Florida Senate - 2019                        COMMITTEE AMENDMENT
       Bill No. SB 1466
       
       
       
       
       
       
                                Ì560182ÉÎ560182                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/02/2019           .                                
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       The Committee on Banking and Insurance (Gibson) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Paragraph (a) of subsection (1) of section
    6  415.1034, Florida Statutes, is amended to read:
    7         415.1034 Mandatory reporting of abuse, neglect, or
    8  exploitation of vulnerable adults; mandatory reports of death.—
    9         (1) MANDATORY REPORTING.—
   10         (a) Any person, including, but not limited to, any:
   11         1. Physician, osteopathic physician, medical examiner,
   12  chiropractic physician, nurse, paramedic, emergency medical
   13  technician, or hospital personnel engaged in the admission,
   14  examination, care, or treatment of vulnerable adults;
   15         2. Health professional or mental health professional other
   16  than one listed in subparagraph 1.;
   17         3. Practitioner who relies solely on spiritual means for
   18  healing;
   19         4. Nursing home staff; assisted living facility staff;
   20  adult day care center staff; adult family-care home staff;
   21  social worker; or other professional adult care, residential, or
   22  institutional staff;
   23         5. State, county, or municipal criminal justice employee or
   24  law enforcement officer;
   25         6. Employee of the Department of Business and Professional
   26  Regulation conducting inspections of public lodging
   27  establishments under s. 509.032;
   28         7. Florida advocacy council or Disability Rights Florida
   29  member or a representative of the State Long-Term Care Ombudsman
   30  Program; or
   31         8. Bank, savings and loan, or credit union officer,
   32  trustee, or employee; or
   33         9.Dealer, investment adviser, or associated person under
   34  chapter 517,
   35  
   36  who knows, or has reasonable cause to suspect, that a vulnerable
   37  adult has been or is being abused, neglected, or exploited must
   38  shall immediately report such knowledge or suspicion to the
   39  central abuse hotline.
   40         Section 2. Section 517.34, Florida Statutes, is created to
   41  read:
   42         517.34Protection of specified adults.—
   43         (1)As used in this section, the term:
   44         (a)“Exploitation” means the wrongful or unauthorized
   45  taking, withholding, appropriation, or use of money, assets, or
   46  property of a specified adult, or any act or omission by a
   47  person, including through the use of a power of attorney,
   48  guardianship, or conservatorship of a specified adult, to:
   49         1.Obtain control over the specified adult’s money, assets,
   50  or property through deception, intimidation, or undue influence
   51  to deprive him or her of the ownership, use, benefit, or
   52  possession of the money, assets, or property; or
   53         2.Convert the specified adult’s money, assets, or property
   54  to deprive him or her of the ownership, use, benefit, or
   55  possession of the money, assets, or property.
   56         (b)“Specified adult” means a natural person 65 years of
   57  age or older or a vulnerable adult as defined in s. 415.102.
   58         (c)“Trusted contact” means a natural person 18 years of
   59  age or older whom the account owner has expressly identified and
   60  who is recorded in a dealer’s or an investment adviser’s books
   61  and records as the person who may be contacted about the
   62  account.
   63         (2)A dealer or an investment adviser may delay a
   64  transaction on, or a disbursement of funds or securities from,
   65  an account of a specified adult or an account for which a
   66  specified adult is a beneficiary or beneficial owner if the
   67  dealer or investment adviser reasonably believes that
   68  exploitation of the specified adult has occurred, is occurring,
   69  has been attempted, or will be attempted in connection with the
   70  transaction or disbursement.
   71         (a)The dealer’s or investment adviser’s reasonable belief
   72  of exploitation may be based on the facts and circumstances
   73  observed in such dealer’s, investment adviser’s, or associated
   74  person’s relationship with the specified adult.
   75         (b)1.Within 3 business days after the date on which the
   76  delay was first placed, the dealer or investment adviser must
   77  notify in writing, which may be provided electronically, all
   78  parties authorized to transact business on the account and any
   79  trusted contact on the account, using the contact information
   80  provided for the account, of the delay and the reason for the
   81  delay, unless the dealer or investment adviser reasonably
   82  believes that any such party engaged or is engaging in the
   83  suspected exploitation of the specified adult.
   84         2.Within 3 business days after the date on which the delay
   85  was first placed, the dealer or investment adviser must notify
   86  the office by telephone using a number designated by the office
   87  for such purpose, or in writing, which may be provided
   88  electronically, of the delay and the reason for the delay.
   89         3.Notwithstanding any law to the contrary, the Department
   90  of Children and Families may provide the status or result of any
   91  investigation with the reporting dealer or investment adviser.
   92         (3)A delay on a transaction or disbursement under
   93  subsection (2) expires 15 business days after the date on which
   94  the delay was first placed. However, the dealer or investment
