H.F. 416 Section 1. NEW SECTION . 633B.3 Acknowledgment of fiduciary 1 responsibility —— forms —— registration of power of attorney. 2 1. In order to execute a valid power of attorney in this 3 state, an individual shall complete a power of attorney which 4 includes as part of the power of attorney or as an attachment, 5 an acknowledgment of fiduciary responsibility. The power of 6 attorney shall be signed and notarized. The attorney in fact 7 or agent shall register the completed, signed, and notarized 8 original power of attorney with the secretary of state 9 within ten days of the execution of the power of attorney. 10 Registration of the power of attorney shall be accompanied by a 11 registration fee established by the secretary of state pursuant 12 to subsection 4. 13 2. a. The state court administrator shall develop and 14 approve the content of a power of attorney, including the 15 acknowledgment of fiduciary responsibility, to be used in 16 executing a valid power of attorney. The secretary of state 17 shall make such power of attorney available to the public. A 18 power of attorney from any other source may be used to execute 19 a valid power of attorney if the power of attorney complies 20 with the content requirements developed and approved by the 21 state court administrator. 22 b. The acknowledgment of fiduciary responsibility shall 23 include but is not limited to statements to which the attorney 24 in fact or agent attests that the attorney in fact or agent 25 will do all of the following: 26 (1) Act in accordance with the principal’s reasonable 27 expectations to the extent actually known by the attorney in 28 fact or agent and otherwise in the principal’s best interest. 29 (2) Act in good faith on behalf of the principal. 30 (3) Act only within the scope of the authority granted in 31 the power of attorney. 32 (4) Act loyally for the principal’s benefit. 33 (5) Act so as not to create a conflict of interest that 34 impairs the attorney in fact’s or agent’s ability to act 35 -1- LSB 1388HH (9) 85 pf/nh 1/ 11

H.F. 416 impartially in the principal’s best interest. 1 (6) Act with the care, competence, and diligence ordinarily 2 exercised by an individual in similar circumstances. 3 (7) Keep a record of all receipts, disbursements, and 4 transactions made on behalf of the principal. 5 (8) Cooperate with an individual who has authority to 6 make health care decisions for the principal to carry out the 7 principal’s reasonable expectations to the extent actually 8 known by the attorney in fact or agent and otherwise act in the 9 principal’s best interest. 10 (9) Attempt to preserve the principal’s estate plan, to 11 the extent actually known by the attorney in fact or agent, if 12 preserving the plan is consistent with the principal’s best 13 interest based on all relevant factors. 14 c. Any power of attorney document made available to the 15 public shall be accompanied by information regarding the 16 responsibilities of an attorney in fact or agent, instructions 17 for completion of the power of attorney, and information 18 relating to registration of the power of attorney. 19 3. Upon registration of the power of attorney, the secretary 20 of state shall execute a certified true copy of the power of 21 attorney for filing and shall return the original power of 22 attorney to the attorney in fact or agent. The secretary of 23 state shall provide an additional certified true copy of the 24 registered power of attorney upon request of an attorney in 25 fact or an agent. 26 4. The secretary of state shall establish fees for 27 registration of a power of attorney and for provision of a 28 certified true copy of the power of attorney in reasonable 29 amounts sufficient to offset expenses incurred in the 30 administration of this section. Fees collected shall be 31 treated as repayment receipts as defined in section 8.2 and 32 shall be used for the administration of this section. 33 5. The attorney in fact or agent shall notify the secretary 34 of state if the power of attorney is revoked or upon death of 35 -2- LSB 1388HH (9) 85 pf/nh 2/ 11

H.F. 416 the principal. 1 6. A power of attorney registered under this section shall 2 be maintained as a confidential record. However, the secretary 3 of state shall make available to the public a listing of the 4 names of all principals and respective attorneys in fact or 5 agents. 6 7. This section shall apply to a power of attorney executed 7 on or after January 1, 2014. A power of attorney executed 8 prior to January 1, 2014, is valid as executed and may be 9 registered as executed with the secretary of state as provided 10 under this section. 11 Sec. 2. NEW SECTION . 633B.4 Attorney in fact or agent —— 12 financial exploitation of principal —— prohibitions after death 13 of principal. 14 1. An individual who, while acting as the attorney in fact 15 or agent for a principal under a power of attorney, financially 16 exploited the principal, shall not receive any property, 17 benefit, or other interest following the death of the principal 18 as an heir, distributee, beneficiary, appointee, or in any 19 other capacity whether the property, benefit, or other interest 20 passed under any form of title registration, testamentary or 21 nontestamentary instrument, intestacy, renunciation, or any 22 other circumstance. The property, benefit, or other interest 23 shall pass as if the attorney in fact or agent who financially 24 exploited the principal predeceased the decedent. 25 2. An individual who, while acting as the attorney in 26 fact or agent for a principal under a power of attorney, 27 financially exploited the principal, and who is a named 28 beneficiary of a bond, life insurance policy, or any other 29 contractual arrangement, following the death of the principal 30 is not entitled to any benefit under the bond, policy, or 31 other contractual arrangement, and the benefits become payable 32 as though the attorney in fact or agent had predeceased the 33 decedent. 34 3. For the purposes of this section, “financial 35 -3- LSB 1388HH (9) 85 pf/nh 3/ 11

