{"AmendmentNumber":"465","ParentBillNumber":"S3178","Bill":null,"Sponsor":{"Id":"PRF0","Name":"Paul R. Feeney","Type":1,"Details":"https://malegislature.gov/api/GeneralCourts/194/LegislativeMembers/PRF0","ResponseDate":"2026-07-23T23:31:28.453"},"Category":null,"Action":"Adopted","RollCall":[],"Title":"Protecting Seniors and Adults with Disabilities from Financial Scams\r\n","Branch":"Senate","RedraftNumber":1,"IsFurther":false,"GeneralCourtNumber":194,"Text":"Messrs. Feeney, Lewis and O'Connor and Ms. Jehlen move that the proposed new text be amended by inserting after section 137 the following section:- \r\n“SECTION 137A. The General Laws are hereby amended by inserting after chapter 167D the following chapter:-\r\nCHAPTER 167D 1/2. FINANCIAL EXPLOITATION OF VULNERABLE ADULTS\r\nSection 1. As used in this section, the following words shall have the following meanings unless the context clearly requires otherwise:-\r\n“Commissioner”, the commissioner of banks.\r\n“Eligible adult”, (i) a person 60 years of age or older; or (ii) a person with a disability, as defined in section 1 of chapter 19C.\r\n“Financial exploitation”, (i) the wrongful or unauthorized taking, withholding, appropriation or use of money, assets or property of an eligible adult; or (ii) 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: (A) obtain control, through deception, intimidation unethical or dishonest conduct 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 his or her money, assets or property; or (B) convert money, assets or property of the eligible adult to deprive such eligible adult of the ownership, use, benefit or possession of their money, assets or property.\r\n“Financial institution”, (i) bank, trust company, co-operative bank or savings bank, if organized or exists under the laws of the commonwealth or any other state or may transact business in the commonwealth, national bank, federal savings bank or federal savings and loan association; or (ii) credit union that is organized or exists under the laws of the commonwealth or any other state, or federal credit union that may transact business in the commonwealth, as defined in section 1 of chapter 171.\r\n“Qualified individual”, (i) an agent, employee or person who serves in a compliance or legal capacity for a financial institution; or (ii) an employee eligible for immunity in accordance with 12 U.S.C. § 3423.\r\n“Relevant Agency” (i) the commission for the protection of persons with disabilities established pursuant to section 2 of chapter 19C if the eligible adult is under the age of 60; (ii) the executive office of aging and independence, if the eligible adult is 60 years or older; or (iii) a third-party contractor designated by the office of aging and independence.\r\nSection 2. If a financial institution or qualified individual reasonably believes that the financial exploitation of an eligible adult may have occurred, may have been attempted or is being attempted, the financial institution or qualified individual shall promptly notify the relevant agency.\r\nSection 3. A qualified investment individual who, in good faith and exercising reasonable care, believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, may disclose to any third party previously designated by the eligible adult or reasonably associated with the adult; provided, however, that a qualified investment individual shall not notify any designated third party that is suspected of the financial exploitation or other abuse of the eligible adult; provided, however, that a qualified individual or financial institution shall not notify any designated third party that is suspected of the financial exploitation or other abuse of the eligible adult.\r\nSection 4. A qualified individual or financial institution who, in good faith, is exercising reasonable care, complies with section 3 and did not materially aid the alleged financial exploitation shall be immune from any administrative or civil liability that might otherwise arise from such action.\r\nSection 5. A financial institution may delay or stop a disbursement from, or a transaction in connection with, an account of an eligible adult or an account on which an eligible adult is a beneficiary if any qualified individual has reasonable cause to believe that, after initiating an internal review of the requested disbursement or transaction and documenting the suspected financial exploitation, the requested disbursement or transaction may result in the financial exploitation of the eligible adult and the financial institution or qualified individual: (i) provides written or oral notification of the delay or stoppage and the reason for such delay or stoppage to all parties authorized to transact business on the account not more than 5 business days after the requested disbursement or transaction, unless any such party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult; (ii) provides notification of such delay or stoppage to the relevant agency not more than 5 business days after the requested disbursement or transaction; (iii) continues their internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary; (iv) provides status updates, a statement of finding and final disposition of an investigation upon request to the relevant agency and qualified individuals; and (v) reports the investigation's results to the relevant agency not more than 10 business days after the day the financial institution or qualified individual first delayed disbursement of the funds or the transaction.