Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4124 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. 4451 FILED ON: 7/6/2023
3	3	HOUSE . . . . . . . . . . . . . . . No. 4124
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	James M. Murphy
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 seniors and adults with disabilities from financial exploitation.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :DATE ADDED:James M. Murphy4th Norfolk7/3/2023Paul McMurtry11th Norfolk9/27/2023 1 of 5
16	16	HOUSE DOCKET, NO. 4451 FILED ON: 7/6/2023
17	17	HOUSE . . . . . . . . . . . . . . . No. 4124
18	18	By Representative Murphy of Weymouth, a petition (subject to Joint Rule 12) of James M.
19	19	Murphy for legislation to protect seniors and adults with disabilities from financial exploitation.
20	20	Financial Services.
21	21	The Commonwealth of Massachusetts
22	22	_______________
23	23	In the One Hundred and Ninety-Third General Court
24	24	(2023-2024)
25	25	_______________
26	26	An Act protecting seniors and adults with disabilities from financial exploitation.
27	27	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
28	28	of the same, as follows:
29	29	1 Chapter 110I. FINANCIAL EXPLOITATION OF SENIORS AND ADULTS WITH
30	30	2DISABILITIES
31	31	3 Section 1. The following words, whenever used in this chapter shall have the definitions
32	32	4set forth herein, unless context otherwise requires:
33	33	5 “Adult protective services agency” means any office, division, department, or unit in the
34	34	6Commonwealth that is charged with the investigation of abuse, neglect, or exploitation of (a)
35	35	7elder adults or (b) a disabled person, as defined in section 1 of chapter 19C.
36	36	8 “Agent” shall have the same meaning as in section 401 of chapter 110A.
37	37	9 “Eligible adult” means (a) a person 60 years of age or older or (b) a disabled person, as
38	38	10defined in section 1 of chapter 19C. 2 of 5
39	39	11 “Financial exploitation” means (a) the wrongful or unauthorized taking, withholding,
40	40	12appropriation, or use of money, assets, or property of an eligible adult; or (b) any act or omission
41	41	13taken by a person, including through the use of a power of attorney, guardianship, or
42	42	14conservatorship of an eligible adult, to: (1) obtain control, use, or benefit of the eligible adult’s
43	43	15money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or
44	44	16possession of his or her money, assets, or property through deception, intimidation, or undue
45	45	17influence, or by the use of any unethical or dishonest conduct; or (2) convert money, assets, or
46	46	18property of the eligible adult to deprive such eligible adult of the ownership, use, benefit, or
47	47	19possession of his or her money, assets, or property.
48	48	20 “Financial institution” means (a) any broker-dealer as defined under section 401 of
49	49	21chapter 110A, (b) any investment adviser as defined under section 401 of chapter 110A, and (c)
50	50	22any bank chartered by the commonwealth under chapter 168, 170, 171 or 172.
51	51	23 “Investment adviser representative” shall have the same meaning as in section 401 of
52	52	24chapter 110A.
53	53	25 “Qualified individual” means any agent, investment adviser representative, bank
54	54	26employee, or person who serves in a supervisory, compliance, or legal capacity for a financial
55	55	27institution.
56	56	28 “Secretary” means the Secretary of the Commonwealth or his or her designee.
57	57	29 Section 2. If a qualified individual has reasonable cause to believe that the financial
58	58	30exploitation of an eligible adult may have occurred, may have been attempted, or is being
59	59	31attempted, then the qualified individual shall promptly notify the Secretary and any relevant
60	60	32adult protective services agency. 3 of 5
61	61	33 Section 3. The notification required by section 2 must be made by written communication
62	62	34or by form as issued by the Secretary. Such notice shall include, to the extent possible: (1) the
63	63	35name and address of the eligible adult; (2) the name and address of the eligible adult's caretaker;
64	64	36(3) the age of the eligible adult; (4) the nature and extent of the eligible adult's potential or actual
65	65	37injury or condition resulting from the financial exploitation; (5) any other pertinent information;
66	66	38and (6) any additional information that is required by a rule adopted or form or order issued by
67	67	39the Secretary.
