1 | 1 | | 85R12891 EES-F |
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2 | 2 | | By: Hancock S.B. No. 2067 |
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3 | 3 | | |
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4 | 4 | | |
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5 | 5 | | A BILL TO BE ENTITLED |
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6 | 6 | | AN ACT |
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7 | 7 | | relating to the financial exploitation of certain vulnerable |
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8 | 8 | | adults. |
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9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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10 | 10 | | SECTION 1. Subtitle Z, Title 3, Finance Code, is amended by |
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11 | 11 | | adding Chapter 280 to read as follows: |
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12 | 12 | | CHAPTER 280. PROTECTION OF VULNERABLE ADULTS FROM FINANCIAL |
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13 | 13 | | EXPLOITATION |
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14 | 14 | | Sec. 280.001. DEFINITIONS. In this chapter: |
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15 | 15 | | (1) "Adult protective services division" means the |
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16 | 16 | | adult protective services division of the Department of Family and |
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17 | 17 | | Protective Services. |
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18 | 18 | | (2) "Exploitation" means the act of forcing, |
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19 | 19 | | compelling, or exerting undue influence over a person causing the |
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20 | 20 | | person to act in a way that is inconsistent with the person's |
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21 | 21 | | relevant past behavior or causing the person to perform services |
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22 | 22 | | for the benefit of another person. |
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23 | 23 | | (3) "Financial exploitation" means: |
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24 | 24 | | (A) the wrongful or unauthorized taking, |
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25 | 25 | | withholding, appropriation, or use of the money, assets, or other |
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26 | 26 | | property or the identifying information of a person; or |
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27 | 27 | | (B) an act or omission by a person, including |
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28 | 28 | | through the use of a power of attorney on behalf of, or as the |
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29 | 29 | | conservator or guardian of, another person, to: |
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30 | 30 | | (i) obtain control, through deception, |
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31 | 31 | | intimidation, fraud, or undue influence, over the other person's |
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32 | 32 | | money, assets, or other property to deprive the other person of the |
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33 | 33 | | ownership, use, benefit, or possession of the property; or |
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34 | 34 | | (ii) convert the money, assets, or other |
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35 | 35 | | property of the other person to deprive the other person of the |
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36 | 36 | | ownership, use, benefit, or possession of the property. |
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37 | 37 | | (4) "Financial institution" has the meaning assigned |
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38 | 38 | | by Section 277.001. |
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39 | 39 | | (5) "Vulnerable adult" means: |
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40 | 40 | | (A) an elderly person as that term is defined by |
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41 | 41 | | Section 48.002, Human Resources Code; |
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42 | 42 | | (B) a person with a disability as that term is |
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43 | 43 | | defined by Section 48.002, Human Resources Code; or |
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44 | 44 | | (C) an individual receiving services as that term |
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45 | 45 | | is defined by rule by the executive commissioner of the Health and |
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46 | 46 | | Human Services Commission as authorized by Section 48.251(b), Human |
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47 | 47 | | Resources Code. |
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48 | 48 | | Sec. 280.002. REPORTING SUSPECTED FINANCIAL EXPLOITATION |
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49 | 49 | | OF VULNERABLE ADULTS. (a) If an employee of a financial |
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50 | 50 | | institution has cause to believe that financial exploitation of a |
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51 | 51 | | vulnerable adult who is an account holder with the financial |
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52 | 52 | | institution has occurred, is occurring, or has been attempted, the |
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53 | 53 | | employee shall notify the financial institution of the suspected |
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54 | 54 | | financial exploitation. |
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55 | 55 | | (b) If a financial institution is notified of suspected |
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56 | 56 | | financial exploitation under Subsection (a) or otherwise has cause |
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57 | 57 | | to believe that financial exploitation of a vulnerable adult who is |
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58 | 58 | | an account holder with the financial institution has occurred, is |
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59 | 59 | | occurring, or has been attempted, the financial institution shall |
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60 | 60 | | investigate the suspected financial exploitation and submit a |
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61 | 61 | | report to the adult protective services division in accordance with |
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62 | 62 | | Subchapter B-1, Chapter 48, Human Resources Code. The financial |
