South Carolina H 5162: Christian Clauss

Bill Text

2025-2026 Bill 5162 Text of Previous Version (Feb. 24, 2026) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 5162

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

Amended

February 24, 2026

H. 5162

Introduced by Reps. Herbkersman, Bernstein, 
Rivers, Weeks, Hardee, W. Newton, Brittain, Gatch, Montgomery, Lawson, J. E. 
Johnson, B. Newton, McCabe, Rankin, Brewer, Chumley, Gagnon, McGinnis, M. M. 
Smith, Williams, Ligon, Kirby, Anderson, Henderson-Myers, Govan, Oremus, Hartz 
and Wickensimer 

S. Printed 2/24/26--H.

Read the first time February 11, 2026

________

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 
ELIGIBLE ADULTS AND TO OUTLINE A PROCEDURE FOR ESTABLISHING EMERGENCY CONTACTS 
FOR ELIGIBLE ADULTS TO PROTECT ELIGIBLE ADULTS FROM FINANCIAL EXPLOITATION.

 Amend Title To Conform

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) 
improper, unlawful, or unauthorized use of the funds, assets, property, power 
of attorney, guardianship, or conservatorship of a vulnerable adult by a person 
for the profit or advantage of that person or another person; or

 (b) 
causing an eligible adult to purchase goods or services or engage in a 
transaction for the profit or advantage of the seller or another person through 
undue influence, harassment, duress, force, coercion, or swindling by 
overreaching, cheating, misrepresentations, or defrauding the eligible adult 
through cunning arts or devices that delude the eligible adult and cause him to 
lose money or other 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 
decline or hold of a disbursement or transaction as authorized by this section 
will expire:

 (1) 
upon a determination by the financial institution that allowing the transaction 
will not result in the financial exploitation of an eligible adult;

 (2) 
at the time provided for by the financial institution in its account agreement;

 (3) 
if not otherwise provided for in a financial institution's account agreement, 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; or

 (4) 
the order of a court of competent jurisdiction.

 (G) A 
financial institution may provide access to or copies of records relevant to