FINANCIAL EXPLOITATION OF OLDER ADULTS.

View NCGA Bill Details2013-2014 Session
Senate Bill 140 (Public) Filed Wednesday, February 27, 2013
A BILL TO BE ENTITLED AN ACT TO INCREASE THE RECOGNITION, REPORTING, AND PROSECUTION OF THOSE WHO WOULD DEFRAUD OR FINANCIALLY EXPLOIT DISABLED OR OLDER ADULTS, AND TO CONTINUE THE TASK FORCE ON FRAUD AGAINST OLDER ADULTS, AS RECOMMENDED BY THE TASK FORCE ON FRAUD AGAINST OLDER ADULTS.
Intro. by Bingham.

Status: Ch. SL 2013-337 (Senate Action) (Jul 23 2013)

SOG comments (1):

Long title change

The Senate committee substitute to the 2nd edition changes the act's long title. The original long title was: A BILL TO BE ENTITLED AN ACT TO INCREASE THE RECOGNITION, REPORTING, AND PROSECUTION OF THOSE WHO WOULD DEFRAUD OR FINANCIALLY EXPLOIT OLDER ADULTS, AND TO CONTINUE THE TASK FORCE ON FRAUD AGAINST OLDER ADULTS, AS RECOMMENDED BY THE TASK FORCE ON FRAUD AGAINST OLDER ADULTS.

Bill History:

S 140/S.L. 2013-337

Bill Summaries:

  • Summary date: Jul 25 2013 - More information

    AN ACT TO INCREASE THE RECOGNITION, REPORTING, AND PROSECUTION OF THOSE WHO WOULD DEFRAUD OR FINANCIALLY EXPLOIT DISABLED OR OLDER ADULTS, AND TO CONTINUE THE TASK FORCE ON FRAUD AGAINST OLDER ADULTS, AS RECOMMENDED BY THE TASK FORCE ON FRAUD AGAINST OLDER ADULTS. Enacted July 23, 2013. Section 5 is effective July 23, 2013. The remainder is effective December 1, 2013.


  • Summary date: Jul 11 2013 - More information

    House amendment to the 5th edition makes the following changes. Increases the age of those considered to be an older adult to 65 or older (was, 60 or older).


  • Summary date: Jul 10 2013 - More information

    House committee substitute makes the following changes to the 4th edition.

    Amends GS 53B-4(13), concerning access to financial records by government authority, providing that such access can be granted pursuant to a subpoena delivered to the financial institution pursuant to GS 108A-116 by a (1) county department of social services director who is investigating a credible report of financial exploitation of a disabled adult or (2) a law enforcement agency investigating a credible report of financial exploitation of a disabled adult or older adult (previously, provided access to the same parties pursuant to a written, specified notice for access to financial records delivered in accordance with specified procedures for process).

    Amends GS 53B-9, making conforming changes.

    Amends the definition for customer found in GS 108A-113, providing a customer is a person who is a present or former holder of an account with a financial institution (was, a person who has transacted business with a financial institution or has used the services offered by a financial institution).

    Changes the title for proposed subsection GS 108A-114 to Financial institutions encouraged to offer disabled adult and older adult customers the opportunity to submit a list of trusted persons to be contacted in case of financial exploitation (was, Financial institutions encouraged to maintain list of contacts in case of financial exploitation). Adds language providing that financial institutions or its employees will not be held liable when offering its customers the opportunity to submit and update a list of customer contacts when done in good faith.

    Amends GS 108A-115, providing that financial institutions or its employees will not be held liable when acting in good faith in making a report regarding suspected fraud under this section.

    Amends GS 108A-116, making conforming changes to its title and provisions, requiring financial institutions to provide financial records after receipt of a subpoena from a law enforcement agency or county department of social services investigating alleged exploitation (previously, required disclosure of records after receiving a specified written notice). Establishes requirements for the subpoena, primarily who can issue the subpoena. Sets out the accepted methods of delivery for the subpoena, including by hand, via certified mail with return receipt requested, or a method authorized by 26 USC §7502(f)(2) and to whom it can be delivered, including vice presidents, office managers, or assistant branch or office managers of the financial institution and specified agents for service of process. Requires prompt delivery of financial records after receipt of a subpoena delivered pursuant to specified requirements. Provides protections against liability when acting in good faith under this section.

    Amends GS 108A-117, requiring the investigating entity to immediately provide the customer with written notice of its action by first class mail after the issuance of a subpoena pursuant to GS 108A-116, allowing access to financial records (was, required the investigating entity to provide notice within 180 days after obtaining access to the records pursuant to a specified written notice). Makes conforming changes. Provides that an investigating entity can include in its request for a subpoena a request for an order delaying the customer notice requirements. Allows the judge or magistrate issuing the subpoena to order such delayed notice upon a finding, based on affidavits or sworn oral testimony, that certain specified conditions are met. After making such findings, the judge or magistrate must enter an ex parte order granting the requested delay for a period not to exceed 30 days (was, 180 days). If there is reason to believe that the notice could endanger the life or physical safety of any person, the delay order can be ordered for a period not to exceed 180 days (previously, allowed for indefinite delay). Sets out what the order delaying notice must direct, including that the order be sealed until otherwise ordered by the judge or magistrate.  Includes provisions for further extensions of the delay of notice, allowing the judge or magistrate to order an extension upon a finding of the continued existence of the conditions originally provided for by the delay. Provides that extensions cannot exceed the period of time for which the order delaying notice was originally granted for, with extensions for original periods of delay of up to 30 days only being allowed to be renewed and extended up to 90 days total. Delays ordered because of physical safety and endangerment concerns can continue to be renewed and extended until such risks do not exist.

