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INTRODUCED
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HOUSE COMMITTEE
SUBSTITUTE
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SECTION 1. Subtitle Z, Title
3, Finance Code, is amended by adding Chapter 280 to read as follows:
CHAPTER 280. PROTECTION
OF VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION
Sec. 280.001.
DEFINITIONS. In this chapter:
(1) "Adult protective services division"
means the adult protective services
division of the Department of Family and Protective Services.
(2)
"Exploitation" means the act of forcing, compelling, or exerting
undue influence over a person causing the person to act in a way that is
inconsistent with the person's relevant past behavior or causing the person
to perform services for the benefit of another person.
(3) "Financial exploitation"
means:
(A) the wrongful or
unauthorized taking, withholding, appropriation, or use of the money,
assets, or other property or the identifying information of a person; or
(B) an act or omission by
a person, including through the use of a power of attorney on behalf of, or
as the conservator or guardian of, another person, to:
(i) obtain control,
through deception, intimidation, fraud, or undue influence, over the other
person's money, assets, or other property to deprive the other person of the
ownership, use, benefit, or possession of the property; or
(ii) convert the money,
assets, or other property of the other person to deprive the other person
of the ownership, use, benefit, or possession of the property.
(4) "Financial
institution" has the meaning assigned by Section 277.001.
(5) "Vulnerable
adult" means:
(A) an elderly person as
that term is defined by Section 48.002, Human Resources Code;
(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.
Sec. 280.002. REPORTING
SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. (a) If an employee
of a financial institution has cause to believe that financial exploitation
of a vulnerable adult who is an account holder with the financial
institution has occurred, is occurring, or has been attempted, the employee
shall notify the financial institution of the suspected financial
exploitation.
(b) If a financial
institution is notified of suspected financial exploitation under
Subsection (a) or otherwise has cause to believe that financial exploitation
of a vulnerable adult who is an account holder with the financial
institution has occurred, is occurring, or has been attempted, the
financial institution shall investigate
the suspected financial exploitation and submit a report to the adult protective services division in
accordance with Subchapter B-1, Chapter 48, Human Resources Code.
The financial institution
shall submit the report required by this subsection not later than the
earlier of:
(1) the date the
financial institution completes the investigation;
or
(2) the fifth business
day after the date the financial institution is notified of the suspected
financial exploitation under Subsection (a) or otherwise has cause to
believe that the suspected financial exploitation has occurred, is
occurring, or has been attempted.
(c) Each financial
institution shall adopt internal policies, programs, plans, or procedures
for:
(1) the employees of the
financial institution to make the notification required under Subsection
(a); and
(2) the financial
institution to conduct the investigation
and submit the report required under Subsection (b).
(d) The policies,
programs, plans, or procedures adopted under Subsection (c) may authorize
the financial institution to report the suspected financial exploitation to
other appropriate agencies and entities in addition to the adult protective services division,
including the attorney general, the Federal Trade Commission, and the
appropriate law enforcement agency.
Sec. 280.003. NOTIFYING
THIRD PARTIES OF SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. If
a financial institution submits a report of suspected financial
exploitation of a vulnerable adult to the adult
protective services division under Section 280.002(b), the financial
institution may at the time the financial institution submits the report
also notify a third party reasonably associated with the vulnerable adult
of the suspected financial exploitation, unless the financial institution
suspects the third party of financial exploitation of the vulnerable adult.
Sec. 280.004. TEMPORARY
HOLD ON TRANSACTIONS IN CERTAIN CASES OF SUSPECTED FINANCIAL EXPLOITATION
OF VULNERABLE ADULTS. (a) Notwithstanding any other law, if a financial
institution submits a report of suspected financial exploitation of a
vulnerable adult to the adult protective
services division under Section 280.002(b), the financial
institution:
(1) may place a hold on a
transaction
involving an account of
the vulnerable adult; and
(2) must place a hold on
a transaction involving an account of the vulnerable adult if the hold is
requested by the adult protective
services division or a law enforcement agency.
