Georgia 2023-2024 Regular Session

Georgia Senate Bill SB84 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		23 LC 50 0463
2	2		S. B. 84
3	3		- 1 -
4	4		Senate Bill 84
5	5		By: Senators Hufstetler of the 52nd, Esteves of the 6th, Kirkpatrick of the 32nd, Williams
6	6		of the 25th, Watson of the 1st and others
7		-	AS PASSED ~~SENATE~~
	7	+	AS PASSED
8	8		A BILL TO BE ENTITLED
9	9		AN ACT
10	10		To amend Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia
11	11		1
12	12		Uniform Securities Act of 2008," so as to provide for financial protections for elder and2
13	13		disabled adults who may be victims of financial exploitation; to provide for reporting and3
14	14		notice requirements; to provide for the delay of disbursements or transactions that may result4
15	15		in such financial exploitation; to provide for civil and administrative liability protections; to5
16	16		provide for certain disclosures and access to records; to provide for limitations; to provide6
17	17		for definitions; to provide for related matters; to repeal conflicting laws; and for other7
18	18		purposes.8
19	19		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:9
20	20		SECTION 1.10
21	21		Chapter 5 of Title 10 of the Official Code of Georgia Annotated, the "Georgia Uniform11
22	22		Securities Act of 2008," is amended by adding a new article to read as follows:12
23	23		"ARTICLE 8
24	24		13
25	25		10-5-100.14
26	26		As used in this article, the term:15 23 LC 50 0463
27	27		S. B. 84
28	28		- 2 -
29	29		(1) 'Account' means any account with a broker-dealer or investment adviser for which16
30	30		a client has the authority to transact business.17
31	31		(2) 'Adult protective agency' means any office, division, department, or unit in this state18
32	32		that is charged with the investigation of abuse, neglect, or exploitation of an elder person19
33	33		or disabled adult.20
34	34		(3) 'Eligible adult' means:21
35	35		(A) A person 65 years of age or older; or22
36	36		(B) A person 18 years of age or older who is mentally or physically incapacitated, has23
37	37		Alzheimer’s disease, or has dementia.24
38	38		(4) 'Financial exploitation' means:25
39	39		(A) The wrongful or unauthorized taking, withholding, appropriation, or use of the26
40	40		money, assets, or property of an eligible adult; or27
41	41		(B) Any act or omission taken by a person, including, but not limited to, through the28
42	42		use of a power of attorney, guardianship, or conservatorship of an eligible adult, to:29
43	43		(i) Obtain the control, use, or benefit of the eligible adult's money, assets, or property30
44	44		to deprive the eligible adult of the ownership, use, benefit, or possession of his or her31
45	45		money, assets, or property through deception, intimidation, or undue influence or by32
46	46		the use of any scheme, device, or artifice to defraud; or33
47	47		(ii) Convert the money, assets, or property of the eligible adult to deprive the eligible34
48	48		adult of the ownership, use, benefit, or possession of his or her money, assets, or35
49	49		property.36
50	50		(5) 'Qualified individual' means any agent, investment adviser representative, or person37
51	51		who serves in a supervisory, compliance, or legal capacity for a broker-dealer or38
52	52		investment advisor.39 23 LC 50 0463
53	53		S. B. 84
54	54		- 3 -
55	55		10-5-101.40
56	56		(a) If a qualified individual has reasonable cause to believe that the financial exploitation41
57	57		of an eligible adult may have occurred, may have been attempted, or is being attempted,42
58	58		then the qualified individual shall promptly notify the Commissioner.43
59	59		(b) The notification required by subsection (a) of this Code section may be made by oral44
60	60		or written communication or by form as issued by the Commissioner. Such notice shall45
61	61		include, to the extent possible:46
62	62		(1) The name and address of the eligible adult;47
63	63		(2) The name and address of the eligible adult's caretaker;48
64	64		(3) The age of the eligible adult;49
65	65		(4) The nature and extent of the eligible adult's potential or actual injury or condition50
66	66		resulting from the financial exploitation;51
67	67		(5) Any other pertinent information; and52
68	68		(6) Any additional information that is required by a rule adopted or form or order issued53
69	69		by the Commission.54
70	70		10-5-102.55
71	71		If a qualified individual has reasonable cause to believe that the financial exploitation of56
72	72		an eligible adult may have occurred, may have been attempted, or is being attempted, then57
73	73		a qualified individual may notify any third party previously designated by the eligible58
74	74		adult; provided, however, that a qualified individual shall not notify any designated third59
75	75		party that is suspected of the financial exploitation or other abuse of the eligible adult.60
76	76		10-5-103.61
77	77		(a) A broker-dealer or investment adviser may delay a disbursement from, or a transaction62
78	78		in connection with, an account of an eligible adult or an account on which an eligible adult63
79	79		is a beneficiary if the broker-dealer, investment adviser, or qualified individual has64 23 LC 50 0463
80	80		S. B. 84
81	81		- 4 -
82	82		reasonable cause to believe that, after initiating an internal review of the requested65
83	83		disbursement or transaction and the suspected financial exploitation, the requested66
84	84		disbursement or transaction may result in the financial exploitation of the eligible adult.67
