| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the financial exploitation of certain vulnerable |
|
|
adults. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 281.001(5), Finance Code, is amended to |
|
|
read as follows: |
|
|
(5) "Vulnerable adult" means: |
|
|
(A) an elderly person as that term is defined by |
|
|
Section 48.002, Human Resources Code; or |
|
|
(B) a person with a disability as that term is |
|
|
defined by Section 48.002, Human Resources Code[; or |
|
|
[(C) an individual receiving services as that |
|
|
term is defined by rule by the executive commissioner of the Health |
|
|
and Human Services Commission as authorized by Section 48.251(b), |
|
|
Human Resources Code]. |
|
|
SECTION 2. Sections 281.004(a) and (b), Finance Code, are |
|
|
amended to read as follows: |
|
|
(a) Notwithstanding any other law, [if] a financial |
|
|
institution [submits a report of suspected financial exploitation |
|
|
of a vulnerable adult to the department under Section 281.002(b), |
|
|
the financial institution]: |
|
|
(1) may place a hold on any transaction that[: |
|
|
[(A)] involves an account of a [the] vulnerable |
|
|
adult if[; and |
|
|
[(B)] the financial institution: |
|
|
(A) submits a report of suspected financial |
|
|
exploitation of the vulnerable adult to the department under |
|
|
Section 281.002(b); and |
|
|
(B) has cause to believe the transaction is |
|
|
related to the suspected financial exploitation alleged in the |
|
|
report; and |
|
|
(2) must place a hold on any transaction involving an |
|
|
account of a [the] vulnerable adult if the hold is requested by the |
|
|
department or a law enforcement agency. |
|
|
(b) Subject to Subsection (c), a hold placed on any |
|
|
transaction under Subsection (a) expires on the 10th business day |
|
|
after the date the hold is placed [the financial institution |
|
|
submits the report under Section 281.002(b)]. |
|
|
SECTION 3. Sections 4004.355(a) and (b), Government Code, |
|
|
as effective January 1, 2022, are amended to read as follows: |
|
|
(a) Notwithstanding any other law, [if] a dealer or |
|
|
investment adviser [submits reports of suspected financial |
|
|
exploitation of a vulnerable adult to the commissioner and the |
|
|
department under Section 4004.352(b), the dealer or investment |
|
|
adviser]: |
|
|
(1) may place a hold on any transaction that[: |
|
|
[(A)] involves an account of a [the] vulnerable |
|
|
adult if[; and |
|
|
[(B)] the dealer or investment adviser: |
|
|
(A) submits a report of suspected financial |
|
|
exploitation of the vulnerable adult to the commissioner and the |
|
|
department under Section 4004.352(b); and |
|
|
(B) has cause to believe the transaction is |
|
|
related to the suspected financial exploitation alleged in the |
|
|
report; and |
|
|
(2) must place a hold on any transaction involving an |
|
|
account of a [the] vulnerable adult if the hold is requested by the |
|
|
commissioner, the department, or a law enforcement agency. |
|
|
(b) Subject to Subsection (c), a hold placed on any |
|
|
transaction under Subsection (a) expires on the 10th business day |
|
|
after the date the hold is placed [the dealer or investment adviser |
|
|
submits the reports under Section 4004.352(b)]. |
|
|
SECTION 4. Subsections G and H, Section 45, The Securities |
|
|
Act (Article 581-45, Vernon's Texas Civil Statutes), are amended to |
|
|
read as follows: |
|
|
G. Notwithstanding any other law, [if] a dealer or |
|
|
investment adviser [submits reports of suspected financial |
|
|
exploitation of a vulnerable adult to the Securities Commissioner |
|
|
and the department under Subsection C of this section, the dealer or |
|
|
investment adviser]: |
|
|
(1) may place a hold on any transaction that[: |
|
|
[(A)] involves an account of a [the] vulnerable |
|
|
adult if[; and |
|
|
[(B)] the dealer or investment adviser: |
|
|
(A) submits a report of suspected financial |
|
|
exploitation of the vulnerable adult to the Securities Commissioner |
|
|
and the department under Subsection C of this section; and |
|
|
(B) has cause to believe the transaction is |
|
|
related to the suspected financial exploitation alleged in the |
|
|
report; and |
|
|
(2) must place a hold on any transaction involving an |
|
|
account of a [the] vulnerable adult if the hold is requested by the |
|
|
Securities Commissioner, the department, or a law enforcement |
|
|
agency. |
|
|
H. Subject to Subsection I of this section, a hold placed on |
|
|
any transaction under Subsection G of this section expires on the |
|
|
10th business day after the date the hold is placed [the dealer or |
|
|
investment adviser submits the reports under Subsection C of this |
|
|
section]. |
|
|
SECTION 5. Except as otherwise provided by this Act, this |
|
|
Act takes effect September 1, 2021. |