House
File
839
-
Enrolled
House
File
839
AN
ACT
RELATING
TO
THE
FINANCIAL
EXPLOITATION
OF
DESIGNATED
ELIGIBLE
ADULTS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
502.607,
subsection
2,
Code
2021,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
g.
A
record
obtained
by
the
administrator
or
by
law
enforcement
under
section
502.809.
Sec.
2.
Section
502.607,
subsection
3,
Code
2021,
is
amended
to
read
as
follows:
3.
Administrator
discretion
to
disclose.
If
disclosure
is
for
the
purpose
of
a
civil,
administrative,
or
criminal
investigation,
action,
or
proceeding
or
to
a
person
specified
House
File
839,
p.
2
in
section
502.608,
subsection
1
,
the
administrator
may
disclose
a
record
obtained
in
connection
with
an
audit
or
inspection
under
section
502.411,
subsection
4
,
or
a
record
obtained
in
connection
with
an
investigation
under
section
502.602
or
section
502.809
.
Sec.
3.
NEW
SECTION
.
502.801
Definitions.
For
purposes
of
this
article,
unless
the
context
otherwise
requires:
1.
“Eligible
adult”
means
any
of
the
following:
a.
A
person
sixty-five
years
of
age
or
older.
b.
A
dependent
adult
as
defined
in
section
235B.2.
2.
“Financial
exploitation”
means
any
act
or
omission
taken
by
a
person
to
wrongfully
and
knowingly
deprive
an
eligible
adult
of
money,
assets,
or
property,
or
to
obtain
control
over
or
otherwise
use,
convert,
or
divert
the
benefits,
property,
resources,
or
assets
of
the
eligible
adult
by
intimidation,
deception,
coercion,
fraud,
extortion,
or
undue
influence.
3.
“Permissible
third
party”
means
any
of
the
following:
a.
A
person
the
eligible
adult
previously
designated
to
receive
the
notification
described
in
section
502.804.
b.
A
person
otherwise
permitted
to
receive
the
notification
described
in
section
502.804
by
any
state
or
federal
law
or
any
rule
issued
by
the
financial
industry
regulatory
authority.
4.
“Qualified
individual”
means
any
of
the
following:
a.
An
agent
who
has
received
training
pursuant
to
section
502.808.
b.
An
investment
adviser
representative
who
has
received
training
pursuant
to
section
502.808.
c.
A
person
who
has
received
training
pursuant
to
section
502.808
and
who
serves
in
a
supervisory,
compliance,
senior
investor
protection,
or
legal
capacity
for
any
of
the
following:
(1)
A
broker-dealer.
(2)
An
investment
adviser.
Sec.
4.
NEW
SECTION
.
502.802
Notification
to
administrator.
If
a
broker-dealer,
investment
adviser,
or
qualified
individual
reasonably
believes
financial
exploitation
of
an
eligible
adult
has
occurred,
has
been
attempted,
or
is
House
File
839,
p.
3
being
attempted,
the
broker-dealer,
investment
adviser,
or
qualified
individual
may
promptly
notify
the
administrator.
The
administrator
may
adopt
rules
regarding
the
form
and
manner
of
the
notification
under
this
section.
Sec.
5.
NEW
SECTION
.
502.803
Notification
to
administrator
——
immunity.
A
broker-dealer,
investment
adviser,
or
qualified
individual
who,
acting
reasonably
and
in
good
faith,
makes
a
disclosure
of
information
to
the
administrator
pursuant
to
this
article
shall
be
immune
from
administrative
or
civil
liability
that
might
otherwise
arise
from
such
disclosure
or
for
any
failure
to
notify
the
eligible
adult
of
the
disclosure.
Other
than
matters
related
to
the
reporting
of
the
financial
exploitation
of
an
eligible
adult
pursuant
to
this
section,
this
section
shall
not
abrogate
or
modify
any
existing
statutory
or
common
law
privileges
or
immunities.
Sec.
6.
NEW
SECTION
.
502.804
Notification
to
permissible
third
party.
1.
If
a
broker-dealer,
investment
adviser,
or
qualified
individual
reasonably
believes
financial
exploitation
of
an
eligible
adult
has
occurred,
has
been
attempted,
or
is
being
attempted,
the
broker-dealer,
investment
adviser,
or
qualified
individual
may
notify
a
permissible
third
party.
