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;
or64 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 shallimmediately 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.