Senate Bill #433 (2019)

AN ACT RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- SENIOR SAVINGS PROTECTION ACT

Protects seniors and qualified disabled adults from financial exploitation.

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Changes since original draft

  • 2019 – S 0433
  • 2019 – S 0433 SUBSTITUTE A
  • ========
  • LC001340
  • LC001340/SUB A
  • ========
  • S TATE OF RHODE IS L AND
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2019
  • ____________
  • A N A C T
  • RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS – SENIOR
  • SAVINGS PROTECTION ACT
  • S T A T E O F R H O D E I S L A N D
  • IN GENERAL ASSEMBLY
  • JANUARY SESSION, A.D. 2019
  • ____________
  • A N A C T
  • RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS – SENIOR
  • SAVINGS PROTECTION ACT
  • Introduced By: Senators Lawson, Nesselbush, Valverde, Murray, and Euer
  • Date Introduced: February 27, 2019
  • Referred To: Senate Finance
  • It is enacted by the GeneralAssembly as follows:
  • SECTION 1. Title7 of the General Laws entitled"CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS" is hereby amended by adding thereto the following chapter:
  • CHAPTER 11.2
  • SENIOR SAVINGS PROTECTION ACT
  • 7-11.2-1. Short title - Rules of construction.
  • (a) This chapter shall be known as and may be cited as the "Senior Savings Protection Act".
  • (b) This chapter shall be liberally construed and applied to promote its underlying purposes and policy and to make uniform the laws with respect to the subject of this chapter among states enacting it.
  • (c) Unless displaced by the particular provisions of this chapter, the principles of law and equity supplement its provisions.
  • 7-11.2-2. Definitions.
  • As used in this chapter, the following words and phrases shall have the following meanings unless the context otherwise requires:
  • (1) "Agencies" means the department of human services - division of elderly affairs, and the department of business regulation.
  • (2) "Agent" means an individual, other than a broker-dealer, who represents a broker- dealer in effectingor attempting to effectpurchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities; provided, that a partner, officer, or director of a broker-dealer or issuer, or an individual having a similar status or performing similar functions is an agent only if the individual otherwise comes within the term. The term does not include an individual excluded by rule adopted or order issued under this chapter.
  • (3) "Broker-dealer" means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. The term does not include:
  • It is enacted by the General Assembly as follows:
  • SECTION 1. Title 7 of the General Laws entitled "CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS" is hereby amended by adding thereto the following chapter:
  • CHAPTER 11.2
  • SENIOR SAVINGS PROTECTION ACT
  • 7-11.2-1. Short title - Rules of construction.
  • (a) This chapter shall be known as and may be cited as the "Senior Savings Protection Act".
  • (b) This chapter shall be liberally construed and applied to promote its underlying purposes and policy and to make uniform the laws with respect to the subject of this chapter among states enacting it.
  • (c) Unless displaced by the particular provisions of this chapter, the principles of law and equity supplement its provisions.
  • 7-11.2-2. Definitions.
  • As used in this chapter, the following words and phrases shall have the following meanings unless the context otherwise requires:
  • (1) "Agent" means an individual, other than a broker-dealer, who represents a broker- dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in effecting or attempting to effect purchases or sales of the issuer's securities; provided, that a partner, officer, or director of a broker-dealer or issuer, or an individual having a similar status or performing similar functions is an agent only if the individual otherwise comes within the term. The term does not include an individual excluded by rule adopted or order issued under this chapter.
  • (2) "Broker-dealer" means a person engaged in the business of effecting transactions in securities for the account of others or for the person's own account. The term does not include:
  • (i) An agent;
  • (ii) An issuer;
  • (iii) A bank, a trust company organized or chartered under the laws of this state, or a savings institution, if its activities as a broker-dealer are limited to those specified in the Securities Exchange Act of 1934, as amended (15 U.S.C. Section 78a, et seq.) or a bank that satisfies the conditions described in the Securities Exchange Act of 1934, as amended (15 U.S.C. Sections 78a et seq.);
  • (iv) An international banking institution; or
  • (v) A person excluded by rule adopted or order issued under this chapter.
  • (4) "Financial exploitation" means the wrongful or unauthorized taking, withholding, appropriation, or use of money, realproperty, or personal property of a qualified adult.
  • (5) "Immediate family member" means a spouse, child, parent, or sibling of a qualified adult;
  • (6) "Qualified adult" means:
  • (3) "Financial exploitation" means the wrongful or unauthorized taking, withholding, appropriation, or use of money, real property, or personal property of a qualified adult.
  • (4) "Immediate family member" means a spouse, child, parent, or sibling of a qualified adult;
  • (5) "Qualified adult" means:
  • (i) A person sixty (60) years of age or older; or
  • (ii) A person who:
  • (A) Has a mental or physical impairment that substantially limits one or more major life activities, whether the impairment is congenital or acquired by accident, injury or disease, where such impairment is verified by medical findings; and
  • (B) Is between the ages of eighteen (18) and fifty-nine (59);
  • (7) "Qualified individual" means a person associated with a broker-dealer who serves in a supervisory, compliance, or legal capacity as part of their job.
  • (6) "Qualified individual" means a person associated with a broker-dealer who serves in a supervisory, compliance, or legal capacity as part of their job.
  • 7-11.2-3. Notification of agencies and family members.
  • If a qualified individual reasonably believes that financial exploitation of a qualified adult has occurred, has been attempted, or is being attempted, the qualified individual may notify the
