SB220 Alabama 2016 Session

Summary

Primary Sponsor

Arthur OrrSenator

Republican

Session

Regular Session 2016

Title

Adults, vulnerable adults protection from financial exploitation, reporting to Alabama Securities Commission and Dept. of Senior Services, immunity from administrative and civil action for certain disclosures

Summary

SB220 aims to protect vulnerable adults from financial exploitation by requiring reporting to state agencies, allowing limited disclosures to trusted parties, and permitting temporary delays of disbursements to prevent exploitation, with legal protections for those actions.

What This Bill Does

If enacted, qualified individuals (such as agents and supervisors at broker-dealers or investment advisers) must promptly report suspected exploitation to the Department of Senior Services and the Alabama Securities Commission. They may share information with reasonably associated individuals or designated third parties connected to the vulnerable adult, but not with parties suspected of exploitation. Broker-dealers and investment advisers could delay disbursements from a vulnerable adult's account if there's a reasonable belief of exploitation, with required notices within two business days, ongoing review, and a defined timeframe, and they would have immunity from liability for good-faith actions. The bill also requires access to records for agencies and law enforcement and provides immunity for disclosures made in good faith.

Who It Affects

• Vulnerable adults (65 years or older or protected persons) who may be protected from financial exploitation through reporting, restricted disclosures, and potential temporary holds on disbursements.
• Broker-dealers, investment advisers, and their agents/representatives who must report suspected exploitation, may delay disbursements, and are protected by immunity from liability for good-faith actions.

Key Provisions

• Provision 1: Qualified individuals must promptly notify the Department of Senior Services and the Alabama Securities Commission when they reasonably believe financial exploitation of a vulnerable adult may have occurred, been attempted, or is being attempted, and disclosures may be made to reasonably associated individuals or designated third parties unless the third party is suspected of exploitation.
• Provision 2: Broker-dealers or investment advisers may delay disbursements from a vulnerable adult's account if they reasonably believe the delay will prevent exploitation, with required notices to all authorized parties and to the agencies within two business days, ongoing investigation reporting within seven business days, and an eventual end to the delay (up to 15 days, extendable to 25 days with agency or court approval), plus immunity from liability for good-faith actions.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Elder Law