    Directs the Consumer Protection Division of the Department of Justice to add the NC Bar Association to the list of approved associations represented on the Task Force on Fraud Against Older Adults.

    Changes the effective date for Sections 2, 3, and 4 of the act to December 1, 2013 (was, October 1, 2013).

     

     


  • Summary date: Apr 9 2013 - More information

    Senate amendment makes the following change to the 3rd edition.

    Amends GS 53B-4 (Access to financial records), expanding to whom a written, specified notice for access to financial records can be delivered allowing the delivery of the notice to an agent for service of process listed by the financial institution in any state in which it is domiciled (previously only allowed delivery of the notice to local/in-state individuals).

     

     

     

     


  • Summary date: Apr 4 2013 - More information

    Senate committee substitute makes the following changes to the 2nd edition.

    Makes technical and clarifying changes, changing references to "law enforcement" to "investigating entity," and inserting references to disabled adults as also covered under the provisions of this act. Adds reference to disabled adults to the bill title to better reflect the bill content and adds a definition fordisabled personto the act.Adds a definition for investigating entity;defines the term to mean a law enforcement agency investigating the alleged financial exploitation of a disabled adult or an older adultor a county department of social services investigating alleged financial exploitation of a disabled adult.

    Deletes proposed GS 108A-106.1, which deals with the production of customers' financial records in cases of suspected financial exploitation. Makes conforming changes deleting references to that provision. Amends GS 108A-14 to add as a duty and responsibility of the director of social servicesreceiving and evaluating reports of financial exploitation of disabled adults, investigating credible reports of financial exploitation under new Article 6A of GS Chapter 108A, and taking appropriate action to protect these adults.

    Amends proposed GS 108A-115 to require that any financial institution and its officers and employees have a duty to report a belief that a disabled or older adult is being financially exploited to the appropriate county department of social services. Clarifies that no financial institutions or its officers and employers may (was, shall) be held liable in any action if they acted in good faith.

    Enacts new GS 108A-117 to require an investigating entity to provide notice to the older adult or disabled adult within 180 days afterthe investigating entity gains access to financial records of the older adult or disabled adult. Specifies what the notice must contain and the acceptable method for delivery of the notice. Also provides criteria for delayed notice upon the order of an appropriate court and basis for receiving an extension on any court-ordered delay of notice.

    Effective October 1, 2013 (was, these provisions become effective on the first day of a month that is six months after this act becomes law).


  • Summary date: Mar 21 2013 - More information

    Senate committee substitute makes the following changes to the 1st edition.

    Makes technical and clarifying changes, changing references to elder/elderly persons to older/older adults.

    Amends GS 108A-106.1(a), deleting depositor (was, adult customer or depositor) from those whose financial records are to be provided.

    Amends GS 108A-106.1(a) and (b), reorganizing GS 108A-106.1(a4) to become GS 108A-106.1(b).

    Changes GS 108A-106.1(c), (now GS 108A-106.1(d)) language from "older adult joint account holder" to "disabled adult joint account holder."

    Makes conforming changes.

    Amends GS 108A-116(a), deleting depositor (was, adult customer or depositor) from those whose financial records are to be provided to law enforcement.

    Makes technical and conforming changes.


  • Summary date: Feb 27 2013 - More information

    Amends GS 14-112.2 (criminal exploitation of an elder adult or disabled adult) defining elder adult as any person 60 or older and removing requirement that the person lack ability to safeguard his or her rights or resources.  Makes it a crime to obtain or use an elder or disabled adult's resources by deception or intimidation.  Also removes requirement that perpetrator of financial exploitation knows victim lacks capacity to consent.

    Amends GS 53B-4 (Access to financial records) and GS 53B-9 (duty of financial institutions; limitation of liability) to allow access to financial records by a county department of social services director or law enforcement agency investigating a credible report of financial exploitation following specified notice to the financial institution.

    Amends GS Chapter 108A (Protection of Abused, Neglected or Exploited Disabled Adults) adding section GS 108A-106.1.  Requires financial institutions to provide financial records of a disabled adult customer to county departments of social services following specified notice of investigation of financial exploitation.  Provides immunity for financial institutions and law enforcement agencies, and officers and employees, who provide, seek, or obtain records.  Provides that customers shall not be subject to criminal or civil action based on the information disclosed, but such financial information may be used against a joint account owner accused of financial exploitation.

    Amends GS Chapter 108A adding a new Article 6A (Protection of Older Adults From Financial Exploitation).  States legislative intent to fight financial exploitation.  Encourages financial institutions to maintain a contact list for older adult customers in case of financial exploitation.  Requires financial institutions to report suspected financial exploitation to law enforcement and the person's contact list.  Similar to provisions for new section GS 108A-106.1 above, requires disclosure of financial records upon proper notice, provides immunity for financial institutions and law enforcement, and provides customer protections from disclosure.

    Amends SL 2011-189 to require the Task Force on Fraud Against Older Adults to report by February 1, 2013 (was, October 1, 2012), and also requires a report on the efficacy of any adopted recommendations to the Joint Legislative Oversight Committee on Health and Human Services prior to the 2014 Regular Session.  Dissolves the Task Force upon filing its final report on May 1, 2015.  Adds to the Task Force the North Carolina Credit Union League and an association representing non-depository financial institutions.

    Effective six months after the act becomes law, except for Task Force matters that are effective when the act becomes law.


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