H.F. 416 exploitation” means the fraudulent or otherwise illegal, 1 unauthorized, or improper act or process by which an attorney 2 in fact or agent takes, appropriates, retains, manages, 3 disposes of, or otherwise uses the funds, property, assets, 4 benefits, or other resources of a principal over which the 5 attorney in fact or agent has power, that results in a monetary 6 or personal benefit, profit, or gain to a person other than the 7 principal to the detriment of the principal, or that results 8 in depriving a principal of rightful access to the principal’s 9 funds, property, assets, benefits, or other resources. 10 Sec. 3. Section 714.16A, Code 2013, is amended to read as 11 follows: 12 714.16A Additional civil penalty for consumer frauds 13 committed against elderly older individuals —— fund established. 14 1. a. If a person violates section 714.16 , and the 15 violation is committed against an older person individual , 16 in an action brought by the attorney general, in addition to 17 any other civil penalty, the court may impose an additional 18 civil penalty not to exceed five thousand dollars for each 19 such violation. Additionally, the attorney general may 20 accept a civil penalty as determined by the attorney general 21 in settlement of an investigation of a violation of section 22 714.16 , regardless of whether an action has been filed pursuant 23 to section 714.16 . 24 b. A civil penalty imposed by a court or determined and 25 accepted by the attorney general pursuant to this section shall 26 be paid to the treasurer of state, who shall deposit the money 27 in the elderly victim fund, a separate fund created in the 28 state treasury and administered by the attorney general for the 29 investigation and prosecution of frauds against the elderly 30 older individuals . Notwithstanding section 8.33 , any balance 31 in the fund on June 30 of any fiscal year shall not revert 32 to the general fund of the state. An award of reimbursement 33 pursuant to section 714.16 has priority over a civil penalty 34 imposed by the court pursuant to this subsection . 35 -4- LSB 1388HH (9) 85 pf/nh 4/ 11

H.F. 416 2. In determining whether to impose a civil penalty under 1 subsection 1 , and the amount of any such penalty, the court 2 shall consider the following: 3 a. Whether the defendant’s conduct was in willful disregard 4 of the rights of the older person individual . 5 b. Whether the defendant knew or should have known that the 6 defendant’s conduct was directed to an older person individual . 7 c. Whether the older person individual was substantially 8 more vulnerable to the defendant’s conduct because of age, poor 9 health, infirmity, impaired understanding, restricted mobility, 10 or disability, than other persons. 11 d. Any other factors the court deems appropriate. 12 3. As used in this section , “older person individual ” means 13 a person who is sixty-five years of age or older individual as 14 defined in section 231.4 . 15 Sec. 4. NEW SECTION . 714.15A Financial exploitation of an 16 older individual. 17 1. A person who financially exploits an older individual is 18 guilty of the following, as applicable: 19 a. A simple misdemeanor if the value of the resources does 20 not exceed two hundred dollars. 21 b. A serious misdemeanor if the value of the resources 22 exceeds two hundred dollars but does not exceed five hundred 23 dollars. 24 c. An aggravated misdemeanor if the value of the resources 25 exceeds five hundred dollars but does not exceed one thousand 26 dollars. 27 d. A class “D” felony if the value of the resources exceeds 28 one thousand dollars but does not exceed ten thousand dollars. 29 e. A class “C” felony if the value of the resources exceeds 30 ten thousand dollars. 31 2. For the purposes of this section: 32 a. “Financial exploitation” means the fraudulent or 33 otherwise illegal, unauthorized, or improper act or process 34 by which an individual takes, appropriates, retains, manages, 35 -5- LSB 1388HH (9) 85 pf/nh 5/ 11

