Bill
SB 1389
Expands protections for eligible adults by making financial institutions and certain financial professionals mandatory reporters of financial exploitation.
Status snapshot
- Bill number: SB 1389 (2025)
- Statutory changes: Amends the Adult Protective Services Act (320 ILCS 20/2) and adds new Section 2.5 (320 ILCS 20/2.5)
- Primary sponsor (documented): Sen. Mike Simmons
- Current status (per provided record): Rule 3‑9(a) / Re‑referred to Assignments (April 11, 2025). Companion: HB 1070.
Purpose and intent
- Expand protections for “eligible adults” (adults with disabilities aged 18–59 and persons aged 60+ who live in domestic settings) against financial exploitation, and broaden the statutory list of mandated reporters to include certain financial industry actors to improve detection and reporting of financial abuse.
Key provisions
- Mandated reporters: Adds broker‑dealers and officers, managers, and employees of financial institutions to the list of mandated reporters under the Adult Protective Services Act.
- Definition of financial exploitation: Specifies that financial exploitation of an eligible adult occurs where a person or entity:
1. takes, secretes, appropriates, obtains, or retains real or personal property of an eligible adult for wrongful use or with intent to defraud;
2. assists in any of the above acts;
3. knowingly aids and abets such acts; or
4. takes or assists in taking property by undue influence.
- Tests for “assistance”: Establishes when a financial institution (or its officers, managers, employees), a broker‑dealer, or an investment adviser is deemed to have “assisted” in taking or retaining property of an eligible adult (text sets standards for conduct establishing assistance).
- Broader reporter standards: Also sets out when other mandated reporters are deemed to have “assisted” in such conduct.
- Liability protection: Exempts nonsupervisory employees of a financial institution from liability (presumably civil/criminal liability) for actions taken under the reporting requirements (intended to protect front‑line staff who report suspected exploitation).
Definitions added/clarified
- Adds or updates statutory definitions relevant to the protections, including “broker‑dealer” (SEC‑registered entities), “adult with disabilities,” “eligible adult,” and related caregiving and living‑situation terms to align with application of the reporting rules.
Who is affected
- Primary: eligible adults (older adults and adults with disabilities) — expected improved detection and response to financial abuse.
- Financial sector: broker‑dealers, financial institutions, investment advisers, and their officers, managers, and employees — new mandatory reporting duties and potential internal compliance, training, and reporting processes.
- Mandated reporters across sectors who may face clarified obligations and standards for “assistance.”
- State agencies (Department on Aging / Adult Protective Services) — increased caseloads and coordination with financial institutions.
Procedural/timeline notes
- Bill amends specific sections of the Illinois Adult Protective Services Act (320 ILCS 20).
- As of the latest available entries, the bill has completed initial readings and committee referrals and was re‑referred to Assignments under Rule 3‑9(a) (4/11/2025). Additional committee actions and hearings are recorded in the legislative history.
Potential impact and considerations
- Expected benefits: earlier detection and reporting of financial exploitation, stronger protection for vulnerable adults, and clearer legal standards for when financial entities are implicated.
- Administrative costs/needs: financial institutions will need policies, staff training, and coordination procedures; Adult Protective Services may require resources to investigate additional reports.
- Legal balance: liability exemptions for nonsupervisory employees aim to encourage reporting, but institutions and senior managers may face increased scrutiny and potential liability depending on the degree of “assistance” defined in the law.
For more detail
- Statutory citations: proposed amendments to 320 ILCS 20/2 and addition of 320 ILCS 20/2.5.
- Companion bill: HB 1070 (track for parallel action).
Compiled from official sources — confirm details with the bill’s official record.
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