(b) Subject to Subsection
(c), a hold placed on a transaction under Subsection (a) expires on the
10th business day after the date the financial institution submits the
report under Section 280.002(b).
(c) The financial
institution may extend a hold placed on a transaction under Subsection (a)
for a period not to exceed 30 business days after the expiration of the
period prescribed by Subsection (b) if requested by a state or federal
agency or a law enforcement agency investigating the suspected financial
exploitation. The financial institution may also petition a court to
extend a hold placed on a transaction under Subsection (a) beyond the
period prescribed by Subsection (b). A court may enter an order extending
or shortening a hold or providing other relief.
Sec. 280.005. IMMUNITY.
(a) An employee of a financial institution who makes a notification under
Section 280.002(a), a financial institution that submits a report under
Section 280.002(b) or makes a notification under Section 280.003, or an
employee who or financial institution that testifies or otherwise
participates in a judicial proceeding arising from a notification or report
is immune from any civil or criminal liability arising from the
notification, report, testimony, or participation in the judicial
proceeding, unless the employee or financial institution acted in bad faith
or with a malicious purpose.
(b) A financial
institution that in good faith and with the exercise of reasonable care
places or does not place a hold on a transaction under Section
280.004(a)(1) is immune from any civil or criminal liability or
disciplinary action resulting from that action or failure to act.
Sec. 280.006. RECORDS.
To the extent permitted by state or federal law, a financial institution
shall provide, on request, access to or copies of records relevant to the
suspected financial exploitation of a vulnerable adult to the adult protective services division, a
law enforcement agency, or a prosecuting attorney's office, either as part
of a report to the adult protective
services division, law enforcement agency, or prosecuting attorney's
office or at the request of the adult
protective services division, law enforcement agency, or prosecuting
attorney's office in accordance with an investigation.
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SECTION 1. Subtitle Z, Title
3, Finance Code, is amended by adding Chapter 280 to read as follows:
CHAPTER 280. PROTECTION
OF VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION
Sec. 280.001.
DEFINITIONS. In this chapter:
(1) "Department" means the Department of
Family and Protective Services.
(2)
"Exploitation" means the act of forcing, compelling, or exerting
undue influence over a person causing the person to act in a way that is
inconsistent with the person's relevant past behavior or causing the person
to perform services for the benefit of another person.
(3) "Financial
exploitation" means:
(A) the wrongful or
unauthorized taking, withholding, appropriation, or use of the money,
assets, or other property or the identifying information of a person; or
(B) an act or omission by
a person, including through the use of a power of attorney on behalf of, or
as the conservator or guardian of, another person, to:
(i) obtain control,
through deception, intimidation, fraud, or undue influence, over the other
person's money, assets, or other property to deprive the other person of
the ownership, use, benefit, or possession of the property; or
(ii) convert the money,
assets, or other property of the other person to deprive the other person
of the ownership, use, benefit, or possession of the property.
(4) "Financial
institution" has the meaning assigned by Section 277.001.
(5) "Vulnerable
adult" means:
(A) an elderly person as
that term is defined by Section 48.002, Human Resources Code;
(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.
Sec. 280.002. REPORTING
SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. (a) If an employee
of a financial institution has cause to believe that financial exploitation
of a vulnerable adult who is an account holder with the financial
institution has occurred, is occurring, or has been attempted, the employee
shall notify the financial institution of the suspected financial
exploitation.
(b) If a financial
institution is notified of suspected financial exploitation under
Subsection (a) or otherwise has cause to believe that financial
exploitation of a vulnerable adult who is an account holder with the
financial institution has occurred, is occurring, or has been attempted,
the financial institution shall assess
the suspected financial exploitation and submit a report to the department in the same manner as and
containing the same information required to be included in a report under
Section 48.051, Human Resources Code. The financial institution
shall submit the report required by this subsection not later than the
earlier of:
(1) the date the
financial institution completes the financial
institution's assessment of the suspected financial exploitation; or
(2) the fifth business
day after the date the financial institution is notified of the suspected
financial exploitation under Subsection (a) or otherwise has cause to
believe that the suspected financial exploitation has occurred, is
occurring, or has been attempted.
