During the 2024 Legislative session, the Florida Legislature passed Senate Bill 556, “Protection of Specified Adults”, which was signed into law by Governor Ron DeSantis on May 28, 2024.
June is Elder Abuse Awareness Month, and financial exploitation has emerged as one of the most common forms of abuse targeting the senior population. The bi-partisan bill, introduced by state Senator Darryl Rouson (D - St. Petersburg), is designed to implement greater financial protections for “specified adults,” a class of persons including anyone age 65 or older and those persons 18 or older who are considered “vulnerable adults,” as defined in Section 415.102, Florida Statutes.[i]
“I am proud to have championed Senate Bill 556, which marks a significant step forward in safeguarding our elderly and vulnerable adults from financial exploitation,” said Senator Rouson. “This legislation underscores our commitment to protecting those who are most at risk, ensuring that financial institutions play an active role in preventing abuse. With this bill, we are providing the tools necessary to detect and deter financial crimes against our seniors and vulnerable citizens.” The law now becomes the newly-created Section 415.10341, Florida Statutes, and will take effect on January 1, 2025.
Patterned after Section 517.34, Florida Statutes (also titled “Protection of Specified Adults”), which is found in the Florida Securities and Investor Protection Act, the new law applies to “financial institutions” as defined by Florida law, including state and federal banks and savings and loans.[ii] Aside from this distinction and others discussed below, the new Section 415.10341 tracks the language of Section 517.34, a report and hold statute directed at securities dealers and investment advisors. Like Section 517.34, the new law contains an immunity provision for financial institutions. In addition, the new law provides for an initial hold period of 15 business days, as does Section 517.34. However, where Section 517.34 provides for an extension of ten additional business days if the securities dealer or investment advisor still has a reasonable belief that financial exploitation has occurred or is occurring but has not completed its investigation, the new Section 415.10341 provides for an extension of an additional 30 business days.
Another distinction between the two statutes relates to the report provision. Under Section 517.34, a securities dealer or investment advisor who places a hold on a transaction in, or distribution from, a client account must report such hold to the Florida Office of Financial Regulation within three business days. In contrast, new Section 415.10341 requires reporting prior to placing a hold on an account and permits financial institutions to delay a disbursement or transaction from an account, if the financial institution reports suspected financial exploitation of a specified adult under Fla. Stat. 415.1035, which relates to mandatory reporting of abuse, neglect, or exploitation through the Central Abuse Hotline maintained by the Florida Department of Children and Families.
Both Section 517.34 and 415.1035 require that any hold be reported in writing to any trusted contact on the account and all persons authorized to do business on the account. Notice does not need to be given to any such person engaged in the suspected financial exploitation.
Financial institutions are required to create and maintain records relating to the delayed disbursement or transaction for five years. Such records must include information regarding when the delay was placed initially, the name and address of the specified adult, the name and title of the employee reporting the suspected financial exploitation using the Central Abuse Hotline, the facts and circumstances that caused the report, and the business location of the financial institution.
Financial institutions must develop training policies or programs, as well as written policies and procedures relating to reporting and internal review of suspected financial exploitation. Persons hired after July 1, 2024, must receive such training within one year of hire.
As discussed above, the new statute will take effect on January 1, 2025.
[i] “Vulnerable adult” means a person 18 years of age or older whose ability to perform the normal activities of daily living or to provide for his or her own care or protection is impaired due to a mental, emotional, sensory, long-term physical, or developmental disability or dysfunction, or brain damage, or the infirmities of aging. Section 415.102(28), Fla. Stat. (2023).
[ii] Section 655.005(1), Florida Statutes defines “Financial Institution” as a state or federal savings or thrift association, bank, savings bank, trust company, international bank agency, international banking corporation, international branch, international representative office, international administrative office, international trust entity, international trust company representative office, qualified limited service affiliate, credit union, or an agreement corporation operating pursuant to s. 25 of the Federal Reserve Act, 12 U.S.C. ss. 601 et seq. or Edge Act corporation organized pursuant to s. 25(a) of the Federal Reserve Act, 12 U.S.C. ss. 611 et seq.
