HB 1110

NOTE: This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor. To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
     HOUSE BILL 26-1110
     BY REPRESENTATIVE(S) Camacho and Jackson, Duran, Espenoza,
     Gonzalez R., Hamrick, Lieder, McCormick, Nguyen, Boesenecker, Brown,
     Caldwell, Clifford, Flanell, Froelich, Joseph, Mabrey, Marshall, Paschal,
     Ricks, Rutinel, Sirota, Smith, Stewart K., Stewart R., Story, McCluskie;
     also SENATOR(S) Catlin and Danielson, Simpson, Ball, Bridges, Carson,
     Cutter, Exum, Hinrichsen, Jodeh, Kipp, Kolker, Marchman, Rodriguez,
     Snyder, Sullivan, Wallace, Coleman.
     CONCERNING THE PROTECTION OF VULNERABLE ADULTS FROM FINANCIAL
          EXPLOITATION IN RELATION TO FINANCIAL INSTITUTIONS.
     Be it enacted by the General Assembly of the State of Colorado:
            SECTION 1. In Colorado Revised Statutes, add article 113 to title
     11 as follows:
                                     ARTICLE 113
                          Adults' Security and Safeguards from
                            Exploitation in Transactions Act
             11-113-101. Short title.
     ________
     Capital letters or bold & italic numbers indicate new material added to existing law; dashes
     through words or numbers indicate deletions from existing law and such material is not part of
     the act.
     THE SHORT TITLE OF THIS ARTICLE 113 IS THE "ADULTS' SECURITY
AND SAFEGUARDS FROM EXPLOITATION IN TRANSACTIONS ACT" OR THE
"ASSET ACT".
      11-113-102. Definitions.
      AS USED IN THIS ARTICLE 113, UNLESS THE CONTEXT OTHERWISE
REQUIRES:
      (1) "DISBURSEMENT" MEANS A TRANSACTION BY A FINANCIAL
INSTITUTION TO OR FOR THE BENEFIT OF A MEMBER OR ACCOUNT HOLDER,
REGARDLESS OF THE METHOD, MEDIUM, INSTRUMENT, CHANNEL, OR
TECHNOLOGY USED FOR THE TRANSACTION.
      (2) "ELIGIBLE ADULT" MEANS:
      (a) AN INDIVIDUAL SEVENTY YEARS OLD OR OLDER; OR
      (b)   AN INDIVIDUAL EIGHTEEN YEARS OLD OR OLDER WHO IS
SUSCEPTIBLE  TO MISTREATMENT OR SELF-NEGLECT BECAUSE THE
INDIVIDUAL:
      (I) IS UNABLE TO PERFORM OR OBTAIN SERVICES NECESSARY FOR THE
INDIVIDUAL'S HEALTH, SAFETY, OR WELFARE; OR
      (II) LACKS SUFFICIENT UNDERSTANDING OR CAPACITY TO MAKE OR
COMMUNICATE RESPONSIBLE DECISIONS CONCERNING THE INDIVIDUAL'S
PERSON OR AFFAIRS.
      (3) "FINANCIAL EXPLOITATION" MEANS AN ACT OR OMISSION
COMMITTED BY A PERSON THAT:
      (a)   USES DECEPTION, HARASSMENT, INTIMIDATION, OR UNDUE
INFLUENCE TO PERMANENTLY OR TEMPORARILY DEPRIVE AN ELIGIBLE ADULT
OF THE USE, BENEFIT, OR POSSESSION OF ANYTHING OF VALUE;
      (b) EMPLOYS THE SERVICES OF A THIRD PARTY FOR THE PROFIT OR
ADVANTAGE OF THE PERSON OR ANOTHER PERSON TO THE DETRIMENT OF
THE ELIGIBLE ADULT;
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      (c) FORCES, COMPELS, COERCES, OR ENTICES AN ELIGIBLE ADULT TO
PERFORM SERVICES FOR THE PROFIT OR ADVANTAGE OF THE PERSON OR
ANOTHER PERSON; OR
      (d) MISUSES THE PROPERTY OF AN ELIGIBLE ADULT IN A MANNER
THAT ADVERSELY AFFECTS THE ELIGIBLE ADULT'S ABILITY TO RECEIVE
HEALTH CARE OR HEALTH-CARE BENEFITS OR TO PAY FOR BASIC NEEDS OR
OBLIGATIONS.
