23 LC 50 0463
S. B. 84
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Senate Bill 84
By: Senators Hufstetler of the 52nd, Esteves of the 6th, Kirkpatrick of the 32nd, Williams
of the 25th, Watson of the 1st and others
AS PASSED SENATE
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia
1
Uniform Securities Act of 2008," so as to provide for financial protections for elder and2
disabled adults who may be victims of financial exploitation; to provide for reporting and3
notice requirements; to provide for the delay of disbursements or transactions that may result4
in such financial exploitation; to provide for civil and administrative liability protections; to5
provide for certain disclosures and access to records; to provide for limitations; to provide6
for definitions; to provide for related matters; to repeal conflicting laws; and for other7
purposes.8
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
SECTION 1.10
Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia Uniform11
Securities Act of 2008," is amended by adding a new article to read as follows:12
"ARTICLE 8
13
10-5-100.14
As used in this article, the term:15 23 LC 50 0463
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(1) 'Account' means any account with a broker-dealer or investment adviser for which16
a client has the authority to transact business.17
(2) 'Adult protective agency' means any office, division, department, or unit in this state18
that is charged with the investigation of abuse, neglect, or exploitation of an elder person19
or disabled adult.20
(3) 'Eligible adult' means:21
(A) A person 65 years of age or older; or22
(B) A person 18 years of age or older who is mentally or physically incapacitated, has23
Alzheimer’s disease, or has dementia.24
(4) 'Financial exploitation' means:25
(A) The wrongful or unauthorized taking, withholding, appropriation, or use of the26
money, assets, or property of an eligible adult; or27
(B) Any act or omission taken by a person, including, but not limited to, through the28
use of a power of attorney, guardianship, or conservatorship of an eligible adult, to:29
(i) Obtain the control, use, or benefit of the eligible adult's money, assets, or property30
to deprive the eligible adult of the ownership, use, benefit, or possession of his or her31
money, assets, or property through deception, intimidation, or undue influence or by32
the use of any scheme, device, or artifice to defraud; or33
(ii) Convert the money, assets, or property of the eligible adult to deprive the eligible34
adult of the ownership, use, benefit, or possession of his or her money, assets, or35
property.36
(5) 'Qualified individual' means any agent, investment adviser representative, or person37
who serves in a supervisory, compliance, or legal capacity for a broker-dealer or38
investment advisor.39 23 LC 50 0463
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10-5-101.40
(a) If a qualified individual has reasonable cause to believe that the financial exploitation41
of an eligible adult may have occurred, may have been attempted, or is being attempted,42
then the qualified individual shall promptly notify the Commissioner.43
(b) The notification required by subsection (a) of this Code section may be made by oral44
or written communication or by form as issued by the Commissioner. Such notice shall45
include, to the extent possible:46
(1) The name and address of the eligible adult;47
(2) The name and address of the eligible adult's caretaker;48
(3) The age of the eligible adult;49
(4) The nature and extent of the eligible adult's potential or actual injury or condition50
resulting from the financial exploitation;51
(5) Any other pertinent information; and52
(6) Any additional information that is required by a rule adopted or form or order issued53
by the Commission.54
10-5-102.55
If a qualified individual has reasonable cause to believe that the financial exploitation of56
an eligible adult may have occurred, may have been attempted, or is being attempted, then57
a qualified individual may notify any third party previously designated by the eligible58
adult; provided, however, that a qualified individual shall not notify any designated third59
party that is suspected of the financial exploitation or other abuse of the eligible adult.60
10-5-103.61
(a) A broker-dealer or investment adviser may delay a disbursement from, or a transaction62
in connection with, an account of an eligible adult or an account on which an eligible adult63
is a beneficiary if the broker-dealer, investment adviser, or qualified individual has64 23 LC 50 0463
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reasonable cause to believe that, after initiating an internal review of the requested65
disbursement or transaction and the suspected financial exploitation, the requested66
disbursement or transaction may result in the financial exploitation of the eligible adult.67
(b) If a broker-dealer or investment adviser delays a disbursement or transaction under68