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63 | 63 | | institution shall submit the report required by this subsection not |
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64 | 64 | | later than the earlier of: |
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65 | 65 | | (1) the date the financial institution completes the |
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66 | 66 | | investigation; or |
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67 | 67 | | (2) the fifth business day after the date the |
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68 | 68 | | financial institution is notified of the suspected financial |
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69 | 69 | | exploitation under Subsection (a) or otherwise has cause to believe |
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70 | 70 | | that the suspected financial exploitation has occurred, is |
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71 | 71 | | occurring, or has been attempted. |
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72 | 72 | | (c) Each financial institution shall adopt internal |
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73 | 73 | | policies, programs, plans, or procedures for: |
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74 | 74 | | (1) the employees of the financial institution to make |
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75 | 75 | | the notification required under Subsection (a); and |
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76 | 76 | | (2) the financial institution to conduct the |
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77 | 77 | | investigation and submit the report required under Subsection (b). |
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78 | 78 | | (d) The policies, programs, plans, or procedures adopted |
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79 | 79 | | under Subsection (c) may authorize the financial institution to |
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80 | 80 | | report the suspected financial exploitation to other appropriate |
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81 | 81 | | agencies and entities in addition to the adult protective services |
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82 | 82 | | division, including the attorney general, the Federal Trade |
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83 | 83 | | Commission, and the appropriate law enforcement agency. |
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84 | 84 | | Sec. 280.003. NOTIFYING THIRD PARTIES OF SUSPECTED |
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85 | 85 | | FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. If a financial |
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86 | 86 | | institution submits a report of suspected financial exploitation of |
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87 | 87 | | a vulnerable adult to the adult protective services division under |
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88 | 88 | | Section 280.002(b), the financial institution may at the time the |
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89 | 89 | | financial institution submits the report also notify a third party |
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90 | 90 | | reasonably associated with the vulnerable adult of the suspected |
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91 | 91 | | financial exploitation, unless the financial institution suspects |
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92 | 92 | | the third party of financial exploitation of the vulnerable adult. |
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93 | 93 | | Sec. 280.004. TEMPORARY HOLD ON TRANSACTIONS IN CERTAIN |
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94 | 94 | | CASES OF SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. |
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95 | 95 | | (a) Notwithstanding any other law, if a financial institution |
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96 | 96 | | submits a report of suspected financial exploitation of a |
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97 | 97 | | vulnerable adult to the adult protective services division under |
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98 | 98 | | Section 280.002(b), the financial institution: |
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99 | 99 | | (1) may place a hold on a transaction involving an |
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100 | 100 | | account of the vulnerable adult; and |
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101 | 101 | | (2) must place a hold on a transaction involving an |
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102 | 102 | | account of the vulnerable adult if the hold is requested by the |
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103 | 103 | | adult protective services division or a law enforcement agency. |
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104 | 104 | | (b) Subject to Subsection (c), a hold placed on a |
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105 | 105 | | transaction under Subsection (a) expires on the 10th business day |
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106 | 106 | | after the date the financial institution submits the report under |
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107 | 107 | | Section 280.002(b). |
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108 | 108 | | (c) The financial institution may extend a hold placed on a |
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109 | 109 | | transaction under Subsection (a) for a period not to exceed 30 |
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110 | 110 | | business days after the expiration of the period prescribed by |
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111 | 111 | | Subsection (b) if requested by a state or federal agency or a law |
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112 | 112 | | enforcement agency investigating the suspected financial |
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113 | 113 | | exploitation. The financial institution may also petition a court |
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114 | 114 | | to extend a hold placed on a transaction under Subsection (a) beyond |
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115 | 115 | | the period prescribed by Subsection (b). A court may enter an |
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116 | 116 | | order extending or shortening a hold or providing other relief. |
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117 | 117 | | Sec. 280.005. IMMUNITY. (a) An employee of a financial |
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118 | 118 | | institution who makes a notification under Section 280.002(a), a |
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119 | 119 | | financial institution that submits a report under Section |
