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.
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).
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