	259	+	provider shall refuse or delay a financial transaction based on reasonable cause to
	260	+	suspect that financial exploitation of a vulnerable adult may have occurred, may
	261	+	have been attempted, or is being attempted.
	262	+	(g) Notwithstanding any provision of ch. 403, 404, or 410, a financial service
	263	+	provider, or an employee of a financial service provider, acting in good faith is
	264	+	immune from all criminal, civil, and administrative liability for any of the following:
	265	+	1. Refusing or not refusing, or delaying or not delaying, a financial transaction
	266	+	under this subsection.
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	292	+	ARG:amn
	293	+	SECTION 1
	294	+	SENATE BILL 628
	295	+	2. Actions taken in furtherance of the determination made under subd. 1. if the
	296	+	determination was based on a reasonable suspicion.
	297	+	(3) LIST OF AUTHORIZED CONTACTS. (a) A financial service provider may offer to
	298	+	a vulnerable adult the opportunity to submit and periodically update a list of persons
	299	+	that the vulnerable adult authorizes the financial service provider to contact when
	300	+	the financial service provider has reasonable cause to suspect that the vulnerable
	301	+	adult is a victim or a target of financial exploitation.
	302	+	(b) A financial service provider, or an officer or employee of the financial service
	303	+	provider, that has reasonable cause to suspect that a vulnerable adult is the victim
	304	+	or target of financial exploitation may convey the suspicion to any of the following
	305	+	if the person is not the suspected perpetrator:
	306	+	1. Any person on the list described in par. (a) if a list has been provided by the
	307	+	vulnerable adult.
	308	+	2. Any co-owner, additional authorized signatory, or beneficiary on the account
	309	+	of the vulnerable adult.
	310	+	3. Any person known by the financial service provider to be a family member,
	311	+	including a parent, spouse, adult child, or sibling.
	312	+	(c) When providing information under this subsection, the financial service
	313	+	provider may limit the information and disclose only that the financial service
	314	+	provider has reasonable cause to suspect that the vulnerable adult may be a victim
	315	+	or target of financial exploitation without disclosing any other details or confidential
	316	+	personal information regarding the financial affairs of the vulnerable adult.
	317	+	(d) The financial service provider may choose not to contact any person on the
	318	+	list provided under par. (a) if the financial service provider suspects that the person
	319	+	is engaged in financial exploitation.
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	345	+	ARG:amn
	346	+	SECTION 1 SENATE BILL 628
	347	+	(e) The financial service provider may rely on information provided by the
	348	+	customer in compiling a list of contact persons.
	349	+	(f) A financial service provider, or an employee of a financial service provider,
	350	+	acting in good faith is immune from all criminal, civil, and administrative liability
	351	+	for contacting a person or electing not to contact a person under this subsection and
	352	+	for actions taken in furtherance of that determination if the determination was made
83	353		based on reasonable suspicion.
84		-	SECTION 1g. 224.45 (1) (d) 3. of the statutes, as cre-
85		-	ated by 2023 Wisconsin Act .... (this act), is amended to
86		-	read:
87		-	224.45 (1) (d) 3. A seller of checks, as defined in s.
88		-	217.02 (9) money transmitter under ch. 217.
89		-	SECTION 1r.(0)Nonstatutory provisions.
90		-	(1g) RECONCILIATION PROVISIONS.
91		-	(a) If 2023 Senate Bill 668 is enacted into law, then
92		-	the amendment of s. 224.45 (1) (d) 3. takes effect on the
93		-	effective date of 2023 Senate Bill 668 or on the effective
94		-	date of this paragraph, whichever is later.
95		-	(b) If par. (a) does not apply, then the amendment of
96		-	s. 224.45 (1) (d) 3. is void.
	354	+	(4) FINANCIAL SERVICE PROVIDERS MAY REFUSE POWER OF ATTORNEY. (a)
	355	+	Notwithstanding s. 244.20, a financial service provider may refuse to accept an
	356	+	acknowledged power of attorney if the principal is a vulnerable adult and the
	357	+	financial service provider has reasonable cause to suspect that the principal is or may
	358	+	be the victim or target of financial exploitation by the agent or person acting for or
	359	+	with the agent.
	360	+	(b) A financial service provider, or an employee of a financial service provider,
	361	+	acting in good faith is immune from all criminal, civil, and administrative liability
	362	+	for refusing to accept a power of attorney or for accepting a power of attorney under
	363	+	this subsection and for actions taken in furtherance of that determination if the
	364	+	determination was based on reasonable suspicion.
	365	+	(END)
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