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Senate Study Bill 1131 - IntroducedA Bill ForAn Act 1relating to the financial exploitation of designated
2eligible adults, and making an appropriation.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 502.607, subsection 2, Code 2021, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. g. A record obtained by the administrator or
4by law enforcement under section 502.809.
5 Sec. 2. Section 502.607, subsection 3, Code 2021, is amended
6to read as follows:
73. Administrator discretion to disclose. If disclosure
8is for the purpose of a civil, administrative, or criminal
9investigation, action, or proceeding or to a person specified
10in section 502.608, subsection 1, the administrator may
11disclose a record obtained in connection with an audit or
12inspection under section 502.411, subsection 4, or a record
13obtained in connection with an investigation under section
14502.602 or section 502.809.
15 Sec. 3. NEW SECTION. 502.801 Definitions.
16For purposes of this article, unless the context otherwise
17requires:
181. “Eligible adult” means any of the following:
19a. A person sixty-five years of age or older.
20b. A dependent adult as defined in section 235B.2.
212. “Financial exploitation” means any act or omission taken
22by a person to wrongfully and knowingly deprive an eligible
23adult of money, assets, or property, or to obtain control over
24or otherwise use, convert, or divert the benefits, property,
25resources, or assets of the eligible adult by intimidation,
26deception, coercion, fraud, extortion, or undue influence.
273. “Permissible third party” means any of the following:
28a. A person the eligible adult previously designated to
29receive the notification described in section 502.804.
30b. A person otherwise permitted to receive the notification
31described in section 502.804 by any state or federal law or any
32rule issued by the financial industry regulatory authority.
334. “Qualified individual” means any of the following:
34a. An agent who has received training pursuant to section
35502.808.
-1- 1b. An investment adviser representative who has received
2training pursuant to section 502.808.
3c. A person who has received training pursuant to
4section 502.808 and who serves in a supervisory, compliance,
5senior investor protection, or legal capacity for any of the
6following:
7(1) A broker-dealer.
8(2) An investment adviser.
9 Sec. 4. NEW SECTION. 502.802 Notification to administrator.
10If a broker-dealer, investment adviser, or qualified
11individual reasonably believes financial exploitation of
12an eligible adult has occurred, has been attempted, or is
13being attempted, the broker-dealer, investment adviser, or
14qualified individual may promptly notify the administrator.
15The administrator may adopt rules regarding the form and manner
16of the notification under this section.
17 Sec. 5. NEW SECTION. 502.803 Notification to administrator
18— immunity.
19A broker-dealer, investment adviser, or qualified individual
20who, acting reasonably and in good faith, makes a disclosure
21of information to the administrator pursuant to this article
22shall be immune from administrative or civil liability that
23might otherwise arise from such disclosure or for any failure
24to notify the eligible adult of the disclosure. This section
25shall not abrogate or modify any existing statutory or common
26law privileges or immunities.
27 Sec. 6. NEW SECTION. 502.804 Notification to permissible
28third party.
291. If a broker-dealer, investment adviser, or qualified
30individual reasonably believes financial exploitation of
31an eligible adult has occurred, has been attempted, or is
32being attempted, the broker-dealer, investment adviser, or
33qualified individual may notify a permissible third party. The
34administrator may adopt rules regarding the form and manner of
35the notification under this section.
-2- 12. Broker-dealers, investment advisers, and qualified
2individuals shall not notify a permissible third party the
3broker-dealer, investment adviser, or qualified individual
4reasonably suspects of financial exploitation or other abuse
5of the eligible adult.
6 Sec. 7. NEW SECTION. 502.805 Notification to permissible
7third party — immunity.
8A broker-dealer, investment adviser, or qualified individual
9who, acting reasonably and in good faith, complies with section
10502.804 shall be immune from any administrative or civil
11liability that might otherwise arise from such disclosure.
12 Sec. 8. NEW SECTION. 502.806 Disbursements or transactions
13— delay.
