Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4395 Compare Versions

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

Old	New	Differences
1	1	HOUSE . . . . . . . . No. 4395
2	2	The Commonwealth of Massachusetts
3	3	________________________________________
4	4	HOUSE OF REPRESENTATIVES, February 15, 2024.
5	5	The committee on Children, Families and Persons with Disabilities, to
6	6	whom was referred the petition (accompanied by bill, House, No. 203) of
7	7	Paul McMurtry and Brian M. Ashe relative to financial exploitation of
8	8	certain adults with disabilities, reports recommending that the
9	9	accompanying bill (House, No. 4395) ought to pass.
10	10	For the committee,
11	11	JAY D. LIVINGSTONE. 1 of 5
12	12	FILED ON: 2/7/2024
13	13	HOUSE . . . . . . . . . . . . . . . No. 4395
14	14	The Commonwealth of Massachusetts
15	15	_______________
16	16	In the One Hundred and Ninety-Third General Court
17	17	(2023-2024)
18	18	_______________
19	19	An Act protecting vulnerable adults from financial exploitation.
20	20	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
21	21	of the same, as follows:
22	22	1 The General Laws are hereby amended by inserting after chapter 110H the following
23	23	2chapter:-
24	24	3 Chapter 110I.
25	25	4 FINANCIAL EXPLOITATION
26	26	5 Section 1. The following words, whenever used in this chapter shall, unless a different
27	27	6meaning clearly appears from the context, have the following meanings:-
28	28	7 “Agencies”, (1) the secretary of the commonwealth and (2) the disabled persons
29	29	8protection commission established pursuant to section 2 of chapter 19C, if the eligible adult is
30	30	9under the age of 60, or the executive office of elder affairs, if the eligible adult is 60 years or
31	31	10older.
32	32	11 “Agent”, as defined in section 401 of chapter 110A.
33	33	12 “Broker-dealer”, as defined in section 401 of chapter 110A. 2 of 5
34	34	13 “Eligible adult”, a person 60 years of age or older or a disabled person, as defined in
35	35	14section 1 of chapter 19C.
36	36	15 “Financial exploitation”, (2) the wrongful or unauthorized taking, withholding,
37	37	16appropriation, or use of money, assets or property of an eligible adult; or (2) any act or omission
38	38	17taken by a person, including through the use of a power of attorney, guardianship, or
39	39	18conservatorship of an eligible adult, to: (a) obtain control, through deception, intimidation or
40	40	19undue influence, over the eligible adult’s money, assets or property to deprive the eligible adult
41	41	20of the ownership, use, benefit or possession of his or her money, assets or property; or (b)
42	42	21convert money, assets or property of the eligible adult to deprive such eligible adult of the
43	43	22ownership, use, benefit or possession of his or her money, assets or property.
44	44	23 “Investment adviser”, as defined in section 401 of chapter 110A.
45	45	24 “Investment adviser representative”, as defined in section 401 of chapter 110A.
46	46	25 “Qualified individual”, any agent, investment adviser; investment-adviser representative;
47	47	26broker-dealer; or person who serves in a supervisory, compliance, investor protection or legal
48	48	27capacity for a broker-dealer or investment adviser.
49	49	28 Section 2. If a qualified individual reasonably believes that financial exploitation of an
50	50	29eligible adult may have occurred, may have been attempted, or is being attempted, the qualified
51	51	30individual may promptly notify: (1) the secretary of the commonwealth and (2) the disabled
52	52	31persons protection commission established pursuant to section 2 of chapter 19C, if the eligible
53	53	32adult is under the age of 60, or the executive office of elder affairs, if the eligible adult is 60
54	54	33years or older. 3 of 5
55	55	34 Section 3. A qualified individual that in good faith and exercising reasonable care makes
56	56	35a disclosure of information pursuant to section 2 shall be immune from administrative or civil
57	57	36liability that might otherwise arise from such disclosure or for any failure to notify the customer
58	58	37of the disclosure.
59	59	38 Section 4. If a qualified individual reasonably believes that financial exploitation of an
60	60	39eligible adult may have occurred, may have been attempted, or is being attempted, a qualified
61	61	40individual may notify any third party previously designated by the eligible adult or reasonably
62	62	41associated with the adult permitted under state or federal law, regulation or the rules of a self-
63	63	42regulatory organization.