   95  adviser may extend the delay for up to 10 additional business
   96  days if the dealer’s or investment adviser’s review of the
   97  available facts and circumstances continues to support such
   98  dealer’s or investment adviser’s reasonable belief that
   99  exploitation of the specified adult has occurred, is occurring,
  100  has been attempted, or will be attempted. A dealer or investment
  101  adviser extending the delay shall notify the office within 3
  102  business days after the start of the extension using the
  103  procedure specified in subparagraph (2)(b)2. The length of the
  104  delay may be shortened or extended at any time by a court of
  105  competent jurisdiction. This subsection does not prevent a
  106  dealer or investment adviser from terminating a delay after
  107  communication with the parties authorized to transact business
  108  on the account and any trusted contact on the account.
  109         (4)A dealer or investment adviser subject to the
  110  jurisdiction of the office must make available to the office,
  111  upon request, all records relating to a delay or notification
  112  made by the dealer or investment adviser pursuant to this
  113  section.
  114         (5)A dealer, investment adviser, or associated person who
  115  delays or participates in the delay of a transaction or
  116  disbursement pursuant to this section, who provides records to
  117  an agency of competent jurisdiction pursuant to this section, or
  118  who participates in a judicial or arbitration proceeding
  119  resulting therefrom is presumed to be acting based upon a
  120  reasonable belief of exploitation and is immune from any civil
  121  or administrative liability that otherwise might be incurred or
  122  imposed, unless lack of such reasonable belief is shown by a
  123  preponderance of the evidence. This subsection does not
  124  supersede or diminish any immunity under chapter 415.
  125         (6)(a)Before placing a delay on a transaction or
  126  disbursement pursuant to this section, a dealer or investment
  127  adviser shall develop training policies or programs reasonably
  128  designed to educate associated persons on issues pertaining to
  129  exploitation, develop and maintain written procedures regarding
  130  the manner in which suspected exploitation is required to be
  131  reported to supervisory personnel, when applicable, and conduct
  132  periodic training for all associated persons.
  133         (b)The dealer or investment adviser shall maintain a
  134  written record of compliance with this subsection.
  135         (7)This section does not create new rights or obligations
  136  of a dealer, investment adviser, or associated person under
  137  other applicable laws or rules. In addition, this section does
  138  not limit the right of a dealer, an investment adviser, or an
  139  associated person to otherwise refuse or place a delay on a
  140  transaction or disbursement under other applicable laws or rules
  141  or under an applicable customer agreement.
  142         (8)Absent a reasonable belief of exploitation as provided
  143  in this section, this section does not alter a dealer’s, an
  144  investment adviser’s, or an associated person’s obligation to
  145  comply with instructions from a client to close an account or
  146  transfer an account to another dealer, investment adviser, or
  147  associated person.
  148         Section 3. This act shall take effect July 1, 2019.
  149  
  150  ================= T I T L E  A M E N D M E N T ================
  151  And the title is amended as follows:
  152         Delete everything before the enacting clause
  153  and insert:
  154                        A bill to be entitled                      
  155         An act relating to the protection of vulnerable
  156         investors; amending s. 415.1034, F.S.; requiring
  157         securities dealers, investment advisers, and
  158         associated persons to immediately report knowledge or
  159         suspicion of abuse, neglect, or exploitation of
  160         vulnerable adults to the Department of Children and
  161         Families’ central abuse hotline; creating s. 517.34,
  162         F.S.; defining terms; authorizing dealers and
  163         investment advisers to delay certain transactions or
  164         disbursements based on a reasonable belief of
  165         exploitation of a specified adult; specifying the
  166         basis for such reasonable belief; requiring a dealer
  167         or investment adviser to notify certain persons and
  168         the Office of Financial Regulation of such delays
  169         within a specified timeframe; authorizing the
  170         Department of Children and Families to provide
  171         information regarding certain investigations;
  172         specifying the expiration of such delays; authorizing
  173         a dealer or investment adviser to extend a delay under
  174         certain circumstances; providing that the length of
  175         such delays may be shortened or extended by a court of
  176         competent jurisdiction; providing that delays may be
  177         terminated by dealers or investment advisers under
  178         certain circumstances; requiring that certain records
  179         be made available to the office; providing immunity
  180         from civil and administrative liability for dealers,
  181         investment advisers, and associated persons for
  182         certain actions based on a reasonable belief of
  183         exploitation; requiring dealers and investment
  184         advisers to develop and conduct periodic training for
  185         associated persons and to maintain written records of
  186         compliance with such requirement; providing
  187         construction; providing an effective date.