      (4) "FINANCIAL INSTITUTION" MEANS:
      (a) A BANK, AS DEFINED IN SECTION 11-101-401 (5); OR
      (b) A CREDIT UNION, AS DESCRIBED IN SECTION 11-30-101 (1).
      (5) "GOOD FAITH" MEANS HONESTY IN FACT IN THE TRANSACTION
AND SOME REASONABLE GROUND FOR BELIEF THAT THE TRANSACTION IS
RIGHTFUL OR AUTHORIZED.
      (6) "QUALIFIED INDIVIDUAL" MEANS AN EMPLOYEE OF A FINANCIAL
INSTITUTION WHO:
      (a) PERFORMS MONETARY TRANSACTIONS FOR, SELLS FINANCIAL
SERVICES TO, OR APPROVES LOANS FOR CUSTOMERS OF OR MEMBERS OF THE
FINANCIAL INSTITUTION;
       (b) SUPERVISES AN EMPLOYEE DESCRIBED IN SUBSECTION (6)(a) OF
THIS SECTION; OR
      (c) HAS THE RESPONSIBILITY OF ENSURING COMPLIANCE WITH THE
FINANCIAL INSTITUTION'S LEGAL DUTIES.
      11-113-103. Disclosures to governmental agencies - immunity.
      (1) IF A QUALIFIED INDIVIDUAL REASONABLY BELIEVES, WHILE
ACTING WITHIN THE SCOPE OF THEIR EMPLOYMENT, THAT FINANCIAL
EXPLOITATION OF AN ELIGIBLE ADULT MAY HAVE OCCURRED, MAY HAVE
BEEN ATTEMPTED, OR MAY BE OR IS BEING ATTEMPTED, THE QUALIFIED
INDIVIDUAL SHALL NOTIFY OR CAUSE TO BE NOTIFIED LOCAL LAW
ENFORCEMENT OR THE COUNTY AGENCY HANDLING ADULT PROTECTIVE
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SERVICES WHERE THE ELIGIBLE ADULT RESIDES.
     (2) A QUALIFIED INDIVIDUAL WHO, IN GOOD FAITH AND EXERCISING
REASONABLE CARE, MAKES A DISCLOSURE OF INFORMATION PURSUANT TO
THIS SECTION IS IMMUNE FROM ADMINISTRATIVE OR CIVIL LIABILITY THAT
MIGHT OTHERWISE ARISE FROM THE DISCLOSURE OR FROM ANY FAILURE TO
NOTIFY A CUSTOMER OF THE DISCLOSURE.
      11-113-104. Disclosures to third parties - immunity.
       (1) IF A QUALIFIED INDIVIDUAL, WHILE ACTING WITHIN THEIR SCOPE
OF EMPLOYMENT, REASONABLY BELIEVES THAT FINANCIAL EXPLOITATION OF
AN ELIGIBLE ADULT MAY HAVE OCCURRED, MAY HAVE BEEN ATTEMPTED, OR
MAY BE OR IS BEING ATTEMPTED, THE QUALIFIED INDIVIDUAL MAY NOTIFY
A THIRD PARTY PREVIOUSLY DESIGNATED BY OR REASONABLY ASSOCIATED
WITH THE ELIGIBLE ADULT. A QUALIFIED INDIVIDUAL SHALL TAKE
REASONABLE CARE TO NOT NOTIFY A DESIGNATED THIRD PARTY WHO IS
SUSPECTED OF FINANCIAL EXPLOITATION OR OTHER ABUSE OF THE ELIGIBLE
ADULT.
     (2) A QUALIFIED INDIVIDUAL WHO, IN GOOD FAITH AND EXERCISING
REASONABLE CARE, COMPLIES WITH THIS SECTION IS IMMUNE FROM ANY
ADMINISTRATIVE OR CIVIL LIABILITY THAT MIGHT OTHERWISE ARISE FROM
A DISCLOSURE DESCRIBED IN SUBSECTION (1) OF THIS SECTION.
      11-113-105. Delaying disbursements - immunity.