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120 | 120 | | 280.002(b) or makes a notification under Section 280.003, or an |
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121 | 121 | | employee who or financial institution that testifies or otherwise |
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122 | 122 | | participates in a judicial proceeding arising from a notification |
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123 | 123 | | or report is immune from any civil or criminal liability arising |
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124 | 124 | | from the notification, report, testimony, or participation in the |
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125 | 125 | | judicial proceeding, unless the employee or financial institution |
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126 | 126 | | acted in bad faith or with a malicious purpose. |
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127 | 127 | | (b) A financial institution that in good faith and with the |
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128 | 128 | | exercise of reasonable care places or does not place a hold on a |
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129 | 129 | | transaction under Section 280.004(a)(1) is immune from any civil or |
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130 | 130 | | criminal liability or disciplinary action resulting from that |
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131 | 131 | | action or failure to act. |
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132 | 132 | | Sec. 280.006. RECORDS. To the extent permitted by state or |
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133 | 133 | | federal law, a financial institution shall provide, on request, |
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134 | 134 | | access to or copies of records relevant to the suspected financial |
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135 | 135 | | exploitation of a vulnerable adult to the adult protective services |
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136 | 136 | | division, a law enforcement agency, or a prosecuting attorney's |
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137 | 137 | | office, either as part of a report to the adult protective services |
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138 | 138 | | division, law enforcement agency, or prosecuting attorney's office |
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139 | 139 | | or at the request of the adult protective services division, law |
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140 | 140 | | enforcement agency, or prosecuting attorney's office in accordance |
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141 | 141 | | with an investigation. |
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142 | 142 | | SECTION 2. The Securities Act (Article 581-1 et seq., |
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143 | 143 | | Vernon's Texas Civil Statutes) is amended by adding Section 45 to |
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144 | 144 | | read as follows: |
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145 | 145 | | Sec. 45. PROTECTION OF VULNERABLE ADULTS FROM FINANCIAL |
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146 | 146 | | EXPLOITATION. A. In this section: |
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147 | 147 | | (1) "Adult protective services division" means the |
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148 | 148 | | adult protective services division of the Department of Family and |
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149 | 149 | | Protective Services. |
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150 | 150 | | (2) "Exploitation," "financial exploitation," and |
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151 | 151 | | "vulnerable adult" have the meanings assigned by Section 280.001, |
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152 | 152 | | Finance Code. |
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153 | 153 | | (3) "Securities professional" means an agent, an |
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154 | 154 | | investment adviser representative, or a person who serves in a |
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155 | 155 | | supervisory or compliance capacity for a dealer or investment |
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156 | 156 | | adviser. |
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157 | 157 | | B. If a securities professional or a person serving in a |
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158 | 158 | | legal capacity for a dealer or investment adviser has cause to |
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159 | 159 | | believe that financial exploitation of a vulnerable adult who is an |
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160 | 160 | | account holder with the dealer or investment adviser has occurred, |
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161 | 161 | | is occurring, or has been attempted, the securities professional or |
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162 | 162 | | person serving in a legal capacity for the dealer or investment |
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163 | 163 | | adviser shall notify the dealer or investment adviser of the |
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164 | 164 | | suspected financial exploitation. |
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165 | 165 | | C. If a dealer or investment adviser is notified of |
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166 | 166 | | suspected financial exploitation under Subsection B of this section |
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167 | 167 | | or otherwise has cause to believe that financial exploitation of a |
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168 | 168 | | vulnerable adult who is an account holder with the dealer or |
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169 | 169 | | investment adviser has occurred, is occurring, or has been |
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170 | 170 | | attempted, the dealer or investment adviser shall investigate the |
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171 | 171 | | suspected financial exploitation and submit a report to the |
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172 | 172 | | Securities Commissioner, in accordance with rules adopted under |
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173 | 173 | | Subsection L of this section, and the adult protective services |
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174 | 174 | | division in accordance with Subchapter B-1, Chapter 48, Human |
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175 | 175 | | Resources Code. The dealer or investment adviser shall submit the |
