KRS § 365.245 — KY Code / Title XXIX / Chapter 365 / Section 365.245
365.245 Protection from Financial Exploitation Act
Status: in_force

365.245 Protection from Financial Exploitation Act.

(1) As used in this section:

(a) "Authorized agencies" means the Cabinet for Health and Family Services and

the Department of Financial Institutions;

(b) "Financial exploitation" means:

1. The wrongful or unauthorized taking, withholding, appropriation, or use

of a specified adult's funds or securities; or

2. Any act or omission by a person, including through the use of a power of

attorney, guardianship, or any other authority regarding a specified adult,

to:

a. Obtain control, through deception, intimidation, or undue

influence, over a specified adult's money, assets, or property; or

b. Convert a specified adult's money, assets, or property;

(c) "Financial institution" means any person doing business under the laws of any

state or commonwealth or the United States relating to banks, bank holding

companies, savings banks, savings and loan associations, trust companies, or

credit unions;

(d) "Qualified person" means a:

1. Broker-dealer as defined in KRS 292.310;

2. Investment adviser as defined in KRS 292.310; or

3. Financial institution; and

(e) "Specified adult" means:

1. A natural person age sixty-five (65) or older; or

2. A natural person age eighteen (18) or older who a qualified person

reasonably believes has a mental or physical impairment that renders

that natural person unable to protect his or her own interests. A qualified

person's reasonable belief may be based on facts and circumstances

observed in the qualified person's business relationship with the natural

person.

(2) (a) If a qualified person reasonably believes that financial exploitation has

occurred, is occurring, has been attempted, or will be attempted, the qualified

person may notify the following:

1. Authorized agencies; and

2. Any third party that is:

a. Reasonably associated with the specified adult; or

b. Otherwise permitted by law.

(b) Any report or disclosure made to authorized agencies pursuant to this

subsection shall be confidential and shall not be subject to disclosure pursuant

to the Kentucky Open Records Act, KRS 61.870 to 61.884. The name of the

notifying qualified person shall not be revealed to any person outside of the

authorized agencies without the permission of the notifying qualified person.

(3) (a) A qualified person may place a temporary hold on a transaction on or a

disbursement from an account of a specified adult, or an account on which a

specified adult is a beneficiary, if:

1. The qualified person fulfills any reporting obligations under KRS

209.030. Nothing in this subsection shall be read to expand any of the

requirements of KRS 209.030;

2. The qualified person reasonably believes that financial exploitation of a

specified adult has occurred, is occurring, has been attempted, or will be

attempted; and

3. Not later than two (2) business days after the date the temporary hold

was first placed, oral or written notification, which may be electronic, of

the temporary hold and the reason for the temporary hold is made to:

a. All parties authorized to transact business on the account; and

b. Any person age eighteen (18) or older authorized by the specified

adult or their legal representative, in writing, to be contacted about

the specified adult's account.

(b) 1. Unless otherwise provided in subparagraph 2. of this paragraph, any

temporary hold authorized by this subsection shall expire upon the

sooner of:

a. A determination by the qualified person that the disbursement or

transaction will not result in financial exploitation of the specified

adult; or

b. Not later than fifteen (15) business days after the date the qualified

person first placed the temporary hold, unless the qualified

person's internal review of the facts and circumstances supports its

reasonable belief that financial exploitation of the specified adult

has occurred, is occurring, has been attempted, or will be

attempted, in which case the qualified person may extend the

expiration to not later than twenty-five (25) business days after the

date the qualified person first placed the temporary hold.

2. At any time, an agency of competent jurisdiction, including but not

limited to the authorized agencies, or a court of competent jurisdiction

may terminate or extend a temporary hold authorized by this subsection.

(4) Notwithstanding subsection (2) or (3) of this section, a notification permitted or

required by this section shall not be made to any person who is suspected of

financial exploitation or other abuse.

(5) (a) A qualified person shall provide access to or copies of records that are

relevant to the suspected or attempted financial exploitation of a specified

adult to agencies charged with administering state adult protective services

laws and to law enforcement, either as part of a referral to the agency or to law

enforcement, or upon request of the agency or law enforcement pursuant to an

investigation.

(b) The records may include historical records as well as records relating to the

most recent disbursements or disbursements that may comprise financial

exploitation of a specified adult.

(c) All records made available to agencies pursuant to this subsection shall be

confidential and shall not be subject to disclosure pursuant to the Kentucky

Open Records Act, KRS 61.870 to 61.884.

(d) Nothing in this subsection shall limit or otherwise impede the authority of the

commissioner of the Department of Financial Institutions to access or examine

the books and records of a qualified person as otherwise provided by law.

(6) Notwithstanding any provision of law to the contrary, the authorized agencies may

disclose to any notifying qualified person the general status or final disposition of

any investigation that arose from a report made by the qualified person.

(7) A qualified person that exercises good faith in making disclosures, placing a

temporary hold, or providing access to records pursuant to this section shall be

immune from any administrative or civil liability that might otherwise arise from

such activities.

(8) This section may be cited as the "Protection from Financial Exploitation Act."