H.F. 416 disposes, of or otherwise uses the funds, property, assets, 1 benefits, or other resources of an older individual, that 2 results in a monetary or personal benefit, profit, or gain to 3 a person other than the older individual to the detriment of 4 the older individual, or that results in depriving an older 5 individual of rightful access to the older individual’s funds, 6 property, assets, benefits, or other resources. 7 b. “Older individual” means older individual as defined in 8 section 231.4. 9 Sec. 5. LEGISLATIVE COMMISSION ON ELDER ABUSE PREVENTION. 10 1. The legislative council is requested to establish, 11 within thirty days of the effective date of this Act, a 12 legislative commission on elder abuse prevention to continue 13 the work of the elder abuse task force established pursuant to 14 2012 Iowa Acts, chapter 1056, and to develop a comprehensive 15 approach to elder abuse prevention and intervention in the 16 state. In addition to legislative members of the commission, 17 the commission shall include representatives of the department 18 on aging, the office of long-term care resident’s advocate, the 19 department of human services, the department of inspections 20 and appeals, the department of public health, the office of 21 the attorney general, the department of veterans affairs, 22 the department of public safety, the insurance division of 23 the department of commerce, a county attorney’s office with 24 experience in prosecuting elder abuse, the superintendent of 25 banking, the courts, and the elder law section of the Iowa 26 state bar association. The commission may form workgroups 27 to address specific elements of elder abuse, and may invite 28 individuals with interest or expertise to participate in the 29 workgroups. 30 2. The legislative commission shall review the report of the 31 elder abuse task force submitted in December 2012, and shall 32 make recommendations to implement the recommendations included 33 in the report, including in regard to all of the following: 34 a. The overall design of the comprehensive approach to 35 -6- LSB 1388HH (9) 85 pf/nh 6/ 11

H.F. 416 elder abuse prevention and intervention in the state. The 1 commission shall consider whether to integrate the approach 2 to elder abuse into the existing dependent adult abuse 3 system pursuant to chapter 235B by utilizing a reporting, 4 investigation, and registry approach or, alternatively, by 5 harmonizing the approach to elder abuse with the dependent 6 adult abuse system by continuing to utilize the prevention of 7 elder abuse program pursuant to section 231.56A and the office 8 of substitute decision maker created pursuant to chapter 231E 9 in addressing elder abuse. The commission shall also determine 10 how to incorporate the approach to elder abuse into other 11 existing and developing entities including the area agencies on 12 aging, the mental health and disability services regions, local 13 public health departments, the local offices of the department 14 of human services, the court system, and other appropriate 15 entities to most effectively and efficiently address the needs 16 of older individuals. The commission shall also address the 17 need for specialized elder abuse units in police departments, 18 the office of attorney general and prosecutors’ offices, 19 and other entities, and whether specialized elder abuse 20 courts should be developed as a mechanism for addressing 21 elder abuse and the needs of older individuals in the court 22 system. The legislative commission shall make recommendations, 23 including the changes in law and rules necessary to implement 24 the recommended approach as determined by the legislative 25 commission. 26 b. The definition of elder abuse to be used in the approach 27 to elder abuse. The legislative commission shall address 28 continued use of the definition of “elder abuse” as specified 29 under the federal Older Americans Act and utilized by the 30 prevention of elder abuse program under section 231.56A, or 31 shall provide a specific alternative definition. 32 c. The designation of a single point of contact to report 33 elder abuse. The legislative commission shall specifically 34 address utilizing the aging and disability resource center 35 -7- LSB 1388HH (9) 85 pf/nh 7/ 11

H.F. 416 network as the single point of contact. 1 d. The means of addressing financial exploitation of older 2 individuals including those relating to powers of attorney and 3 conservatorships as described in the 2012 task force report. 4 The legislative commission shall enlist the involvement 5 of the elder law and probate sections of the Iowa state 6 bar association to review, develop, and submit as proposed 7 legislation for the 2014 legislative session, the uniform power 8 of attorney Act. The legislative commission shall determine 9 whether and what specific crimes should be established 10 to address financial exploitation of older individuals. 11 The legislative commission shall also address whether to 12 establish financial abuse specialist teams (FAST) to provide a 13 concentrated, consistent, and systematic approach to prevent, 14 identify, investigate, and remedy financial exploitation of 15 older individuals and dependent adults. 16 e. Promotion of public awareness of elder abuse and the 17 services and support available to older individuals at risk of 18 or experiencing elder abuse. 19 f. Any specific changes in statute and rules necessary to 20 achieve the recommendations of the legislative commission. 21 3. The legislative commission shall submit a report of its 22 recommendations and proposed legislation to the governor and 23 the general assembly no later than December 15, 2013. 24 EXPLANATION 25 This bill relates to provisions to protect the rights of 26 certain individuals including protections against fraud, and 27 financial exploitation. 28 The bill includes a provision relating to powers of 29 attorney. The bill provides that in order to execute a valid 30 power of attorney in the state, an attorney in fact or agent 31 shall complete, sign, and notarize a power of attorney form 32 which includes an acknowledgment of fiduciary responsibilities 33 and register the completed, signed, and notarized original 34 power of attorney with the secretary of state within 10 days 35 -8- LSB 1388HH (9) 85 pf/nh 8/ 11