The
administrator
may
adopt
rules
regarding
the
form
and
manner
of
the
notification
under
this
section.
2.
Broker-dealers,
investment
advisers,
and
qualified
individuals
shall
not
notify
a
permissible
third
party
the
broker-dealer,
investment
adviser,
or
qualified
individual
reasonably
suspects
of
financial
exploitation
or
other
abuse
of
the
eligible
adult.
Sec.
7.
NEW
SECTION
.
502.805
Notification
to
permissible
third
party
——
immunity.
A
broker-dealer,
investment
adviser,
or
qualified
individual
who,
acting
reasonably
and
in
good
faith,
complies
with
section
502.804
shall
be
immune
from
any
administrative
or
civil
liability
that
might
otherwise
arise
from
such
disclosure.
Sec.
8.
NEW
SECTION
.
502.806
Disbursements
or
transactions
——
delay.
1.
If
a
broker-dealer,
investment
adviser,
or
qualified
House
File
839,
p.
4
individual
reasonably
believes
a
disbursement
or
transaction
will
likely
result
in
or
contribute
to
the
financial
exploitation
of
an
eligible
adult,
the
broker-dealer,
investment
adviser,
or
qualified
individual
shall
initiate
an
internal
review
of
the
requested
disbursement
or
transaction.
2.
A
broker-dealer
or
investment
adviser
may
delay
a
disbursement
or
transaction
from
an
eligible
adult’s
account
or
an
account
on
which
an
eligible
adult
is
a
beneficiary
if
all
of
the
following
apply:
a.
The
broker-dealer,
investment
adviser,
or
qualified
individual
reasonably
believes,
after
initiating
the
internal
review
referenced
in
subsection
1,
that
the
requested
disbursement
or
transaction
will
likely
result
in
or
contribute
to
the
financial
exploitation
of
an
eligible
adult.
b.
Immediately,
but
in
no
event
more
than
two
business
days
after
the
disbursement
or
transaction
is
delayed,
the
broker-dealer
or
investment
adviser
provides
written
notification
of
the
delay
and
the
reason
for
the
delay
to
all
persons
authorized
to
transact
business
on
the
account.
Broker-dealers,
investment
advisers,
and
qualified
individuals
shall
not
notify
a
person
authorized
to
transact
business
on
the
account
if
the
broker-dealer,
investment
adviser,
or
qualified
individual
reasonably
believes
the
person
has
committed
financial
exploitation,
attempted
financial
exploitation,
or
other
abuse
of
the
eligible
adult.
c.
Immediately,
but
in
no
event
more
than
two
business
days
after
the
disbursement
or
transaction
is
delayed,
the
broker-dealer
or
investment
adviser
notifies
the
administrator
of
the
delay
and
provides
to
the
administrator
the
reason
for
the
delay,
including
the
results
of
the
internal
review
referenced
in
subsection
1.
d.
The
broker-dealer
or
investment
adviser
continues
the
internal
review
of
the
suspected
or
attempted
financial
exploitation
of
the
eligible
adult,
as
necessary,
and
provides
the
administrator
with
updates
upon
request.
3.
Any
delay
of
a
disbursement
or
transaction
authorized
by
this
section
will
expire
upon
the
first
to
occur
of
any
of
the
following:
a.
A
determination
by
the
broker-dealer
or
investment
House
File
839,
p.
5
adviser
that
the
disbursement
or
transaction
will
not
result
in
or
contribute
to
financial
exploitation
of
the
eligible
adult.
b.
Fifteen
business
days
after
the
date
on
which
the
broker-dealer
or
investment
adviser
first
delayed
disbursement
of
the
funds
or
transaction,
unless
the
administrator
requests
the
broker-dealer
or
investment
adviser
to
extend
the
delay,
in
which
case
the
delay
shall
expire
no
more
than
twenty-five
business
days
after
the
date
on
which
the
broker-dealer
or
investment
adviser
first
delayed
the
disbursement
of
the
funds
or
the
transaction.
4.