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176 | 176 | | reports required by this subsection not later than the earlier of: |
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177 | 177 | | (1) the date the dealer or investment adviser |
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178 | 178 | | completes the investigation; or |
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179 | 179 | | (2) the fifth business day after the date the dealer or |
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180 | 180 | | investment adviser is notified of the suspected financial |
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181 | 181 | | exploitation under Subsection B of this section or otherwise has |
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182 | 182 | | cause to believe that the suspected financial exploitation has |
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183 | 183 | | occurred, is occurring, or has been attempted. |
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184 | 184 | | D. Each dealer and investment adviser shall adopt internal |
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185 | 185 | | policies, programs, plans, or procedures for the securities |
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186 | 186 | | professionals or persons serving in a legal capacity for the dealer |
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187 | 187 | | or investment adviser to make the notification required under |
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188 | 188 | | Subsection B of this section and for the dealer or investment |
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189 | 189 | | adviser to conduct the investigations and submit the reports |
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190 | 190 | | required under Subsection C of this section. The policies, |
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191 | 191 | | programs, plans, or procedures adopted under this subsection may |
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192 | 192 | | authorize the dealer or investment adviser to report the suspected |
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193 | 193 | | financial exploitation to other appropriate agencies and entities |
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194 | 194 | | in addition to the Securities Commissioner and the adult protective |
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195 | 195 | | services division, including the attorney general, the Federal |
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196 | 196 | | Trade Commission, and the appropriate law enforcement agency. |
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197 | 197 | | E. If a dealer or investment adviser submits reports of |
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198 | 198 | | suspected financial exploitation of a vulnerable adult to the |
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199 | 199 | | Securities Commissioner and the adult protective services division |
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200 | 200 | | under Subsection C of this section, the dealer or investment |
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201 | 201 | | adviser may at the time the dealer or investment adviser submits the |
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202 | 202 | | reports also notify a third party reasonably associated with the |
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203 | 203 | | vulnerable adult of the suspected financial exploitation, unless |
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204 | 204 | | the dealer or investment adviser suspects the third party of |
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205 | 205 | | financial exploitation of the vulnerable adult. |
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206 | 206 | | F. Notwithstanding any other law, if a dealer or investment |
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207 | 207 | | adviser submits reports of suspected financial exploitation of a |
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208 | 208 | | vulnerable adult to the Securities Commissioner and the adult |
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209 | 209 | | protective services division under Subsection C of this section, |
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210 | 210 | | the dealer or investment adviser: |
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211 | 211 | | (1) may place a hold on a transaction involving an |
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212 | 212 | | account of the vulnerable adult; and |
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213 | 213 | | (2) must place a hold on a transaction involving an |
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214 | 214 | | account of the vulnerable adult if the hold is requested by the |
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215 | 215 | | Securities Commissioner, the adult protective services division, |
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216 | 216 | | or a law enforcement agency. |
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217 | 217 | | G. Subject to Subsection H of this section, a hold placed on |
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218 | 218 | | a transaction under Subsection F of this section expires on the 10th |
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219 | 219 | | business day after the date the dealer or investment adviser |
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220 | 220 | | submits the reports under Subsection C of this section. |
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221 | 221 | | H. A dealer or investment adviser may extend a hold placed |
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222 | 222 | | on a transaction under Subsection F of this section for a period not |
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223 | 223 | | to exceed 30 business days after the expiration of the period |
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224 | 224 | | prescribed by Subsection G of this section if requested by a state |
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225 | 225 | | or federal agency or a law enforcement agency investigating the |
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226 | 226 | | suspected financial exploitation. The dealer or investment adviser |
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227 | 227 | | may also petition a court to extend a hold placed on a transaction |
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228 | 228 | | under Subsection F of this section beyond the period prescribed by |
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229 | 229 | | Subsection G of this section. A court may enter an order extending |
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230 | 230 | | or shortening a hold or providing other relief. |
