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South DakotaHB 1238101st South Dakota Legislature (2026)House

protect financial institutions taking action to prevent the financial exploitation of consenting, senior, or vulnerable adults.

Sponsored By: Sponsor information unavailable

Signed by Governor

Banks and BankingCrimesLiability

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 0 costs, 2 mixed.

Banks gain legal protection for exploitation responses

The law shields covered financial institutions, their bank holding companies, and their employees, agents, officers, and directors from liability. This covers civil, criminal, and administrative liability for delaying or refusing transactions—or choosing not to—under the law. It also protects actions taken to carry out decisions made under the law. A transaction refusal under this law does not count as wrongful dishonor, despite other laws. These protections support exploitation responses but limit adults’ ability to hold institutions responsible for covered conduct.

New bank safeguards for adults facing exploitation

South Dakota banks, credit unions, trust companies, and other covered financial institutions can act on reasonable concerns about financial exploitation. Exploitation includes wrongful use of money, property, or identifying information, including misuse by someone managing an adult’s finances. The law covers adults age 65 or older and account holders who give written consent for protective action. It also covers adults age 18 or older with substantial mental or functional impairment, or an appointed guardian or conservator. Covered accounts include those adults own alone or jointly, or for which they are beneficiaries. Institutions can delay or refuse withdrawals, transfers, payments, loan requests or draws, and property liens. They can also block ownership or access changes, power-of-attorney instructions, and beneficiary changes. Action is allowed when exploitation is reasonably suspected, including past or attempted exploitation, or qualifying agency information supports that concern. Institutions are not required to act. The authority ends 30 business days after the first action, sooner if the institution is satisfied exploitation will not result or a court ends it. Unless a court directs otherwise, institutions can extend it when they reasonably believe exploitation may continue or be attempted. Institutions can alert family, close associates, authorized contacts, account co-owners, signers, beneficiaries, financial representatives, or lawyers associated with the adult. They can withhold notice if they suspect that person’s involvement or law enforcement requests silence to protect an investigation. These safeguards can protect money, but can also block access to funds and disclose concerns to others.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 109 • No: 7

Senate vote • 3/4/2026

Do Pass

Yes: 34 • No: 0

Senate vote • 3/3/2026

Do Pass

Yes: 8 • No: 0

House vote • 2/12/2026

Do Pass

Yes: 56 • No: 6

House vote • 2/11/2026

Do Pass

Yes: 11 • No: 1

Actions Timeline

  1. Signed by the Governor

    3/12/2026House

  2. Delivered to the Governor

    3/10/2026House

  3. Signed by the President

    3/9/2026Senate

  4. Signed by the Speaker

    3/5/2026House

  5. Senate Do Pass, Passed, YEAS 34, NAYS 0

    3/4/2026Senate

  6. Certified uncontested, placed on consent

    3/3/2026Senate

  7. Senate Commerce and Energy Do Pass, Passed, YEAS 8, NAYS 0

    3/3/2026Senate

  8. Scheduled for hearing

    3/3/2026Senate

  9. First read in Senate and referred to Senate Commerce and Energy

    2/17/2026Senate

  10. House of Representatives Do Pass, Passed, YEAS 56, NAYS 6

    2/12/2026House

  11. House Commerce and Energy Do Pass, Passed, YEAS 11, NAYS 1

    2/11/2026House

  12. Scheduled for hearing

    2/11/2026House

  13. First read in House and referred to House Commerce and Energy

    1/29/2026House

Bill Text

  • Introduced

    1/29/2026

    PDF

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