(c) A financial institution that submits a report to the
department of suspected financial exploitation of a vulnerable adult under
Subsection (b) is not required to make an additional report of suspected
abuse, neglect, or exploitation under Section 48.051, Human Resources Code,
for the same conduct constituting the reported suspected financial
exploitation.
(d) Each financial
institution shall adopt internal policies, programs, plans, or procedures
for:
(1) the employees of the
financial institution to make the notification required under Subsection
(a); and
(2) the financial
institution to conduct the assessment
and submit the report required under Subsection (b).
(e) The policies, programs,
plans, or procedures adopted under Subsection (d) may authorize the
financial institution to report the suspected financial exploitation to
other appropriate agencies and entities in addition to the department, including the attorney
general, the Federal Trade Commission, and the appropriate law enforcement
agency.
Sec. 280.003. NOTIFYING
THIRD PARTIES OF SUSPECTED FINANCIAL EXPLOITATION OF VULNERABLE ADULTS. If
a financial institution submits a report of suspected financial
exploitation of a vulnerable adult to the department
under Section 280.002(b), the financial institution may at the time the
financial institution submits the report also notify a third party
reasonably associated with the vulnerable adult of the suspected financial
exploitation, unless the financial institution suspects the third party of
financial exploitation of the vulnerable adult.
Sec. 280.004. TEMPORARY
HOLD ON TRANSACTIONS IN CERTAIN CASES OF SUSPECTED FINANCIAL EXPLOITATION
OF VULNERABLE ADULTS. (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 280.002(b), the financial institution:
(1) may place a hold on
any transaction that:
(A) involves an account
of the vulnerable adult; and
(B) the financial institution has cause to believe is related
to the suspected financial exploitation; and
(2) must place a hold on
any transaction involving an account of 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 financial institution submits the
report under Section 280.002(b).
(c) The financial
institution may extend a hold placed on any transaction under Subsection
(a) for a period not to exceed 30 business days after the expiration of the
period prescribed by Subsection (b) if requested by a state or federal
agency or a law enforcement agency investigating the suspected financial
exploitation. The financial institution may also petition a court to
extend a hold placed on any transaction under Subsection (a) beyond the
period prescribed by Subsection (b). A court may enter an order extending
or shortening a hold or providing other relief.
(d) Each financial institution shall adopt internal policies,
programs, plans, or procedures for placing a hold on a transaction
involving an account of a vulnerable adult under this section.
Sec. 280.005. IMMUNITY.
(a) An employee of a financial institution who makes a notification under
Section 280.002(a), a financial institution that submits a report under
Section 280.002(b) or makes a notification to
a third party under Section 280.003, or an employee who or financial
institution that testifies or otherwise participates in a judicial
proceeding arising from a notification or report is immune from any civil
or criminal liability arising from the notification, report, testimony, or
participation in the judicial proceeding, unless the employee or financial
institution acted in bad faith or with a malicious purpose.
(b) A financial
institution that in good faith and with the exercise of reasonable care
places or does not place a hold on any transaction under Section
280.004(a)(1) is immune from any civil or criminal liability or
disciplinary action resulting from that action or failure to act.
Sec. 280.006. RECORDS.
To the extent permitted by state or federal law, a financial institution
shall provide, on request, access to or copies of records relevant to the
suspected financial exploitation of a vulnerable adult to the department, a law enforcement agency,
or a prosecuting attorney's office, either as part of a report to the department, law enforcement agency, or
prosecuting attorney's office or at the request of the department, law enforcement agency, or
prosecuting attorney's office in accordance with an investigation.
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SECTION 2. The Securities
Act (Article 581-1 et seq., Vernon's Texas Civil Statutes) is amended by
adding Section 45 to read as follows:
Sec. 45. PROTECTION OF
VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION. A. In this section:
(1) "Adult protective services division"
means the adult protective services division of the Department of Family
and Protective Services.
