SB1400 SD1

SECTION 1. Reported instances of financial abuse of elders and dependent adults have become increasingly widespread throughout the United States. As one means by which to attempt to curtail this disturbing trend, it is the intent of the legislature to impose, on state-regulated financial institutions, a mandatory duty to report promptly suspected incidents of financial abuse to local law enforcement agencies, so that those agencies can determine whether further investigation or other action is warranted.

SECTION 2. Chapter 412, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§412: Mandatory reporting of suspected financial abuse of an elder or dependent adult. (a) All officers and employees of a financial institution shall to report suspected financial abuse that is directed towards, targets, or is committed against an elder or dependent adult to a local law enforcement agency if:

(1) In connection with providing financial services with respect to an elder adult, the officer or employee of a financial institution:

(A) Has direct contact with the elder or dependent adult; or

(B) Reviews or approves the elder or dependent adult's financial documents, records, or transactions; and

(2) The officer or employee, within the scope of employment or professional practice:

(A) Observed or has knowledge of an incident that reasonably appears to be financial abuse; or

(B) In the case of mandated reporters who do not have direct contact with the elder or dependent adult, reasonably suspects that financial abuse has occurred or may be occurring, based solely on the information present at the time of reviewing or approving the document, record, or transaction.

(b) Suspected financial abuse shall be reported to a local law enforcement agency by telephone immediately and by written report sent within two working days.

(c) Notwithstanding any other state law to the contrary, including but not limited to laws concerning confidentiality, any person who, in good faith and with the reasonable belief that the action is warranted by facts known to that person, participates in the making of a report pursuant to this section, shall have immunity from any liability, civil or criminal, that might be otherwise incurred or imposed by or as a result of the making of such report. Any such person shall have the same immunity with respect to participation in any judicial proceeding resulting from such report."

SECTION 3. Section 412:1-109, Hawaii Revised Statutes, is amended by adding three new definitions to be appropriately inserted and to read as follows:

""Dependent adult" means any person eighteen years or older who, because of mental or physical impairment, is dependent upon another person, a care organization, or a care facility for personal health, safety, or welfare.

"Elder" means a person who is age sixty-two years or older.

"Financial abuse" means financial or economic exploitation."

SECTION 4. New statutory material is underscored.

SECTION 5. This Act shall take effect upon its approval.

THE SENATE	S.B. NO.	1400
TWENTY-FOURTH LEGISLATURE, 2007		S.D. 1
STATE OF HAWAII