141. If a broker-dealer, investment adviser, or qualified
15individual reasonably believes a disbursement or transaction
16will likely result in or contribute to the financial
17exploitation of an eligible adult, the broker-dealer,
18investment adviser, or qualified individual shall initiate an
19internal review of the requested disbursement or transaction.
202. A broker-dealer or investment adviser may delay a
21disbursement or transaction from an eligible adult’s account or
22an account on which an eligible adult is a beneficiary if all
23of the following apply:
24a. The broker-dealer, investment adviser, or qualified
25individual reasonably believes, after initiating the internal
26review referenced in subsection 1, that the requested
27disbursement or transaction will likely result in or contribute
28to the financial exploitation of an eligible adult.
29b. Immediately, but in no event more than two business
30days after the disbursement or transaction is delayed,
31the broker-dealer or investment adviser provides written
32notification of the delay and the reason for the delay to
33all persons authorized to transact business on the account.
34Broker-dealers, investment advisers, and qualified individuals
35shall not notify a person authorized to transact business
-3-1on the account if the broker-dealer, investment adviser,
2or qualified individual reasonably believes the person
3has committed financial exploitation, attempted financial
4exploitation, or other abuse of the eligible adult.
5c. Immediately, but in no event more than two business
6days after the disbursement or transaction is delayed, the
7broker-dealer or investment adviser notifies the administrator
8of the delay and provides to the administrator the reason
9for the delay, including the results of the internal review
10referenced in subsection 1.
11d. The broker-dealer or investment adviser continues
12the internal review of the suspected or attempted financial
13exploitation of the eligible adult, as necessary, and provides
14the administrator with updates upon request.
153. Any delay of a disbursement or transaction authorized by
16this section will expire upon the first to occur of any of the
17following:
18a. A determination by the broker-dealer or investment
19adviser that the disbursement or transaction will not result in
20or contribute to financial exploitation of the eligible adult.
21b. Fifteen business days after the date on which the
22broker-dealer or investment adviser first delayed disbursement
23of the funds or transaction, unless the administrator requests
24the broker-dealer or investment adviser to extend the delay,
25in which case the delay shall expire no more than twenty-five
26business days after the date on which the broker-dealer or
27investment adviser first delayed the disbursement of the funds
28or the transaction.
294. Notwithstanding subsection 3, upon the petition of
30the administrator, the broker-dealer or investment adviser
31who initiated the delay pursuant to this section, or another
32interested party, a court of competent jurisdiction may enter
33an order terminating, extending, or modifying the delay of the
34disbursement or transaction and may order other protective
35relief.
-4- 15. The administrator may adopt rules regarding the form and
2manner of the notifications under this section.
3 Sec. 9. NEW SECTION. 502.807 Disbursements of transactions
4— delay — immunity.
5A broker-dealer or investment adviser who, acting reasonably
6and in good faith, complies with section 502.806 shall be
7immune from any administrative or civil liability that
8might otherwise arise from such delay in a disbursement or
9transaction.
10 Sec. 10. NEW SECTION. 502.808 Training requirements.
111. A broker-dealer or investment adviser shall provide
12to its qualified individuals training appropriate to the job
13responsibilities of a qualified individual. The training shall
14include all of the following:
15a. Instruction on how to identify the suspected or attempted
16exploitation of an eligible adult, including common signs
17indicating the financial exploitation of an eligible adult,
18and how to provide notification regarding the suspected or
19attempted exploitation of an eligible adult.
20b. Instruction regarding privacy and confidentiality
21requirements.
222. A broker-dealer or investment adviser shall provide
23the training required by this section as soon as reasonably
24practicable, but at least within one year after the date
25the qualified individual begins employment with or becomes
26affiliated or associated with a broker-dealer or investment
27adviser.
283. The administrator may adopt rules specifying the content
29and method of the training required by this section.
