New Jersey-2020-ACR82-Introduced

Sponsored by:

Assemblywoman NANCY J. PINKIN

District 18 (Middlesex)

Assemblyman ROY FREIMAN

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Assemblywoman YVONNE LOPEZ

District 19 (Middlesex)

Co-Sponsored by:

Assemblywomen Vainieri Huttle, Swain and Assemblyman Tully

SYNOPSIS

Urges United States Senate to adopt "Senior Security Act of 2019."

CURRENT VERSION OF TEXT

Introduced Pending Technical Review by Legislative Counsel.

A Concurrent Resolution urging the United States Senate to adopt the "Senior Security Act of 2019."

Whereas, Elder financial exploitation (EFE) occurs when an individual misuses or appropriates the assets of a vulnerable senior citizen for the individual's own benefit, often without the knowledge or consent of the senior citizen, thereby depriving the vulnerable senior of financial resources; and

Whereas, Seventeen percent of U.S. senior citizens surveyed report that they have been "taken advantage of financially," meaning they were sold an unsuitable investment, charged excessive fees for financial services, or were the victim of fraud; and

Whereas, Financial institutions reported $1.7 billion in suspicious financial activities targeting senior citizens in 2017, according to the federal Consumer Financial Protection Bureau; and

Whereas, Senior citizens vastly underreport incidents of EFE, either out of embarrassment or a desire to protect a family member who engaged in the exploitation; and

Whereas, The number of older adults who are potentially vulnerable to EFE will grow as the U.S. population ages; and

Whereas, Medical and social service providers find that EFE undermines both the health and financial stability of seniors; and

Whereas, One type of EFE is senior investor exploitation, which may include: investments made on behalf of a vulnerable senior citizen, but without the knowledge or consent of the senior; investments in high-fee funds; or excessive trading activity intended to generate large commissions for financial advisors; and

Whereas, Nearly 25 percent of all investment fraud complainants in New Jersey are aged 60 or older, and approximately 33 percent of victims in New Jersey Bureau of Securities enforcement actions are aged 60 or older; and

Whereas, The federal "Senior Security Act of 2019" creates a Senior Investor Taskforce within the Securities and Exchange Commission (SEC) to study and report to Congress on: conditions that foster senior investor exploitation, policies that will reduce the incidence of this type of exploitation, and best practices that will strengthen oversight of the investment industry; and

Whereas, The "Senior Security Act of 2019" requires the Government Accountability Office to study the economic costs of EFE, and report its findings to Congress and the Senior Investor Taskforce; and,

Whereas, The U.S. House of Representatives passed the "Senior Security Act of 2019" on April 30, 2019 and the bill is now pending in the United States Senate; and

Whereas, It is altogether fitting and proper, and in the public interest, for this House to respectfully request that the U.S. Senate enact legislation that will protect vulnerable senior citizens from investor exploitation; now, therefore,

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The Legislature of the State of New Jersey respectfully urges the United States Senate to adopt the "Senior Security Act of 2019."

2. Duly authenticated copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly or the Secretary of the Senate to the Majority and Minority Leaders of the U.S. Senate, and each member of Congress elected from New Jersey.

3. This concurrent resolution shall take effect immediately.

STATEMENT

This resolution urges the United States Senate to adopt the "Senior Security Act of 2019," which was passed by the House of Representatives on April 30, 2019. This federal legislation creates a Senior Investor Taskforce within the Securities and Exchange Commission, which will study challenges that vulnerable senior citizens face in investing and managing their assets. The Taskforce will also identify any legislative, policy, regulatory or enforcement actions that might prevent senior investors from falling victim to financial exploitation. These findings will be reported to Congress on a biennial basis. In addition, this legislation directs the Government Accountability Office to study the economic costs associated with senior investor exploitation, and report the study findings to Congress and the Senior Investor Taskforce.

Elder financial exploitation (EFE) is a pervasive problem that exacts a personal and financial toll on a sizeable number of our nation's senior citizens each year. However, the number of seniors who fall victim to EFE each year is unknown, because seniors often decline to report this crime to law enforcement out of embarrassment or from a desire to protect a family member who engaged in the exploitation. Investor advocates do know that the economic impact of EFE is significant; in 2017, financial institutions reported $1.7 billion in suspicious financial activities that targeted senior citizens. The "Senior Security Act of 2019" will provide financial regulators with much-needed data on the prevalence of EFE. Additionally, the federal legislation will help financial regulators, policymakers, and law enforcement officials identify and implement practices, regulations, and policies to protect all senior investors from financial exploitation.