  • LC001340 - Page 2of 5 agencies. Subsequent to notifying the agencies, an agent or qualified individual may notify an immediate family member, legal guardian, conservator, cotrustee, successor trustee, or agent under a power of attorney of the qualified adult of such belief.
  • 7-11.2-4. Refusal of request for disbursement.
  • (a) A qualified individual may refuse a request for disbursement from the account of a qualified adult, or an account on which a qualified adult is a beneficiary or beneficial owner, if:
  • (1) The qualified individual reasonably believes that the requested disbursement will result in financial exploitation of the qualified adult; and
  • (2) The broker-dealer or qualified individual:
  • (i) Within two (2) business days makes a reasonable effort to notify allparties authorized to transact business on the account orally or in writing, unless such parties are reasonably believed to have engaged in suspected or attempted financial exploitation of the qualified adult; and
  • (ii) Within three (3) business days notifies the agencies.
  • (b) Any refusal of a disbursement as authorized by this section shall expire upon the sooner of:
  • (1) The time when the broker-dealer or qualified individual reasonably believes that the disbursement will not result in financial exploitation of the qualified adult; or
  • (2) Ten (10) business days after the initial refusal of disbursement by the qualified individual.
  • (c) A court of competent jurisdiction may enter an order extending the refusal of a disbursement or any other protective relief.
  • 7-11.2-5. Immunity from liability.
  • Notwithstanding any other provision of law to the contrary, a broker-dealer, agent, or qualified individual who, in good faith and exercising reasonable care, complies with the provisions of this chapter shallbe immune from any civil liability under this chapter.
  • 7-11.2-6. Website fortraining resources to prevent anddetect financial exploitation.
  • No later than July 1, 2020, the agencies shall develop and make available websites that include training resources to assist broker-dealers and agents in the prevention and detection of financial exploitation of qualified adults. Such resources shall include, at a minimum, indicators of financial exploitation of qualified adults and potential steps broker-dealers and agents may take to prevent suspected financialexploitation of qualified adults as authorized by law.
  • LC001340 - Page 3of 5
  • SECTION 2. This act shalltake effect upon passage. ======== LC001340 ========
  • LC001340 - Page 4of 5
  • If a qualified individual reasonably believes that financial exploitation of a qualified adult has occurred, has been attempted, or is being attempted, the qualified individual shall notify the department of business regulation as well as the division of elderly affairs and law enforcement in accordance with § 42-66-8. Subsequent to providing this notification, an agent or qualified individual may notify an immediate family member, legal guardian, conservator, cotrustee, successor trustee, or agent under a power of attorney of the qualified adult of such belief.
  • 7-11.2-4. Refusal of request for disbursement.
  • (a) A qualified individual may refuse a request for disbursement from the account of a qualified adult, or an account on which a qualified adult is a beneficiary or beneficial owner, if:
  • (1) The qualified individual reasonably believes that the requested disbursement will result in financial exploitation of the qualified adult; and
  • (2) The broker-dealer or qualified individual:
  • (i) Within two (2) business days makes a reasonable effort to notify all parties authorized to transact business on the account orally or in writing, unless such parties are reasonably believed to have engaged in suspected or attempted financial exploitation of the qualified adult; and
  • (ii) Complies with the notification requirements set forth in § 7-11.2-3.
  • (b) Any refusal of a disbursement as authorized by this section shall expire upon the sooner of:
  • (1) The time when the broker-dealer or qualified individual reasonably believes that the disbursement will not result in financial exploitation of the qualified adult; or
  • (2) Ten (10) business days after the initial refusal of disbursement by the qualified individual.
  • (c) A court of competent jurisdiction may enter an order extending the refusal of a disbursement or any other protective relief.
  • 7-11.2-5. Immunity from liability.
  • Notwithstanding any other provision of law to the contrary, a broker-dealer, agent, or qualified individual who, in good faith and exercising reasonable care, complies with the provisions of this chapter shall be immune from any civil liability under this chapter.
  • 7-11.2-6. Website for training resources to prevent and detect financial exploitation.
  • No later than July 1, 2020, the department of business regulation and the division of elderly affairs shall develop and make available websites that include training resources to assist broker-dealers and agents in the prevention and detection of financial exploitation of qualified adults. Such resources shall include, at a minimum, indicators of financial exploitation of qualified adults and potential steps broker-dealers and agents may take to prevent suspected financial exploitation of qualified adults as authorized by law.
  • SECTION 2. This act shall take effect upon passage. ======== LC001340/SUB A ========
  • EXPLANATION
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS – SENIOR
  • SAVINGS PROTECTION ACT
  • ***
  • This act would establish the Senior Savings Protection Act to permit certain individuals to report the occurrence or suspected occurrence of financial exploitation of qualified adults, which are persons sixty (60) years of age or older or who have a disability and are between the ages of eighteen (18) and fifty-nine (59).
  • This act would take effect upon passage. ======== LC001340 ========
  • LC001340 - Page 5of 5
  • BY THE LEGISLATIVE COUNCIL
  • OF
  • A N A C T
  • RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS – SENIOR
  • SAVINGS PROTECTION ACT
  • ***
  • This act would establish the "Senior Savings Protection Act" to require certain individuals to report the occurrence or suspected occurrence of financial exploitation of qualified adults, who are persons sixty (60) years of age or older, or who have a disability, and are between the ages of eighteen (18) and fifty-nine (59).
  • This act would take effect upon passage. ======== LC001340/SUB A ========

