Texas 2017 - 85th Regular

Texas House Bill HB3921 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 3921
	1	+	By: Parker, et al. (Senate Sponsor - Hancock) H.B. No. 3921
	2	+	(In the Senate - Received from the House May 5, 2017;
	3	+	May 5, 2017, read first time and referred to Committee on Business &
	4	+	Commerce; May 11, 2017, reported favorably by the following vote:
	5	+	Yeas 9, Nays 0; May 11, 2017, sent to printer.)
	6	+	Click here to see the committee vote
2	7
3	8
	9	+	A BILL TO BE ENTITLED
4	10		AN ACT
5	11		relating to the financial exploitation of certain vulnerable
6	12		adults.
7	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	14		SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by
9	15		adding Chapter 280 to read as follows:
10	16		CHAPTER 280. PROTECTION OF VULNERABLE ADULTS FROM FINANCIAL
11	17		EXPLOITATION
12	18		Sec. 280.001. DEFINITIONS. In this chapter:
13	19		(1) "Department" means the Department of Family and
14	20		Protective Services.
15	21		(2) "Exploitation" means the act of forcing,
16	22		compelling, or exerting undue influence over a person causing the
17	23		person to act in a way that is inconsistent with the person's
18	24		relevant past behavior or causing the person to perform services
19	25		for the benefit of another person.
20	26		(3) "Financial exploitation" means:
21	27		(A) the wrongful or unauthorized taking,
22	28		withholding, appropriation, or use of the money, assets, or other
23	29		property or the identifying information of a person; or
24	30		(B) an act or omission by a person, including
25	31		through the use of a power of attorney on behalf of, or as the
26	32		conservator or guardian of, another person, to:
27	33		(i) obtain control, through deception,
28	34		intimidation, fraud, or undue influence, over the other person's
29	35		money, assets, or other property to deprive the other person of the
30	36		ownership, use, benefit, or possession of the property; or
31	37		(ii) convert the money, assets, or other
32	38		property of the other person to deprive the other person of the
33	39		ownership, use, benefit, or possession of the property.
34	40		(4) "Financial institution" has the meaning assigned
35	41		by Section 277.001.
36	42		(5) "Vulnerable adult" means:
37	43		(A) an elderly person as that term is defined by
38	44		Section 48.002, Human Resources Code;
39	45		(B) a person with a disability as that term is
40	46		defined by Section 48.002, Human Resources Code; or
41	47		(C) an individual receiving services as that term
42	48		is defined by rule by the executive commissioner of the Health and
43	49		Human Services Commission as authorized by Section 48.251(b), Human
44	50		Resources Code.
45	51		Sec. 280.002. REPORTING SUSPECTED FINANCIAL EXPLOITATION
46	52		OF VULNERABLE ADULTS. (a) If an employee of a financial
47	53		institution has cause to believe that financial exploitation of a
48	54		vulnerable adult who is an account holder with the financial
49	55		institution has occurred, is occurring, or has been attempted, the
50	56		employee shall notify the financial institution of the suspected
51	57		financial exploitation.
52	58		(b) If a financial institution is notified of suspected
53	59		financial exploitation under Subsection (a) or otherwise has cause
54	60		to believe that financial exploitation of a vulnerable adult who is
55	61		an account holder with the financial institution has occurred, is
56	62		occurring, or has been attempted, the financial institution shall
57	63		assess the suspected financial exploitation and submit a report to
58	64		the department in the same manner as and containing the same
59	65		information required to be included in a report under Section
60	66		48.051, Human Resources Code. The financial institution shall
61	67		submit the report required by this subsection not later than the
62	68		earlier of:
63	69		(1) the date the financial institution completes the
64	70		financial institution's assessment of the suspected financial
65	71		exploitation; or
66	72		(2) the fifth business day after the date the
67	73		financial institution is notified of the suspected financial
68	74		exploitation under Subsection (a) or otherwise has cause to believe
69	75		that the suspected financial exploitation has occurred, is
70	76		occurring, or has been attempted.
71	77		(c) A financial institution that submits a report to the
72	78		department of suspected financial exploitation of a vulnerable
73	79		adult under Subsection (b) is not required to make an additional
74	80		report of suspected abuse, neglect, or exploitation under Section
75	81		48.051, Human Resources Code, for the same conduct constituting the
76	82		reported suspected financial exploitation.