H.F. 416 of its execution. Registration of the power of attorney is 1 to be accompanied by a registration fee established by the 2 secretary of state. The bill directs the secretary of state 3 to make power of attorney forms, including acknowledgments of 4 fiduciary responsibility developed and approved by the state 5 court administrator available to the public. Other forms that 6 comply with the content developed and approved by the state 7 court administrator may be used to execute a valid power of 8 attorney. The bill specifies the content of the acknowledgment 9 of fiduciary responsibility form and directs that the power of 10 attorney form is to be accompanied by information regarding the 11 responsibilities of the attorney in fact or agent, instructions 12 for completion of the form, and information relating to 13 registration of the form. 14 Upon registration of the power of attorney, the secretary 15 of state is required to execute a certified true copy of the 16 power of attorney for filing and return the original power of 17 attorney form to the attorney in fact or agent. The secretary 18 of state is also required to provide an additional certified 19 true copy of the registered power of attorney upon request 20 of an attorney in fact or an agent. The secretary of state 21 is directed to establish fees for registration of a power of 22 attorney and for provision of a certified true copy of the 23 power of attorney in reasonable amounts sufficient to offset 24 expenses incurred in the administration of the registration of 25 powers of attorney provisions. An attorney in fact or agent 26 is directed to notify the secretary of state if the power 27 of attorney is revoked or upon death of the principal. The 28 power of attorney forms registered are to be maintained as a 29 confidential record, but the secretary of state is to make a 30 listing of the names of all principals and respective attorneys 31 in fact or agents available to the public. The provisions 32 apply to a power of attorney executed on or after January 1, 33 2014. A power of attorney executed prior to January 1, 2014, 34 is valid as executed and may be registered as executed with the 35 -9- LSB 1388HH (9) 85 pf/nh 9/ 11

H.F. 416 secretary of state as provided under the bill. 1 The bill provides that an individual who, while acting 2 as an attorney in fact or agent under a power of attorney, 3 financially exploited the principal, is prohibited from 4 receiving any property, benefit, or other interest following 5 the death of the principal as an heir, distributee, 6 beneficiary, appointee, or in any other capacity whether 7 the property, benefit, or other interest passed under any 8 form of title registration, testamentary or nontestamentary 9 instrument, intestacy, renunciation, or any other circumstance. 10 The property, benefit, or other interest shall pass as if 11 the attorney in fact or agent who financially exploited 12 the principal predeceased the decedent. Additionally, an 13 individual who, while acting as the attorney in fact or agent 14 under a power of attorney, financially exploited the principal, 15 and who is a named beneficiary of a bond, life insurance 16 policy, or any other contractual arrangement, following the 17 death of the principal is prohibited from receiving any benefit 18 under the bond, policy, or other contractual arrangement, 19 and the benefits become payable as though the attorney in 20 fact or agent had predeceased the decedent. The bill defines 21 “financial exploitation” for the purposes of the prohibitions. 22 The bill amends existing law relating to consumer frauds 23 perpetrated against the elderly to instead refer to older 24 individuals, consistent with the federal Older Americans 25 Act, as individuals 60 years of age or older. Previously, 26 the victim of a consumer fraud against the elderly was an 27 individual 65 years of age or older. 28 The bill establishes the crime of financial exploitation 29 of an older individual. The penalties vary depending upon 30 the value of the resources involved in the crime. The bill 31 defines financial exploitation for the purposes of the crime of 32 financial exploitation of an older individual. 33 The bill directs the legislative council to establish a 34 legislative commission on elder abuse prevention within 30 35 -10- LSB 1388HH (9) 85 pf/nh 10/ 11

H.F. 416 days of the effective date of the bill to continue the work 1 of the elder abuse task force established in 2012 and to 2 develop a comprehensive approach to elder abuse prevention and 3 intervention in the state. The bill specifies the membership 4 of the commission, and provides that the commission may form 5 workgroups to address specific elements of elder abuse, and may 6 invite individuals with interest or expertise to participate 7 in the workgroups. The bill directs the commission to review 8 the report of the elder abuse task force submitted in December 9 2012, and make recommendations to implement the recommendations 10 included in the report, including those regarding the overall 11 design of the comprehensive approach to elder abuse prevention 12 and intervention in the state; the definition of elder abuse 13 to be used in the comprehensive approach to elder abuse; the 14 designation of a single point of contact to report elder 15 abuse; the means of addressing financial exploitation of older 16 individuals including those relating to powers of attorney 17 and conservatorships, and including the development of draft 18 legislation to enact the uniform power of attorney Act in the 19 2014 legislative session; promotion of public awareness of 20 elder abuse and the services and support available to older 21 individuals at risk of or experiencing elder abuse; and any 22 specific changes in statute and rules necessary to achieve 23 the recommendations of the legislative commission. The 24 legislative commission is required to submit a report of its 25 recommendations and proposed legislation to the governor and 26 the general assembly no later than December 15, 2013. 27 -11- LSB 1388HH (9) 85 pf/nh 11/ 11