30 Sec. 11. NEW SECTION. 502.809 Records.
31A broker-dealer or investment adviser shall provide access
32to or copies of records that are relevant to the suspected
33or attempted financial exploitation of an eligible adult to
34the administrator, either as part of a notification to the
35administrator pursuant to section 502.802, or upon the request
-5-1of the administrator. The records may include historical
2records as well as records relating to the most recent
3transactions that may comprise financial exploitation of an
4eligible adult. The administrator may share the records with
5law enforcement if the administrator determines it is necessary
6or appropriate in the public interest and for the protection
7of the eligible adult. All records made available to the
8administrator or law enforcement pursuant to this section
9shall be considered confidential public records under chapter
1022 and shall not be available for examination by the public
11pursuant to section 22.2. Nothing in this section shall limit
12or otherwise impede the authority of the administrator or law
13enforcement to access or examine the books and records of
14broker-dealers and investment advisers as otherwise provided
15by law.
16 Sec. 12. NEW SECTION. 502.810 Financial exploitation —
17appropriation.
181. For the fiscal year beginning July 1, 2021, and each
19fiscal year thereafter, there is appropriated from the
20department of commerce revolving fund created in section 546.12
21to the insurance division seventy-five thousand dollars for
22the sole and exclusive purpose of investigating complaints
23and notifications related to financial exploitation of
24eligible adults. The insurance division shall use the funds
25appropriated under this subsection for one full-time equivalent
26position.
272. Notwithstanding section 8.33, moneys appropriated in
28this section that remain unencumbered or unobligated at the
29close of the fiscal year shall not revert but shall remain
30available for expenditure for the purposes designated until the
31close of the succeeding fiscal year.
32 Sec. 13. NEW SECTION. 502.811 Financial exploitation —
33reporting.
34Annually, on or before January 15 of each year, the insurance
35division shall submit a report to the governor and the general
-6-1assembly concerning the notifications the insurance division
2received related to the potential financial exploitation of
3eligible adults, and the insurance division’s investigation
4of the notifications, during the preceding calendar year.
5The report shall include the number of notifications the
6insurance division received, the amount of time employees of
7the insurance division spent investigating the notifications,
8and the number of incidents of founded financial exploitation
9of eligible adults.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to the financial exploitation of persons
14designated as eligible adults. The bill defines an eligible
15adult as persons 65 years of age or older and certain dependent
16adults as defined in Code section 235B.2.
17The bill authorizes broker-dealers, investment advisers,
18and qualified individuals to notify the commissioner of
19insurance if they reasonably believe financial exploitation
20of an eligible adult has occurred, has been attempted,
21or is being attempted. The bill provides immunity for
22broker-dealers, investment advisers, and qualified individuals
23from administrative or civil liability incurred or imposed as
24a result of this notification or as a result of any failure to
25alert the eligible adult of the notification.
26The bill allows broker-dealers, investment advisers, and
27qualified individuals to notify permissible third parties
28if they reasonably believe financial exploitation of an
29eligible adult has occurred, has been attempted, or is
30being attempted. The bill similarly provides immunity for
31broker-dealers, investment advisers, and qualified individuals
32from administrative or civil liability incurred or imposed as
33a result of this notification.
34The bill prohibits broker-dealers, investment advisers,
35and qualified individuals from notifying a permissible third
-7-1party if the broker-dealer, investment adviser, or qualified
2individual reasonably suspects the permissible third party of
3financial exploitation or other abuse of the eligible adult.
4The bill requires a broker-dealer, investment adviser,
5or qualified individual to initiate an internal review of a
6requested disbursement or transaction if the broker-dealer,
7investment adviser, or qualified individual reasonably believes
8the disbursement or transaction will likely result in or
9contribute to the financial exploitation of an eligible adult.
