House File 839 - EnrolledAn Actrelating 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
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.
-1-
   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
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
-2-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
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.
-3-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
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
-4-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
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
-5-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,
and the number of incidents of founded financial exploitation
of eligible adults.
______________________________
PAT GRASSLEYSpeaker of the House
______________________________
JAKE CHAPMANPresident 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 NELSONChief Clerk of the House
Approved _______________, 2021______________________________
KIM REYNOLDSGovernor
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