Minnesota Legislature
SF 2466
1st Engrossment - 91st Legislature (2019 - 2020) Posted on 03/06/2020 02:32pm
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A bill for an act
relating to financial institutions; modifying provisions governing financial
exploitation protections for vulnerable adults; amending Minnesota Statutes 2018,
sections 45A.01, by adding a subdivision; 45A.02; 45A.03; 45A.04; 45A.05;
45A.06; 45A.07.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2018, section 45A.01, is amended by adding a subdivision
to read:
new text begin Subd. 6a. new text end
new text begin Financial services provider. new text end
new text begin
"Financial services provider" means (1) a bank,
bank and trust, trust company with banking powers, savings bank, savings association, or
credit union organized under the laws of Minnesota, any other state, or the United States;
(2) an industrial loan and thrift under chapter 53; or (3) a regulated lender under chapter
56.
new text end
Sec. 2.
Minnesota Statutes 2018, section 45A.02, is amended to read:
45A.02 GOVERNMENTAL DISCLOSURES.
new text begin (a) new text end 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 begin
(b) If a financial services provider reasonably believes that financial exploitation of an
eligible adult may have occurred, may have been attempted, or is being attempted, the
financial services provider may promptly notify the common entry point.
new text end
Sec. 3.
Minnesota Statutes 2018, section 45A.03, is amended to read:
45A.03 IMMUNITY FOR GOVERNMENTAL DISCLOSURES.
new text begin (a) new text end A broker-dealer or investment adviser who, in good faith, makes a disclosure of
information pursuant to section 45A.02, new text begin paragraph (a), new text end 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 begin
(b) A financial services provider or an employee of a financial services provider who,
in good faith, makes a disclosure of information pursuant to section 45A.02, paragraph (b),
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, civil, or criminal 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.
Minnesota Statutes 2018, section 45A.04, is amended to read:
45A.04 THIRD-PARTY DISCLOSURES.
If a broker-dealer deleted text begin ordeleted text end new text begin ,new text end investment advisernew text begin , or financial services providernew text end reasonably
believes that financial exploitation of an eligible adult may have occurred, may have been
attempted, or is being attempted, a broker-dealer deleted text begin ordeleted text end new text begin ,new text end investment advisernew text begin , or financial services
providernew text end 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.
Sec. 5.
Minnesota Statutes 2018, section 45A.05, is amended to read:
45A.05 IMMUNITY FOR THIRD-PARTY DISCLOSURES.
new text begin (a) new text end 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 begin
(b) A financial services provider or an employee of a financial services provider who,
in good faith, complies with section 45A.04 is immune from administrative, civil, or criminal
liability that might otherwise arise from the disclosure.
new text end
Sec. 6.
Minnesota Statutes 2018, section 45A.06, is amended to read:
45A.06 DELAYING DISBURSEMENTS.
new text begin Subdivision 1. new text end
new text begin Broker-dealers and investment advisors. new text end
(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 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:
(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
(2) the broker-dealer or investment adviser:
(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;
(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
(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 prosecuting attorney's office.
(b) A delay of a disbursement or hold on a transaction as authorized by this section
expires upon the sooner of:
(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;
(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
(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 extends 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.
(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.
(d) Provided that a broker-dealer's or investment adviser's internal review of the suspected
or attempted financial exploitation of the eligible adult supports the broker-dealer's 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 (3), 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 begin Subd. 2. new text end
new text begin Financial services providers. new text end
new text begin
(a) A financial services provider 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 prosecuting attorney's office provides information to the financial
services provider 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
financial services provider may, but is not required to, 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 financial services provider 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 financial services provider:
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 and the reason for
the delay 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 common entry point and may notify the
commissioner; and
new text end
new text begin
(iii) provides documentation and updates of any internal review conducted by the financial
services provider upon request of the commissioner, lead investigative agency, law
enforcement agency, or 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 financial services provider reasonably believes that the disbursement or transaction
will not result in financial exploitation of the eligible adult if the financial services provider
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 financial services provider 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 financial
services provider extends the delay or hold, in which case the delay or hold expires no more
than 25 business days after the date on which the financial services provider 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. A financial services provider must notify the eligible adult or
interested person of the right to appeal. 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 financial services provider's internal review of the suspected or
attempted financial exploitation of the eligible adult supports the financial services provider'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 financial
services provider for no longer than ten business days following the date authorized by
paragraph (b), clause (3), 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.
Minnesota Statutes 2018, section 45A.07, is amended to read:
45A.07 IMMUNITY FOR DELAYING DISBURSEMENTS.
new text begin (a) new text end A broker-dealer or investment adviser that, in good faith, complies with section
45A.06new text begin , subdivision 1,new text end or the commissioner of commerce, law enforcement agency, or
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 begin
(b) A financial services provider, or an employee of a financial services provider, that,
in good faith, complies with section 45A.06, subdivision 2, or the commissioner of commerce,
law enforcement agency, or prosecuting attorney's office is immune from administrative,
civil, or criminal liability that might otherwise arise from the delay of a disbursement or a
transaction in accordance with this chapter.
new text end
new text begin
(c) A party that, in good faith and in compliance with section 45A.06, delays or places
a hold on a disbursement or transaction directed by an attorney-in-fact shall not be deemed
to have refused to accept the authority of the attorney-in-fact for purposes of section 523.20.
new text end