10The bill allows a broker-dealer or investment adviser
11to delay a disbursement or transaction from an eligible
12adult’s account or an account on which an eligible adult is
13a beneficiary if certain enumerated steps are followed. The
14bill also prohibits broker-dealers, investment advisers, and
15qualified individuals from notifying a person authorized
16to transact business on the eligible adult’s account or an
17account on which an eligible adult is a beneficiary if the
18broker-dealer, investment adviser, or qualified individual
19reasonably believes the person has committed financial
20exploitation or other abuse of the eligible adult.
21The bill establishes when and under what conditions the
22delay of the disbursement or transaction is to end. The bill
23provides immunity for broker-dealers and investment advisers
24from administrative or civil liability incurred or imposed as
25a result of the delay.
26The bill requires broker-dealers or investment advisers
27to provide to qualified individuals training related to
28identifying financial exploitation of eligible adults and
29privacy and confidentiality requirements.
30The bill also requires broker-dealers and investment
31advisers to provide the commissioner of insurance access to
32and copies of records relevant to investigations of financial
33exploitation of eligible adults in certain enumerated
34circumstances. The bill authorizes the commissioner to
35share the records with law enforcement when the administrator
-8-1determines it is necessary or appropriate in the public
2interest and for the protection of the eligible adult. The
3bill provides these records are considered confidential records
4for purposes of Code chapter 22, and are not available for
5examination under Code section 22.2.
6The bill requires the insurance division of the department
7of commerce to submit an annual report to the governor and the
8general assembly that includes the number of notifications
9the insurance division received related to the potential
10financial exploitation of eligible adults, the amount of time
11employees of the insurance division spent investigating the
12notifications, and the number of incidents of founded financial
13exploitation of eligible adults, during the preceding calendar
14year.
15The bill makes an appropriation from the commerce revolving
16fund created in Code section 546.12 to the insurance division
17of the department of commerce for the fiscal year beginning
18July 1, 2021, and each year thereafter, for purposes of
19investigating complaints and notifications related to financial
20exploitation of eligible adults.
-9-jda/rn
2eligible adults, and making an appropriation.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 502.607, subsection 2, Code 2021, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. g. A record obtained by the administrator or
4by law enforcement under section 502.809.
5 Sec. 2. Section 502.607, subsection 3, Code 2021, is amended
6to read as follows:
73. Administrator discretion to disclose. If disclosure
8is for the purpose of a civil, administrative, or criminal
9investigation, action, or proceeding or to a person specified
10in section 502.608, subsection 1, the administrator may
11disclose a record obtained in connection with an audit or
12inspection under section 502.411, subsection 4, or a record
13obtained in connection with an investigation under section
14502.602 or section 502.809.
15 Sec. 3. NEW SECTION. 502.801 Definitions.
16For purposes of this article, unless the context otherwise
17requires:
181. “Eligible adult” means any of the following:
19a. A person sixty-five years of age or older.
20b. A dependent adult as defined in section 235B.2.
212. “Financial exploitation” means any act or omission taken
22by a person to wrongfully and knowingly deprive an eligible
23adult of money, assets, or property, or to obtain control over
24or otherwise use, convert, or divert the benefits, property,
25resources, or assets of the eligible adult by intimidation,
26deception, coercion, fraud, extortion, or undue influence.
273. “Permissible third party” means any of the following:
28a. A person the eligible adult previously designated to
29receive the notification described in section 502.804.
30b. A person otherwise permitted to receive the notification
31described in section 502.804 by any state or federal law or any
32rule issued by the financial industry regulatory authority.
334. “Qualified individual” means any of the following:
34a. An agent who has received training pursuant to section
35502.808.
-1- 1b. An investment adviser representative who has received
2training pursuant to section 502.808.
3c. A person who has received training pursuant to
4section 502.808 and who serves in a supervisory, compliance,
5senior investor protection, or legal capacity for any of the
6following:
7(1) A broker-dealer.
8(2) An investment adviser.
