By: Thompson of Harris (Senate Sponsor - Zaffirini) H.B. No. 4477
         (In the Senate - Received from the House May 10, 2021;
  May 10, 2021, read first time and referred to Committee on Business &
  Commerce; May 20, 2021, reported favorably by the following vote:  
  Yeas 9, Nays 0; May 20, 2021, sent to printer.)
Click here to see the committee vote
 
 
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.
 
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