Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Office of the Revisor of Statutes

HF 3833

3rd Engrossment - 90th Legislature (2017 - 2018) Posted on 05/23/2018 03:10pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4 1.5
1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9
2.10 2.11 2.12 2.13 2.14
2.15 2.16 2.17 2.18 2.19 2.20 2.21
2.22 2.23 2.24 2.25 2.26 2.27 2.28
3.1 3.2 3.3
3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25
4.26 4.27 4.28 4.29 4.30

A bill for an act
relating to commerce; providing financial exploitation protections for older adults
and vulnerable adults;proposing coding for new law as Minnesota Statutes, chapter
45A.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

new text begin [45A.01] DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope and application. new text end

new text begin For purposes of this chapter, the terms in this
section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Broker-dealer. new text end

new text begin "Broker-dealer" has the meaning given in section 80A.41.
new text end

new text begin Subd. 3. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the commissioner of commerce.
new text end

new text begin Subd. 4. new text end

new text begin Common entry point. new text end

new text begin "Common entry point" has the meaning given in section
626.5572, subdivision 5.
new text end

new text begin Subd. 5. new text end

new text begin Eligible adult. new text end

new text begin "Eligible adult" means:
new text end

new text begin (1) a person 65 years of age or older; or
new text end

new text begin (2) a person subject to section 626.5572, subdivision 21.
new text end

new text begin Subd. 6. new text end

new text begin Financial exploitation. new text end

new text begin "Financial exploitation" means:
new text end

new text begin (1) the wrongful or unauthorized taking, withholding, appropriation, expenditure, or use
of money, assets, or property of an eligible adult; or
new text end

new text begin (2) an act or omission taken by a person, including through the use of a power of attorney,
guardianship, trustee, or conservatorship of an eligible adult, to:
new text end

new text begin (i) obtain control, through deception, intimidation, or undue influence, over the eligible
adult's money, assets, or property to deprive the eligible adult of the ownership, use, benefit,
or possession of the eligible adult's money, assets, or property; or
new text end

new text begin (ii) convert money, assets, or property of the eligible adult to deprive the eligible adult
of the ownership, use, benefit, or possession of the eligible adult's money, assets, or property.
new text end

new text begin Subd. 7. new text end

new text begin Investment adviser. new text end

new text begin "Investment adviser" has the meaning given in section
80A.41.
new text end

new text begin Subd. 8. new text end

new text begin Lead investigative agency. new text end

new text begin "Lead investigative agency" has the meaning given
in section 626.5572, subdivision 13.
new text end

Sec. 2.

new text begin [45A.02] GOVERNMENTAL DISCLOSURES.
new text end

new text begin If a broker-dealer or investment adviser reasonably believes that financial exploitation
of an eligible adult may have occurred, may have been attempted, or is being attempted,
the broker-dealer or investment adviser may promptly notify the commissioner and the
common entry point.
new text end

Sec. 3.

new text begin [45A.03] IMMUNITY FOR GOVERNMENTAL DISCLOSURES.
new text end

new text begin A broker-dealer or investment adviser who, in good faith, makes a disclosure of
information pursuant to section 45A.02, cooperates with a civil or criminal investigation of
financial exploitation of an eligible adult, or testifies about alleged financial exploitation
of an eligible adult in a judicial or administrative proceeding is immune from administrative
or civil liability that might otherwise arise from the disclosure or testimony or for failure
to notify the customer of the disclosure or testimony.
new text end

Sec. 4.

new text begin [45A.04] THIRD-PARTY DISCLOSURES.
new text end

new text begin If a broker-dealer or investment adviser reasonably believes that financial exploitation
of an eligible adult may have occurred, may have been attempted, or is being attempted, a
broker-dealer or investment adviser may notify a third party reasonably associated with the
eligible adult or any other person permitted under state or federal law or rule, rules of a
self-regulating organization, or customer agreement. Disclosure may not be made to a third
party that is suspected of financial exploitation or other abuse of the eligible adult.
new text end

Sec. 5.

new text begin [45A.05] IMMUNITY FOR THIRD-PARTY DISCLOSURES.
new text end

new text begin A broker-dealer or investment adviser who, in good faith, complies with section 45A.04
is immune from administrative or civil liability that might otherwise arise from the disclosure.
new text end

