Bill Text: IA SSB3076 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the financial exploitation of designated eligible adults, and making an appropriation.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2020-02-27 - Committee report approving bill, renumbered as SF 2397. [SSB3076 Detail]
Download: Iowa-2019-SSB3076-Introduced.html
Senate
Study
Bill
3076
-
Introduced
SENATE/HOUSE
FILE
_____
BY
(PROPOSED
DEPARTMENT
OF
COMMERCE/INSURANCE
DIVISION
BILL)
A
BILL
FOR
An
Act
relating
to
the
financial
exploitation
of
designated
1
eligible
adults,
and
making
an
appropriation.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
5358XD
(7)
88
ja/rn
S.F.
_____
H.F.
_____
Section
1.
NEW
SECTION
.
502.801
Definitions.
1
For
purposes
of
this
article,
unless
the
context
otherwise
2
requires:
3
1.
“Eligible
adult”
means
any
of
the
following:
4
a.
A
person
sixty-five
years
of
age
or
older.
5
b.
A
dependent
adult
as
defined
in
section
235B.2.
6
2.
“Financial
exploitation”
means
any
act
or
omission
taken
7
by
a
person
to
wrongfully
and
knowingly
deprive
an
eligible
8
adult
of
money,
assets,
or
property,
or
to
obtain
control
over
9
or
otherwise
use,
convert,
or
divert
the
benefits,
property,
10
resources,
or
assets
of
the
eligible
adult
by
intimidation,
11
deception,
coercion,
fraud,
extortion,
or
undue
influence.
12
3.
“Permissible
third
party”
means
any
of
the
following:
13
a.
A
person
the
eligible
adult
previously
designated
to
14
receive
the
notification
described
in
section
502.804.
15
b.
A
person
otherwise
permitted
to
receive
the
notification
16
described
in
section
502.804
by
any
state
or
federal
law
or
any
17
rule
issued
by
the
financial
industry
regulatory
authority.
18
4.
“Qualified
individual”
means
any
of
the
following:
19
a.
An
agent
who
has
received
training
pursuant
to
section
20
502.808.
21
b.
An
investment
adviser
representative
who
has
received
22
training
pursuant
to
section
502.808.
23
c.
A
person
who
has
received
training
pursuant
to
24
section
502.808
and
who
serves
in
a
supervisory,
compliance,
25
senior
investor
protection,
or
legal
capacity
for
any
of
the
26
following:
27
(1)
A
broker-dealer.
28
(2)
An
investment
adviser.
29
Sec.
2.
NEW
SECTION
.
502.802
Notification
to
administrator.
30
If
a
broker-dealer,
investment
adviser,
or
qualified
31
individual
reasonably
believes
financial
exploitation
of
an
32
eligible
adult
has
occurred,
has
been
attempted,
or
is
being
33
attempted,
the
broker-dealer,
investment
adviser,
or
qualified
34
individual
shall
promptly
notify
the
administrator.
The
35
-1-
LSB
5358XD
(7)
88
ja/rn
1/
8
S.F.
_____
H.F.
_____
administrator
may
adopt
rules
regarding
the
form
and
manner
of
1
the
notification
under
this
section.
2
Sec.
3.
NEW
SECTION
.
502.803
Notification
to
administrator
3
——
immunity.
4
A
broker-dealer,
investment
adviser,
or
qualified
individual
5
who,
acting
reasonably
and
in
good
faith,
makes
a
disclosure
6
of
information
to
the
administrator
pursuant
to
this
article
7
shall
be
immune
from
administrative
or
civil
liability
that
8
might
otherwise
arise
from
such
disclosure
or
for
any
failure
9
to
notify
the
eligible
adult
of
the
disclosure.
This
section
10
shall
not
abrogate
or
modify
any
existing
statutory
or
common
11
law
privileges
or
immunities.
12
Sec.
4.
NEW
SECTION
.
502.804
Notification
to
permissible
13
third
party.
14
1.
If
a
broker-dealer,
investment
adviser,
or
qualified
15
individual
reasonably
believes
financial
exploitation
of
16
an
eligible
adult
has
occurred,
has
been
attempted,
or
is
17
being
attempted,
the
broker-dealer,
investment
adviser,
or
18
qualified
individual
may
notify
a
permissible
third
party.
The
19
administrator
may
adopt
rules
regarding
the
form
and
manner
of
20
the
notification
under
this
section.
21
2.