77	83		(d) Each financial institution shall adopt internal
78	84		policies, programs, plans, or procedures for:
79	85		(1) the employees of the financial institution to make
80	86		the notification required under Subsection (a); and
81	87		(2) the financial institution to conduct the
82	88		assessment and submit the report required under Subsection (b).
83	89		(e) The policies, programs, plans, or procedures adopted
84	90		under Subsection (d) may authorize the financial institution to
85	91		report the suspected financial exploitation to other appropriate
86	92		agencies and entities in addition to the department, including the
87	93		attorney general, the Federal Trade Commission, and the appropriate
88	94		law enforcement agency.
89	95		Sec. 280.003. NOTIFYING THIRD PARTIES OF SUSPECTED
90	96		FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. If a financial
91	97		institution submits a report of suspected financial exploitation of
92	98		a vulnerable adult to the department under Section 280.002(b), the
93	99		financial institution may at the time the financial institution
94	100		submits the report also notify a third party reasonably associated
95	101		with the vulnerable adult of the suspected financial exploitation,
96	102		unless the financial institution suspects the third party of
97	103		financial exploitation of the vulnerable adult.
98	104		Sec. 280.004. TEMPORARY HOLD ON TRANSACTIONS IN CERTAIN
99	105		CASES OF SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS.
100	106		(a) Notwithstanding any other law, if a financial institution
101	107		submits a report of suspected financial exploitation of a
102	108		vulnerable adult to the department under Section 280.002(b), the
103	109		financial institution:
104	110		(1) may place a hold on any transaction that:
105	111		(A) involves an account of the vulnerable adult;
106	112		and
107	113		(B) the financial institution has cause to
108	114		believe is related to the suspected financial exploitation; and
109	115		(2) must place a hold on any transaction involving an
110	116		account of the vulnerable adult if the hold is requested by the
111	117		department or a law enforcement agency.
112	118		(b) Subject to Subsection (c), a hold placed on any
113	119		transaction under Subsection (a) expires on the 10th business day
114	120		after the date the financial institution submits the report under
115	121		Section 280.002(b).
116	122		(c) The financial institution may extend a hold placed on
117	123		any transaction under Subsection (a) for a period not to exceed 30
118	124		business days after the expiration of the period prescribed by
119	125		Subsection (b) if requested by a state or federal agency or a law
120	126		enforcement agency investigating the suspected financial
121	127		exploitation. The financial institution may also petition a court
122	128		to extend a hold placed on any transaction under Subsection (a)
123	129		beyond the period prescribed by Subsection (b). A court may enter
124	130		an order extending or shortening a hold or providing other relief.
125	131		(d) Each financial institution shall adopt internal
126	132		policies, programs, plans, or procedures for placing a hold on a
127	133		transaction involving an account of a vulnerable adult under this
128	134		section.
129	135		Sec. 280.005. IMMUNITY. (a) An employee of a financial
130	136		institution who makes a notification under Section 280.002(a), a
131	137		financial institution that submits a report under Section
132	138		280.002(b) or makes a notification to a third party under Section
133	139		280.003, or an employee who or financial institution that testifies
134	140		or otherwise participates in a judicial proceeding arising from a
135	141		notification or report is immune from any civil or criminal
136	142		liability arising from the notification, report, testimony, or
137	143		participation in the judicial proceeding, unless the employee or
138	144		financial institution acted in bad faith or with a malicious
139	145		purpose.
140	146		(b) A financial institution that in good faith and with the
141	147		exercise of reasonable care places or does not place a hold on any
142	148		transaction under Section 280.004(a)(1) is immune from any civil or
143	149		criminal liability or disciplinary action resulting from that
144	150		action or failure to act.
145	151		Sec. 280.006. RECORDS. To the extent permitted by state or
146	152		federal law, a financial institution shall provide, on request,
147	153		access to or copies of records relevant to the suspected financial
148	154		exploitation of a vulnerable adult to the department, a law
149	155		enforcement agency, or a prosecuting attorney's office, either as
150	156		part of a report to the department, law enforcement agency, or
151	157		prosecuting attorney's office or at the request of the department,
152	158		law enforcement agency, or prosecuting attorney's office in
153	159		accordance with an investigation.
