PRINTER'S NO. 4140
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2687
Session of
2018
INTRODUCED BY BURNS, BOBACK, THOMAS, HAGGERTY, DRISCOLL, WARREN,
KINSEY, J. McNEILL, CALTAGIRONE, ROZZI AND HILL-EVANS,
OCTOBER 2, 2018
REFERRED TO COMMITTEE ON AGING AND OLDER ADULT SERVICES,
OCTOBER 2, 2018
AN ACT
Amending Title 23 (Domestic Relations) of the Pennsylvania
Consolidated Statutes, providing for vulnerable adult
protection.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 23 of the Pennsylvania Consolidated
Statutes is amended by adding a chapter to read:
CHAPTER 64
VULNERABLE ADULT PROTECTION
Sec.
6401. Short title of chapter.
6402. Definitions.
6403. Governmental disclosures.
6404. Immunity for governmental disclosures.
6405. Third-party disclosures.
6406. Immunity for third-party disclosures.
6407. Delaying disbursements.
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6408. Immunity for delaying disbursements.
6409. Access to records.
6410. Administration.
§ 640 1. Short title of chapter.
This chapter shall be known and may be cited as the Protect
Vulnerable Adults from Financial Exploitation Act.
§ 6402 . Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Agent." As defined in section 102 of the act of December 5,
1972 (P.L.1280, No.284), known as the Pennsylvania Securities
Act of 1972.
"Broker-dealer." As defined in section 102 of the
Pennsylvania Securities Act of 1972.
"Commission." The Banking and Securities Commission of the
Commonwealth as established under Subarticle C of Article XI-A
of the act of May 15, 1933 (P.L.565, No.111), known as the
Department of Banking and Securities Code.
"Eligible adult." Any of the following:
(1) An individual who is at least 60 years of age.
(2) An individual who is subject to the act of October
7, 2010 (P.L.484, No.70), known as the Adult Protective
Services Act.
"Financial exploitation." Any of the following:
(1) The wrongful or unauthorized taking, withholding,
appropriation or use of money, assets or property of an
eligible adult.
(2) The act or omission taken by a person, including
through the use of power of attorney, guardianship or
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conservatorship of an eligible adult to:
(i) obtain control through deception, intimidation
or undue influence over the eligible adult's money,
assets or property to deprive the eligible adult of the
ownership, use, benefit or possession of the eligible
adult's money, assets or property; or
(ii) convert the money, assets or property of the
eligible adult to deprive the eligible adult of
ownership, use, benefit or possession of the eligible
adult's money, assets or property.
"Investment adviser." As defined in section 102 of the
Pennsylvania Securities Act of 1972.
"Investment adviser representative." As defined in section
102 of the Pennsylvania Securities Act of 1972.
"Qualified individual." An agent, investment adviser
representative or person who serves in a supervisory, compliance
or legal capacity for a broker-dealer or investment adviser.
§ 6403 . Governmental disclosures.
If a qualified individual reasonably believes that financial
exploitation of an eligible adult may have occurred, may have
been attempted or is being attempted, the qualified individual
shall promptly notify the Department of Human Services or the
Department of Aging, whichever is applicable, and the
commission.
§ 640 4. Immunity for governmental disclosures.
A qualified individual that, in good faith and exercising
reasonable care, makes a disclosure of information under section
6403 (relating to governmental disclosures) shall be immune from
administrative or civil liability that might otherwise arise
from the disclosure or for any failure to notify a customer of
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the qualified individual of the disclosure.
§ 6405 . Third-party disclosures.
If a qualified individual reasonably believes that financial
exploitation of an eligible adult may have occurred, may have
been attempted or is being attempted, a qualified individual may
notify any third party previously designated by the eligible
adult. Disclosure under this section may not be made to any
designated third party that is suspected of financial
exploitation or other abuse of the eligible adult.
§ 6406. Immunity for third-party disclosures.
A qualified individual that, in good faith and exercising
reasonable care, complies with section 6405 (relating to third-
party disclosures) shall be immune from any administrative or
civil liability that might otherwise arise from the disclosure.
§ 6407. Delaying disbursements.
(a) Delay.--A broker-dealer or investment adviser may delay
a disbursement of funds from an account of an eligible adult or
an account on which the eligible adult is a beneficiary if:
(1) the broker-dealer, investment adviser or qualified
individual reasonably believes, after initiating an internal
review of the requested disbursement of funds, that the
requested disbursement may result in financial exploitation
of the eligible adult; and
(2) the broker-dealer or investment adviser:
(i) immediately, but in no event more than two
business days after the requested disbursement of funds,
provides written notice of the delay and the reason for
the delay to all parties authorized to transact business
on the account, unless any such party is reasonably
believed to have engaged in suspected or attempted
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financial exploitation of an eligible adult;
(ii) immediately, but in no event more than two
business days after the requested disbursement of funds,
provides notice of the delay and the reason for the delay
to the Department of Human Services or the Department of
Aging, whichever is applicable, and the commission; and
(iii) continues the internal review of the suspected
or attempted financial exploitation of the eligible adult
under paragraph (1), as necessary, and reports the
investigation's results to the Department of Human
Services or the Department of Aging, whichever is
applicable, and the commission within seven business days
after the requested disbursement of funds.
(b) Expiration.--Except as provided under subsection (c), a
delay of the disbursement of funds under subsection (a) shall
expire upon:
(1) a determination by the broker-dealer or investment
adviser that the disbursement of funds will not result in
financial exploitation of the eligible adult; or
(2) fifteen business days after the date of the delay of
the disbursement of the funds, whichever is earlier.
(c) Extensions.--The following apply:
(1) The Department of Human Services, the Department of
Aging or the commission may extend the delay of the
disbursement of funds under subsection (b)(2). An extension
under this paragraph shall expire no later 25 business days
after the date of the delay under subsection (a), unless
terminated earlier by the Department of Human Services, the
Department of Aging, the commission or an order of a court of
competent jurisdiction.
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(2) A court of competent jurisdiction may enter an order
extending the delay of the disbursement of funds under
subsection (b)(2) or may order other relief based on the
petition of the Department of Human Services, the Department
of Aging, the commission or the broker-dealer or the
investment adviser that initiated the delay or other
interested party.
§ 6408. Immunity for delaying disbursements.
A broker-dealer or investment adviser that, in good faith and
exercising reasonable care, complies with section 6407 (relating
to delaying disbursements) shall be immune from any
administrative or civil liability that may otherwise arise from
the delay of disbursement of funds.
§ 6409 . Access to records.
(a) Access.--A broker-dealer or investment adviser shall
provide access to or copies of records that are relevant to the
suspected or attempted financial exploitation of an eligible
adult to the Department of Human Services or the Department of
Aging, whichever is applicable, the commission and law
enforcement as part of a referral of the suspected or attempted
financial exploitation or upon request. The records may include
historical records or records of the most recent transactions
that indicate financial exploitation of an eligible adult.
(b) Records.--A record made available under subsection (a)
shall not be considered a public record as defined in section
102 of the act of February 14, 2008 (P.L.6, No.3), known as the
Right-to-Know Law.
(c) Construction.--Nothing in this section shall be
construed to limit or otherwise impede the authority of the
commission to access or examine the books and records of broker-
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dealers and investment advisers as otherwise provided by the
laws of this Commonwealth.
§ 6410. Administration.
The Department of Human Services and the Department of Aging
shall promulgate rules and regulations necessary for the
administration of this chapter.
Section 2. This act shall take effect in 60 days.
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