Broker-dealers,
investment
advisers,
and
qualified
22
individuals
shall
not
notify
a
permissible
third
party
the
23
broker-dealer,
investment
adviser,
or
qualified
individual
24
reasonably
suspects
of
financial
exploitation
or
other
abuse
25
of
the
eligible
adult.
26
Sec.
5.
NEW
SECTION
.
502.805
Notification
to
permissible
27
third
party
——
immunity.
28
A
broker-dealer,
investment
adviser,
or
qualified
individual
29
who,
acting
reasonably
and
in
good
faith,
complies
with
section
30
502.804
shall
be
immune
from
any
administrative
or
civil
31
liability
that
might
otherwise
arise
from
such
disclosure.
32
Sec.
6.
NEW
SECTION
.
502.806
Disbursements
or
transactions
33
——
delay.
34
1.
If
a
broker-dealer,
investment
adviser,
or
qualified
35
-2-
LSB
5358XD
(7)
88
ja/rn
2/
8
S.F.
_____
H.F.
_____
individual
reasonably
believes
a
disbursement
or
transaction
1
will
likely
result
in
or
contribute
to
the
financial
2
exploitation
of
an
eligible
adult,
the
broker-dealer,
3
investment
adviser,
or
qualified
individual
shall
initiate
an
4
internal
review
of
the
requested
disbursement
or
transaction.
5
2.
A
broker-dealer
or
investment
adviser
may
delay
a
6
disbursement
or
transaction
from
an
eligible
adult’s
account
or
7
an
account
on
which
an
eligible
adult
is
a
beneficiary
if
all
8
of
the
following
apply:
9
a.
The
broker-dealer,
investment
adviser,
or
qualified
10
individual
reasonably
believes,
after
initiating
the
internal
11
review
referenced
in
subsection
1,
that
the
requested
12
disbursement
or
transaction
will
likely
result
in
or
contribute
13
to
the
financial
exploitation
of
an
eligible
adult.
14
b.
Immediately,
but
in
no
event
more
than
two
business
15
days
after
the
disbursement
or
transaction
is
delayed,
16
the
broker-dealer
or
investment
adviser
provides
written
17
notification
of
the
delay
and
the
reason
for
the
delay
to
18
all
persons
authorized
to
transact
business
on
the
account.
19
Broker-dealers,
investment
advisers,
and
qualified
individuals
20
shall
not
notify
a
person
authorized
to
transact
business
21
on
the
account
if
the
broker-dealer,
investment
adviser,
22
or
qualified
individual
reasonably
believes
the
person
23
has
committed
financial
exploitation,
attempted
financial
24
exploitation,
or
other
abuse
of
the
eligible
adult.
25
c.
Immediately,
but
in
no
event
more
than
two
business
26
days
after
the
disbursement
or
transaction
is
delayed,
the
27
broker-dealer
or
investment
adviser
notifies
the
administrator
28
of
the
delay
and
provides
to
the
administrator
the
reason
29
for
the
delay,
including
the
results
of
the
internal
review
30
referenced
in
subsection
1.
31
d.
The
broker-dealer
continues
the
internal
review
of
the
32
suspected
or
attempted
financial
exploitation
of
the
eligible
33
adult,
as
necessary,
and
provides
the
administrator
with
34
updates
upon
request.
35
-3-
LSB
5358XD
(7)
88
ja/rn
3/
8
S.F.
_____
H.F.
_____
3.
Any
delay
of
a
disbursement
or
transaction
authorized
by
1
this
section
will
expire
upon
the
first
to
occur
of
any
of
the
2
following:
3
a.
A
determination
by
the
broker-dealer
or
investment
4
adviser
that
the
disbursement
or
transaction
will
not
result
in
5
or
contribute
to
financial
exploitation
of
the
eligible
adult.
6
b.
Fifteen
business
days
after
the
date
on
which
the
7
broker-dealer
or
investment
adviser
first
delayed
disbursement
8
of
the
funds
or
transaction,
unless
the
administrator
requests
9
the
broker-dealer
or
investment
adviser
to
extend
the
delay,
10
in
which
case
the
delay
shall
expire
no
more
than
twenty-five
11
business
days
after
the
date
on
which
the
broker-dealer
or
12
investment
adviser
first
delayed
the
disbursement
of
the
funds
13
or
the
transaction.
14
4.
Notwithstanding
subsection
3,
upon
the
petition
of
15
the
administrator,
the
broker-dealer
or
investment
adviser
16
who
initiated
the
delay
pursuant
to
this
section,
or
another
17
interested
party,
a
court
of
competent
jurisdiction
may
enter
18
an
order
terminating,
extending,
or
modifying
the
delay
of
the
19
disbursement
or
transaction
and
may
order
other
protective
20
relief.