85	85		(b) If a broker-dealer or investment adviser delays a disbursement or transaction under68
86	86		subsection (a) of this Code section, the broker-dealer, investment adviser, or a qualified69
87	87		individual shall:70
88	88		(1) Immediately, and in no event more than two business days after the requested71
89	89		disbursement or transaction was delayed, provide written notification of the delay and the72
90	90		reason for the delay to all parties authorized to transact business on the account, unless73
91	91		there is reasonable cause to believe such party engaged in the suspected or attempted74
92	92		financial exploitation of the eligible adult;75
93	93		(2) Immediately, and in no event more than two business days after the requested76
94	94		disbursement or transaction was delayed, notify the Commissioner pursuant to Code77
95	95		Section 10-5-101; and78
96	96		(3) Continue an internal review of the suspected or attempted financial exploitation of79
97	97		the eligible adult, as necessary, and report the investigation's results to the Commissioner80
98	98		within seven business days of the requested disbursement or transaction.81
99	99		(c) The authorization of any delay of a disbursement or transaction pursuant to this Code82
100	100		section shall expire upon the sooner of:83
101	101		(1) A determination by the broker-dealer or investment adviser that the disbursement or84
102	102		transaction will not result in the financial exploitation of the eligible adult; or85
103	103		(2) Fifteen business days after the date on which the broker-dealer or investment adviser86
104	104		first delayed the requested disbursement or transaction, unless the Commissioner requests87
105	105		that the broker-dealer or investment adviser extend the delay, in which case the delay88
106	106		shall expire no more than 25 business days after the date on which the broker-dealer or89
107	107		investment adviser first delayed the disbursement or transaction, unless sooner terminated90
108	108		by either the Commissioner or an order of a court of competent jurisdiction.91 23 LC 50 0463
109	109		S. B. 84
110	110		- 5 -
111	111		(d) A court of competent jurisdiction may enter an order extending the delay of a92
112	112		disbursement or transaction under this Code section, or may order other protective relief,93
113	113		upon the petition of the Commissioner; adult protective agency of competent jurisdiction;94
114	114		a broker-dealer or investment adviser that initiated the delay under this Code section; or95
115	115		another interested party.96
116	116		10-5-104.97
117	117		No broker-dealer, investment adviser, or qualified individual who, in good faith and98
118	118		exercising reasonable care, complies with this article shall be subject to administrative or99
119	119		civil liability based on:100
120	120		(1) A delay of a disbursement or transaction pursuant to this article;101
121	121		(2) A disclosure made pursuant to this article; or102
122	122		(3) The failure to notify an eligible adult of disclosures made pursuant to this article.103
123	123		10-5-105.104
124	124		Notwithstanding any provision of law to the contrary, the Commissioner may disclose to105
125	125		any notifying broker-dealer, investment adviser, or qualified individual the general status106
126	126		or final disposition of any investigation that arose from a report made by the broker-dealer,107
127	127		investment adviser, or qualified individual under this article.108
128	128		10-5-106.109
129	129		(a) A broker-dealer or investment adviser shall provide access to or copies of records that110
130	130		are relevant to the suspected or attempted financial exploitation of an eligible adult to the111
131	131		Commissioner, adult protective agency of competent jurisdiction, or law enforcement112
132	132		pursuant to an investigation. Such records may include historical records and records113
133	133		pertaining to a disbursement or transaction related to the suspected or attempted financial114 23 LC 50 0463
134	134		S. B. 84
135	135		- 6 -
136	136		exploitation of an eligible adult. Records made available under this Code section shall not115
137	137		be public records and shall not be available for public examination.116
138	138		(b) Nothing in this Code section shall limit or otherwise impede the authority of the117
139	139		Commissioner from accessing or examining the books and records of a broker-dealer or118
140	140		investment adviser as otherwise provided by law.119
141	141		10-5-107.120
142	142		Nothing in this article shall limit or shield, in any manner, a broker-dealer, investment121
143	143		adviser, or qualified individual from any administrative or civil liability for any claim, or122
144	144		for reasonable attorneys' fees, costs, and litigation expenses related to such claim, for123
145	145		participating in or materially aiding the financial exploitation of an eligible adult. Any124
146	146		such civil claim may be asserted by the eligible adult, or on his or her behalf by an125
147	147		appropriate guardian or representative who is not involved in or otherwise suspected of126
148	148		participating in the financial exploitation of the eligible adult, by filing a civil action in a127
149	149		court of competent jurisdiction.128
150	150		10-5-108.129
151	151		Nothing in this article shall limit a broker-dealer or investment adviser from being absolved130
152	152		of any applicable reporting duties under Code Section 30-5-4 and other laws of this state."131
153	153		SECTION 2.132
154	154		All laws and parts of laws in conflict with this Act are repealed.133