Minnesota Legislature
SF 2655
as introduced - 89th Legislature (2015 - 2016) Posted on 03/15/2016 09:59am
Current Version - as introduced
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A bill for an act
relating to commerce; providing financial exploitation protections for older
adults and vulnerable adults; appropriating money; proposing coding for new
law as Minnesota Statutes, chapter 45A.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[45A.01] DEFINITIONS.
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new text begin Subdivision 1. new text end
new text begin Scope and application. new text end
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For purposes of this chapter and unless the
context otherwise requires, the terms in this section have the meanings given them.
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new text begin Subd. 2. new text end
new text begin Agencies. new text end
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"Agencies" means the common entry point and the
commissioner of commerce collectively.
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new text begin Subd. 3. new text end
new text begin Agent. new text end
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"Agent" has the meaning given in section 80A.41.
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new text begin Subd. 4. new text end
new text begin Broker-dealer. new text end
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"Broker-dealer" has the meaning given in section 80A.41.
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new text begin Subd. 5. new text end
new text begin Common entry point. new text end
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"Common entry point" has the meaning given in
section 626.5572, subdivision 5.
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new text begin Subd. 6. new text end
new text begin Eligible adult. new text end
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"Eligible adult" means:
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(1) a person 65 years of age or older; or
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(2) a person subject to section 626.5572, subdivision 21.
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new text begin Subd. 7. new text end
new text begin Financial exploitation. new text end
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"Financial exploitation" means:
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(1) the wrongful or unauthorized taking, withholding, appropriation, or use of
money, assets, or property of an eligible adult; or
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(2) an act or omission taken by a person, including through the use of a power of
attorney, guardianship, or conservatorship of an eligible adult, to:
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(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
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(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.
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new text begin Subd. 8. new text end
new text begin Financial institution. new text end
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"Financial institution" means a lending institution
chartered by an agency of the federal government or regulated by the commissioner of
commerce.
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new text begin Subd. 9. new text end
new text begin Investment adviser. new text end
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"Investment adviser" has the meaning given in
section 80A.41.
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new text begin Subd. 10. new text end
new text begin Investment adviser representative. new text end
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"Investment adviser representative"
has the meaning given in section 80A.41.
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new text begin Subd. 11. new text end
new text begin Lead investigative agency. new text end
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"Lead investigative agency" has the meaning
given in section 626.5572, subdivision 13.
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new text begin Subd. 12. new text end
new text begin Qualified individual. new text end
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"Qualified individual" means an agent, investment
adviser representative, or person who serves in a supervisory, compliance, or legal
capacity for a broker-dealer, investment adviser, or financial institution.
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Sec. 2.
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[45A.02] GOVERNMENTAL DISCLOSURES.
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If a qualified individual reasonably believes that financial exploitation of an eligible
adult may have occurred, may have been attempted, or is being attempted, the qualified
individual shall immediately notify the agencies.
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Sec. 3.
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[45A.03] IMMUNITY FOR GOVERNMENTAL DISCLOSURES.
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A qualified individual that, in good faith and exercising reasonable care, makes a
disclosure of information pursuant to section 45A.02 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.
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Sec. 4.
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[45A.04] THIRD-PARTY DISCLOSURES.
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If a qualified individual reasonably believes that financial exploitation of an eligible
adult may have occurred, may have been attempted, or is being attempted, a qualified
individual may notify a third party previously designated by the eligible adult. Disclosure
may not be made to a designated third party that is suspected of financial exploitation or
other abuse of the eligible adult.
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Sec. 5.
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[45A.05] IMMUNITY FOR THIRD-PARTY DISCLOSURES.
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A qualified individual that, in good faith and exercising reasonable care, complies
with section 45A.04 is immune from administrative or civil liability that might otherwise
arise from the disclosure.
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Sec. 6.
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[45A.06] DELAYING DISBURSEMENTS.
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(a) A broker-dealer, investment adviser, or financial institution may delay a
disbursement from an account of an eligible adult or an account on which an eligible
adult is a beneficiary if:
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(1) the commissioner of commerce, the lead investigative agency, law enforcement,
or the prosecuting attorney's office provides information to the broker-dealer, investment
adviser, or financial institution 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; or
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(2) the broker-dealer, investment adviser, or qualified individual reasonably believes,
after initiating an internal review of the requested disbursement and the suspected financial
exploitation, that the requested disbursement may result in financial exploitation of an
eligible adult; and
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(3) the broker-dealer, investment adviser, or financial institution:
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(i) immediately, but in no event more than two business days after the requested
disbursement, 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;
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(ii) immediately, but in no event more than two business days after the requested
disbursement, notifies the agencies; and
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(iii) continues its internal review of the suspected or attempted financial exploitation
of the eligible adult, as necessary, and reports the investigation's results to the agencies
within seven business days after the requested disbursement.
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(b) A delay of a disbursement as authorized by this section expires upon the sooner of:
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(1) a determination by the broker-dealer, investment adviser, or financial institution
that the disbursement will not result in financial exploitation of the eligible adult; or
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(2) 15 business days after the date on which the broker-dealer, investment adviser, or
financial institution first delayed disbursement of the funds, unless either of the agencies
requests that the broker-dealer or investment adviser extend the delay, in which case the
delay expires no more than 25 business days after the date on which the broker-dealer,
investment adviser, or financial institution first delayed disbursement of the funds unless
sooner terminated by either of the agencies or an order of a court of competent jurisdiction.
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(c) A court of competent jurisdiction may enter an order extending the delay of the
disbursement of funds or may order other protective relief based on the petition of the
commissioner of commerce, lead investigative agency, broker-dealer, investment adviser,
or financial institution that initiated the delay under this section, or other interested party.
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Sec. 7.
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[45A.07] IMMUNITY FOR DELAYING DISBURSEMENTS.
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A broker-dealer, investment adviser, or financial institution that, in good faith and
exercising reasonable care, complies with section 45A.06 is immune from administrative
or civil liability that might otherwise arise from the delay in a disbursement in accordance
with this section.
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Sec. 8.
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[45A.08] RECORDS.
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A broker-dealer, investment adviser, or financial institution shall provide access to or
copies of records that are relevant to the suspected or attempted financial exploitation of an
eligible adult to agencies charged with administering state adult protective services laws
and to law enforcement, either as part of a referral to the agency or to law enforcement, or
upon request of the agency or law enforcement pursuant to an investigation. The records
may include historical records as well as records relating to the most recent transaction or
transactions that may comprise financial exploitation of an eligible adult. Records made
available to agencies under this section are classified as private data on individuals or
nonpublic data as those terms are defined in section 13.02, unless the records are part of
an active civil investigation and classified as confidential or protected nonpublic under
section 13.39. Nothing in this provision limits or otherwise impedes the authority of the
commissioner of commerce to access or examine the books and records of broker-dealers,
investment advisers, and financial institutions as otherwise provided by law.
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Sec. 9.
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[45A.09] TRAINING.
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A broker-dealer, investment adviser, or financial institution may provide training
regarding the identification and reporting of suspected financial exploitation of an eligible
adult to each officer or employee.
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Sec. 10.
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[45A.10] SENIOR TRUST FUND.
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The senior trust fund is created as a separate account in the special revenue fund in
the state treasury. The senior trust fund consists of money received from the supplemental
civil penalties recovered pursuant to section 325F.71, subdivision 2. Money in the account
is annually appropriated to the commissioner of commerce for the purposes of this chapter.
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