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231 | 231 | | I. A securities professional or person serving in a legal |
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232 | 232 | | capacity for a dealer or investment adviser who makes a |
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233 | 233 | | notification under Subsection B of this section, a dealer or |
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234 | 234 | | investment adviser that submits a report under Subsection C of this |
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235 | 235 | | section or makes a notification under Subsection E of this section, |
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236 | 236 | | or a securities professional or person serving in a legal capacity |
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237 | 237 | | who or dealer or investment adviser that testifies or otherwise |
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238 | 238 | | participates in a judicial proceeding arising from a notification |
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239 | 239 | | or report is immune from any civil or criminal liability arising |
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240 | 240 | | from the notification, report, testimony, or participation in the |
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241 | 241 | | judicial proceeding, unless the securities professional, person |
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242 | 242 | | serving in a legal capacity for the dealer or investment adviser, or |
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243 | 243 | | dealer or investment adviser acted in bad faith or with a malicious |
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244 | 244 | | purpose. |
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245 | 245 | | J. A dealer or investment adviser that in good faith and |
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246 | 246 | | with the exercise of reasonable care places or does not place a hold |
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247 | 247 | | on a transaction under Subsection F(1) of this section is immune |
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248 | 248 | | from civil or criminal liability or disciplinary action resulting |
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249 | 249 | | from the action or failure to act. |
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250 | 250 | | K. To the extent permitted by state or federal law, a dealer |
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251 | 251 | | or investment adviser, on request, shall provide access to or |
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252 | 252 | | copies of records relevant to the suspected financial exploitation |
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253 | 253 | | of a vulnerable adult to the Securities Commissioner, the adult |
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254 | 254 | | protective services division, a law enforcement agency, or a |
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255 | 255 | | prosecuting attorney's office, either as part of a report to the |
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256 | 256 | | Securities Commissioner, adult protective services division, law |
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257 | 257 | | enforcement agency, or prosecuting attorney's office or at the |
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258 | 258 | | request of the Securities Commissioner, adult protective services |
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259 | 259 | | division, law enforcement agency, or prosecuting attorney's office |
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260 | 260 | | in accordance with an investigation. |
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261 | 261 | | L. The Board by rule shall prescribe the form and content of |
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262 | 262 | | the report required to be submitted by a dealer or investment |
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263 | 263 | | adviser to the Securities Commissioner under Subsection C of this |
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264 | 264 | | section. |
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265 | 265 | | SECTION 3. Subchapter A, Chapter 48, Human Resources Code, |
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266 | 266 | | is amended by adding Section 48.008 to read as follows: |
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267 | 267 | | Sec. 48.008. CONSOLIDATION OF CERTAIN REPORTS. If |
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268 | 268 | | cost-effective and feasible and to the extent permitted by law, the |
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269 | 269 | | executive commissioner by rule may consolidate the form and |
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270 | 270 | | procedures used to submit a report under Sections 48.051 and |
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271 | 271 | | 48.072. |
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272 | 272 | | SECTION 4. Chapter 48, Human Resources Code, is amended by |
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273 | 273 | | adding Subchapter B-1 to read as follows: |
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274 | 274 | | SUBCHAPTER B-1. FINANCIAL EXPLOITATION OF VULNERABLE ADULTS |
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275 | 275 | | Sec. 48.071. DEFINITIONS. In this subchapter: |
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276 | 276 | | (1) "Dealer" and "investment adviser" have the |
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277 | 277 | | meanings assigned by Section 4, The Securities Act (Article 581-4, |
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278 | 278 | | Vernon's Texas Civil Statutes). |
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279 | 279 | | (2) "Financial exploitation," "financial |
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280 | 280 | | institution," and "vulnerable adult" have the meanings assigned by |
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281 | 281 | | Section 280.001, Finance Code. |
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282 | 282 | | (3) "Securities professional" has the meaning |
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283 | 283 | | assigned by Section 45, The Securities Act (Article 581-45, |
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284 | 284 | | Vernon's Texas Civil Statutes). |
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285 | 285 | | Sec. 48.072. CERTAIN REPORTS OF SUSPECTED FINANCIAL |
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286 | 286 | | EXPLOITATION. (a) The executive commissioner, after consultation |
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287 | 287 | | with the banking commissioner of Texas, the savings and mortgage |