9 Sec. 4. NEW SECTION. 502.802 Notification to administrator.
10If a broker-dealer, investment adviser, or qualified
11individual reasonably believes financial exploitation of
12an eligible adult has occurred, has been attempted, or is
13being attempted, the broker-dealer, investment adviser, or
14qualified individual may promptly notify the administrator.
15The administrator may adopt rules regarding the form and manner
16of the notification under this section.
17 Sec. 5. NEW SECTION. 502.803 Notification to administrator
18— immunity.
19A broker-dealer, investment adviser, or qualified individual
20who, acting reasonably and in good faith, makes a disclosure
21of information to the administrator pursuant to this article
22shall be immune from administrative or civil liability that
23might otherwise arise from such disclosure or for any failure
24to notify the eligible adult of the disclosure. This section
25shall not abrogate or modify any existing statutory or common
26law privileges or immunities.
27 Sec. 6. NEW SECTION. 502.804 Notification to permissible
28third party.
291. If a broker-dealer, investment adviser, or qualified
30individual reasonably believes financial exploitation of
31an eligible adult has occurred, has been attempted, or is
32being attempted, the broker-dealer, investment adviser, or
33qualified individual may notify a permissible third party. The
34administrator may adopt rules regarding the form and manner of
35the notification under this section.
-2- 12. Broker-dealers, investment advisers, and qualified
2individuals shall not notify a permissible third party the
3broker-dealer, investment adviser, or qualified individual
4reasonably suspects of financial exploitation or other abuse
5of the eligible adult.
6 Sec. 7. NEW SECTION. 502.805 Notification to permissible
7third party — immunity.
8A broker-dealer, investment adviser, or qualified individual
9who, acting reasonably and in good faith, complies with section
10502.804 shall be immune from any administrative or civil
11liability that might otherwise arise from such disclosure.
12 Sec. 8. NEW SECTION. 502.806 Disbursements or transactions
13— delay.
141. If a broker-dealer, investment adviser, or qualified
15individual reasonably believes a disbursement or transaction
16will likely result in or contribute to the financial
17exploitation of an eligible adult, the broker-dealer,
18investment adviser, or qualified individual shall initiate an
19internal review of the requested disbursement or transaction.
202. A broker-dealer or investment adviser may delay a
21disbursement or transaction from an eligible adult’s account or
22an account on which an eligible adult is a beneficiary if all
23of the following apply:
24a. The broker-dealer, investment adviser, or qualified
25individual reasonably believes, after initiating the internal
26review referenced in subsection 1, that the requested
27disbursement or transaction will likely result in or contribute
28to the financial exploitation of an eligible adult.
29b. Immediately, but in no event more than two business
30days after the disbursement or transaction is delayed,
31the broker-dealer or investment adviser provides written
32notification of the delay and the reason for the delay to
33all persons authorized to transact business on the account.
34Broker-dealers, investment advisers, and qualified individuals
35shall not notify a person authorized to transact business
-3-1on the account if the broker-dealer, investment adviser,
2or qualified individual reasonably believes the person
3has committed financial exploitation, attempted financial
4exploitation, or other abuse of the eligible adult.
5c. Immediately, but in no event more than two business
6days after the disbursement or transaction is delayed, the
7broker-dealer or investment adviser notifies the administrator
8of the delay and provides to the administrator the reason
9for the delay, including the results of the internal review
10referenced in subsection 1.
11d. The broker-dealer or investment adviser continues
12the internal review of the suspected or attempted financial
13exploitation of the eligible adult, as necessary, and provides
14the administrator with updates upon request.
153. Any delay of a disbursement or transaction authorized by
16this section will expire upon the first to occur of any of the
17following:
18a. A determination by the broker-dealer or investment
19adviser that the disbursement or transaction will not result in
20or contribute to financial exploitation of the eligible adult.
