Florida Senate - 2019 CS for SB 1466
By the Committee on Banking and Insurance; and Senators Gibson,
Broxson, and Rouson
597-03708-19 20191466c1
1 A bill to be entitled
2 An act relating to the protection of vulnerable
3 investors; amending s. 415.1034, F.S.; requiring
4 securities dealers, investment advisers, and
5 associated persons to immediately report knowledge or
6 suspicion of abuse, neglect, or exploitation of
7 vulnerable adults to the Department of Children and
8 Families’ central abuse hotline; creating s. 517.34,
9 F.S.; defining terms; authorizing dealers and
10 investment advisers to delay certain transactions or
11 disbursements based on a reasonable belief of
12 exploitation of a specified adult; specifying the
13 basis for such reasonable belief; requiring a dealer
14 or investment adviser to notify certain persons and
15 the Office of Financial Regulation of such delays
16 within a specified timeframe; authorizing the
17 Department of Children and Families to provide
18 information regarding certain investigations;
19 specifying the expiration of such delays; authorizing
20 a dealer or investment adviser to extend a delay under
21 certain circumstances; providing that the length of
22 such delays may be shortened or extended by a court of
23 competent jurisdiction; providing that delays may be
24 terminated by dealers or investment advisers under
25 certain circumstances; requiring that certain records
26 be made available to the office; providing immunity
27 from civil and administrative liability for dealers,
28 investment advisers, and associated persons for
29 certain actions based on a reasonable belief of
30 exploitation; requiring dealers and investment
31 advisers to develop and conduct periodic training for
32 associated persons and to maintain written records of
33 compliance with such requirement; providing
34 construction; providing an effective date.
35
36 Be It Enacted by the Legislature of the State of Florida:
37
38 Section 1. Paragraph (a) of subsection (1) of section
39 415.1034, Florida Statutes, is amended to read:
40 415.1034 Mandatory reporting of abuse, neglect, or
41 exploitation of vulnerable adults; mandatory reports of death.—
42 (1) MANDATORY REPORTING.—
43 (a) Any person, including, but not limited to, any:
44 1. Physician, osteopathic physician, medical examiner,
45 chiropractic physician, nurse, paramedic, emergency medical
46 technician, or hospital personnel engaged in the admission,
47 examination, care, or treatment of vulnerable adults;
48 2. Health professional or mental health professional other
49 than one listed in subparagraph 1.;
50 3. Practitioner who relies solely on spiritual means for
51 healing;
52 4. Nursing home staff; assisted living facility staff;
53 adult day care center staff; adult family-care home staff;
54 social worker; or other professional adult care, residential, or
55 institutional staff;
56 5. State, county, or municipal criminal justice employee or
57 law enforcement officer;
58 6. Employee of the Department of Business and Professional
59 Regulation conducting inspections of public lodging
60 establishments under s. 509.032;
61 7. Florida advocacy council or Disability Rights Florida
62 member or a representative of the State Long-Term Care Ombudsman
63 Program; or
64 8. Bank, savings and loan, or credit union officer,
65 trustee, or employee; or
66 9. Dealer, investment adviser, or associated person under
67 chapter 517,
68
69 who knows, or has reasonable cause to suspect, that a vulnerable
70 adult has been or is being abused, neglected, or exploited must
71 shall immediately report such knowledge or suspicion to the
72 central abuse hotline.
73 Section 2. Section 517.34, Florida Statutes, is created to
74 read:
75 517.34 Protection of specified adults.—
76 (1) As used in this section, the term:
77 (a) “Exploitation” means the wrongful or unauthorized
78 taking, withholding, appropriation, or use of money, assets, or
79 property of a specified adult, or any act or omission by a
80 person, including through the use of a power of attorney,
81 guardianship, or conservatorship of a specified adult, to:
82 1. Obtain control over the specified adult’s money, assets,
83 or property through deception, intimidation, or undue influence
84 to deprive him or her of the ownership, use, benefit, or
85 possession of the money, assets, or property; or
86 2. Convert the specified adult’s money, assets, or property
87 to deprive him or her of the ownership, use, benefit, or
88 possession of the money, assets, or property.
89 (b) “Specified adult” means a natural person 65 years of
90 age or older or a vulnerable adult as defined in s. 415.102.
91 (c) “Trusted contact” means a natural person 18 years of
92 age or older whom the account owner has expressly identified and
93 who is recorded in a dealer’s or an investment adviser’s books
94 and records as the person who may be contacted about the
95 account.