\r\nThe relevant agency may retain a digital or other record of each notice and report received under clauses (i), (ii) and (iv) respectively, of this section. A financial institution may provide a copy to the commissioner for recording purposes.\r\n\tSection 6. The authorization of any delay or stoppage of a disbursement or transaction pursuant to section 5 shall expire upon the sooner of the determination by the financial institution that the disbursement or transaction will not result in the financial exploitation of the eligible adult or 21 business days after the date on which the financial institution delayed or stopped disbursement of the funds or a transaction. A relevant agency may request that the financial institution extend the delay, in which case the delay shall expire not more than 30 business days after the date on which the financial institution first delayed or stopped disbursement of the funds or a transaction.\r\n\tA court of competent jurisdiction may enter an order extending the delay or stoppage of a disbursement of funds or transaction pursuant to this section or may order other protective relief upon the petition of a relevant agency.\r\n\tSection 7. A court of competent jurisdiction may order a financial institution or qualified individual to provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an eligible adult to a relevant agency or law enforcement pursuant to an open investigation. Such records may include, but not be limited to, historical records and records pertaining to the most recent disbursement or transactions related to the suspected or attempted financial exploitation of an eligible adult; provided, however, that such records made available to the agencies shall not be considered public records pursuant to section 7 of chapter 4 or chapter 66.\r\n\tSection 8. A financial institution or qualified individual which, in good faith, exercising reasonable care, complies with this chapter and did not materially aid the alleged financial exploitation shall be immune from any administrative or civil liability that might otherwise arise from such action.”; and\r\nBy inserting after section 106 the following section:-\r\nSECTION 106A. The General Laws are hereby amended by inserting after chapter 110H the following chapter:-\r\n\tCHAPTER 110I. FINANCIAL EXPLOITATION OF VULNERABLE ADULTS UNDER BROKER-DEALER RELATIONSHIP\r\nSection 1. As used in this section, the following words shall have the following meanings unless the context clearly requires otherwise:-\r\n\t“Relevant agencies”, (i) the state secretary; (ii) the commission for the protection of persons with disabilities established pursuant to section 2 of chapter 19C, if the eligible adult is under the age of 60; (iii) the executive office of aging and independence, if the eligible adult is 60 years or older; or (iv) any third-party contractor designated by the secretary of the commonwealth, the commission for the protection of persons with disabilities or the office of aging and independence.\r\n“Agent”, as defined in section 401 of said chapter 110A.\r\n“Broker-Dealer”, as defined in said section 401 of said chapter 110A.\r\n“Eligible adult”, a person 60 years of age or older or a person with a disability, as defined in section 1 of chapter 19C.\r\n“Financial exploitation”, (i) the wrongful or unauthorized taking, withholding, appropriation or use of money, assets or property of an eligible adult; or (ii) 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: (A) obtain control, through deception, intimidation unethical or dishonest conduct 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 his or her money, assets or property; or (B) convert money, assets or property of the eligible adult to deprive such eligible adult of the ownership, use, benefit or possession of their money, assets or property.\r\n“Financial institution”, a: (i) bank, trust company, co-operative bank or savings bank, if organized or exists under the laws of the commonwealth or any other state or may transact business in the commonwealth, national bank, federal savings bank or federal savings and loan association; or (ii) credit union that is organized or exists under the laws of the commonwealth or any other state, or federal credit union that may transact business in the commonwealth, as defined in section 1 of chapter 171.\r\n“Investment adviser”, as defined pursuant to section 401 of said chapter 110A.\r\n\t“Investment adviser representative”, as defined pursuant to section 401 of said chapter 110A.\r\n“Qualified investment individual”, (i) any agent, broker-dealer, investment adviser, investment-adviser representative, broker-dealer or person who serves in a compliance, investor protection or legal capacity for a broker-dealer or investment adviser; and (ii) employees eligible for immunity in accordance with 12 U.S.C. § 3423.