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288 | 288 | | lending commissioner, the credit union commissioner, and the |
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289 | 289 | | securities commissioner, by rule shall prescribe the form and |
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290 | 290 | | content of the report required to be submitted by a financial |
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291 | 291 | | institution under Section 280.002(b), Finance Code, and the report |
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292 | 292 | | required to be submitted by a dealer or investment adviser under |
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293 | 293 | | Subsection C, Section 45, The Securities Act (Article 581-45, |
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294 | 294 | | Vernon's Texas Civil Statutes). A report submitted by a financial |
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295 | 295 | | institution under Section 280.002(b), Finance Code, or a report |
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296 | 296 | | submitted by a dealer or investment adviser under Subsection C, |
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297 | 297 | | Section 45, The Securities Act (Article 581-45, Vernon's Texas |
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298 | 298 | | Civil Statutes), constitutes a report of suspected financial |
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299 | 299 | | exploitation of a vulnerable adult for purposes of this subchapter. |
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300 | 300 | | (b) In adopting rules under this section, the executive |
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301 | 301 | | commissioner shall ensure that a report of suspected financial |
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302 | 302 | | exploitation of a vulnerable adult described by Subsection (a) |
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303 | 303 | | includes to the extent possible the same information required to be |
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304 | 304 | | included in a report under Section 48.051(d). |
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305 | 305 | | (c) A financial institution that submits a report to the |
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306 | 306 | | department of suspected financial exploitation of a vulnerable |
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307 | 307 | | adult under Section 280.002(b), Finance Code, or a dealer or |
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308 | 308 | | investment adviser that submits a report to the department of |
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309 | 309 | | suspected financial exploitation of a vulnerable adult under |
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310 | 310 | | Subsection C, Section 45, The Securities Act (Article 581-45, |
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311 | 311 | | Vernon's Texas Civil Statutes), in accordance with this section is |
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312 | 312 | | not required to make an additional report of suspected abuse, |
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313 | 313 | | neglect, or exploitation under Section 48.051 for the same conduct |
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314 | 314 | | constituting the financial exploitation reported under this |
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315 | 315 | | section. |
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316 | 316 | | Sec. 48.073. ASSESSMENT, INVESTIGATION, AND DISPOSITION OF |
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317 | 317 | | REPORTS. (a) The executive commissioner by rule shall adopt |
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318 | 318 | | procedures for the assessment, investigation, and disposition of a |
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319 | 319 | | report of suspected financial exploitation of a vulnerable adult |
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320 | 320 | | received under Section 280.002(b), Finance Code, or Subsection C, |
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321 | 321 | | Section 45, The Securities Act (Article 581-45, Vernon's Texas |
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322 | 322 | | Civil Statutes), that must be similar to the procedures used for the |
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323 | 323 | | assessment, investigation, and disposition of a report of abuse, |
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324 | 324 | | neglect, or exploitation received by the department under this |
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325 | 325 | | chapter, other than a report received under Subchapter F. |
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326 | 326 | | (b) The procedures adopted under this section must require: |
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327 | 327 | | (1) a risk assessment similar to the assessment |
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328 | 328 | | required under Section 48.004; |
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329 | 329 | | (2) investigations similar to the investigations |
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330 | 330 | | required under Subchapter D, including requirements that the |
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331 | 331 | | department: |
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332 | 332 | | (A) take action on a report within the time frame |
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333 | 333 | | and in the manner provided by Section 48.151; |
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334 | 334 | | (B) perform an interview with the vulnerable |
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335 | 335 | | adult similar to the interview required by Section 48.152; |
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336 | 336 | | (C) if appropriate, implement a system to |
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337 | 337 | | investigate complex cases similar to the system implemented under |
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338 | 338 | | Section 48.1521; |
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339 | 339 | | (D) report criminal conduct to appropriate law |
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340 | 340 | | enforcement agencies similar to the reports under Section 48.1522; |
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341 | 341 | | and |
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342 | 342 | | (E) review certain cases involving multiple |
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343 | 343 | | reports under Section 48.051 and this subchapter similar to the |