(2)
"Exploitation," "financial exploitation," and
"vulnerable adult" have the meanings assigned by Section 280.001,
Finance Code.
(3) "Securities
professional" means an agent, an investment adviser representative, or
a person who serves in a supervisory or compliance capacity for a dealer or
investment adviser.
B. If a securities
professional or a person serving in a legal capacity for a dealer or
investment adviser has cause to believe that financial exploitation of a
vulnerable adult who is an account holder with the dealer or investment
adviser has occurred, is occurring, or has been attempted, the securities
professional or person serving in a legal capacity for the dealer or
investment adviser shall notify the dealer or investment adviser of the
suspected financial exploitation.
C. If a dealer or
investment adviser is notified of suspected financial exploitation under
Subsection B of this section or otherwise has cause to believe that
financial exploitation of a vulnerable adult who is an account holder with
the dealer or investment adviser has occurred, is occurring, or has been
attempted, the dealer or investment adviser shall investigate the suspected financial exploitation and
submit a report to the Securities Commissioner, in accordance with rules
adopted under Subsection L of this section, and the adult protective services division in accordance with Subchapter
B-1, Chapter 48, Human Resources Code.
The dealer or investment
adviser shall submit the reports required by this subsection not later than
the earlier of:
(1) the date the dealer
or investment adviser completes the investigation;
or
(2) the fifth business
day after the date the dealer or investment adviser is notified of the
suspected financial exploitation under Subsection B of this section or
otherwise has cause to believe that the suspected financial exploitation
has occurred, is occurring, or has been attempted.
D. Each dealer and
investment adviser shall adopt internal policies, programs, plans, or
procedures for the securities professionals or persons serving in a legal
capacity for the dealer or investment adviser to make the notification
required under Subsection B of this section and for the dealer or
investment adviser to conduct the investigations
and submit the reports required under Subsection C of this section. The
policies, programs, plans, or procedures adopted under this subsection may
authorize the dealer or investment adviser to report the suspected
financial exploitation to other appropriate agencies and entities in
addition to the Securities Commissioner and the adult protective services division, including the
attorney general, the Federal Trade Commission, and the appropriate law
enforcement agency.
E. If a dealer or
investment adviser submits reports of suspected financial exploitation of a
vulnerable adult to the Securities Commissioner and the adult protective services division
under Subsection C of this section, the dealer or investment adviser may at
the time the dealer or investment adviser submits the reports also notify a
third party reasonably associated with the vulnerable adult of the
suspected financial exploitation, unless the dealer or investment adviser
suspects the third party of financial exploitation of the vulnerable adult.
F. 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 adult protective services
division under Subsection C of this section, the dealer or
investment adviser:
(1) may place a hold on a
transaction involving an account of the vulnerable adult; and
(2) must place a hold on
a transaction involving an account of the vulnerable adult if the hold is
requested by the Securities Commissioner, the adult protective services division, or a law enforcement
agency.
G. Subject to Subsection
H of this section, a hold placed on a transaction under Subsection F of
this section expires on the 10th business day after the date the dealer or
investment adviser submits the reports under Subsection C of this section.
H. A dealer or investment
adviser may extend a hold placed on a transaction under Subsection F of
this section for a period not to exceed 30 business days after the
expiration of the period prescribed by Subsection G of this section if
requested by a state or federal agency or a law enforcement agency
investigating the suspected financial exploitation. The dealer or
investment adviser may also petition a court to extend a hold placed on a
transaction under Subsection F of this section beyond the period prescribed
by Subsection G of this section. A court may enter an order extending or shortening
a hold or providing other relief.
I. A securities
professional or person serving in a legal capacity for a dealer or
investment adviser who makes a notification under Subsection B of this
section, a dealer or investment adviser that submits a report under
Subsection C of this section or makes a notification under Subsection E of
this section, or a securities professional or person serving in a legal
capacity who or dealer or investment adviser that testifies or otherwise
participates in a judicial proceeding arising from a notification or report
is immune from any civil or criminal liability arising from the
notification, report, testimony, or participation in the judicial
proceeding, unless the securities professional, person serving in a legal
capacity for the dealer or investment adviser, or dealer or investment
adviser acted in bad faith or with a malicious purpose.
