By: Thompson of Harris (Senate Sponsor - Zaffirini) H.B. No. 4477
(In the Senate - Received from the House May 10, 2021;
May 10, 2021, read first time and referred to Committee on Business &
Commerce; May 20, 2021, reported favorably by the following vote:
Yeas 9, Nays 0; May 20, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to the financial exploitation of certain vulnerable
adults.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 281.001(5), Finance Code, is amended to
read as follows:
(5) "Vulnerable adult" means:
(A) an elderly person as that term is defined by
Section 48.002, Human Resources Code; or
(B) a person with a disability as that term is
defined by Section 48.002, Human Resources Code[; or
[(C) an individual receiving services as that
term is defined by rule by the executive commissioner of the Health
and Human Services Commission as authorized by Section 48.251(b),
Human Resources Code].
SECTION 2. Sections 281.004(a) and (b), Finance Code, are
amended to read as follows:
(a) Notwithstanding any other law, [if] a financial
institution [submits a report of suspected financial exploitation
of a vulnerable adult to the department under Section 281.002(b),
the financial institution]:
(1) may place a hold on any transaction that[:
[(A)] involves an account of a [the] vulnerable
adult if[; and
[(B)] the financial institution:
(A) submits a report of suspected financial
exploitation of the vulnerable adult to the department under
Section 281.002(b); and
(B) has cause to believe the transaction is
related to the suspected financial exploitation alleged in the
report; and
(2) must place a hold on any transaction involving an
account of a [the] vulnerable adult if the hold is requested by the
department or a law enforcement agency.
(b) Subject to Subsection (c), a hold placed on any
transaction under Subsection (a) expires on the 10th business day
after the date the hold is placed [the financial institution
submits the report under Section 281.002(b)].
SECTION 3. Sections 4004.355(a) and (b), Government Code,
as effective January 1, 2022, are amended to read as follows:
(a) Notwithstanding any other law, [if] a dealer or
investment adviser [submits reports of suspected financial
exploitation of a vulnerable adult to the commissioner and the
department under Section 4004.352(b), the dealer or investment
adviser]:
(1) may place a hold on any transaction that[:
[(A)] involves an account of a [the] vulnerable
adult if[; and
[(B)] the dealer or investment adviser:
(A) submits a report of suspected financial
exploitation of the vulnerable adult to the commissioner and the
department under Section 4004.352(b); and
(B) has cause to believe the transaction is
related to the suspected financial exploitation alleged in the
report; and
(2) must place a hold on any transaction involving an
account of a [the] vulnerable adult if the hold is requested by the
commissioner, the department, or a law enforcement agency.
(b) Subject to Subsection (c), a hold placed on any
transaction under Subsection (a) expires on the 10th business day
after the date the hold is placed [the dealer or investment adviser
submits the reports under Section 4004.352(b)].
SECTION 4. Subsections G and H, Section 45, The Securities
Act (Article 581-45, Vernon's Texas Civil Statutes), are amended to
read as follows:
G. Notwithstanding any other law, [if] a dealer or
investment adviser [submits reports of suspected financial
exploitation of a vulnerable adult to the Securities Commissioner
and the department under Subsection C of this section, the dealer or
investment adviser]:
(1) may place a hold on any transaction that[:
[(A)] involves an account of a [the] vulnerable
adult if[; and
[(B)] the dealer or investment adviser:
(A) submits a report of suspected financial
exploitation of the vulnerable adult to the Securities Commissioner
and the department under Subsection C of this section; and
(B) has cause to believe the transaction is
related to the suspected financial exploitation alleged in the
report; and
(2) must place a hold on any transaction involving an
account of a [the] vulnerable adult if the hold is requested by the
Securities Commissioner, the department, or a law enforcement
agency.
H. Subject to Subsection I of this section, a hold placed on
any transaction under Subsection G of this section expires on the
10th business day after the date the hold is placed [the dealer or
investment adviser submits the reports under Subsection C of this
section].
SECTION 5. Except as otherwise provided by this Act, this
Act takes effect September 1, 2021.
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