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