Votes

NOTE: Electronic voting records are unofficial and may not be accurate. For an official vote tally, check the House or Senate Journal from the day of the vote.

Floor vote for Passage

June 20, 2019 at 5:37pm
Yeas: 38 / Nays: 0 / Not voting: 0 / Recused: 0
Legislator Vote
Sen. Algiere Y
Sen. Archambault Y
Sen. Bell Y
Sen. Cano Y
Sen. Ciccone Y
Sen. Conley Y
Sen. Coyne Y
Sen. Crowley Y
Sen. Cruz Y
Sen. DiPalma Y
Sen. Euer Y
Sen. Felag Y
Sen. Gallo Y
Sen. Goldin Y
Sen. Goodwin Y
Sen. Lawson Y
Sen. Lombardi Y
Sen. Lombardo Y
Sen. Lynch Prata Y
Sen. McCaffrey Y
Sen. McKenney Y
Sen. Metts Y
Sen. Miller Y
Sen. Morgan Y
Sen. Murray Y
Sen. Nesselbush Y
Sen. Paolino Y
Sen. Pearson Y
Sen. Picard Y
Sen. Quezada Y
Sen. Raptakis Y
Sen. Rogers Y
Sen. Ruggerio Y
Sen. Satchell Y
Sen. Seveney Y
Sen. Sheehan Y
Sen. Sosnowski Y
Sen. Valverde Y