SB428: Bill Text

SB428,3,7 (a) “Adult-at-risk agency” has the meaning given in s. 55.01 (1f).

SB428,3,8 (b) “Elder-adult-at-risk agency” has the meaning given in s. 46.90 (1) (bt).

SB428,3,9 (c) “Financial exploitation” has the meaning given in s. 46.90 (1) (ed).

SB428,3,10 (d) “Law enforcement agency” has the meaning given in s. 165.77 (1) (b).

SB428,3,13 (e) “Qualified individual” means any agent representing a broker-dealer, any investment adviser representative, or any individual who serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser.

SB428,4,6 (2) Notice of suspected financial exploitation. (a) If a qualified individual reasonably suspects that financial exploitation of a vulnerable adult may have occurred, may have been attempted, or is being attempted, the qualified individual, in cooperation with the qualified individual's broker-dealer or investment adviser, may notify the division, an adult-at-risk agency, an elder-adult-at-risk agency, or a law enforcement agency, or any combination of these.

SB428,4,10 (b) After notifying the division or agency under par. (a), a qualified individual may, to the extent permitted under federal law, notify any of the following concerning the qualified individual's suspicion that financial exploitation may have occurred, may have been attempted, or is being attempted:

SB428,4,12 1. Any person identified in a list provided by the vulnerable adult under sub. (4).

SB428,4,14 2. The vulnerable adult's spouse, parent, or adult child, or any other individual reasonably associated with the vulnerable adult.

SB428,4,15 3. Any legal guardian of the vulnerable adult.

SB428,4,17 4. Any trustee, cotrustee, or successor trustee of the account of the vulnerable adult.

SB428,4,18 5. Any agent under a power of attorney of the vulnerable adult.

SB428,4,19 6. Any other person permitted under applicable law or rule of the division.

SB428,4,23 (3) Delay of transaction or disbursement. (a) A broker-dealer or investment adviser may delay a transaction on, or disbursement from, an account of a vulnerable adult or an account on which a vulnerable adult is a beneficiary if all of the following apply:

SB428,5,3 1. The broker-dealer, investment adviser, or qualified individual reasonably suspects, after initiating an internal review of the requested transaction or disbursement and the suspected financial exploitation, that the requested transaction or disbursement may result in financial exploitation of a vulnerable adult.

SB428,5,4 2. The broker-dealer or investment adviser does all of the following:

SB428,5,9 a. As soon as possible, but not more than 2 business days after it first delays the requested transaction or disbursement, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, except to any party reasonably suspected to have engaged in or attempted financial exploitation of the vulnerable adult.

SB428,5,13 b. As soon as possible, but not more than 2 business days after it first delays the requested transaction or disbursement, notifies the division, an adult-at-risk agency, an elder-adult-at-risk agency, or a law enforcement agency, or any combination of these.

SB428,5,15 (b) The division may, by rule, establish additional guidelines for the delay of a transaction or disbursement under par. (a).

SB428,5,20 (c) Upon request by the division or agency to which a broker-dealer or investment adviser provided notice under par. (a) 2. b., the broker-dealer or investment adviser shall provide to the division or agency the results of any continued internal review of the suspected financial exploitation conducted after the notice under par. (a) 2. b. was provided.

SB428,5,22 (d) Any delay of a transaction or disbursement under this subsection expires on the earlier of the following:

SB428,5,25 1. A determination by the broker-dealer or investment adviser that the transaction or disbursement is not reasonably likely to result in financial exploitation of the vulnerable adult.

SB428,6,7 2. Fifteen business days after the date on which the broker-dealer or investment adviser first delayed the transaction or disbursement of the funds, unless the division or agency to which notice was provided under par. (a) 2. b. requests that the broker-dealer or investment adviser extends the delay, in which case the delay shall expire no more than 25 business days after the date on which the broker-dealer or investment adviser first delayed the transaction or disbursement of the funds unless it is otherwise terminated or extended by the division or court order.