64	64	43 Disclosure shall not be made to any designated third party that is suspected of financial
65	65	44exploitation or other abuse of the eligible adult.
66	66	45 Section 5. A qualified individual that, in good faith and exercising reasonable care,
67	67	46complies with section 4 shall be immune from any administrative or civil liability that might
68	68	47otherwise arise from such disclosure.
69	69	48 Section 6. (1) A broker-dealer or investment adviser may delay a disbursement or
70	70	49transaction from an account of an eligible adult or an account on which an eligible adult is a
71	71	50beneficiary if: (a) the broker-dealer, investment adviser or qualified individual reasonably
72	72	51believes, after initiating an internal review of the requested disbursement or transaction and the
73	73	52suspected financial exploitation, that the requested disbursement or transaction may result in
74	74	53financial exploitation of an eligible adult; and (b) the broker-dealer or investment adviser: (i)
75	75	54immediately, but in no event more than 2 business days after the delayed disbursement or
76	76	55transaction, provides written notification of the delay and the reason for the delay to all parties 4 of 5
77	77	56authorized to transact business on the account, unless any such party is reasonably believed to
78	78	57have engaged in suspected or attempted financial exploitation of the eligible adult; (ii)
79	79	58immediately, but in no event more than 2 business days after the delayed disbursement or
80	80	59transaction, notifies the agencies; and (iii) continues its internal review of the suspected or
81	81	60attempted financial exploitation of the eligible adult, as necessary, and provides status updates, a
82	82	61statement of finding and a final disposition of an investigation upon request to the agencies and
83	83	62to qualified individuals.
84	84	63 (2) Any delay of a disbursement or transaction as authorized by this section will expire
85	85	64upon the sooner of: (a) a determination by the broker-dealer or investment adviser that the
86	86	65disbursement or transaction will not result in financial exploitation of the eligible adult; or (b) 15
87	87	66business days after the date on which the broker-dealer or investment adviser delayed
88	88	67disbursement of the funds or a transaction, unless either of the agencies requests that the broker-
89	89	68dealer or investment adviser extend the delay, in which case the delay shall expire no more than
90	90	6955 business days after the date on which the broker-dealer or investment adviser first delayed
91	91	70disbursement of the funds or a transaction unless otherwise terminated or further extended by
92	92	71either of the agencies or an order of a court of competent jurisdiction.
93	93	72 (3) A court of competent jurisdiction may enter an order extending the delay of the
94	94	73disbursement of funds or transaction or may order other protective relief based on the petition of:
95	95	74(1) the secretary of the commonwealth, (2) the disabled persons protection commission
96	96	75established pursuant to section 2 of chapter 19C, if the eligible adult is under the age of 60, or the
97	97	76executive office of elder affairs, if the eligible adult is 60 years or older, (3) the broker-dealer or
98	98	77investment adviser that initiated the delay pursuant to this section or (4) another interested party. 5 of 5
99	99	78 Section 7. A broker-dealer or investment adviser that, in good faith and exercising
100	100	79reasonable care, complies with section 6 shall be immune from any administrative or civil
101	101	80liability that might otherwise arise from such delay in a disbursement.
102	102	81 Section 8. A broker-dealer or investment adviser shall provide access to or copies of
103	103	82records that are relevant to the suspected or attempted financial exploitation of an eligible adult
104	104	83to the disabled persons protection commission established pursuant to section 2 of chapter 19C,
105	105	84if the eligible adult is under the age of 60, or the executive office of elder affairs, if the eligible
106	106	85adult is 60 years or older and law enforcement, either as part of a referral to the agency or to law
107	107	86enforcement, or upon request of the agency or law enforcement pursuant to an investigation. The
108	108	87records may include historical records as well as records relating to the most recent transaction
109	109	88or transactions that may comprise financial exploitation of an eligible adult. All records made
110	110	89available to agencies pursuant to this section shall not be considered a public record as defined in
111	111	90section 7 of chapter 4 or chapter 66. Nothing in this section shall limit or otherwise impede the
112	112	91authority of the state secretary to access or examine the books and records of broker-dealers and
113	113	92investment advisers as otherwise provided by law.