99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
HB6176

 

Introduced 2/11/2016, by Rep. Ron Sandack

 

SYNOPSIS AS INTRODUCED:
 
320 ILCS 20/4.3 new

    Amends the Adult Protective Services Act. Provides that pending an investigation by the financial institution, the Department on Aging, or law enforcement, if a financial institution reasonably believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, the financial institution may, but is not required to, refuse a transaction requiring the disbursement of funds contained in the account: (i) of the eligible adult; (ii) on which the eligible adult is a beneficiary, including a trust or guardianship account; or (iii) of a person suspected of perpetrating financial exploitation of an eligible adult. Requires a financial institution that refuses to disburse funds to report the incident to the Adult Protective Services Program, local law enforcement, and other specified persons. Provides that a financial institution's refusal to disburse funds shall expire within certain timeframes under certain conditions; and that a court of competent jurisdiction may enter an order extending the refusal by the financial institution to disburse funds. Exempts a financial institution and its employees from criminal, civil, and administrative liability for refusing to disburse funds or disbursing funds if the determination of whether or not to disburse funds was made in good faith.


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A BILL FOR

 

HB6176LRB099 18887 KTG 43272 b

1    AN ACT concerning aging.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Adult Protective Services Act is amended by
5adding Section 4.3 as follows:
 
6    (320 ILCS 20/4.3 new)
7    Sec. 4.3. Financial exploitation; disbursement of funds.
8    (a) Pending an investigation by the financial institution,
9the Department, or law enforcement, if a financial institution
10reasonably believes that financial exploitation of an eligible
11adult may have occurred, may have been attempted, or is being
12attempted, the financial institution may, but is not required
13to, refuse a transaction requiring the disbursement of funds
14contained in the account:
15        (1) of the eligible adult;
16        (2) on which the eligible adult is a beneficiary,
17    including a trust or guardianship account; or
18        (3) of a person suspected of perpetrating financial
19    exploitation of an eligible adult.
20    (b) A financial institution may also refuse to disburse
21funds under this Section if the Department, law enforcement, or
22the prosecuting attorney provides information to the financial
23institution demonstrating that it is reasonable to believe that

 

 

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1financial exploitation of an eligible adult may have occurred,
2may have been attempted, or is being attempted.
3    (c) A financial institution is not required to refuse to
4disburse funds when provided with information alleging that
5financial exploitation may have occurred, may have been
6attempted, or is being attempted, but may use its discretion to
7determine whether or not to refuse to disburse funds based on
8the information available to the financial institution.
9    (d) A financial institution that refuses to disburse funds
10based on a reasonable belief that financial exploitation of an
11eligible adult may have occurred, may have been attempted, or
12is being attempted shall:
13        (1) make a reasonable effort to notify all parties
14    authorized to transact business on the account orally or in
15    writing; and
16        (2) report the incident to the Adult Protective
17    Services Program and local law enforcement.
18    (e) Any refusal to disburse funds as authorized by this
19Section based on the reasonable belief of a financial
20institution that financial exploitation of an eligible adult
21may have occurred, may have been attempted, or is being
22attempted shall expire upon the sooner of:
23        (1) 10 business days after the date on which the
24    financial institution first refused to disburse the funds
25    if the transaction involved the sale of a security or offer
26    to sell a security, as defined in Section 2.1 of the

 

 

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1    Illinois Securities Law of 1953, unless sooner terminated
2    by an order of a court of competent jurisdiction;
3        (2) 5 business days after the date on which the
4    financial institution first refused to disburse the funds
5    if the transaction did not involve the sale of a security
6    or offer to sell a security, unless sooner terminated by an
7    order of a court of competent jurisdiction; or
8        (3) the time when the financial institution is
9    satisfied that the disbursement will not result in
10    financial exploitation of the eligible adult.
11    (f) A court of competent jurisdiction may enter an order
12extending the refusal by the financial institution to disburse
13funds based on a reasonable belief that financial exploitation
14of an eligible adult may have occurred, may have been
15attempted, or is being attempted. A court of competent
16jurisdiction may also order other protective relief.
17    (g) A financial institution or an employee of a financial
18institution is immune from criminal, civil, and administrative
19liability for refusing to disburse funds or disbursing funds
20under this Section and for actions taken in furtherance of that
21determination if the determination of whether or not to
22disburse funds was made in good faith.