Bill Text: AZ SB1483 | 2019 | Fifty-fourth Legislature 1st Regular | Chaptered
Bill Title: Vulnerable adults; financial exploitation
Spectrum: Bipartisan Bill
Status: (Passed) 2019-05-13 - Chapter 221 [SB1483 Detail]
Download: Arizona-2019-SB1483-Chaptered.html
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Senate Engrossed |
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State of Arizona Senate Fifty-fourth Legislature First Regular Session 2019
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CHAPTER 221
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SENATE BILL 1483 |
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AN ACT
Amending Title 46, chapter 4, Arizona Revised Statutes, by adding article 2; relating to vulnerable adults.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 46, chapter 4, Arizona Revised Statutes, is amended by adding article 2, to read:
ARTICLE 2. FINANCIAL EXPLOITATION
46-471. Definitions
In this article, unless the context otherwise requires:
1. "Broker-dealer" has the same meaning as dealer prescribed in section 44‑1801.
2. "Eligible adult" means either of the following:
(a) A person who is sixty‑five years of age or older.
(b) A person who is a vulnerable adult.
3. "Financial exploitation" means either of the following:
(a) The wrongful or unauthorized taking, withholding, appropriating or use of money, assets or property of an eligible adult.
(b) Any act or omission taken by a person, including through the use of a power of attorney, guardianship or conservatorship of an eligible adult, to either:
(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.
(ii) Convert money, assets or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit or possession of the eligible adult's money, assets or property.
4. "Investment Adviser" means a person who is licensed or exempt from licensure as an investment advisor pursuant to title 44, chapter 13.
5. "Investment Adviser Representative" means a person who is licensed or exempt from licensure as an investment advisor representative pursuant to title 44, chapter 13.
6. "Qualified individual" means a broker‑dealer, investment adviser or person who serves in a supervisory, compliance, legal or senior investor protection capacity for a broker‑dealer or investment adviser.
46-472. Disclosures; immunity; third‑party disclosures
A. Notwithstanding section 46‑454, 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 may notify adult protective services and the corporation commission.
B. A qualified individual who in good faith and exercising reasonable care makes a disclosure of information pursuant to subsection A of this section is immune from administrative or civil liability that might otherwise arise from the disclosure or for any failure to notify the customer of the disclosure.
C. 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 or reasonably associated with the eligible adult. A qualified individual may not notify any designated third party that is suspected of financial exploitation or other abuse of the eligible adult.
D. A qualified individual who in good faith and exercising reasonable care makes a disclosure pursuant to subsection C of this section is immune from any administrative or civil liability that might otherwise arise from the disclosure.
46-473. Delaying disbursements or transactions; immunity
A. A broker-dealer or investment adviser may delay a disbursement or transaction from an account of an eligible adult or an account on which an eligible adult is a beneficiary if both:
1. The broker‑dealer, investment adviser or qualified individual reasonably believes, after initiating an internal review of the requested disbursement or transaction and the suspected financial exploitation, that the requested disbursement or transaction may result in financial exploitation of an eligible adult.
2. The broker-dealer or investment adviser does all of the following:
(a) Immediately, but not more than two business days after the delayed disbursement or transaction, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless any party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult.
(b) Immediately, but not more than two business days after the delayed disbursement or transaction, notifies adult protective services and the corporation commission.
(c) Continues its internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary, and reports the investigation's results to adult protective services and the corporation commission on request.
B. A delayed disbursement or transaction expires on the earlier of:
1. A determination by the broker‑dealer or investment adviser that the disbursement or transaction will not result in financial exploitation of the eligible adult.
2. Fifteen business days after the date on which the broker‑dealer or investment adviser first delayed disbursement or transaction of the monies, unless either adult protective services or the corporation commission requests that the broker‑dealer or investment adviser extend the delay, in which case the delay shall expire not more than twenty‑five business days after the date on which the broker‑dealer or investment adviser first delayed disbursement or transaction of the monies unless otherwise terminated or further extended by either adult protective services or the corporation commission or an order of a court of competent jurisdiction.
C. A court of competent jurisdiction may enter an order extending the delay of the disbursement or transaction of monies or may order other protective relief based on the petition of the corporation commission, adult protective services, the broker‑dealer or the investment adviser that initiated the delay or another interested party.
D. A broker-dealer or investment adviser who in good faith and exercising reasonable care delays a disbursement or transaction is immune from administrative or civil liability that might otherwise arise from a delay in a disbursement or transaction in accordance with this section.
46-474. Records; disclosure; exemption
A. 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 adult protective services and law enforcement, either as part of a referral to adult protective services or law enforcement, or on request of adult protective services or law enforcement pursuant to an investigation. The records may include historical records and records relating to the most recent transaction or transactions that may comprise financial exploitation of an eligible adult. All records made available to adult protective services or law enforcement under this section are not public records and are not subject to title 39, chapter 1, article 2.
B. This section does not limit or otherwise impede the authority of the corporation commission to access or examine the books and records of broker‑dealers and investment advisers as otherwise provided by law.
APPROVED BY THE GOVERNOR MAY 13, 2019.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MAY 13, 2019.