21b. Fifteen business days after the date on which the
22broker-dealer or investment adviser first delayed disbursement
23of the funds or transaction, unless the administrator requests
24the broker-dealer or investment adviser to extend the delay,
25in which case the delay shall expire no more than twenty-five
26business days after the date on which the broker-dealer or
27investment adviser first delayed the disbursement of the funds
28or the transaction.
294. Notwithstanding subsection 3, upon the petition of
30the administrator, the broker-dealer or investment adviser
31who initiated the delay pursuant to this section, or another
32interested party, a court of competent jurisdiction may enter
33an order terminating, extending, or modifying the delay of the
34disbursement or transaction and may order other protective
35relief.
-4- 15. The administrator may adopt rules regarding the form and
2manner of the notifications under this section.
3 Sec. 9. NEW SECTION. 502.807 Disbursements of transactions
4— delay — immunity.
5A broker-dealer or investment adviser who, acting reasonably
6and in good faith, complies with section 502.806 shall be
7immune from any administrative or civil liability that
8might otherwise arise from such delay in a disbursement or
9transaction.
10 Sec. 10. NEW SECTION. 502.808 Training requirements.
111. A broker-dealer or investment adviser shall provide
12to its qualified individuals training appropriate to the job
13responsibilities of a qualified individual. The training shall
14include all of the following:
15a. Instruction on how to identify the suspected or attempted
16exploitation of an eligible adult, including common signs
17indicating the financial exploitation of an eligible adult,
18and how to provide notification regarding the suspected or
19attempted exploitation of an eligible adult.
20b. Instruction regarding privacy and confidentiality
21requirements.
222. A broker-dealer or investment adviser shall provide
23the training required by this section as soon as reasonably
24practicable, but at least within one year after the date
25the qualified individual begins employment with or becomes
26affiliated or associated with a broker-dealer or investment
27adviser.
283. The administrator may adopt rules specifying the content
29and method of the training required by this section.
30 Sec. 11. NEW SECTION. 502.809 Records.
31A broker-dealer or investment adviser shall provide access
32to or copies of records that are relevant to the suspected
33or attempted financial exploitation of an eligible adult to
34the administrator, either as part of a notification to the
35administrator pursuant to section 502.802, or upon the request
-5-1of the administrator. The records may include historical
2records as well as records relating to the most recent
3transactions that may comprise financial exploitation of an
4eligible adult. The administrator may share the records with
5law enforcement if the administrator determines it is necessary
6or appropriate in the public interest and for the protection
7of the eligible adult. All records made available to the
8administrator or law enforcement pursuant to this section
9shall be considered confidential public records under chapter
1022 and shall not be available for examination by the public
11pursuant to section 22.2. Nothing in this section shall limit
12or otherwise impede the authority of the administrator or law
13enforcement to access or examine the books and records of
14broker-dealers and investment advisers as otherwise provided
15by law.
16 Sec. 12. NEW SECTION. 502.810 Financial exploitation —
17appropriation.
181. For the fiscal year beginning July 1, 2021, and each
19fiscal year thereafter, there is appropriated from the
20department of commerce revolving fund created in section 546.12
21to the insurance division seventy-five thousand dollars for
22the sole and exclusive purpose of investigating complaints
23and notifications related to financial exploitation of
24eligible adults. The insurance division shall use the funds
25appropriated under this subsection for one full-time equivalent
26position.
272. Notwithstanding section 8.33, moneys appropriated in
28this section that remain unencumbered or unobligated at the
29close of the fiscal year shall not revert but shall remain
30available for expenditure for the purposes designated until the
31close of the succeeding fiscal year.
32 Sec. 13. NEW SECTION. 502.811 Financial exploitation —
33reporting.
34Annually, on or before January 15 of each year, the insurance
35division shall submit a report to the governor and the general
-6-1assembly concerning the notifications the insurance division
2received related to the potential financial exploitation of
3eligible adults, and the insurance division’s investigation
4of the notifications, during the preceding calendar year.
