October 19, 2005, Introduced by Reps. Lemmons, III, Lemmons, Jr., Cushingberry and Cheeks and referred to the Committee on Banking and Financial Services.
A bill to amend 1980 PA 307, entitled
"Savings and loan act of 1980,"
(MCL 491.102 to 491.1202) by adding section 1136.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1136. (1) If all of the following are met, an officer or
employee of an association shall report any incidence of known or
suspected financial abuse of an elder adult by telephone
immediately, or as soon as practicably possible, and by written
report sent within 2 working days to the supervisor and the
department of attorney general:
(a) The officer or employee has direct contact with an elder
adult or reviews or approves an elder adult’s financial documents,
records, or transactions in connection with providing financial
services concerning the elder adult.
(b) Within the scope of his or her employment or professional
practice, the officer or employee observes, knows, or should have
known about an incident that is directly related to a transaction
or matter that is within that scope of employment or professional
practice.
(c) One of the following applies to the incident described in
subdivision (b):
(i) The incident reasonably appears to the officer or employee
to be financial abuse.
(ii) If the officer or employee does not have direct contact
with the elder adult, the officer or employee reasonably suspects
financial abuse has occurred, based solely on the information
before him or her at the time of reviewing or approving the
document, record, or transaction.
(2) All of the following apply if 2 or more officers or
employees of an association jointly know, should know, or
reasonably suspect that financial abuse of an elder adult subject
to the reporting requirement of subsection (1) has occurred:
(a) The officers or employees may form a reporting team by
agreement.
(b) A member of the reporting team selected by mutual
agreement may make the telephone report required in subsection (1)
on behalf of all members of the reporting team.
(c) A member of the reporting team selected by mutual
agreement may make the written report required in subsection (1) on
behalf of all members of the reporting team.
(d) If a member of the reporting team has knowledge that the
member designated to make a telephone report or written report
required in subsection (1) has failed to do so, that member shall
make that report.
(3) An officer or employee of an association is not required
to make the reports described in subsection (1) based solely on an
allegation by the elder adult or any other individual that
financial abuse of an elder adult has occurred if both of the
following conditions are met:
(a) The officer or employee is not aware of any other
corroborating or independent evidence of the alleged financial
abuse of the elder adult. The officer or employee is not required
to investigate the allegation.
(b) In the exercise of his or her professional judgment, the
officer or employee reasonably believes that financial abuse of the
elder adult did not occur.
(4) If an officer or employee of an association fails to
report financial abuse of an elder adult under this section, the
attorney general may bring an action against the association to
recover a civil fine of not more than $1,000.00, or a civil fine of
not more than $5,000.00 if the failure to report is willful. An
action under this section does not limit, expand, or otherwise
modify any civil liability or remedy that may exist under this act
or any other law.
(5) As used in this section:
(a) "Elder adult" means an individual 65 years of age or
older.
(b) "Financial abuse" means to take or retain real or personal
property of an elder adult for a wrongful use, with intent to
defraud, or in bad faith, or to assist another in taking or
retaining real or personal property of an elder adult for a
wrongful use, with intent to defraud, or in bad faith.
(c) "Reasonably suspects financial abuse" means that an
individual observes or has knowledge of behavior or unusual
circumstances or transactions, or a pattern of behavior or unusual
circumstances or transactions, that would lead an individual with
like training or experience, based on the same facts, to form a
reasonable belief that financial abuse has occurred.