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HOUSE DOCKET, NO. 3576 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 296
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 Norfolk1/17/2025 1 of 5
HOUSE DOCKET, NO. 3576 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 296
By Representative McMurtry of Dedham, a petition (accompanied by bill, House, No. 296) of
Paul McMurtry relative to financial exploitation of certain adults with disabilities. Financial
Services.
[SIMILAR MATTER FILED IN PREVIOUS SESSION
SEE HOUSE, NO. 203 OF 2023-2024.]
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
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; investment-adviser representative;
26broker-dealer; or person who serves in a supervisory, compliance, investor protection or legal
27capacity for a broker-dealer or investment adviser.
28 Section 2. If a qualified individual reasonably believes that financial exploitation of an
29eligible adult may have occurred, may have been attempted, or is being attempted, the qualified 3 of 5
30individual may promptly notify: (1) the secretary of the commonwealth and (2) the disabled
31persons protection commission established pursuant to section 2 of chapter 19C, if the eligible
32adult is under the age of 60, or the executive office of elder affairs, if the eligible adult is 60
33years or older.
34 Section 3. A qualified individual that in good faith and exercising reasonable care makes
35a disclosure of information pursuant to section 2 shall be immune from administrative or civil
36liability that might otherwise arise from such disclosure or for any failure to notify the customer
37of the disclosure.
38 Section 4. If a qualified individual reasonably believes that financial exploitation of an
39eligible adult may have occurred, may have been attempted, or is being attempted, a qualified
40individual may notify any third party previously designated by the eligible adult or reasonably
41associated with the adult permitted under state or federal law, regulation or the rules of a self-
42regulatory organization.
43 Disclosure shall not be made to any designated third party that is suspected of financial
44exploitation or other abuse of the eligible adult.
45 Section 5. A qualified individual that, in good faith and exercising reasonable care,
46complies with section 4 shall be immune from any administrative or civil liability that might
47otherwise arise from such disclosure.
48 Section 6. (1) A broker-dealer or investment adviser may delay a disbursement or
49transaction from an account of an eligible adult or an account on which an eligible adult is a
50beneficiary if: (a) the broker-dealer, investment adviser or qualified individual reasonably
51believes, after initiating an internal review of the requested disbursement or transaction and the 4 of 5
52suspected financial exploitation, that the requested disbursement or transaction may result in
53financial exploitation of an eligible adult; and (b) the broker-dealer or investment adviser: (i)
54immediately, but in no event more than 2 business days after the delayed disbursement or
55transaction, provides written notification of the delay and the reason for the delay to all parties
56authorized to transact business on the account, unless any such party is reasonably believed to
57have engaged in suspected or attempted financial exploitation of the eligible adult; (ii)
58immediately, but in no event more than 2 business days after the delayed disbursement or
59transaction, notifies the agencies; and (iii) continues its internal review of the suspected or
60attempted financial exploitation of the eligible adult, as necessary, and provides status updates, a
61statement of finding and a final disposition of an investigation upon request to the agencies t. and
62to qualified individuals.
63 (2) Any delay of a disbursement or transaction as authorized by this section will expire
64upon the sooner of: (a) a determination by the broker-dealer or investment adviser that the
65disbursement or transaction will not result in financial exploitation of the eligible adult; or (b) 15
66business days after the date on which the broker-dealer or investment adviser delayed
67disbursement of the funds or a transaction, unless either of the agencies requests that the broker-
68dealer or investment adviser extend the delay, in which case the delay shall expire no more than
6955 business days after the date on which the broker-dealer or investment adviser first delayed
70disbursement of the funds or a transaction unless otherwise terminated or further extended by
71either of the agencies or an order of a court of competent jurisdiction.
72 (3) A court of competent jurisdiction may enter an order extending the delay of the
73disbursement of funds or transaction or may order other protective relief based on the petition of:
74(1) the secretary of the commonwealth, (2) the disabled persons protection commission 5 of 5
75established pursuant to section 2 of chapter 19C, if the eligible adult is under the age of 60, or the
76executive office of elder affairs, if the eligible adult is 60 years or older, (3) the broker-dealer or
77investment adviser that initiated the delay pursuant to this section or (4) another interested party.
78 Section 7. A broker-dealer or investment adviser that, in good faith and exercising
79reasonable care, complies with section 6 shall be immune from any administrative or civil
80liability that might otherwise arise from such delay in a disbursement.
81 Section 8. A broker-dealer or investment adviser shall provide access to or copies of
82records that are relevant to the suspected or attempted financial exploitation of an eligible adult
83to the disabled persons protection commission established pursuant to section 2 of chapter 19C,
84if the eligible adult is under the age of 60, or the executive office of elder affairs, if the eligible
85adult is 60 years or older and law enforcement, either as part of a referral to the agency or to law
86enforcement, or upon request of the agency or law enforcement pursuant to an investigation. The
87records may include historical records as well as records relating to the most recent transaction
88or transactions that may comprise financial exploitation of an eligible adult. All records made
89available to agencies pursuant to this section shall not be considered a public record as defined in
90section 7 of chapter 4 or chapter 66. Nothing in this section shall limit or otherwise impede the
91authority of the state secretary to access or examine the books and records of broker-dealers and
92investment advisers as otherwise provided by law.