HB642 HD1

SECTION 1. The legislature finds that Act 54, Session Laws of Hawaii 2021 (Act 54), created protections for elders and vulnerable adults by mandating that certain individuals, such as investment advisers, brokers, and agents, report suspected financial exploitation of elders and vulnerable adults in relation to securities. The financial exploitation of elders is an increasingly common form of elder abuse and can result in devastating consequences for its victims.

The legislature further finds that elders and vulnerable adults can also be financially exploited in check cashing and money order schemes, and extending protections similar to Act 54 to check cashing and money orders will further enable the State and private financial sectors to work together to prevent and combat cases of financial abuse to elders and vulnerable adults.

Accordingly, the purpose of this Act is to:

(1) Require check cashers to report suspected financial exploitation of elders and vulnerable adults in relation to check cashing;

(2) Provide immunity for good faith reporting;

(3) Authorize a check casher to refuse to cash a check in situations of suspected financial exploitation; and

(4) Clarify that all entities that are within the definition of "check casher" are subject to the requirements for reporting financial exploitation.

SECTION 2. Chapter 480F, Hawaii Revised Statutes, is amended by adding a new part to be appropriately designated and to read as follows:

"Part . PROTECTION OF ELDERS AND VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION

§480F-A Definitions. As used in this part, unless the context otherwise requires:

"Director" means the director of the office of consumer protection.

"Elder" means an individual sixty-two years of age or older.

"Financial exploitation" means:

(1) The wrongful or unauthorized taking, withholding, appropriation, or use of money, assets, or property of an elder or a vulnerable adult; or

(2) Any act or omission by a person, including through the use of a power of attorney, guardianship, or conservatorship of an elder or a vulnerable adult, to:

(A) Obtain control through deception, intimidation, or undue influence over the elder's or vulnerable adult's money, assets, or property to deprive the elder or vulnerable adult of the ownership, use, benefit, or possession of the elder's or vulnerable adult's money, assets, or property; or

(B) Convert money, assets, or property of the elder or vulnerable adult to deprive the elder or vulnerable adult of the ownership, use, benefit, or possession of the elder's or vulnerable adult's money, assets, or property.

"Reasonably associated individual" means any person known to the check casher to be reasonably associated with the elder or vulnerable adult.

"Vulnerable adult" means a person eighteen years of age or older who, because of mental, developmental, or physical impairment, is unable to:

(1) Communicate or make responsible decisions to manage the person's own care or resources;

(2) Carry out or arrange for essential activities of daily living; or

(3) Protect oneself from abuse.

§480F-B Governmental disclosures. If a check casher reasonably believes that financial exploitation of an elder or a vulnerable adult may have occurred, may have been attempted, or is being attempted, the check casher shall promptly notify the director.

§480F-C Immunity for governmental disclosures. A check casher who, in good faith and exercising reasonable care, makes a disclosure of information pursuant to section 480F-B shall be immune from administrative or civil liability that might otherwise arise from the disclosure or for any failure to notify the director of the disclosure.

§480F-D Third-party disclosures. If a check casher reasonably believes that financial exploitation of an elder or a vulnerable adult may have occurred, may have been attempted, or is being attempted, a check casher may notify a reasonably associated individual or any third party previously designated by the elder or vulnerable adult. Disclosure shall not be made to any reasonably associated individual or previously designated third party who is suspected of financial exploitation or other abuse of the elder or vulnerable adult.

§480F-E Immunity for third-party disclosures. A check casher who, in good faith and exercising reasonable care, makes a disclosure of information pursuant to section 480F-D shall be immune from any administrative or civil liability that might otherwise arise from the disclosure.

§480F-F Refusing to cash checks. A check casher may refuse to cash a check of an elder or a vulnerable adult if the check casher reasonably believes that the requested check cashing may result in financial exploitation of the elder or vulnerable adult.

§480F-G Immunity for refusing to cash checks. A check casher who, in good faith and exercising reasonable care, complies with section 480F-F shall be immune from any administrative or civil liability that might otherwise arise from a refusal to cash a check in accordance with that section.

§480F-H Records. A check casher shall provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an elder or a vulnerable adult to the director or law enforcement, either as part of a referral to the director or law enforcement, or upon request of the director or law enforcement pursuant to an investigation. The records may include historical records as well as records relating to the most recent transaction or transactions that may comprise financial exploitation of an elder or a vulnerable adult. All records made available under this section shall be exempt from disclosure under chapter 92F.

Nothing in this section shall limit or otherwise impede the authority of the director to access or examine the books and records of a check casher as otherwise provided by law.

§480F-I Multiple duties to report. Compliance with this part shall not discharge the duty to report suspected abuse under any other law."

SECTION 3. Chapter 480F, Hawaii Revised Statutes, is amended by designating sections 480F-1 to 480F-7 as part I and inserting a title before section 480F-1 to read as follows:

"PART I. GENERAL PROVISIONS"

SECTION 4. Section 480F-5, Hawaii Revised Statutes, is amended to read as follows:

"[[]§480F-5[]] Exemptions. This [~~chapter~~] part shall not apply to:

(1) Any person who is principally engaged in the bona fide retail sale of goods or services, and who, either as incident to or independent of the retail sale or service, from time to time cashes items for a fee or other consideration, where not more than $2, or two per cent of the amount of the check, whichever is greater, is charged for the service; or

(2) Any person authorized to engage in business as a bank, trust company, savings bank, savings and loan association, financial services loan company, or credit union under the laws of the United States, any state or territory of the United States, or the District of Columbia."

SECTION 5. In codifying the new sections added by section 2 of this Act, the revisor of statutes shall substitute appropriate section numbers for the letters used in designating the new sections in this Act.

SECTION 6. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 7. This Act shall take effect on June 30, 3000.

HOUSE OF REPRESENTATIVES	H.B. NO.	642
THIRTY-SECOND LEGISLATURE, 2023		H.D. 1
STATE OF HAWAII