J. A dealer or investment
adviser that in good faith and with the exercise of reasonable care places
or does not place a hold on a transaction under Subsection F(1) of this
section is immune from civil or criminal liability or disciplinary action
resulting from the action or failure to act.
K. To the extent
permitted by state or federal law, a dealer or investment adviser, on request,
shall provide access to or copies of records relevant to the suspected
financial exploitation of a vulnerable adult to the Securities
Commissioner, the adult protective
services division, a law enforcement agency, or a prosecuting
attorney's office, either as part of a report to the Securities
Commissioner, adult protective services
division, law enforcement agency, or prosecuting attorney's office
or at the request of the Securities Commissioner, adult protective services division, law enforcement
agency, or prosecuting attorney's office in accordance with an
investigation.
L. The Board by rule
shall prescribe the form and content of the report required to be submitted
by a dealer or investment adviser to the Securities Commissioner under
Subsection C of this section.
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SECTION 2. The Securities
Act (Article 581-1 et seq., Vernon's Texas Civil Statutes) is amended by
adding Section 45 to read as follows:
Sec. 45. PROTECTION OF
VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION. A. In this section:
(1) "Department" means the Department of
Family and Protective Services.
(2)
"Exploitation," "financial exploitation," and
"vulnerable adult" have the meanings assigned by Section 280.001,
Finance Code.
(3) "Securities
professional" means an agent, an investment adviser representative, or
a person who serves in a supervisory or compliance capacity for a dealer or
investment adviser.
B. If a securities
professional or a person serving in a legal capacity for a dealer or
investment adviser has cause to believe that financial exploitation of a
vulnerable adult who is an account holder with the dealer or investment
adviser has occurred, is occurring, or has been attempted, the securities
professional or person serving in a legal capacity for the dealer or investment
adviser shall notify the dealer or investment adviser of the suspected
financial exploitation.
C. If a dealer or
investment adviser is notified of suspected financial exploitation under
Subsection B of this section or otherwise has cause to believe that
financial exploitation of a vulnerable adult who is an account holder with
the dealer or investment adviser has occurred, is occurring, or has been
attempted, the dealer or investment adviser shall assess the suspected financial exploitation and submit a
report to the Securities Commissioner, in accordance with rules adopted
under Subsection N of this section, and the department
in the same manner as and containing the same information required to be
included in a report under Section 48.051, Human Resources Code.
The dealer or investment adviser shall submit the reports required by this
subsection not later than the earlier of:
(1) the date the dealer
or investment adviser completes the dealer's
or investment adviser's assessment of the suspected financial exploitation;
or
(2) the fifth business
day after the date the dealer or investment adviser is notified of the
suspected financial exploitation under Subsection B of this section or
otherwise has cause to believe that the suspected financial exploitation
has occurred, is occurring, or has been attempted.
D. A dealer or investment adviser who submits a report to the
department of suspected financial exploitation of a vulnerable adult under
Subsection C of this section is not required to make an additional report
of suspected abuse, neglect, or exploitation under Section 48.051, Human
Resources Code, for the same conduct constituting the reported suspected
financial exploitation.
E. Each dealer and
investment adviser shall adopt internal policies, programs, plans, or
procedures for the securities professionals or persons serving in a legal
capacity for the dealer or investment adviser to make the notification
required under Subsection B of this section and for the dealer or
investment adviser to conduct the assessment
and submit the reports required under Subsection C of this section. The
policies, programs, plans, or procedures adopted under this subsection may
authorize the dealer or investment adviser to report the suspected
financial exploitation to other appropriate agencies and entities in
addition to the Securities Commissioner and the department, including the attorney general, the Federal
Trade Commission, and the appropriate law enforcement agency.
