Bill Text: MI HB4931 | 2017-2018 | 99th Legislature | Introduced

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Bill Title: Civil procedure; civil actions; financial exploitation liability act; create. Creates new act.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-09-14 - Bill Electronically Reproduced 09/13/2017 [HB4931 Detail]

Download: Michigan-2017-HB4931-Introduced.html

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HOUSE BILL No. 4931

 

 

September 13, 2017, Introduced by Rep. Kosowski and referred to the Committee on Law and Justice.

 

     A bill to impose civil liability on persons that financially

 

exploit a vulnerable adult.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 1. This act shall be known and may be cited as the

 

"financial exploitation liability act".

 

     Sec. 2. As used in this act:

 

     (a) "Deception" means all of the following:

 

     (i) Knowingly doing any of the following:

 

     (A) Creating or confirming another's impression that is false

 

and that the actor does not believe to be true.

 

     (B) Failing to correct a false impression that the actor

 

previously has created or confirmed.

 

     (C) Preventing another from acquiring information pertinent to

 

the disposition of the property involved.

 

     (D) Selling or otherwise transferring or encumbering property

 

or failing to disclose a lien, adverse claim, or other legal

 

impediment to the enjoyment of the property, regardless of whether

 

the impediment is valid or is a matter of official record.

 

     (E) Promising performance that the actor does not intend to

 

perform or knows will not be performed. Failure to perform alone is

 

not evidence that the actor did not intend to perform.

 

     (ii) A misrepresentation or concealment of material fact

 

relating to the terms of a contract or agreement entered into with

 

the vulnerable adult or to the existing or preexisting condition of

 

any of the property involved in the contract or agreement.

 

     (iii) The use or employment of a misrepresentation, false

 

pretense, or false promise to induce, encourage, or solicit the

 

vulnerable adult to enter into a contract or agreement.

 

     (b) "Financially exploit" means to knowingly do either of the

 

following by deception or intimidation, if the actor stands in a

 

position of trust or confidence with the vulnerable adult:

 

     (i) Obtain control over the property of the vulnerable adult.

 

     (ii) Illegally use the assets or resources of the vulnerable

 

adult.

 

     (c) "Illegally use" includes, but is not limited to,

 

misappropriate the assets or resources by undue influence, use the

 

assets or resources by breaching a fiduciary relationship, fraud,

 

deception, or extortion, or use the assets or resources contrary to

 

law.

 

     (d) "Intimidation" means communicating any of the following to

 

the vulnerable adult:

     (i) That the vulnerable adult will be deprived of food and

 

nutrition, shelter, prescribed medication, or medical care and

 

treatment.

 

     (ii) A threat to do any of the following:

 

     (A) Inflict physical harm on the vulnerable adult or any other

 

individual or on property.

 

     (B) Subject an individual to physical confinement or

 

restraint.

 

     (C) Commit a felony.

 

     (D) Accuse an individual of an offense.

 

     (E) Expose an individual to hatred, contempt, or ridicule.

 

     (e) "Stands in a position of trust or confidence" means has

 

any of the following relationships to the vulnerable adult:

 

     (i) Parent, spouse, adult child, or other relative by blood or

 

marriage.

 

     (ii) Resident of the same household or living unit.

 

     (iii) Fiduciary.

 

     (iv) Financial planning or investment professional.

 

     (v) Paid or unpaid caregiver.

 

     (f) "Vulnerable adult" means that term as defined in section

 

145m of the Michigan penal code, 1931 PA 328, MCL 750.145m.

 

     Sec. 3. (1) A person that financially exploits a vulnerable

 

adult is liable to the vulnerable adult, or to the estate of the

 

vulnerable adult, for damages of 3 times the value of the property

 

obtained, reasonable attorney fees, and court costs.

 

     (2) In an action under this section, the plaintiff has the

 

burden of proving that the defendant financially exploited the

vulnerable adult by a preponderance of the evidence, regardless of

 

whether the defendant has been charged with or convicted of a

 

criminal offense arising out of the conduct that constitutes

 

financially exploiting the vulnerable adult.

 

     (3) This section does not limit or affect the right of a

 

person to bring an action or seek any other remedy available under

 

the common law or other applicable law for financially exploiting a

 

vulnerable adult.