154	160		SECTION 2. The Securities Act (Article 581-1 et seq.,
155	161		Vernon's Texas Civil Statutes) is amended by adding Section 45 to
156	162		read as follows:
157	163		Sec. 45. PROTECTION OF VULNERABLE ADULTS FROM FINANCIAL
158	164		EXPLOITATION. A. In this section:
159	165		(1) "Department" means the Department of Family and
160	166		Protective Services.
161	167		(2) "Exploitation," "financial exploitation," and
162	168		"vulnerable adult" have the meanings assigned by Section 280.001,
163	169		Finance Code.
164	170		(3) "Securities professional" means an agent, an
165	171		investment adviser representative, or a person who serves in a
166	172		supervisory or compliance capacity for a dealer or investment
167	173		adviser.
168	174		B. If a securities professional or a person serving in a
169	175		legal capacity for a dealer or investment adviser has cause to
170	176		believe that financial exploitation of a vulnerable adult who is an
171	177		account holder with the dealer or investment adviser has occurred,
172	178		is occurring, or has been attempted, the securities professional or
173	179		person serving in a legal capacity for the dealer or investment
174	180		adviser shall notify the dealer or investment adviser of the
175	181		suspected financial exploitation.
176	182		C. If a dealer or investment adviser is notified of
177	183		suspected financial exploitation under Subsection B of this section
178	184		or otherwise has cause to believe that financial exploitation of a
179	185		vulnerable adult who is an account holder with the dealer or
180	186		investment adviser has occurred, is occurring, or has been
181	187		attempted, the dealer or investment adviser shall assess the
182	188		suspected financial exploitation and submit a report to the
183	189		Securities Commissioner, in accordance with rules adopted under
184	190		Subsection N of this section, and the department in the same manner
185	191		as and containing the same information required to be included in a
186	192		report under Section 48.051, Human Resources Code. The dealer or
187	193		investment adviser shall submit the reports required by this
188	194		subsection not later than the earlier of:
189	195		(1) the date the dealer or investment adviser
190	196		completes the dealer's or investment adviser's assessment of the
191	197		suspected financial exploitation; or
192	198		(2) the fifth business day after the date the dealer or
193	199		investment adviser is notified of the suspected financial
194	200		exploitation under Subsection B of this section or otherwise has
195	201		cause to believe that the suspected financial exploitation has
196	202		occurred, is occurring, or has been attempted.
197	203		D. A dealer or investment adviser who submits a report to
198	204		the department of suspected financial exploitation of a vulnerable
199	205		adult under Subsection C of this section is not required to make an
200	206		additional report of suspected abuse, neglect, or exploitation
201	207		under Section 48.051, Human Resources Code, for the same conduct
202	208		constituting the reported suspected financial exploitation.
203	209		E. Each dealer and investment adviser shall adopt internal
204	210		policies, programs, plans, or procedures for the securities
205	211		professionals or persons serving in a legal capacity for the dealer
206	212		or investment adviser to make the notification required under
207	213		Subsection B of this section and for the dealer or investment
208	214		adviser to conduct the assessment and submit the reports required
209	215		under Subsection C of this section. The policies, programs, plans,
210	216		or procedures adopted under this subsection may authorize the
211	217		dealer or investment adviser to report the suspected financial
212	218		exploitation to other appropriate agencies and entities in addition
213	219		to the Securities Commissioner and the department, including the
214	220		attorney general, the Federal Trade Commission, and the appropriate
215	221		law enforcement agency.
216	222		F. If a dealer or investment adviser submits reports of
217	223		suspected financial exploitation of a vulnerable adult to the
218	224		Securities Commissioner and the department under Subsection C of
219	225		this section, the dealer or investment adviser may at the time the
220	226		dealer or investment adviser submits the reports also notify a
221	227		third party reasonably associated with the vulnerable adult of the
222	228		suspected financial exploitation, unless the dealer or investment
223	229		adviser suspects the third party of financial exploitation of the
224	230		vulnerable adult.