subsection (a) of this Code section, the broker-dealer, investment adviser, or a qualified69
individual shall:70
(1) Immediately, and in no event more than two business days after the requested71
disbursement or transaction was delayed, provide written notification of the delay and the72
reason for the delay to all parties authorized to transact business on the account, unless73
there is reasonable cause to believe such party engaged in the suspected or attempted74
financial exploitation of the eligible adult;75
(2) Immediately, and in no event more than two business days after the requested76
disbursement or transaction was delayed, notify the Commissioner pursuant to Code77
Section 10-5-101; and78
(3) Continue an internal review of the suspected or attempted financial exploitation of79
the eligible adult, as necessary, and report the investigation's results to the Commissioner80
within seven business days of the requested disbursement or transaction.81
(c) The authorization of any delay of a disbursement or transaction pursuant to this Code82
section shall expire upon the sooner of:83
(1) A determination by the broker-dealer or investment adviser that the disbursement or84
transaction will not result in the financial exploitation of the eligible adult; or85
(2) Fifteen business days after the date on which the broker-dealer or investment adviser86
first delayed the requested disbursement or transaction, unless the Commissioner requests87
that the broker-dealer or investment adviser extend the delay, in which case the delay88
shall expire no more than 25 business days after the date on which the broker-dealer or89
investment adviser first delayed the disbursement or transaction, unless sooner terminated90
by either the Commissioner or an order of a court of competent jurisdiction.91 23 LC 50 0463
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(d) A court of competent jurisdiction may enter an order extending the delay of a92
disbursement or transaction under this Code section, or may order other protective relief,93
upon the petition of the Commissioner; adult protective agency of competent jurisdiction;94
a broker-dealer or investment adviser that initiated the delay under this Code section; or95
another interested party.96
10-5-104.97
No broker-dealer, investment adviser, or qualified individual who, in good faith and98
exercising reasonable care, complies with this article shall be subject to administrative or99
civil liability based on:100
(1) A delay of a disbursement or transaction pursuant to this article;101
(2) A disclosure made pursuant to this article; or102
(3) The failure to notify an eligible adult of disclosures made pursuant to this article.103
10-5-105.104
Notwithstanding any provision of law to the contrary, the Commissioner may disclose to105
any notifying broker-dealer, investment adviser, or qualified individual the general status106
or final disposition of any investigation that arose from a report made by the broker-dealer,107
investment adviser, or qualified individual under this article.108
10-5-106.109
(a) A broker-dealer or investment adviser shall provide access to or copies of records that110
are relevant to the suspected or attempted financial exploitation of an eligible adult to the111
Commissioner, adult protective agency of competent jurisdiction, or law enforcement112
pursuant to an investigation. Such records may include historical records and records113
pertaining to a disbursement or transaction related to the suspected or attempted financial114 23 LC 50 0463
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exploitation of an eligible adult. Records made available under this Code section shall not115
be public records and shall not be available for public examination.116
(b) Nothing in this Code section shall limit or otherwise impede the authority of the117
Commissioner from accessing or examining the books and records of a broker-dealer or118
investment adviser as otherwise provided by law.119
10-5-107.120
Nothing in this article shall limit or shield, in any manner, a broker-dealer, investment121
adviser, or qualified individual from any administrative or civil liability for any claim, or122
for reasonable attorneys' fees, costs, and litigation expenses related to such claim, for123
participating in or materially aiding the financial exploitation of an eligible adult. Any124
such civil claim may be asserted by the eligible adult, or on his or her behalf by an125
appropriate guardian or representative who is not involved in or otherwise suspected of126
participating in the financial exploitation of the eligible adult, by filing a civil action in a127
court of competent jurisdiction.128
10-5-108.129
Nothing in this article shall limit a broker-dealer or investment adviser from being absolved130
of any applicable reporting duties under Code Section 30-5-4 and other laws of this state."131
SECTION 2.132
All laws and parts of laws in conflict with this Act are repealed.133