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S.F. No. 919 - Older and Vulnerable Adults Financial Exploitation Protection Establishment - First Engrossment
 
Author: Senator Karin Housley
 
Prepared By: Liam Monahan, Senate Analyst (651/296-1791)
 
Date: March 19, 2018



 

SF 919 establishes new financial exploitation protections for older adults and vulnerable adults by permitting broker-dealers and investment advisors under limited circumstances in which financial exploitation is suspected to disclose information and delay disbursements or transactions.

Section 1 [45A.01] defines various terms, including eligible adult and financial exploitation.

Sections  2 and 3  [45A.02 and 45A.03] permit broker-dealers or investment advisors to notify the commissioner of commerce or the Minnesota Adult Abuse Reporting Center (MAARC) when they suspect financial exploitation and provide civil and administrative immunity for disclosing information to the government in the course of reporting or cooperating with an investigation or prosecution of financial exploitation.

Sections 4 and 5 [45A.04 and 45A.05] permit broker-dealers or investment advisors to notify third parties, except a suspected perpetrator, when they suspect financial exploitation and provide civil and administrative immunity for disclosing information.

Section 6 [45A.06, paragraph (a), sentence one] requires broker-dealers or investment advisors to delay disbursements or hold transactions if told by the commissioner of commerce, law enforcement, or a prosecuting attorney’s office that there is reasonable evidence of financial exploitation.

Paragraph (a), sentence two, permits broker-dealers or investment brokers to delay a disbursement or hold a transaction if they suspect financial exploitation provided that:

  1. they inform everyone authorized to use the account, except a suspected perpetrator, of the reason for the delay or hold;
  2. they notify the commissioner of commerce and MAARC; and
  3. they cooperate with government investigations by providing documentation of internal reviews related to the suspected case of financial exploitation.

Paragraph (b) establishes timelines for the expiration of delays and holds, and provides for limited extensions and early termination of delays and holds.

Paragraph (c) provides for petitions to a court for further extensions of delays and holds and other protective relief.

Paragraph (d) permits broker-dealers or investment brokers to extend the delay of disbursements or the holds on transactions for ten additional days if their internal review gives them reason to suspect financial exploitation.

Section 7 [45A.07] provides civil and administrative immunity to broker-dealers and investment brokers who comply with the disbursement delay and transaction hold provisions of section 45A.06.

Sections 8 and 9 [45A.08 and 45A.09] require broker-dealers or investment brokers to provide documents  when requested during the reporting or investigation of financial exploitation, clarify the status of disclosed documents for the purposes of the government data privacy act, and provide civil and administrative immunity for providing documents to the government in the course of reporting or cooperating with an investigation or prosecution of financial exploitation.

 
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