F. 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 may at the time the dealer or
investment adviser submits the reports also notify a third party reasonably
associated with the vulnerable adult of the suspected financial
exploitation, unless the dealer or investment adviser suspects the third
party of financial exploitation of the vulnerable adult.
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 the vulnerable adult; and
(B) the dealer or investment adviser has cause to believe is
related to the suspected financial exploitation; and
(2) must place a hold on
any transaction involving an account of 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 dealer or
investment adviser submits the reports under Subsection C of this section.
I. A dealer or investment
adviser may extend a hold placed on any transaction under Subsection G of
this section for a period not to exceed 30 business days after the
expiration of the period prescribed by Subsection H of this section if
requested by a state or federal agency or a law enforcement agency
investigating the suspected financial exploitation. The dealer or
investment adviser may also petition a court to extend a hold placed on any
transaction under Subsection G of this section beyond the period prescribed
by Subsection H of this section. A court may enter an order extending or shortening
a hold or providing other relief.
J. Each dealer and investment adviser shall adopt internal
policies, programs, plans, or procedures for placing a hold on a
transaction involving an account of a vulnerable adult under Subsection G
of this section.
K. A securities
professional or person serving in a legal capacity for a dealer or
investment adviser who makes a notification under Subsection B of this
section, a dealer or investment adviser that submits a report under
Subsection C of this section or makes a notification to a third party under Subsection F of
this section, or a securities professional or person serving in a legal
capacity who or dealer or investment adviser that testifies or otherwise
participates in a judicial proceeding arising from a notification or report
is immune from any civil or criminal liability arising from the
notification, report, testimony, or participation in the judicial
proceeding, unless the securities professional, person serving in a legal
capacity for the dealer or investment adviser, or dealer or investment
adviser acted in bad faith or with a malicious purpose.
L. A dealer or investment
adviser that in good faith and with the exercise of reasonable care places
or does not place a hold on any transaction under Subsection G(1) of this
section is immune from civil or criminal liability or disciplinary action
resulting from the action or failure to act.
M. To the extent
permitted by state or federal law, a dealer or investment adviser, on
request, shall provide access to or copies of records relevant to the
suspected financial exploitation of a vulnerable adult to the Securities
Commissioner, the department, a
law enforcement agency, or a prosecuting attorney's office, either as part
of a report to the Securities Commissioner, department,
law enforcement agency, or prosecuting attorney's office or at the request
of the Securities Commissioner, department,
law enforcement agency, or prosecuting attorney's office in accordance with
an investigation.
N. The Board by rule
shall prescribe the form and content of the report required to be submitted
by a dealer or investment adviser to the Securities Commissioner under
Subsection C of this section.
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SECTION 3. Subchapter A,
Chapter 48, Human Resources Code, is amended by adding Section 48.008 to
read as follows:
Sec. 48.008.
CONSOLIDATION OF CERTAIN REPORTS. If cost-effective and feasible and to
the extent permitted by law, the executive commissioner by rule may
consolidate the form and procedures used to submit a report under Sections
48.051 and 48.072.
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No
equivalent provision.
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SECTION 4. Chapter 48, Human
Resources Code, is amended by adding Subchapter B-1 to read as follows:
SUBCHAPTER B-1. FINANCIAL
EXPLOITATION OF VULNERABLE ADULTS
Sec. 48.071.
DEFINITIONS. In this subchapter:
(1) "Dealer"
and "investment adviser" have the meanings assigned by Section 4,
The Securities Act (Article 581-4, Vernon's Texas Civil Statutes).
(2) "Financial
exploitation," "financial institution," and "vulnerable
adult" have the meanings assigned by Section 280.001, Finance Code.
(3) "Securities
professional" has the meaning assigned by Section 45, The Securities
Act (Article 581-45, Vernon's Texas Civil Statutes).