225	231		G. Notwithstanding any other law, if a dealer or investment
226	232		adviser submits reports of suspected financial exploitation of a
227	233		vulnerable adult to the Securities Commissioner and the department
228	234		under Subsection C of this section, the dealer or investment
229	235		adviser:
230	236		(1) may place a hold on any transaction that:
231	237		(A) involves an account of the vulnerable adult;
232	238		and
233	239		(B) the dealer or investment adviser has cause to
234	240		believe is related to the suspected financial exploitation; and
235	241		(2) must place a hold on any transaction involving an
236	242		account of the vulnerable adult if the hold is requested by the
237	243		Securities Commissioner, the department, or a law enforcement
238	244		agency.
239	245		H. Subject to Subsection I of this section, a hold placed on
240	246		any transaction under Subsection G of this section expires on the
241	247		10th business day after the date the dealer or investment adviser
242	248		submits the reports under Subsection C of this section.
243	249		I. A dealer or investment adviser may extend a hold placed
244	250		on any transaction under Subsection G of this section for a period
245	251		not to exceed 30 business days after the expiration of the period
246	252		prescribed by Subsection H of this section if requested by a state
247	253		or federal agency or a law enforcement agency investigating the
248	254		suspected financial exploitation. The dealer or investment adviser
249	255		may also petition a court to extend a hold placed on any transaction
250	256		under Subsection G of this section beyond the period prescribed by
251	257		Subsection H of this section. A court may enter an order extending
252	258		or shortening a hold or providing other relief.
253	259		J. Each dealer and investment adviser shall adopt internal
254	260		policies, programs, plans, or procedures for placing a hold on a
255	261		transaction involving an account of a vulnerable adult under
256	262		Subsection G of this section.
257	263		K. A securities professional or person serving in a legal
258	264		capacity for a dealer or investment adviser who makes a
259	265		notification under Subsection B of this section, a dealer or
260	266		investment adviser that submits a report under Subsection C of this
261	267		section or makes a notification to a third party under Subsection F
262	268		of this section, or a securities professional or person serving in a
263	269		legal capacity who or dealer or investment adviser that testifies
264	270		or otherwise participates in a judicial proceeding arising from a
265	271		notification or report is immune from any civil or criminal
266	272		liability arising from the notification, report, testimony, or
267	273		participation in the judicial proceeding, unless the securities
268	274		professional, person serving in a legal capacity for the dealer or
269	275		investment adviser, or dealer or investment adviser acted in bad
270	276		faith or with a malicious purpose.
271	277		L. A dealer or investment adviser that in good faith and
272	278		with the exercise of reasonable care places or does not place a hold
273	279		on any transaction under Subsection G(1) of this section is immune
274	280		from civil or criminal liability or disciplinary action resulting
275	281		from the action or failure to act.
276	282		M. To the extent permitted by state or federal law, a dealer
277	283		or investment adviser, on request, shall provide access to or
278	284		copies of records relevant to the suspected financial exploitation
279	285		of a vulnerable adult to the Securities Commissioner, the
280	286		department, a law enforcement agency, or a prosecuting attorney's
281	287		office, either as part of a report to the Securities Commissioner,
282	288		department, law enforcement agency, or prosecuting attorney's
283	289		office or at the request of the Securities Commissioner,
284	290		department, law enforcement agency, or prosecuting attorney's
285	291		office in accordance with an investigation.
286	292		N. The Board by rule shall prescribe the form and content of
287	293		the report required to be submitted by a dealer or investment
288	294		adviser to the Securities Commissioner under Subsection C of this
289	295		section.
290	296		SECTION 3. This Act takes effect September 1, 2017.
291		-	______________________________ ______________________________
292		-	President of the Senate Speaker of the House
293		-	I certify that H.B. No. 3921 was passed by the House on May 4,
294		-	2017, by the following vote: Yeas 128, Nays 10, 2 present, not
295		-	voting.
296		-	______________________________
297		-	Chief Clerk of the House
298		-	I certify that H.B. No. 3921 was passed by the Senate on May
299		-	22, 2017, by the following vote: Yeas 28, Nays 2.
300		-	______________________________
301		-	Secretary of the Senate
302		-	APPROVED: _____________________
303		-	Date
304		-	_____________________
305		-	Governor
	297	+	* * * * *