SB166 Alabama 2020 Session

Summary

Primary Sponsor

Shay ShelnuttSenator

Republican

Session

Regular Session 2020

Title

Financial institutions, authorized to refuse to execute or delay execution of certain financial transactions involving account of an elderly or vulnerable adult

Summary

The bill would let financial institutions delay or refuse certain transactions for elderly or vulnerable adults when exploitation is suspected, and let them set up trusted contact lists to help protect these individuals.

What This Bill Does

If there is reasonable cause to suspect financial exploitation, a financial service provider may refuse or delay a transaction on an account of an elderly or vulnerable adult, on an account where the adult is a beneficiary, or on an account of a suspected perpetrator. It also allows the institution to offer the adult the option to create or update a list of people to contact when exploitation is suspected. The provider must notify authorized contacts and report the incident to the Department of Human Resources and law enforcement, with immunity for actions taken in good faith; the decision to refuse or delay is discretionary and subject to certain limits and timelines. The act becomes effective January 1, 2021, and defines key terms to guide implementation.

Who It Affects

• Elderly adults (65+) and vulnerable adults who may be protected by delayed or refused transactions and who can create a contact list for protection.
• Financial institutions and their employees, who gain authority to delay/refuse transactions, may be required to notify contacts, report exploitation, and receive immunity for reasonable actions.

Key Provisions

• Allows a financial service provider to refuse or delay a financial transaction on accounts of elderly or vulnerable adults, on accounts where the adult is a beneficiary, or on accounts of suspected perpetrators when there is reasonable cause to suspect financial exploitation.
• Authorizes (and may require via other sections) the elderly or vulnerable adult to submit and periodically update a contact list of persons to be contacted if exploitation is suspected, and allows the provider to share suspicions with listed contacts, co-owners, beneficiaries, or a reasonably associated third party while limiting disclosed information.
• Requires notification to authorized parties and reporting of exploitation to the Department of Human Resources and law enforcement, with exceptions for the suspected perpetrator; holds are time-bound and revert when exploitation is not likely, unless court order says otherwise; and provides immunity for providers acting in good faith.
• Defines key terms (account, elderly adult, financial exploitation, financial service provider, financial transaction, vulnerable adult) and sets the effective date of January 1, 2021, along with provisions about compatibility with existing laws and contracts.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Financial Institutions