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344 | 344 | | review performed under Section 48.1523; and |
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345 | 345 | | (3) a determination of services similar to the |
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346 | 346 | | determination required by Section 48.202. |
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347 | 347 | | Sec. 48.074. AUTHORITY OF DEPARTMENT OR OTHER AGENCY. The |
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348 | 348 | | department or another appropriate state agency has the authority to |
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349 | 349 | | act on or with respect to an allegation of financial exploitation of |
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350 | 350 | | a vulnerable adult under this subchapter to the same extent the |
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351 | 351 | | department or other agency has the authority to act on or with |
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352 | 352 | | respect to an allegation of abuse, neglect, or exploitation under |
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353 | 353 | | Subchapter B. |
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354 | 354 | | Sec. 48.075. ACCESS TO INVESTIGATION. (a) To implement an |
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355 | 355 | | investigation of reported financial exploitation of a vulnerable |
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356 | 356 | | adult, the probate court, as defined by Section 22.007, Estates |
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357 | 357 | | Code, may authorize entry into the place of residence of a |
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358 | 358 | | vulnerable adult. |
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359 | 359 | | (b) A peace officer shall accompany and assist the person |
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360 | 360 | | making a court-ordered entry under this section if the court |
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361 | 361 | | determines that action is necessary. |
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362 | 362 | | Sec. 48.076. INTERFERENCE WITH INVESTIGATION OR SERVICES |
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363 | 363 | | PROHIBITED. (a) Notwithstanding Section 1151.001, Estates Code, a |
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364 | 364 | | person, including a guardian, may not interfere with: |
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365 | 365 | | (1) an investigation by the department or by another |
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366 | 366 | | protective services agency of suspected financial exploitation of a |
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367 | 367 | | vulnerable adult; or |
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368 | 368 | | (2) the provision of protective services to a |
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369 | 369 | | vulnerable adult. |
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370 | 370 | | (b) The department or another protective services agency |
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371 | 371 | | may petition the appropriate court to enjoin any interference with: |
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372 | 372 | | (1) an investigation of suspected financial |
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373 | 373 | | exploitation of a vulnerable adult under this subchapter; or |
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374 | 374 | | (2) the provision of protective services, such as |
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375 | 375 | | removing a vulnerable adult to safer surroundings or safeguarding |
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376 | 376 | | the vulnerable adult's resources from financial exploitation. |
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377 | 377 | | Sec. 48.077. MEMORANDUM OF UNDERSTANDING. The commission, |
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378 | 378 | | the banking commissioner of Texas, the savings and mortgage lending |
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379 | 379 | | commissioner, the credit union commissioner, the securities |
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380 | 380 | | commissioner, and the department shall enter into a memorandum of |
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381 | 381 | | understanding regarding the reporting and investigation of |
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382 | 382 | | suspected financial exploitation of a vulnerable adult under this |
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383 | 383 | | subchapter. |
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384 | 384 | | Sec. 48.078. CONFIDENTIALITY. (a) All files, reports, |
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385 | 385 | | records, communications, and working papers used or developed by |
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386 | 386 | | the department or other state agency in an investigation made under |
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387 | 387 | | this subchapter or in providing services as a result of an |
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388 | 388 | | investigation are confidential and not subject to disclosure under |
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389 | 389 | | Chapter 552, Government Code. |
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390 | 390 | | (b) The department or investigating state agency may |
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391 | 391 | | establish procedures to exchange with another state agency or |
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392 | 392 | | governmental entity information that is necessary for the |
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393 | 393 | | department, state agency, or governmental entity to properly |
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394 | 394 | | execute its respective duties and responsibilities to provide |
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395 | 395 | | services to vulnerable adults under this chapter or other law. An |
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396 | 396 | | exchange of information under this subsection does not affect |
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397 | 397 | | whether the information is subject to disclosure under Chapter 552, |
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398 | 398 | | Government Code. |
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399 | 399 | | SECTION 5. Subchapter C, Chapter 48, Human Resources Code, |
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400 | 400 | | is amended by adding Section 48.104 to read as follows: |
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401 | 401 | | Sec. 48.104. NONAPPLICABILITY. (a) This subchapter does |