Sec. 6.

new text begin [45A.06] DELAYING DISBURSEMENTS.
new text end

new text begin (a) A broker-dealer or investment adviser shall delay a disbursement from or place a
hold on a transaction involving an account of an eligible adult or an account on which an
eligible adult is a beneficiary if the commissioner of commerce, law enforcement agency,
or the prosecuting attorney's office provides information to the broker-dealer or investment
adviser demonstrating that it is reasonable to believe that financial exploitation of an eligible
adult may have occurred, may have been attempted, or is being attempted. A broker-dealer
or investment adviser may delay a disbursement from or place a hold on a transaction
involving an account of an eligible adult or an account on which an eligible adult is a
beneficiary if:
new text end

new text begin (1) the broker-dealer or investment adviser reasonably believes, after initiating an internal
review of the requested disbursement or transaction and the suspected financial exploitation,
that the requested disbursement or transaction may result in financial exploitation of an
eligible adult; and
new text end

new text begin (2) the broker-dealer or investment adviser:
new text end

new text begin (i) immediately, but in no event more than two business days after the delayed
disbursement or transaction, provides written notification of the delay or hold and the reason
for the delay or hold to all parties authorized to transact business on the account, unless the
party is reasonably believed to have engaged in suspected or attempted financial exploitation
of the eligible adult;
new text end

new text begin (ii) immediately, but in no event more than two business days after the delayed
disbursement or transaction, notifies the commissioner and the common entry point; and
new text end

new text begin (iii) provides documentation and updates of any internal review conducted by the
broker-dealer or investment adviser upon request of the commissioner, lead investigative
agency, law enforcement agency, or the prosecuting attorney's office.
new text end

new text begin (b) A delay of a disbursement or hold on a transaction as authorized by this section
expires upon the sooner of:
new text end

new text begin (1) the broker-dealer or investment adviser reasonably believes that the disbursement
or transaction will not result in financial exploitation of the eligible adult if the broker-dealer
or investment adviser initiated the delay of disbursement or hold on the transaction;
new text end

new text begin (2) a determination by the commissioner, law enforcement agency, lead investigative
agency, or prosecuting attorney's office that the disbursement or transaction will not result
in financial exploitation of the eligible adult; or
new text end

new text begin (3) 15 business days after the date on which the broker-dealer or investment adviser first
delayed disbursement of the funds or held the transaction, unless the commissioner, law
enforcement agency, lead investigative agency, or prosecuting attorney's office requests
that the broker-dealer or investment adviser extend the delay or hold, in which case the
delay or hold expires no more than 25 business days after the date on which the broker-dealer
or investment adviser first delayed disbursement or placed the hold on the transaction.
new text end

new text begin (c) An eligible adult or other interested person as defined in section 524.5-102 may
appeal to the commissioner for the termination of the delay of the disbursement of funds
or hold on the transaction. The commissioner shall issue a decision within five business
days of receiving the appeal. A decision of the commissioner may be reviewed consistent
with the contested case proceeding procedure provided in chapter 14.
new text end

new text begin (d) Provided that a broker-dealer or investment adviser's internal review of the suspected
or attempted financial exploitation of the eligible adult supports the broker-dealer or
investment adviser's reasonable belief that financial exploitation of the eligible adult has
occurred, has been attempted, or is being attempted, the temporary delay or hold may be
extended by the broker-dealer or investment adviser for no longer than ten business days
following the date authorized by paragraph (b), clause (2), unless otherwise terminated or
extended by the commissioner, law enforcement agency, lead investigative agency, or
prosecuting attorney's office or an order of a court.
new text end

Sec. 7.

new text begin [45A.07] IMMUNITY FOR DELAYING DISBURSEMENTS.
new text end

new text begin A broker-dealer or investment adviser that, in good faith, complies with section 45A.06
or the commissioner of commerce, law enforcement agency, or the prosecuting attorney's
office is immune from administrative or civil liability that might otherwise arise from the
delay in a disbursement or placing a hold on a transaction in accordance with this chapter.
new text end