Sec. 48.072. CERTAIN
REPORTS OF SUSPECTED FINANCIAL EXPLOITATION. (a) The executive
commissioner, after consultation with the banking commissioner of Texas,
the savings and mortgage lending commissioner, the credit union
commissioner, and the securities commissioner, by rule shall prescribe the
form and content of the report required to be submitted by a financial
institution under Section 280.002(b), Finance Code, and the report required
to be submitted by a dealer or investment adviser under Subsection C,
Section 45, The Securities Act (Article 581-45, Vernon's Texas Civil
Statutes). A report submitted by a financial institution under Section
280.002(b), Finance Code, or a report submitted by a dealer or investment
adviser under Subsection C, Section 45, The Securities Act (Article 581-45,
Vernon's Texas Civil Statutes), constitutes a report of suspected financial
exploitation of a vulnerable adult for purposes of this subchapter.
(b) In adopting rules
under this section, the executive commissioner shall ensure that a report
of suspected financial exploitation of a vulnerable adult described by
Subsection (a) includes to the extent possible the same information
required to be included in a report under Section 48.051(d).
(c) A financial
institution that submits a report to the department of suspected financial
exploitation of a vulnerable adult under Section 280.002(b), Finance Code,
or a dealer or investment adviser that submits a report to the department
of suspected financial exploitation of a vulnerable adult under Subsection
C, Section 45, The Securities Act (Article 581-45, Vernon's Texas Civil
Statutes), in accordance with this section is not required to make an
additional report of suspected abuse, neglect, or exploitation under
Section 48.051 for the same conduct constituting the financial exploitation
reported under this section.
Sec. 48.073. ASSESSMENT,
INVESTIGATION, AND DISPOSITION OF REPORTS. (a) The executive commissioner
by rule shall adopt procedures for the assessment, investigation, and
disposition of a report of suspected financial exploitation of a vulnerable
adult received under Section 280.002(b), Finance Code, or Subsection C,
Section 45, The Securities Act (Article 581-45, Vernon's Texas Civil
Statutes), that must be similar to the procedures used for the assessment,
investigation, and disposition of a report of abuse, neglect, or
exploitation received by the department under this chapter, other than a
report received under Subchapter F.
(b) The procedures
adopted under this section must require:
(1) a risk assessment
similar to the assessment required under Section 48.004;
(2) investigations
similar to the investigations required under Subchapter D, including
requirements that the department:
(A) take action on a
report within the time frame and in the manner provided by Section 48.151;
(B) perform an interview
with the vulnerable adult similar to the interview required by Section
48.152;
(C) if appropriate,
implement a system to investigate complex cases similar to the system
implemented under Section 48.1521;
(D) report criminal
conduct to appropriate law enforcement agencies similar to the reports
under Section 48.1522; and
(E) review certain cases
involving multiple reports under Section 48.051 and this subchapter similar
to the review performed under Section 48.1523; and
(3) a determination of
services similar to the determination required by Section 48.202.
Sec. 48.074. AUTHORITY OF
DEPARTMENT OR OTHER AGENCY. The department or another appropriate state
agency has the authority to act on or with respect to an allegation of financial
exploitation of a vulnerable adult under this subchapter to the same extent
the department or other agency has the authority to act on or with respect
to an allegation of abuse, neglect, or exploitation under Subchapter B.
Sec. 48.075. ACCESS TO
INVESTIGATION. (a) To implement an investigation of reported financial
exploitation of a vulnerable adult, the probate court, as defined by
Section 22.007, Estates Code, may authorize entry into the place of
residence of a vulnerable adult.
(b) A peace officer shall
accompany and assist the person making a court-ordered entry under this
section if the court determines that action is necessary.
Sec. 48.076. INTERFERENCE
WITH INVESTIGATION OR SERVICES PROHIBITED. (a) Notwithstanding Section
1151.001, Estates Code, a person, including a guardian, may not interfere
with:
(1) an investigation by
the department or by another protective services agency of suspected
financial exploitation of a vulnerable adult; or
(2) the provision of
protective services to a vulnerable adult.