SB428,6,12 (e) A court may enter an order extending the delay of the transaction or disbursement of funds or an order granting other protective relief based on the petition of the division, an agency to which notice was provided under par. (a) 2. b., the broker-dealer or investment adviser that initiated the delay under this subsection, or any other interested party.

SB428,6,17 (4) List of authorized contacts. A broker-dealer or investment adviser may offer to a vulnerable adult the opportunity to submit and periodically update a list of persons that the vulnerable adult authorizes to be contacted if a qualified individual reasonably suspects that financial exploitation of the vulnerable adult may have occurred, may have been attempted, or is being attempted.

SB428,6,20 (5) Immunity from liability. A broker-dealer, investment adviser, or qualified individual that, in good faith and exercising reasonable care, complies with subs. (2) and (3) is immune from liability for such conduct.

SB428,7,2 (6) Law enforcement access to records; status reports of investigation. (a) If a broker-dealer or investment adviser has reasonable cause to suspect that financial exploitation of a vulnerable adult may have occurred, may have been attempted, or is being attempted, any investigating law enforcement agency has the same privilege to obtain, from the broker-dealer or investment adviser, financial records and other information related to the suspected financial exploitation that an elder-adult-at-risk agency has under s. 46.90 (5) (b) 6.

SB428,7,7 (b) After a broker-dealer or investment adviser has provided notice to the division or an agency under sub. (3) (a) 2. b., the division or agency receiving the notice may, notwithstanding any other provision of law, disclose to the broker-dealer or investment adviser information relating to the status or results of any investigation arising from the notice.

SB428,3 Section 3 . 551.508 (1m) (a) and (c) of the statutes are amended to read:

SB428,7,13 551.508 (1m) (a) If a person is convicted of a crime under sub. (1) and the crime is committed against another person who is at least 65 years of age a vulnerable adult when the crime is committed, for each such offense the maximum fine prescribed under sub. (1) may be increased by not more than $5,000 and the maximum term of imprisonment prescribed under sub. (1) may be increased by not more than 5 years.

SB428,7,17 (c) It is no defense to the enhancement of penalties under this subsection that the person convicted did not know the age of that the victim was a vulnerable adult or reasonably believed that the victim was not at least 65 years of age a vulnerable adult.

SB428,4 Section 4 . 551.603 (4) (a) and (c) of the statutes are amended to read:

SB428,7,24 551.603 (4) (a) In any action under this section, if the court imposes a civil penalty under sub. (2) (b) 3. for any violation against another person who is at least 65 years of age a vulnerable adult when the violation occurs, for each such violation the civil penalty prescribed under sub. (2) (b) 3. for a single violation may be increased by not more than $5,000 and the maximum civil penalty for more than one violation may be increased by not more than $250,000.

SB428,8,4 (c) It is no defense to the enhancement of civil penalties under this subsection that the defendant did not know the age of that the victim was a vulnerable adult or reasonably believed that the victim was not at least 65 years of age a vulnerable adult.

SB428,5 Section 5 . 551.604 (4) of the statutes is amended to read:

SB428,8,15 551.604 (4) Civil penalty. In a final order under sub. (3), the administrator may impose a civil penalty in the form of an administrative assessment up to $5,000 for a single violation or up to $250,000 for more than one violation except that, if the violation is committed against another person who is at least 65 years of age a vulnerable adult when the violation occurs, for each such violation the civil penalty may be up to $10,000 for a single violation or up to $500,000 for more than one violation. It is no defense to the enhancement of civil penalties under this subsection that the defendant did not know the age of that the victim was a vulnerable adult or reasonably believed that the victim was not at least 65 years of age a vulnerable adult.

SB428,6 Section 6 . Initial applicability.

SB428,8,19 (1) Penalty enhancement. The treatment of ss. 551.508 (1m) (a) and (c), 551.603 (4) (a) and (c), and 551.604 (4) first applies to violations committed on the effective date of this subsection.

SB428,8,20 (End)