BillCam

HOUSE BILL No. 5949

May 9, 2018, Introduced by Rep. Lucido and referred to the Committee on Law and Justice.

A bill to permit depository institutions to refuse to disburse

money from the accounts of financially endangered adults under

certain circumstances; to permit depository institutions to provide

information to immediate family members of or other individuals

with certain relationships with financially endangered adults under

certain circumstances; and to provide immunity from criminal,

civil, or administrative liability to depository institutions and

their qualified representatives for actions taken under this act.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 1. This act shall be known and may be cited as the

"financial safeguard security act".

Sec. 3. As used in this act:

(a) "Depository institution" means any of the following:

(i) A state chartered bank, savings bank, or credit union.

(ii) A national bank or federally chartered savings bank,

savings and loan association, credit union, or trust company.

(b) "Financial exploitation" means 1 or more of the following:

(i) A wrongful or unauthorized taking, withholding, or use of

money, assets, or property of a financially endangered adult.

(ii) An act or omission by an individual, including through

the use of a power of attorney, guardianship, or conservatorship of

a financially endangered adult, to do any of the following:

(A) Obtain control, through deception, intimidation, or undue

influence, over the financially endangered adult's money, assets,

or property to deprive the financially endangered adult of the

ownership, use, benefit, or possession of his or her money, assets,

or property.

(B) Convert money, assets, or property of a financially

endangered adult to deprive him or her of the ownership, use,

benefit, or possession of his or her money, assets, or property.

(i) An individual who is 65 years of age or older.

(ii) An adult in need of protective services, as defined in

section 11 of the social welfare act, 1939 PA 280, MCL 400.11.

(d) "Immediate family member" means a spouse, child, parent,

or sibling.

(e) "Qualified representative" means an officer of a

depository institution or any other individual who serves in a

supervisory, compliance, or legal capacity for a depository

institution.

Sec. 5. (1) If a qualified representative reasonably believes

that financial exploitation of a financially endangered adult may

have occurred, may have been attempted, or is being attempted, the

qualified representative may notify any of the following

individuals concerning the qualified representative's belief unless

the qualified representative reasonably suspects that the

individual has engaged in financial exploitation or other abuse of

the financially endangered adult:

(a) An immediate family member of the financially endangered

adult.

(b) A legal guardian of the financially endangered adult.

(d) A trustee, cotrustee, or successor trustee of the account

of the financially endangered adult.

(e) An agent under a power of attorney of the financially

endangered adult.

(f) Any individual previously designated by the financially

endangered adult in a customer agreement.

(g) Any other person to which notification is permitted under

law.

(2) A qualified representative who, in good faith and

exercising reasonable care, complies with subsection (1) is immune,

and the depository institution is immune, from any criminal, civil,

or administrative liability that might otherwise arise from the

disclosure.

Sec. 7. (1) A qualified representative may delay a

disbursement from an account of a financially endangered adult or

an account on which a financially endangered adult is a beneficiary

if all of the following are met:

(a) The qualified representative reasonably believes, after

initiating an internal review of the requested disbursement and the

suspected financial exploitation, that the requested disbursement

may result in financial exploitation of a financially endangered

adult.

(b) Immediately, but in no event more than 2 business days

after the requested disbursement, the qualified representative

provides written notification of the delay and the reason for the

delay to each individual who is authorized to transact business on

the account, except any of those individuals who are reasonably

believed to have engaged in suspected or attempted financial

exploitation of the financially endangered adult.

(2) A delay of a disbursement that is authorized under

subsection (1) expires when the earlier of the following is met:

(a) The date the qualified representative makes a

determination that the disbursement will not result in financial

exploitation of the financially endangered adult.

(b) A period of 15 business days after the date on which the

qualified representative first delayed disbursement of the funds

has expired.

(3) A court of competent jurisdiction may enter an order

extending the delay of the disbursement of funds under this section

or may order other protective relief based on the petition of the

department of health and human services, the qualified

representative who initiated the delay under this section, or

another interested party.

(4) A qualified representative who, in good faith and

exercising reasonable care, complies with this section is immune,

and the depository institution is immune, from any criminal, civil,

or administrative liability that might otherwise arise from a delay

in a disbursement that is authorized under this section.

Enacting section 1. This amendatory act takes effect 90 days

after the date it is enacted into law.