LRB-0550/1
ARG:emw
2021 - 2022 LEGISLATURE
February 10, 2021 - Introduced by Representatives Macco, Wittke, Armstrong,
Callahan, Dittrich, Edming, Horlacher, Katsma, Kerkman, Knodl,
Kuglitsch, Magnafici, Milroy, Murphy, Petryk, Ramthun, Skowronski,
Snyder, Steffen, Summerfield, Tranel, Zimmerman and Tittl, cosponsored
by Senators Testin, Carpenter, Ballweg, Felzkowski, Feyen, Jacque,
Marklein and L. Taylor. Referred to Committee on Criminal Justice and
Public Safety.
AB46,1,2
1An Act to create 224.45 of the statutes;
relating to: financial exploitation of
2vulnerable 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, if the adult-at-risk agency in a county has 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 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.
Under this bill, if a financial service provider reasonably suspects that financial
exploitation of an adult at risk or an individual who is 60 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:
AB46,1
1Section
1. 224.45 of the statutes is created to read:
AB46,2,3
2224.45 Financial exploitation of vulnerable adults. (1) Definitions. In
3this section:
AB46,3,24
(a) “Account” means funds or assets held by a financial service provider,
5including a deposit account, savings account, share account, certificate of deposit,
1trust account, guardianship or conservatorship account, or retirement account, and
2also including an account associated with a loan or other extension of credit.
AB46,3,33
(b) “Adult at risk” has the meaning given in s. 55.01 (1e).
AB46,3,44
(c) “Adult-at-risk agency” has the meaning given in s. 55.01 (1f).
AB46,3,55
(d) “Elder-adult-at-risk agency” has the meaning given in s. 46.90 (1) (bt).
AB46,3,66
(e) “Financial exploitation” has the meaning given in s. 46.90 (1) (ed).
AB46,3,77
(f) “Financial institution” has the meaning given in s. 214.01 (1) (jn).
AB46,3,98
(g) “Financial service provider” means any of the following engaged in or
9transacting business in this state:
AB46,3,1010
1. A financial institution.
AB46,3,1211
2. A mortgage banker, mortgage broker, or mortgage loan originator, as defined
12in s. 224.71 (3), (4), or (6).
AB46,3,1313
3. A seller of checks, as defined in s. 217.02 (9).
AB46,3,1414
4. A community currency exchange, as defined in s. 218.05 (1) (b).
AB46,3,1515
5. A payday loan licensee under s. 138.14.
AB46,3,1616
6. A title loan licensee under s. 138.16.
AB46,3,1717
7. A lender licensed under s. 138.09.
AB46,3,1818
8. An insurance premium finance company, as defined in s. 138.12 (1) (b).
AB46,3,1919
9. A sales finance company, as defined in s. 218.0101 (34).
AB46,3,2120
(h) “Financial transaction" means any of the following as applicable to the
21business of, or services provided by, a financial service provider:
AB46,3,2322
1. A transfer or disbursement of, or request to transfer or disburse, funds or
23assets in an account.
AB46,3,2524
2. A request to initiate a wire transfer, initiate an automated clearinghouse
25transfer, or issue a money order, cashier's check, or teller's check.
AB46,4,1
13. A request to negotiate a check or other negotiable instrument.
AB46,4,22
4. A request to change the ownership of an account.
AB46,4,33
5. A request for a loan or other extension of credit or to draw on a line of credit.
AB46,4,54
6. A request to modify a loan or other extension of credit or add an authorized
5signer on a line of credit.
AB46,4,66
7. A request to issue a debit card or initiate a debit card transaction.
AB46,4,97
8. A request to transfer the title to any real property, manufactured home, or
8motor vehicle, or to encumber any real property, manufactured home, or motor
9vehicle.
AB46,4,1010
(i) “Law enforcement agency” has the meaning given in s. 165.77 (1) (b).
AB46,4,1211
(j) “Vulnerable adult” means an adult at risk or an individual who is at least
1260 years of age.
AB46,4,17
13(2) Financial service providers may refuse or delay transactions. (a)
14Notwithstanding any provision of ch. 403, 404, or 410, if a financial service provider
15has reasonable cause to suspect that financial exploitation of a vulnerable adult may
16have occurred, may have been attempted, or is being attempted, the financial service
17provider may, but is not required to, refuse or delay any of the following:
AB46,4,1818
1. A financial transaction on an account of the vulnerable adult.
AB46,4,2019
2. A financial transaction on an account on which the vulnerable adult is a
20beneficiary, including a trust, guardianship, or conservatorship account.