96 (2) A dealer or an investment adviser may delay a
97 transaction on, or a disbursement of funds or securities from,
98 an account of a specified adult or an account for which a
99 specified adult is a beneficiary or beneficial owner if the
100 dealer or investment adviser reasonably believes that
101 exploitation of the specified adult has occurred, is occurring,
102 has been attempted, or will be attempted in connection with the
103 transaction or disbursement.
104 (a) The dealer’s or investment adviser’s reasonable belief
105 of exploitation may be based on the facts and circumstances
106 observed in such dealer’s, investment adviser’s, or associated
107 person’s relationship with the specified adult.
108 (b)1. Within 3 business days after the date on which the
109 delay was first placed, the dealer or investment adviser must
110 notify in writing, which may be provided electronically, all
111 parties authorized to transact business on the account and any
112 trusted contact on the account, using the contact information
113 provided for the account, of the delay and the reason for the
114 delay, unless the dealer or investment adviser reasonably
115 believes that any such party engaged or is engaging in the
116 suspected exploitation of the specified adult.
117 2. Within 3 business days after the date on which the delay
118 was first placed, the dealer or investment adviser must notify
119 the office by telephone using a number designated by the office
120 for such purpose, or in writing, which may be provided
121 electronically, of the delay and the reason for the delay.
122 3. Notwithstanding any law to the contrary, the Department
123 of Children and Families may provide the status or result of any
124 investigation with the reporting dealer or investment adviser.
125 (3) A delay on a transaction or disbursement under
126 subsection (2) expires 15 business days after the date on which
127 the delay was first placed. However, the dealer or investment
128 adviser may extend the delay for up to 10 additional business
129 days if the dealer’s or investment adviser’s review of the
130 available facts and circumstances continues to support such
131 dealer’s or investment adviser’s reasonable belief that
132 exploitation of the specified adult has occurred, is occurring,
133 has been attempted, or will be attempted. A dealer or investment
134 adviser extending the delay shall notify the office within 3
135 business days after the start of the extension using the
136 procedure specified in subparagraph (2)(b)2. The length of the
137 delay may be shortened or extended at any time by a court of
138 competent jurisdiction. This subsection does not prevent a
139 dealer or investment adviser from terminating a delay after
140 communication with the parties authorized to transact business
141 on the account and any trusted contact on the account.
142 (4) A dealer or investment adviser subject to the
143 jurisdiction of the office must make available to the office,
144 upon request, all records relating to a delay or notification
145 made by the dealer or investment adviser pursuant to this
146 section.
147 (5) A dealer, investment adviser, or associated person who
148 delays or participates in the delay of a transaction or
149 disbursement pursuant to this section, who provides records to
150 an agency of competent jurisdiction pursuant to this section, or
151 who participates in a judicial or arbitration proceeding
152 resulting therefrom is presumed to be acting based upon a
153 reasonable belief of exploitation and is immune from any civil
154 or administrative liability that otherwise might be incurred or
155 imposed, unless lack of such reasonable belief is shown by a
156 preponderance of the evidence. This subsection does not
157 supersede or diminish any immunity under chapter 415.
158 (6)(a) Before placing a delay on a transaction or
159 disbursement pursuant to this section, a dealer or investment
160 adviser shall develop training policies or programs reasonably
161 designed to educate associated persons on issues pertaining to
162 exploitation, develop and maintain written procedures regarding
163 the manner in which suspected exploitation is required to be
164 reported to supervisory personnel, when applicable, and conduct
165 periodic training for all associated persons.
166 (b) The dealer or investment adviser shall maintain a
167 written record of compliance with this subsection.
168 (7) This section does not create new rights or obligations
169 of a dealer, investment adviser, or associated person under
170 other applicable laws or rules. In addition, this section does
171 not limit the right of a dealer, an investment adviser, or an
172 associated person to otherwise refuse or place a delay on a
173 transaction or disbursement under other applicable laws or rules
174 or under an applicable customer agreement.
175 (8) Absent a reasonable belief of exploitation as provided
176 in this section, this section does not alter a dealer’s, an
177 investment adviser’s, or an associated person’s obligation to
178 comply with instructions from a client to close an account or
179 transfer an account to another dealer, investment adviser, or
180 associated person.
181 Section 3. This act shall take effect July 1, 2019.