\r\nSection 2. If a qualified investment individual reasonably believes that the financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, the qualified investment individual shall promptly notify the relevant agency.\r\nSection 3. Any qualified investment individual who, in good faith, and exercising reasonable care, did not materially aid the alleged financial exploitation and makes a disclosure of information pursuant to section 2 shall be immune from administrative or civil liability that might otherwise arise from such disclosure or for any failure to notify the customer of the disclosure.\r\nSection 4. A qualified investment individual who, in good faith and exercising reasonable care, believes that financial exploitation of an eligible adult may have occurred, may have been attempted, or is being attempted, may disclose to any third party previously designated by the eligible adult or reasonably associated with the adult; provided, however, that a qualified investment individual shall not notify any designated third party that is suspected of the financial exploitation or other abuse of the eligible adult; provided, however, that a qualified individual or financial institution shall not notify any designated third party that is suspected of the financial exploitation or other abuse of the eligible adult.\r\nSection 5. A qualified investment individual who, in good faith, exercising reasonable care, complies with section 4 and does not materially aid the alleged financial exploitation shall be immune from any administrative or civil liability that might otherwise arise from such disclosure.\r\nSection 6. A financial institution may delay or stop a disbursement or transaction from an account of an eligible adult or an account on which an eligible adult is a beneficiary if a qualified investment individual: (i) has reasonable cause to believe that, 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 the financial exploitation of the eligible adult; (ii) provides written notification and reasoning of the delay to all parties authorized to transact business on the account not more than 5 business days after the delayed disbursement or transaction; provided however, that such notice is not required to such party that is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult; (iii) provides notification of such delay to the relevant agencies not more than 5 business days after the delayed disbursement or transaction; and (iv) continues their internal review of the suspected or attempted financial exploitation of the eligible adult, as necessary, and provides status updates, a statement of finding and final disposition of an investigation upon request to the agencies and to qualified individuals.\r\nSection 7. The authorization of any delay or stoppage of a disbursement or transaction pursuant to section 6 shall expire upon: (i) the determination by the financial institution or qualified investment individual that the disbursement or transaction will not result in the financial exploitation of the eligible adult; or (ii) 21 days from the date the financial institution or qualified investment individual delayed disbursement of the funds or a transaction, unless a relevant agency requests that the financial institution extend the delay, in which case the delay shall expire no more than 30 business days after the date on which the financial institution first delayed disbursement of the funds or a transaction, whichever occurs first.\r\nA court of competent jurisdiction may enter an order extending the delay of a disbursement of funds or transaction pursuant to this section, or may order other protective relief, upon the petition of the secretary of the commonwealth or relevant agency.\r\nSection 8. A court of competent jurisdiction may order a financial institution, or qualified investment individual to provide access to or copies of records that are relevant to the suspected or attempted financial exploitation of an eligible adult to a relevant agency or law enforcement pursuant to an investigation. Such records may include historical records and records pertaining to the most recent disbursement or transactions related to the suspected or attempted financial exploitation of an eligible adult; provided, however, that such records made available to agencies pursuant to this section shall not be considered public records as defined in chapter 66 and clause Twenty-sixth of section 7 of chapter 4.\r\nSection 9. A financial institution or qualified investment individual who, in good faith, exercising reasonable care, complies with this chapter and did not materially aid the alleged financial exploitation, shall be immune from any administrative or civil liability that might otherwise arise from such action.\r\nSection 10. Nothing in section 9 shall limit or shield, in any manner, a qualified individual from any administrative or civil liability, for materially aiding the financial exploitation of an eligible adult.\r\nSection 11. Nothing in this chapter shall limit or otherwise impede the authority of the secretary of the commonwealth from accessing or examining the books and records of a financial institution as otherwise provided by law or conducting any lawful investigation into potential violations of chapter 110A.\"\r\n"}