(b) The department or
another protective services agency may petition the appropriate court to
enjoin any interference with:
(1) an investigation of
suspected financial exploitation of a vulnerable adult under this
subchapter; or
(2) the provision of
protective services, such as removing a vulnerable adult to safer
surroundings or safeguarding the vulnerable adult's resources from
financial exploitation.
Sec. 48.077. MEMORANDUM
OF UNDERSTANDING. The commission, the banking commissioner of Texas, the
savings and mortgage lending commissioner, the credit union commissioner,
the securities commissioner, and the department shall enter into a
memorandum of understanding regarding the reporting and investigation of
suspected financial exploitation of a vulnerable adult under this
subchapter.
Sec. 48.078.
CONFIDENTIALITY. (a) All files, reports, records, communications, and
working papers used or developed by the department or other state agency in
an investigation made under this subchapter or in providing services as a
result of an investigation are confidential and not subject to disclosure
under Chapter 552, Government Code.
(b) The department or
investigating state agency may establish procedures to exchange with
another state agency or governmental entity information that is necessary
for the department, state agency, or governmental entity to properly
execute its respective duties and responsibilities to provide services to
vulnerable adults under this chapter or other law. An exchange of
information under this subsection does not affect whether the information
is subject to disclosure under Chapter 552, Government Code.
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No
equivalent provision.
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SECTION 5. Subchapter C,
Chapter 48, Human Resources Code, is amended by adding Section 48.104 to
read as follows:
Sec. 48.104.
NONAPPLICABILITY. (a) This subchapter does not apply to a report of
financial exploitation of a vulnerable adult made under Subchapter B-1.
(b) The confidentiality
of information received or provided by the department in connection with a
report of financial exploitation of a vulnerable adult made under
Subchapter B-1 is governed by Section 48.078.
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No
equivalent provision.
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SECTION 6. Subchapter D,
Chapter 48, Human Resources Code, is amended by adding Section 48.1511 to
read as follows:
Sec. 48.1511.
NONAPPLICABILITY. This subchapter does not apply to an investigation
conducted under Subchapter B-1 unless the executive commissioner by rule
requires the application of a provision of this subchapter.
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No
equivalent provision.
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SECTION 7. Section
59.006(a), Finance Code, is amended to read as follows:
(a) This section provides
the exclusive method for compelled discovery of a record of a financial
institution relating to one or more customers but does not create a right
of privacy in a record. This section does not apply to and does not
require or authorize a financial institution to give a customer notice of:
(1) a demand or inquiry from
a state or federal government agency authorized by law to conduct an
examination of the financial institution;
(2) a record request from a
state or federal government agency or instrumentality under statutory or
administrative authority that provides for, or is accompanied by, a
specific mechanism for discovery and protection of a customer record of a
financial institution, including a record request from a federal agency
subject to the Right to Financial Privacy Act of 1978 (12 U.S.C. Section
3401 et seq.), as amended, or from the Internal Revenue Service under
Section 1205, Internal Revenue Code of 1986;
(3) a record request from or
report to a government agency arising out of:
(A) the investigation or
prosecution of a criminal offense;
(B) the investigation of
alleged abuse, neglect, or exploitation of an elderly or disabled person or
of alleged financial exploitation of a vulnerable adult in accordance
with Chapter 48, Human Resources Code; or
(C) the assessment for or
provision of guardianship services under Subchapter E, Chapter 161, Human
Resources Code;
(4) a record request in
connection with a garnishment proceeding in which the financial institution
is garnishee and the customer is debtor;
(5) a record request by a
duly appointed receiver for the customer;
(6) an investigative demand
or inquiry from a state legislative investigating committee;
(7) an investigative demand
or inquiry from the attorney general of this state as authorized by law
other than the procedural law governing discovery in civil cases;
(8) the voluntary use or
disclosure of a record by a financial institution subject to other
applicable state or federal law; or
(9) a record request in
connection with an investigation conducted under Section 1054.151,
1054.152, or 1102.001, Estates Code.
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No
equivalent provision.
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SECTION 8. This Act takes
effect September 1, 2017.
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SECTION 3. Same as introduced
version.
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