AB46,4,2221
3. A financial transaction on an account of a person suspected of perpetrating
22financial exploitation.
AB46,5,323
(b) 1. Notwithstanding any provision of ch. 403, 404, or 410, a financial service
24provider may also refuse or delay a financial transaction under this subsection if an
25elder-adult-at-risk agency, adult-at-risk agency, or law enforcement agency
1provides information to the financial service provider demonstrating that it is
2reasonable to suspect that financial exploitation of a vulnerable adult may have
3occurred, may have been attempted, or is being attempted.
AB46,5,104
2. Except as ordered by a court, a financial service provider is not required to
5refuse or delay a financial transaction when provided with information by an
6elder-adult-at-risk agency, adult-at-risk agency, or law enforcement agency
7alleging that financial exploitation of a vulnerable adult may have occurred, may
8have been attempted, or is being attempted, but may use its discretion to determine
9whether to refuse or delay a financial transaction based on the information available
10to the financial service provider.
AB46,5,1411
(c) A financial service provider that refuses or delays a financial transaction
12based on reasonable cause to suspect that financial exploitation of a vulnerable adult
13may have occurred, may have been attempted, or is being attempted shall do all of
14the following:
AB46,5,1715
1. Except with regard to an account administered by a financial institution in
16a fiduciary capacity, make a reasonable effort to notify, orally or in writing, one or
17more parties authorized to transact business on the account.
AB46,5,1918
2. If the incident involves financial exploitation of a vulnerable adult, report
19the incident to the applicable elder-adult-at-risk agency or adult-at-risk agency.
AB46,5,2220
(d) No notice under this subsection is required to be provided to any party
21authorized to conduct business on the account if the party is the suspected
22perpetrator of financial exploitation.
AB46,6,323
(e) Except as provided in pars. (f) and (g), any refusal by a financial service
24provider to conduct a financial transaction or delay a financial transaction as
25authorized by this subsection based on the financial service provider's reasonable
1cause to suspect that financial exploitation of a vulnerable adult may have occurred,
2may have been attempted, or is being attempted expires upon the earliest of any of
3the following:
AB46,6,64
1. Five business days after the date on which the financial service provider first
5refused or delayed the financial transaction, unless earlier terminated by a court
6order.
AB46,6,87
2. The time when the financial service provider reasonably believes that the
8financial transaction will not result in financial exploitation of a vulnerable adult.
AB46,6,129
3. The time when the customer requesting the transaction has been advised of
10a potential risk in the transaction and the customer has requested the transaction
11to continue as long as the customer is not the suspected perpetrator of financial
12exploitation.
AB46,6,1613
(f) A financial service provider may extend the time permitted in this
14subsection to refuse or delay a financial transaction based on a reasonable suspicion
15that additional time is needed to investigate the financial transaction or to prevent
16financial exploitation of a vulnerable adult.
AB46,6,2017
(g) A court may enter an order extending the time that a financial service
18provider shall refuse or delay a financial transaction based on reasonable cause to
19suspect that financial exploitation of a vulnerable adult may have occurred, may
20have been attempted, or is being attempted.
AB46,6,2321
(h) Notwithstanding any provision of ch. 403, 404, or 410, a financial service
22provider, or an employee of a financial service provider, acting in good faith is
23immune from all criminal, civil, and administrative liability for any of the following:
AB46,6,2524
1. Refusing or not refusing, or delaying or not delaying, a financial transaction
25under this subsection.
AB46,7,2
12. Actions taken in furtherance of the determination made under subd. 1. if the
2determination was based on a reasonable suspicion.
AB46,7,7
3(3) List of authorized contacts. (a) A financial service provider may offer to
4a vulnerable adult the opportunity to submit and periodically update a list of persons
5that the vulnerable adult authorizes the financial service provider to contact when
6the financial service provider has reasonable cause to suspect that the vulnerable
7adult is a victim or a target of financial exploitation.
AB46,7,118
(b) A financial service provider, or an officer or employee of the financial service
9provider, that has reasonable cause to suspect that a vulnerable adult is the victim
10or target of financial exploitation may convey the suspicion to any of the following
11if the person is not the suspected perpetrator:
AB46,7,1312
1. Any person on the list described in par. (a) if a list has been provided by the
13vulnerable adult.