Florida Senate - 2019 COMMITTEE AMENDMENT Bill No. SB 1466 Ì560182ÉÎ560182 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— 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;
or31 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 shallimmediately report such knowledge or suspicion to the 39 central abuse hotline. 40 Section 2. Section 517.34, Florida Statutes, is created to 41 read: 42 517.34 Protection 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.