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402 | 402 | | not apply to a report of financial exploitation of a vulnerable |
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403 | 403 | | adult made under Subchapter B-1. |
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404 | 404 | | (b) The confidentiality of information received or provided |
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405 | 405 | | by the department in connection with a report of financial |
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406 | 406 | | exploitation of a vulnerable adult made under Subchapter B-1 is |
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407 | 407 | | governed by Section 48.078. |
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408 | 408 | | SECTION 6. Subchapter D, Chapter 48, Human Resources Code, |
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409 | 409 | | is amended by adding Section 48.1511 to read as follows: |
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410 | 410 | | Sec. 48.1511. NONAPPLICABILITY. This subchapter does not |
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411 | 411 | | apply to an investigation conducted under Subchapter B-1 unless the |
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412 | 412 | | executive commissioner by rule requires the application of a |
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413 | 413 | | provision of this subchapter. |
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414 | 414 | | SECTION 7. Section 59.006(a), Finance Code, is amended to |
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415 | 415 | | read as follows: |
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416 | 416 | | (a) This section provides the exclusive method for |
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417 | 417 | | compelled discovery of a record of a financial institution relating |
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418 | 418 | | to one or more customers but does not create a right of privacy in a |
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419 | 419 | | record. This section does not apply to and does not require or |
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420 | 420 | | authorize a financial institution to give a customer notice of: |
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421 | 421 | | (1) a demand or inquiry from a state or federal |
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422 | 422 | | government agency authorized by law to conduct an examination of |
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423 | 423 | | the financial institution; |
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424 | 424 | | (2) a record request from a state or federal |
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425 | 425 | | government agency or instrumentality under statutory or |
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426 | 426 | | administrative authority that provides for, or is accompanied by, a |
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427 | 427 | | specific mechanism for discovery and protection of a customer |
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428 | 428 | | record of a financial institution, including a record request from |
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429 | 429 | | a federal agency subject to the Right to Financial Privacy Act of |
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430 | 430 | | 1978 (12 U.S.C. Section 3401 et seq.), as amended, or from the |
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431 | 431 | | Internal Revenue Service under Section 1205, Internal Revenue Code |
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432 | 432 | | of 1986; |
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433 | 433 | | (3) a record request from or report to a government |
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434 | 434 | | agency arising out of: |
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435 | 435 | | (A) the investigation or prosecution of a |
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436 | 436 | | criminal offense; |
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437 | 437 | | (B) the investigation of alleged abuse, neglect, |
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438 | 438 | | or exploitation of an elderly or disabled person or of alleged |
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439 | 439 | | financial exploitation of a vulnerable adult in accordance with |
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440 | 440 | | Chapter 48, Human Resources Code; or |
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441 | 441 | | (C) the assessment for or provision of |
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442 | 442 | | guardianship services under Subchapter E, Chapter 161, Human |
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443 | 443 | | Resources Code; |
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444 | 444 | | (4) a record request in connection with a garnishment |
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445 | 445 | | proceeding in which the financial institution is garnishee and the |
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446 | 446 | | customer is debtor; |
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447 | 447 | | (5) a record request by a duly appointed receiver for |
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448 | 448 | | the customer; |
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449 | 449 | | (6) an investigative demand or inquiry from a state |
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450 | 450 | | legislative investigating committee; |
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451 | 451 | | (7) an investigative demand or inquiry from the |
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452 | 452 | | attorney general of this state as authorized by law other than the |
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453 | 453 | | procedural law governing discovery in civil cases; |
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454 | 454 | | (8) the voluntary use or disclosure of a record by a |
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455 | 455 | | financial institution subject to other applicable state or federal |
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456 | 456 | | law; or |
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457 | 457 | | (9) a record request in connection with an |
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458 | 458 | | investigation conducted under Section 1054.151, 1054.152, or |
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459 | 459 | | 1102.001, Estates Code. |
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460 | 460 | | SECTION 8. This Act takes effect September 1, 2017. |
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