5The report shall include the number of notifications the
6insurance division received, the amount of time employees of
7the insurance division spent investigating the notifications,
8and the number of incidents of founded financial exploitation
9of eligible adults.
10EXPLANATION
11The inclusion of this explanation does not constitute agreement with
12the explanation’s substance by the members of the general assembly.
13This bill relates to the financial exploitation of persons
14designated as eligible adults. The bill defines an eligible
15adult as persons 65 years of age or older and certain dependent
16adults as defined in Code section 235B.2.
17The bill authorizes broker-dealers, investment advisers,
18and qualified individuals to notify the commissioner of
19insurance if they reasonably believe financial exploitation
20of an eligible adult has occurred, has been attempted,
21or is being attempted. The bill provides immunity for
22broker-dealers, investment advisers, and qualified individuals
23from administrative or civil liability incurred or imposed as
24a result of this notification or as a result of any failure to
25alert the eligible adult of the notification.
26The bill allows broker-dealers, investment advisers, and
27qualified individuals to notify permissible third parties
28if they reasonably believe financial exploitation of an
29eligible adult has occurred, has been attempted, or is
30being attempted. The bill similarly provides immunity for
31broker-dealers, investment advisers, and qualified individuals
32from administrative or civil liability incurred or imposed as
33a result of this notification.
34The bill prohibits broker-dealers, investment advisers,
35and qualified individuals from notifying a permissible third
-7-1party if the broker-dealer, investment adviser, or qualified
2individual reasonably suspects the permissible third party of
3financial exploitation or other abuse of the eligible adult.
4The bill requires a broker-dealer, investment adviser,
5or qualified individual to initiate an internal review of a
6requested disbursement or transaction if the broker-dealer,
7investment adviser, or qualified individual reasonably believes
8the disbursement or transaction will likely result in or
9contribute to the financial exploitation of an eligible adult.
10The bill allows a broker-dealer or investment adviser
11to delay a disbursement or transaction from an eligible
12adult’s account or an account on which an eligible adult is
13a beneficiary if certain enumerated steps are followed. The
14bill also prohibits broker-dealers, investment advisers, and
15qualified individuals from notifying a person authorized
16to transact business on the eligible adult’s account or an
17account on which an eligible adult is a beneficiary if the
18broker-dealer, investment adviser, or qualified individual
19reasonably believes the person has committed financial
20exploitation or other abuse of the eligible adult.
21The bill establishes when and under what conditions the
22delay of the disbursement or transaction is to end. The bill
23provides immunity for broker-dealers and investment advisers
24from administrative or civil liability incurred or imposed as
25a result of the delay.
26The bill requires broker-dealers or investment advisers
27to provide to qualified individuals training related to
28identifying financial exploitation of eligible adults and
29privacy and confidentiality requirements.
30The bill also requires broker-dealers and investment
31advisers to provide the commissioner of insurance access to
32and copies of records relevant to investigations of financial
33exploitation of eligible adults in certain enumerated
34circumstances. The bill authorizes the commissioner to
35share the records with law enforcement when the administrator
-8-1determines it is necessary or appropriate in the public
2interest and for the protection of the eligible adult. The
3bill provides these records are considered confidential records
4for purposes of Code chapter 22, and are not available for
5examination under Code section 22.2.
6The bill requires the insurance division of the department
7of commerce to submit an annual report to the governor and the
8general assembly that includes the number of notifications
9the insurance division received related to the potential
10financial exploitation of eligible adults, the amount of time
11employees of the insurance division spent investigating the
12notifications, and the number of incidents of founded financial
13exploitation of eligible adults, during the preceding calendar
14year.
15The bill makes an appropriation from the commerce revolving
16fund created in Code section 546.12 to the insurance division
17of the department of commerce for the fiscal year beginning
18July 1, 2021, and each year thereafter, for purposes of
19investigating complaints and notifications related to financial
20exploitation of eligible adults.
-9-jda/rn