Bill > HB1238

This bill establishes new protections for financial institutions that take action to prevent the financial exploitation of consenting, senior, or vulnerable adults, defining key terms such as "financial exploitation" as the wrongful or unauthorized use of an adult's money or property, and "consenting adult" as an account holder who agrees to the institution responding to concerns. It grants financial institutions the authority to delay or refuse transactions, withdrawals, or changes in account ownership if they reasonably believe financial exploitation may have occurred, been attempted, or is occurring, and clarifies that institutions are not required to act but may use discretion. The bill also allows financial institutions to notify certain individuals associated with the adult, such as family members or authorized contacts, about suspected exploitation, unless those individuals are believed to be involved or law enforcement advises against notification. The authority to delay transactions generally expires after thirty business days unless extended based on continued suspicion, and importantly, financial institutions and their employees are granted immunity from civil, criminal, or administrative liability for actions taken in good faith under this chapter, including the refusal to execute a transaction.

Business and Industry

https://sdlegislature.gov/#/Session/Bill/27202