      (1) SUBJECT TO SUBSECTION (2) OF THIS SECTION, A FINANCIAL
INSTITUTION OR QUALIFIED INDIVIDUAL MAY DELAY A DISBURSEMENT FROM
AN ACCOUNT IF:
      (a) THE FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL
REASONABLY BELIEVES THAT THE ELIGIBLE ADULT IS SUBJECT TO FINANCIAL
EXPLOITATION; AND
      (b) THE FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL:
      (I) AS SOON AS POSSIBLE BUT WITHIN TWO BUSINESS DAYS AFTER
THE REQUESTED DISBURSEMENT, PROVIDES WRITTEN NOTIFICATION, WHICH
MAY BE DELIVERED ELECTRONICALLY, OF THE DELAY AND THE SPECIFIC
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REASON FOR THE DELAY TO ALL PARTIES AUTHORIZED TO TRANSACT
BUSINESS ON THE ACCOUNT; EXCEPT THAT THE FINANCIAL INSTITUTION OR
QUALIFIED INDIVIDUAL NEED NOT NOTIFY A PARTY WHO IS REASONABLY
BELIEVED TO HAVE ENGAGED IN SUSPECTED OR ATTEMPTED FINANCIAL
EXPLOITATION OF THE ELIGIBLE ADULT;
       (II) WITHIN TWO BUSINESS DAYS AFTER THE REQUESTED
DISBURSEMENT, MAKES THE NOTIFICATION REQUIRED IN SECTION 11-113-103
(1); AND
      (III) CONTINUES ITS INTERNAL REVIEW OF THE SUSPECTED OR
ATTEMPTED FINANCIAL EXPLOITATION OF THE ELIGIBLE ADULT, AS
NECESSARY.
      (2) (a) SUBJECT TO SUBSECTION (2)(b) OF THIS SECTION, A DELAY OF
A DISBURSEMENT AUTHORIZED BY THIS SECTION MAY CONTINUE UNTIL:
      (I)   THE FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL
REASONABLY BELIEVES THAT THE ELIGIBLE ADULT IS NOT SUBJECT TO
FINANCIAL EXPLOITATION;
     (II) LOCAL LAW ENFORCEMENT OR THE COUNTY AGENCY HANDLING
ADULT PROTECTIVE SERVICES, DEPENDING ON WHICH AGENCY IS
CONDUCTING THE INVESTIGATION, CONCLUDES ITS INVESTIGATION; OR
      (III) A COURT ORDERS THAT THE DELAY BE REMOVED.
      (b) THE FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL SHALL
MAKE THE DETERMINATION DESCRIBED IN SUBSECTION (2)(a)(I) OF THIS
SECTION WITHIN NINETY DAYS AFTER BEGINNING THE DELAY; EXCEPT THAT
THE FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL MAY DELAY THE
DISBURSEMENT FOR AN ADDITIONAL NINETY DAYS AFTER THE INITIAL DELAY
IF THE FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL HAS MADE THE
NOTIFICATION REQUIRED IN SECTION 11-113-103 (1) AND THE
DISBURSEMENT IS PENDING THE CONCLUSION OF AN INVESTIGATION OF
LOCAL LAW ENFORCEMENT OR THE COUNTY AGENCY HANDLING ADULT
PROTECTIVE SERVICES, AS APPLICABLE.
      (c) A COURT MAY ENTER AN ORDER EXTENDING THE DELAY OF A
DISBURSEMENT OR MAY ORDER OTHER PROTECTIVE RELIEF BASED ON A
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PETITION OF AN AGENCY PROVIDING PROTECTIVE SERVICES FOR ELIGIBLE
ADULTS, A FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL THAT
INITIATED THE DELAY UNDER THIS SECTION, OR ANOTHER INTERESTED
PARTY.
      (3) (a) A FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL SHALL
REASONABLY RELEASE THE DISBURSEMENT AUTHORIZED BY THIS SECTION
IF THE FINANCIAL INSTITUTION, A QUALIFIED INDIVIDUAL, LOCAL LAW
ENFORCEMENT, A COUNTY AGENCY HANDLING ADULT PROTECTIVE SERVICES,
OR A COURT DETERMINES THAT THE ELIGIBLE ADULT IS NOT SUBJECT TO
FINANCIAL EXPLOITATION.
