Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H203 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	HOUSE DOCKET, NO. 2151 FILED ON: 1/19/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 203
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Paul McMurtry
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act protecting vulnerable adults from financial exploitation.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:Paul McMurtry11th Norfolk1/19/2023Brian M. Ashe2nd Hampden2/1/2023 1 of 5
16	16	HOUSE DOCKET, NO. 2151 FILED ON: 1/19/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 203
18	18	By Representative McMurtry of Dedham, a petition (accompanied by bill, House, No. 203) of
19	19	Paul McMurtry and Brian M. Ashe relative to financial exploitation of certain adults with
20	20	disabilities. Children, Families and Persons with Disabilities.
21	21	[SIMILAR MATTER FILED IN PREVIOUS SESSION
22	22	SEE HOUSE, NO. 252 OF 2021-2022.]
23	23	The Commonwealth of Massachusetts
24	24	_______________
25	25	In the One Hundred and Ninety-Third General Court
26	26	(2023-2024)
27	27	_______________
28	28	An Act protecting vulnerable adults from financial exploitation.
29	29	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
30	30	of the same, as follows:
31	31	1 The General Laws are hereby amended by inserting after chapter 110H the following
32	32	2chapter:-
33	33	3 Chapter 110I.
34	34	4 FINANCIAL EXPLOITATION
35	35	5 Section 1. The following words, whenever used in this chapter shall, unless a different
36	36	6meaning clearly appears from the context, have the following meanings:-
37	37	7 “Agencies”, (1) the secretary of the commonwealth and (2) the disabled persons
38	38	8protection commission established pursuant to section 2 of chapter 19C, if the eligible adult is 2 of 5
39	39	9under the age of 60, or the executive office of elder affairs, if the eligible adult is 60 years or
40	40	10older.
41	41	11 “Agent”, as defined in section 401 of chapter 110A.
42	42	12 “Broker-dealer”, as defined in section 401 of chapter 110A.
43	43	13 “Eligible adult”, a person 60 years of age or older or a disabled person, as defined in
44	44	14section 1 of chapter 19C.
45	45	15 “Financial exploitation”, (2) the wrongful or unauthorized taking, withholding,
46	46	16appropriation, or use of money, assets or property of an eligible adult; or (2) any act or omission
47	47	17taken by a person, including through the use of a power of attorney, guardianship, or
48	48	18conservatorship of an eligible adult, to: (a) obtain control, through deception, intimidation or
49	49	19undue influence, over the eligible adult’s money, assets or property to deprive the eligible adult
50	50	20of the ownership, use, benefit or possession of his or her money, assets or property; or (b)
51	51	21convert money, assets or property of the eligible adult to deprive such eligible adult of the
52	52	22ownership, use, benefit or possession of his or her money, assets or property.
53	53	23 “Investment adviser”, as defined in section 401 of chapter 110A.
54	54	24 “Investment adviser representative”, as defined in section 401 of chapter 110A.
55	55	25 “Qualified individual”, any agent, investment adviser representative or person who serves
56	56	26in a supervisory, compliance or legal capacity for a broker-dealer or investment adviser.
57	57	27 Section 2. If a qualified individual reasonably believes that financial exploitation of an
58	58	28eligible adult may have occurred, may have been attempted, or is being attempted, the qualified
59	59	29individual may promptly notify: (1) the secretary of the commonwealth and (2) the disabled 3 of 5
60	60	30persons protection commission established pursuant to section 2 of chapter 19C, if the eligible
61	61	31adult is under the age of 60, or the executive office of elder affairs, if the eligible adult is 60
62	62	32years or older.
63	63	33 Section 3. A qualified individual that in good faith and exercising reasonable care makes
64	64	34a disclosure of information pursuant to section 2 shall be immune from administrative or civil
65	65	35liability that might otherwise arise from such disclosure or for any failure to notify the customer
66	66	36of the disclosure.