21
5.
The
administrator
may
adopt
rules
regarding
the
form
and
22
manner
of
the
notifications
under
this
section.
23
Sec.
7.
NEW
SECTION
.
502.807
Disbursements
of
transactions
24
——
delay
——
immunity.
25
A
broker-dealer
or
investment
adviser
who,
acting
reasonably
26
and
in
good
faith,
complies
with
section
502.806
shall
be
27
immune
from
any
administrative
or
civil
liability
that
28
might
otherwise
arise
from
such
delay
in
a
disbursement
or
29
transaction.
30
Sec.
8.
NEW
SECTION
.
502.808
Training
requirements.
31
1.
A
broker-dealer
or
investment
adviser
shall
provide
32
to
its
qualified
individuals
training
appropriate
to
the
job
33
responsibilities
of
a
qualified
individual.
The
training
shall
34
include
all
of
the
following:
35
-4-
LSB
5358XD
(7)
88
ja/rn
4/
8
S.F.
_____
H.F.
_____
a.
Instruction
on
how
to
identify
the
suspected
or
attempted
1
exploitation
of
an
eligible
adult,
including
common
signs
2
indicating
the
financial
exploitation
of
an
eligible
adult,
3
and
how
to
provide
notification
regarding
the
suspected
or
4
attempted
exploitation
of
an
eligible
adult.
5
b.
Instruction
regarding
privacy
and
confidentiality
6
requirements.
7
2.
A
broker-dealer
or
investment
adviser
shall
provide
8
the
training
required
by
this
section
as
soon
as
reasonably
9
practicable,
but
at
least
within
one
year
after
the
date
10
the
qualified
individual
begins
employment
with
or
becomes
11
affiliated
or
associated
with
a
broker-dealer
or
investment
12
adviser.
13
3.
The
administrator
may
adopt
rules
specifying
the
content
14
and
method
of
the
training
required
by
this
section.
15
Sec.
9.
NEW
SECTION
.
502.809
Records.
16
1.
A
broker-dealer
or
investment
adviser
shall
provide
17
access
to
or
copies
of
records
that
are
relevant
to
the
18
suspected
or
attempted
financial
exploitation
of
an
eligible
19
adult
to
the
administrator
and
to
law
enforcement,
either
as
20
part
of
a
referral
to
the
administrator
or
law
enforcement,
21
or
upon
the
request
of
the
administrator
or
law
enforcement
22
pursuant
to
an
investigation.
The
records
may
include
23
historical
records
as
well
as
records
relating
to
the
most
24
recent
transactions
that
may
comprise
financial
exploitation
of
25
an
eligible
adult.
26
2.
All
records
made
available
to
the
administrator,
the
27
department
of
human
services,
or
law
enforcement
pursuant
to
28
this
section
shall
be
considered
confidential
public
records
29
under
chapter
22
and
shall
not
be
available
for
examination
by
30
the
public
pursuant
to
section
22.2.
31
3.
Nothing
in
this
section
shall
limit
or
otherwise
impede
32
the
authority
of
the
administrator
to
access
or
examine
the
33
books
and
records
of
broker-dealers
or
investment
advisers
as
34
otherwise
provided
by
law.
35
-5-
LSB
5358XD
(7)
88
ja/rn
5/
8
S.F.
_____
H.F.
_____
Sec.
10.
NEW
SECTION
.
502.810
Financial
exploitation
——
1
appropriation.
2
1.
For
the
fiscal
year
beginning
July
1,
2020,
and
each
3
fiscal
year
thereafter,
there
is
appropriated
from
the
4
department
of
commerce
revolving
fund
created
in
section
546.12
5
to
the
insurance
division
seventy-five
thousand
dollars
for
6
the
sole
and
exclusive
purpose
of
investigating
complaints
7
and
notifications
related
to
financial
exploitation
of
8
eligible
adults.
The
insurance
division
shall
use
the
funds
9
appropriated
under
this
subsection
for
one
full-time
equivalent
10
position.
11
2.
Notwithstanding
section
8.33,
moneys
appropriated
in
12
this
section
that
remain
unencumbered
or
unobligated
at
the
13
close
of
the
fiscal
year
shall
not
revert
but
shall
remain
14
available
for
expenditure
for
the
purposes
designated
until
the
15
close
of
the
succeeding
fiscal
year.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
the
financial
exploitation
of
persons
20
designated
as
eligible
adults.
