ARIZONA HOUSE OF REPRESENTATIVES
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SB1483: vulnerable adults; financial exploitation |
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PRIME SPONSOR: Senator Mesnard, LD 17 BILL STATUS: Transmitted to Governor |
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Details the process for a qualified individual
to report suspected or attempted financial exploitation of a vulnerable adult.
Outlines requirements for delayed disbursement or transaction of monies by a
broker-dealer or investment adviser.
History
Adult Protective Services (APS) is a program under the Department of Economic Security responsible for investigating allegations of abuse, exploitation and neglect of vulnerable adults. Exploitation is the illegal or improper use of a vulnerable adult or their resources for another person's profit or advantage. A vulnerable adult is an individual who is eighteen years of age or older and who is unable to protect himself from abuse, neglect or exploitation by others because of a physical or mental impairment or is incapacitated (A.R.S § 46-451).
A person in a position of trust and confidence to a vulnerable adult shall use the vulnerable adult's assets solely for the benefit of the vulnerable adult unless the transaction: 1) Has prior approval by the superior court; 2) Is required in order to obtain or maintain eligibility for services under AHCCCS; 3) Is with the vulnerable adult's spouse in the position of trust and confidence and the transaction furthers the interest of the marital community, including applying for benefits under AHCCCS or for supplemental security income, Medicare or veterans' administration programs (A.R.S § 46-456).
A person who knowingly violates the position of trust and confidence by taking control, title, use or management of a vulnerable adult's property while acting in a position of trust and confidence with the intent to deprive the vulnerable adult of the property commits an act of theft (A.R.S. § 13-1802).
A person who violates the position of trust and confidence is subject to: 1) actual damages and reasonable costs and attorney fees in a civil action; 2) additional damages in an amount up to two times the amount of the actual damages; 3) forfeiture of all or a portion of the person's interest in any governing instrument and benefits under statute pertaining to intestate succession and wills; 4) revocation of any revocable appointment of property, power of appointment of any fiduciary capacity; 5) severance of any interests in any joint property (A.R.S § 46-456).
Provisions
1. Authorizes a qualified individual who reasonably believes that financial exploitation of an eligible adult may have occurred, been attempted or is being attempted to notify APS, the Corporation Commission (Commission) or a third party previously designated by or reasonably associated with the eligible adult unless that third party is suspected of financial exploitation or other abuse of the eligible adult. (Sec. 1)
2. Establishes that a qualified individual is immune from administrative or civil liability that might arise from the disclosure, or for any failure to notify the customer of the disclosure, when the individual makes a disclosure of information in good faith and exercising reasonable care to:
a. APS and the Commission; or
b. To a third party previously designated by, or reasonably associated with, the eligible adult. (Sec. 1)
3. Permits a broker-dealer or investment adviser to delay a disbursement or transaction from an account of an eligible adult, or an account which an eligible adult is a beneficiary of, if:
a. The qualified individual, after initiating an internal review, reasonably believes that the requested disbursement or transaction may result in financial exploitation of the eligible adult; and
b. The broker-dealer or investment adviser:
i. Provides written notification and reason for the delay, within two business days of the delayed disbursement or transaction, to all authorized parties except for any party reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult;
ii. Notifies APS and the Commission within two business days of the delayed disbursement or transaction; and
iii. Continues, as necessary, its internal review of the suspected or attempted financial exploitation of the eligible adult and reports the results of the investigation to APD and the Commission upon request. (Sec. 1)
4. States that a delayed disbursement or transaction expires on the earlier of:
a. A determination by the broker-dealer or investment adviser that the disbursement or transaction will not result in financial exploitation of the eligible adult; or
b. 15 days after the disbursement or transaction is first delayed, unless APS or the Commission requests an extension, in which case:
i. The delay shall expire no more than 25 days after the date the disbursement or transaction was first delayed, unless otherwise terminated or further extended by either APS, the Commission or an order of a court of competent jurisdiction. (Sec. 1)
5. States that a court of competent jurisdiction may enter an order extending the delay of the disbursement or transaction or may order other protective relief based on the petition of the Commission, APD, the initiating broker-dealer or investment adviser or another interested party. (Sec. 1)
6. Extends immunity from administrative or civil liability to a broker-dealer or investment adviser who delays a disbursement or transaction in good faith and exercising reasonable care. (Sec. 1)
7. Requires a broker-dealer or investment adviser to provide access to, or copies of, records that are relevant to the suspected or attempted financial exploitation of an eligible adult to APS or law enforcement as:
a. Part of a referral to APS or law enforcement; or
b. Upon request of APS or law enforcement pursuant to an investigation. (Sec. 1)
8. Specifies that the records provided by a broker-dealer or investment adviser may include historical records and records relating to the most recent transactions that may comprise financial exploitation of an eligible adult. (Sec. 1)
9. Stipulates that all records made available to APS or law enforcement by a broker-dealer or investment adviser are not public records and are not subject to statute pertaining to searches and copies of public records. (Sec. 1)
10. Allows the Commission to access and examine the books and records of broker-dealers and investment advisers as otherwise provided by law. (Sec. 1)
11. Defines broker-dealer, eligible adult, financial exploitation, investment adviser, investment adviser representative and qualified individual. (Sec. 1)
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15. Fifty-fourth Legislature SB 1483
16. First Regular Session Version 4: Transmitted
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