      (b) A FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL MAY
REFUSE THE DISBURSEMENT AUTHORIZED BY THIS SECTION UPON A FINDING
OF FINANCIAL EXPLOITATION BY LOCAL LAW ENFORCEMENT, A COUNTY
AGENCY HANDLING ADULT PROTECTIVE SERVICES, OR A COURT OR UPON THE
EXPIRATION OF THE ONE-HUNDRED-EIGHTY-DAY PERIOD DESCRIBED IN
SUBSECTION (2)(b) OF THIS SECTION IF LOCAL LAW ENFORCEMENT OR A
COUNTY AGENCY HANDLING ADULT PROTECTIVE SERVICES HAS NOT
NOTIFIED THE FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL OF THE
FINDINGS OF THE INVESTIGATION.
     (4) A FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL THAT, IN
GOOD FAITH AND EXERCISING REASONABLE CARE, COMPLIES WITH THIS
SECTION IS IMMUNE FROM ADMINISTRATIVE OR CIVIL LIABILITY THAT MIGHT
OTHERWISE ARISE FROM A DELAY OF A DISBURSEMENT IN ACCORDANCE WITH
THIS SECTION.
      11-113-106. Immunity for reasonable good faith omissions.
      A FINANCIAL INSTITUTION OR QUALIFIED INDIVIDUAL THAT, IN GOOD
FAITH AND EXERCISING REASONABLE CARE, FAILS TO PROVIDE NOTICE
PURSUANT TO SECTION 11-113-103 (1) OR FAILS TO DELAY A DISBURSEMENT
PURSUANT TO SECTION 11-113-105 IS IMMUNE FROM ADMINISTRATIVE OR
CIVIL LIABILITY FOR THE FAILURE TO PROVIDE THE NOTICE OR TO DELAY THE
DISBURSEMENT.
      11-113-107. Records.
      (1) A FINANCIAL INSTITUTION SHALL PROVIDE ACCESS TO OR COPIES
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OF THE ELIGIBLE ADULT'S RECORDS THAT ARE RELEVANT TO SUSPECTED OR
ATTEMPTED FINANCIAL EXPLOITATION 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. THE RECORDS MAY INCLUDE HISTORICAL
RECORDS AS WELL AS RECORDS RELATING TO THE MOST RECENT
TRANSACTION OR TRANSACTIONS THAT MAY COMPRISE FINANCIAL
EXPLOITATION OF AN ELIGIBLE ADULT.
      (2) RECORDS MADE AVAILABLE TO AGENCIES UNDER THIS SECTION
ARE NOT PUBLIC RECORDS, AS DEFINED IN SECTION 24-72-202.
       (3) THIS SECTION DOES NOT LIMIT OR OTHERWISE IMPEDE THE
AUTHORITY OF THE STATE COMMISSIONER OF FINANCIAL SERVICES OR THE
STATE BANK COMMISSIONER TO ACCESS OR EXAMINE THE BOOKS AND
RECORDS OF FINANCIAL INSTITUTIONS OR AS OTHERWISE PROVIDED BY LAW.
       11-113-108. Multiple duties to report.
      COMPLIANCE WITH THIS ARTICLE 113 DOES NOT DISCHARGE THE
DUTY OF A PERSON TO REPORT MISTREATMENT UNDER SECTION 18-6.5-108
TO LOCAL LAW ENFORCEMENT.
        SECTION 2. Act subject to petition - effective date -
applicability. (1) This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly (August 12, 2026, if adjournment sine die is on May 13,
2026); except that, if a referendum petition is filed pursuant to section 1 (3)
of article V of the state constitution against this act or an item, section, or
part of this act within such period, then the act, item, section, or part will
not take effect unless approved by the people at the general election to be
held in November 2026 and, in such case, will take effect on the date of the
official declaration of the vote thereon by the governor.
PAGE 7-HOUSE BILL 26-1110
       (2) This act applies to financial institution transactions attempted or
occurring on or after the applicable effective date of this act.
____________________________  ____________________________
Julie McCluskie  James Rashad Coleman, Sr.
SPEAKER OF THE HOUSE  PRESIDENT OF
OF REPRESENTATIVES  THE SENATE
____________________________  ____________________________
Vanessa Reilly  Esther van Mourik
CHIEF CLERK OF THE HOUSE  SECRETARY OF
OF REPRESENTATIVES  THE SENATE
       APPROVED________________________________________
                          (Date and Time)
                    _________________________________________
                   Jared S. Polis
                   GOVERNOR OF THE STATE OF COLORADO
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