Notwithstanding
subsection
3,
upon
the
petition
of
the
administrator,
the
broker-dealer
or
investment
adviser
who
initiated
the
delay
pursuant
to
this
section,
or
another
interested
party,
a
court
of
competent
jurisdiction
may
enter
an
order
terminating,
extending,
or
modifying
the
delay
of
the
disbursement
or
transaction
and
may
order
other
protective
relief.
5.
The
administrator
may
adopt
rules
regarding
the
form
and
manner
of
the
notifications
under
this
section.
Sec.
9.
NEW
SECTION
.
502.807
Disbursements
of
transactions
——
delay
——
immunity.
A
broker-dealer
or
investment
adviser
who,
acting
reasonably
and
in
good
faith,
complies
with
section
502.806
shall
be
immune
from
any
administrative
or
civil
liability
that
might
otherwise
arise
from
such
delay
in
a
disbursement
or
transaction.
Sec.
10.
NEW
SECTION
.
502.808
Training
requirements.
1.
A
broker-dealer
or
investment
adviser
shall
provide
to
its
qualified
individuals
training
appropriate
to
the
job
responsibilities
of
a
qualified
individual.
The
training
shall
include
all
of
the
following:
a.
Instruction
on
how
to
identify
the
suspected
or
attempted
exploitation
of
an
eligible
adult,
including
common
signs
indicating
the
financial
exploitation
of
an
eligible
adult,
and
how
to
provide
notification
regarding
the
suspected
or
attempted
exploitation
of
an
eligible
adult.
b.
Instruction
regarding
privacy
and
confidentiality
requirements.
2.
A
broker-dealer
or
investment
adviser
shall
provide
House
File
839,
p.
6
the
training
required
by
this
section
as
soon
as
reasonably
practicable,
but
at
least
within
one
year
after
the
date
the
qualified
individual
begins
employment
with
or
becomes
affiliated
or
associated
with
a
broker-dealer
or
investment
adviser.
3.
The
administrator
may
adopt
rules
specifying
the
content
and
method
of
the
training
required
by
this
section.
Sec.
11.
NEW
SECTION
.
502.809
Records.
A
broker-dealer
or
investment
adviser
shall
provide
access
to
or
copies
of
records
that
are
relevant
to
the
suspected
or
attempted
financial
exploitation
of
an
eligible
adult
to
the
administrator,
either
as
part
of
a
notification
to
the
administrator
pursuant
to
section
502.802,
or
upon
the
request
of
the
administrator.
The
records
may
include
historical
records
as
well
as
records
relating
to
the
most
recent
transactions
that
may
comprise
financial
exploitation
of
an
eligible
adult.
The
administrator
may
share
the
records
with
law
enforcement
if
the
administrator
determines
it
is
necessary
or
appropriate
in
the
public
interest
and
for
the
protection
of
the
eligible
adult.
All
records
made
available
to
the
administrator
or
law
enforcement
pursuant
to
this
section
shall
be
considered
confidential
public
records
under
chapter
22
and
shall
not
be
available
for
examination
by
the
public
pursuant
to
section
22.2.
Nothing
in
this
section
shall
limit
or
otherwise
impede
the
authority
of
the
administrator
or
law
enforcement
to
access
or
examine
the
books
and
records
of
broker-dealers
and
investment
advisers
as
otherwise
provided
by
law.
Sec.
12.
NEW
SECTION
.
502.810
Financial
exploitation
——
reporting.
Annually,
on
or
before
January
15
of
each
year,
the
insurance
division
shall
submit
a
report
to
the
governor
and
the
general
assembly
concerning
the
notifications
the
insurance
division
received
related
to
the
potential
financial
exploitation
of
eligible
adults,
and
the
insurance
division’s
investigation
of
the
notifications,
during
the
preceding
calendar
year.
The
report
shall
include
the
number
of
notifications
the
insurance
division
received,
the
amount
of
time
employees
of
the
insurance
division
spent
investigating
the
notifications,
House
File
839,
p.
7
and
the
number
of
incidents
of
founded
financial
exploitation
of
eligible
adults.
______________________________
PAT
GRASSLEY
Speaker
of
the
House
______________________________
JAKE
CHAPMAN
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
839,
Eighty-ninth
General
Assembly.
______________________________
MEGHAN
NELSON
Chief
Clerk
of
the
House
Approved
_______________,
2021
______________________________
KIM
REYNOLDS
Governor