The
bill
defines
an
eligible
21
adult
as
persons
65
years
of
age
or
older
and
certain
dependent
22
adults
as
defined
in
Code
section
252B.2.
23
The
bill
requires
broker-dealers,
investment
advisers,
24
and
qualified
individuals
to
notify
the
commissioner
of
25
insurance
if
they
reasonably
believe
financial
exploitation
26
of
an
eligible
adult
has
occurred,
has
been
attempted,
27
or
is
being
attempted.
The
bill
provides
immunity
for
28
broker-dealers,
investment
advisers,
and
qualified
individuals
29
from
administrative
or
civil
liability
incurred
or
imposed
as
30
a
result
of
this
notification
or
as
a
result
of
any
failure
to
31
alert
the
eligible
adult
of
the
notification.
32
The
bill
allows
broker-dealers,
investment
advisers,
and
33
qualified
individuals
to
notify
permissible
third
parties
34
if
they
reasonably
believe
financial
exploitation
of
an
35
-6-
LSB
5358XD
(7)
88
ja/rn
6/
8
S.F.
_____
H.F.
_____
eligible
adult
has
occurred,
has
been
attempted,
or
is
1
being
attempted.
The
bill
similarly
provides
immunity
for
2
broker-dealers,
investment
advisers,
and
qualified
individuals
3
from
administrative
or
civil
liability
incurred
or
imposed
as
4
a
result
of
this
notification.
5
The
bill
prohibits
broker-dealers,
investment
advisers,
6
and
qualified
individuals
from
notifying
a
permissible
third
7
party
if
the
broker-dealer,
investment
adviser,
or
qualified
8
individual
reasonably
suspects
the
permissible
third
party
of
9
financial
exploitation
or
other
abuse
of
the
eligible
adult.
10
The
bill
requires
a
broker-dealer,
investment
adviser,
11
or
qualified
individual
to
initiate
an
internal
review
of
a
12
requested
disbursement
or
transaction
if
the
broker-dealer,
13
investment
adviser,
or
qualified
individual
reasonably
believes
14
the
disbursement
or
transaction
will
likely
result
in
or
15
contribute
to
the
financial
exploitation
of
an
eligible
adult.
16
The
bill
allows
a
broker-dealer
or
investment
adviser
17
to
delay
a
disbursement
or
transaction
from
an
eligible
18
adult’s
account
or
an
account
on
which
an
eligible
adult
is
19
a
beneficiary
if
certain
enumerated
steps
are
followed.
The
20
bill
also
prohibits
broker-dealers,
investment
advisers,
and
21
qualified
individuals
from
notifying
a
person
authorized
22
to
transact
business
on
the
eligible
adult’s
account
or
an
23
account
on
which
an
eligible
adult
is
a
beneficiary
if
the
24
broker-dealer,
investment
adviser,
or
qualified
individual
25
reasonably
believes
the
person
has
committed
financial
26
exploitation
or
other
abuse
of
the
eligible
adult.
27
The
bill
establishes
when
and
under
what
conditions
the
28
delay
of
the
disbursement
or
transaction
is
to
end.
The
bill
29
provides
immunity
for
broker-dealers
and
investment
advisers
30
from
administrative
or
civil
liability
incurred
or
imposed
as
31
a
result
of
the
delay.
32
The
bill
requires
broker-dealers
or
investment
advisers
33
to
provide
to
qualified
individuals
training
related
to
34
identifying
financial
exploitation
of
eligible
adults
and
35
-7-
LSB
5358XD
(7)
88
ja/rn
7/
8
S.F.
_____
H.F.
_____
privacy
and
confidentiality
requirements.
1
The
bill
also
requires
broker-dealers
and
investment
2
advisers
to
provide
the
commissioner
of
insurance
and
law
3
enforcement
officers
access
to
and
copies
of
records
relevant
4
to
investigations
of
financial
exploitation
of
eligible
adults
5
in
certain
enumerated
circumstances.
The
bill
provides
these
6
records
are
considered
confidential
records
for
purposes
of
7
Code
chapter
22,
and
are
not
available
for
examination
under
8
Code
section
22.2.
9
The
bill
makes
an
appropriation
from
the
commerce
revolving
10
fund
created
in
Code
section
546.12
to
the
insurance
division
11
of
the
department
of
commerce
for
the
fiscal
year
beginning
12
July
1,
2020,
and
each
year
thereafter,
for
purposes
of
13
investigating
complaints
and
notifications
related
to
financial
14
exploitation
of
eligible
adults.
15
-8-
LSB
5358XD
(7)
88
ja/rn
8/
8
