SF 919

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/19/2018 04:31pm

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 Agent. new text end

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

new text begin Subd. 3. 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. 4. 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. 5. 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. 6. 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. 7. 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. 8. 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. 9. new text end

new text begin Investment adviser representative. new text end

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

new text begin Subd. 10. 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, 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) a determination by the broker-dealer or investment adviser, 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 (2) 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 either of the agencies
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 unless sooner terminated or extended by either of the agencies or an order of a
court of competent jurisdiction.
new text end

new text begin (c) A court of competent jurisdiction may enter an order extending the delay of the
disbursement of funds or hold on the transaction or may order other protective relief based
on the petition of the commissioner of commerce, lead investigative agency, broker-dealer
or investment adviser, or other interested party that initiated the delay or hold under this
section.
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 either of the agencies or an order of a court of competent jurisdiction.
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

Sec. 8.

new text begin [45A.08] RECORDS.
new text end

new text begin A broker-dealer or investment adviser shall provide access to or copies of records that
are relevant to the suspected or attempted financial exploitation of an eligible adult to the
common entry point, the lead investigative agency, 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 or investment advisers as otherwise provided
by law.
new text end

Sec. 9.

new text begin [45A.09] IMMUNITY FOR RECORDS DISCLOSURE.
new text end

new text begin A broker-dealer or investment adviser who, in good faith, complies with section 45A.08,
is immune from administrative or civil liability that might otherwise arise from the disclosure.
new text end