67	67	37 Section 4. If a qualified individual reasonably believes that financial exploitation of an
68	68	38eligible adult may have occurred, may have been attempted, or is being attempted, a qualified
69	69	39individual may notify any third party previously designated by the eligible adult. Disclosure shall
70	70	40not be made to any designated third party that is suspected of financial exploitation or other
71	71	41abuse of the eligible adult.
72	72	42 Section 5. A qualified individual that, in good faith and exercising reasonable care,
73	73	43complies with section 4 shall be immune from any administrative or civil liability that might
74	74	44otherwise arise from such disclosure.
75	75	45 Section 6. (1) A broker-dealer or investment adviser may delay a disbursement from an
76	76	46account of an eligible adult or an account on which an eligible adult is a beneficiary if: (a) the
77	77	47broker-dealer, investment adviser or qualified individual reasonably believes, after initiating an
78	78	48internal review of the requested disbursement and the suspected financial exploitation, that the
79	79	49requested disbursement may result in financial exploitation of an eligible adult; and (b) the
80	80	50broker-dealer or investment adviser: (i) immediately, but in no event more than 2 business days
81	81	51after the requested disbursement, provides written notification of the delay and the reason for the 4 of 5
82	82	52delay to all parties authorized to transact business on the account, unless any such party is
83	83	53reasonably believed to have engaged in suspected or attempted financial exploitation of the
84	84	54eligible adult; (ii) immediately, but in no event more than 2 business days after the requested
85	85	55disbursement, notifies the agencies; and (iii) continues its internal review of the suspected or
86	86	56attempted financial exploitation of the eligible adult, as necessary, and reports the investigation’s
87	87	57results to the agencies within 7 business days after the requested disbursement.
88	88	58 (2) Any delay of a disbursement as authorized by this section will expire upon the sooner
89	89	59of: (a) a determination by the broker-dealer or investment adviser that the disbursement will not
90	90	60result in financial exploitation of the eligible adult; or (b) 15 business days after the date on
91	91	61which the broker-dealer or investment adviser first delayed disbursement of the funds, unless
92	92	62either of the agencies requests that the broker-dealer or investment adviser extend the delay, in
93	93	63which case the delay shall expire no more than 25 business days after the date on which the
94	94	64broker-dealer or investment adviser first delayed disbursement of the funds unless sooner
95	95	65terminated by either of the agencies or an order of a court of competent jurisdiction.
96	96	66 (3) A court of competent jurisdiction may enter an order extending the delay of the
97	97	67disbursement of funds or may order other protective relief based on the petition of: (1) the
98	98	68secretary of the commonwealth, (2) the disabled persons protection commission established
99	99	69pursuant to section 2 of chapter 19C, if the eligible adult is under the age of 60, or the executive
100	100	70office of elder affairs, if the eligible adult is 60 years or older, (3) the broker-dealer or investment
101	101	71adviser that initiated the delay pursuant to this section or (4) another interested party. 5 of 5
102	102	72 Section 7. A broker-dealer or investment adviser that, in good faith and exercising
103	103	73reasonable care, complies with section 6 shall be immune from any administrative or civil
104	104	74liability that might otherwise arise from such delay in a disbursement.
105	105	75 Section 8. A broker-dealer or investment adviser shall provide access to or copies of
106	106	76records that are relevant to the suspected or attempted financial exploitation of an eligible adult
107	107	77to the disabled persons protection commission established pursuant to section 2 of chapter 19C,
108	108	78if the eligible adult is under the age of 60, or the executive office of elder affairs, if the eligible
109	109	79adult is 60 years or older and law enforcement, either as part of a referral to the agency or to law
110	110	80enforcement, or upon request of the agency or law enforcement pursuant to an investigation. The
111	111	81records may include historical records as well as records relating to the most recent transaction
112	112	82or transactions that may comprise financial exploitation of an eligible adult. All records made
113	113	83available to agencies pursuant to this section shall not be considered a public record as defined in
114	114	84section 7 of chapter 4 or chapter 66. Nothing in this section shall limit or otherwise impede the
115	115	85authority of the state secretary to access or examine the books and records of broker-dealers and
116	116	86investment advisers as otherwise provided by law.