68	68	40 Section 4. If a qualified individual has reasonable cause to believe that the financial
69	69	41exploitation of an eligible adult may have occurred, may have been attempted, or is being
70	70	42attempted, then a qualified individual may notify any third party previously designated by the
71	71	43eligible adult; provided, however, that a qualified individual shall not notify any designated third
72	72	44party that is suspected of the financial exploitation or other abuse of the eligible adult.
73	73	45 Section 5. (1) A financial institution may delay a disbursement from, or a transaction in
74	74	46connection with, an account of an eligible adult or an account on which an eligible adult is a
75	75	47beneficiary if any qualified individual has reasonable cause to believe that, after initiating an
76	76	48internal review of the requested disbursement or transaction and the suspected financial
77	77	49exploitation, the requested disbursement or transaction may result in the financial exploitation of
78	78	50the eligible adult.
79	79	51 (2) If a financial institution delays a disbursement or transaction under this section, the
80	80	52financial institution shall: (a) immediately, and in no event more than two business days after the
81	81	53requested disbursement or transaction was delayed, provide written notification of the delay and
82	82	54the reason for the delay to all parties authorized to transact business on the account, unless 4 of 5
83	83	55 there is reasonable cause to believe such party engaged in the suspected or attempted
84	84	56financial exploitation of the eligible adult; (b) immediately, and in no event more than two
85	85	57business days after the requested disbursement or transaction was delayed, notify the Secretary
86	86	58and any relevant adult protective services agency pursuant to section 3; and (c) continue an
87	87	59internal review of the suspected or attempted financial exploitation of the eligible adult, as
88	88	60necessary, and report the investigation's results to the Secretary and any relevant adult protective
89	89	61services agency within 7 business days of the requested disbursement or transaction.
90	90	62 (3) The authorization of any delay of a disbursement or transaction pursuant to this
91	91	63section shall expire upon the sooner of: (a) the determination by the financial institution that the
92	92	64disbursement or transaction will not result in the financial exploitation of the eligible adult; or (b)
93	93	6515 business days after the date on which the financial institution first delayed the requested
94	94	66disbursement or transaction. A court of competent jurisdiction may enter an order extending the
95	95	67delay of a disbursement or transaction under this section, or may order other protective relief,
96	96	68upon the petition of the Secretary; adult protective services agency; a financial institution that
97	97	69initiated the delay under this section; or other interested party.
98	98	70 Section 6. A financial institution shall provide access to or copies of records that are
99	99	71relevant to the suspected or attempted financial exploitation of an eligible adult to the Secretary,
100	100	72adult protective service agency, or law enforcement pursuant to an investigation. Such records
101	101	73may include historical records and records pertaining to a disbursement or transaction related to
102	102	74the suspected or attempted financial exploitation of an eligible adult. Records made available
103	103	75pursuant to this section shall not be public records and shall not be available for public
104	104	76examination. 5 of 5
105	105	77 Section 7. Nothing in this chapter shall limit or otherwise impede the authority of the
106	106	78Secretary from accessing or examining the books and records of a broker-dealer or investment
107	107	79adviser as otherwise provided by law or conducting any lawful investigation into potential
108	108	80violations of chapter 110A.
109	109	81 Section 8. A qualified individual that, in good faith and exercising reasonable care,
110	110	82complies with this chapter shall be immune from any administrative or civil liability that might
111	111	83otherwise arise from such action. Notwithstanding the foregoing, nothing in this section shall
112	112	84limit or shield, in any manner, a qualified individual from any administrative or civil liability for
113	113	85any claim, or for reasonable attorneys' fees, costs, and litigation expenses related to such claim,
114	114	86for participating in or materially aiding the financial exploitation of an eligible adult. Any such
115	115	87civil claim may be asserted by the eligible adult, or on his or her behalf by an appropriate
116	116	88guardian or representative who is not involved in or otherwise suspected of participating in the
117	117	89financial exploitation of the eligible adult, by filing a civil action in a court of competent
118	118	90jurisdiction.