S 851

South Carolina General Assembly
126th Session, 2025-2026
Bill 851
Indicates Matter Stricken
Indicates New Matter
(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)
Committee Report
April 22, 2026
S. 851
Introduced
by Senators Alexander, Young and Garrett
S. Printed 4/22/26--H.  [SEC
4/23/2026 12:33 PM]
Read the first time March 31, 2026
________
The committee on House Labor,
Commerce and Industry
To whom was referred a Bill (S. 851) to amend
the South Carolina Code of Laws by adding Section 34-3-900 so as to define
terms pertaining to the financial exploitation of an eligible adult and to
outline, etc., respectfully
Report:
That they have duly and carefully considered
the same, and recommend that the same do pass:
WILLIAM HERBKERSMAN for
Committee.
_______
A bill
TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION
34-3-900 SO AS TO DEFINE TERMS PERTAINING TO THE FINANCIAL EXPLOITATION OF AN
ELIGIBLE ADULT AND TO OUTLINE A PROCEDURE FOR ESTABLISHING EMERGENCY CONTACTS
FOR AN ELIGIBLE ADULT TO PROTECT THE ELIGIBLE ADULT FROM FINANCIAL
EXPLOITATION.
Be it enacted by the
General Assembly of the State of South Carolina:
SECTION 1.  Chapter 3, Title 34 of the S.C. Code is amended by
adding:
Article 13
Protecting Eligible Adults from Financial Exploitation
    Section
34-3-900.  (A) As used in this
section:
       (1)
"Financial institution" means any bank, credit union, wealth management
institution, or other financial services company. This section excludes a "broker-dealer"
as defined in Section 35-1-102(4) and an "investment adviser" as defined in
Section 35-1-102(15).
       (2)
"Eligible adult" means:
  (a)
a person fifty-five years of age or older; or
  (b)
a vulnerable adult subject to Section 43-35-10(11).
       (3)
"Financial exploitation" means:
  (a)
the wrongful or unauthorized taking, withholding, appropriation, or use of the
money, assets, or property of an eligible adult; or
  (b)
any act or omission taken by a person, including through the use of a power of
attorney, guardianship, or conservatorship of an eligible adult, to:
  (i)
obtain the control, use, or benefit, through deception, intimidation, or undue
influence, or by the use of any scheme, device, or artifice to defraud, of the
eligible adult's money, assets, or property to deprive the eligible adult of
the ownership, use, benefit, or possession of his money, assets, or property;
or
  (ii)
convert the money, assets, or property of the eligible adult to deprive the
eligible adult of the ownership, use, benefit, or possession of his money,
assets, or property.
    (B) If
a financial institution reasonably believes that the financial exploitation of
an eligible adult has occurred or may occur, then the financial institution
may, but is not required to, decline or place on hold any transaction
involving:
       (1)
the account of the eligible adult;
       (2)
an account in which the eligible adult is a beneficiary, including a trust or
guardianship account; or
       (3)
the account of a person who is suspected of engaging in the financial
exploitation of the eligible adult.
    (C) A
financial institution may also decline or place on hold any transaction
pursuant to this section if an investigative entity or law enforcement agency
provides information to the financial institution demonstrating that it is
reasonable to believe that the financial exploitation of an eligible adult has
occurred or may occur.
    (D) A
financial institution is not required to decline or place on hold a transaction
pursuant to this section. Such a decision is in the financial institution's
discretion based on the information available to the financial institution.
    (E)(1) Any financial institution that
declines or places on hold a transaction pursuant to this section shall:
  (a)
make a reasonable effort to provide notice, orally or in writing, to all
parties authorized to transact business on the account from which the transfer
or disbursement was declined or placed on hold; and
  (b)
report an incident involving a vulnerable adult to the appropriate
investigative entity in accordance with Section 43-35-25.
       (2)
Notwithstanding the provisions of this subsection, a financial institution has
no duty to notify any party that is suspected of financial exploitation
pursuant to this section.
    (F) Any
hold of a disbursement or transaction, that has not been declined due to
suspected fraud, as authorized by this section will expire upon:
       (1)
the sooner of:
  (a)
a determination by the financial institution that allowing the transaction will
not result in the financial exploitation of an eligible adult; or
  (b)
thirty business days after the date on which the financial institution first
declined or placed on hold the transaction unless an appropriate investigative
entity as set forth in Section 43-35-10(5) requests that the financial
institution extend the delay, in which case the delay shall expire no more than
fifty-five business days after the date on which the financial institution
first declined or placed on hold the transaction; unless
       (2)
sooner terminated or extended by an order of a court of competent jurisdiction.
    (G) A
financial institution may provide access to or copies of records relevant to
the suspected financial exploitation of an eligible adult to law enforcement
agencies or investigative entities responsible for administering the provisions
of this section. Such records may include relevant historical records and
recent transactions relating to suspected financial exploitation.
    (H) If
the determinations and actions of a financial institution or an employee of a
financial institution are made in good faith and in accordance with the
provisions of this section, then the financial institution or employee shall be
immune from criminal, civil, or administrative liability for declining
transactions to disburse monies pursuant to this section, and for taking
actions in furtherance of a determination, including making a report or
providing access to or copies of relevant records to an investigative entity or
law enforcement agency. Nothing in this section is intended to nor does it
limit or shield in any manner a financial institution from civil liability
against any claim, including reasonable attorney's fees, costs, and litigation
expenses, for participating in or materially aiding the financial exploitation
of an eligible adult. Any such claims shall be asserted by the eligible adult,
or on his behalf by an appropriate guardian or representative who is not
involved in or otherwise suspected of participating in the financial
exploitation of the eligible adult, by filing a civil action in circuit court.
    (I)(1) A financial institution may offer
to a customer who is an eligible adult the opportunity to submit and
periodically update a list of individuals or entities that the eligible adult
authorizes the financial institution to contact when the financial service
provider has reasonable cause to suspect that the eligible adult is a victim or
a target of financial exploitation.
       (2)
A financial institution that has reasonable cause to suspect that an eligible
adult is the victim or target of financial exploitation may convey the
suspicion to one or more of the following, provided that the person is not the
suspected perpetrator:
  (a)
an individual or entity on the list described in subsection (a), if a list has
been provided by the eligible adult to the financial service provider;
  (b)
a co-owner, additional authorized signatory, or beneficiary on the eligible
adult's account at the financial institution; or
  (c)
a parent, spouse, adult child, sibling, or other known family member or close
associate of an eligible adult.
       (3)
When providing information under this section, a financial institution may
limit the information and disclose only that the financial institution has
reasonable cause to suspect that the eligible adult may be a victim or target
of financial exploitation without disclosing any other details or confidential
personal information regarding the financial affairs of the eligible adult.
       (4)
A financial institution may choose not to contact one or more individuals or
entities on the list provided pursuant to subsection (a) if the financial
institution suspects that the person or persons are engaged in financial
exploitation.
       (5)
If the determinations and actions of a financial institution or an employee of
a financial institution are made in good faith and in accordance with the
provisions of this section, then the financial institution or employee shall be
immune from criminal, civil, or administrative liability for making
communications pursuant to this subsection and for taking actions in
furtherance of a determination, including making a report or providing access
to or copies of relevant records to an investigative entity or law enforcement
agency.
SECTION 2.  This act takes effect upon approval
by the Governor.
----XX----
This web page was last updated on April 23, 2026 at 12:34 PM