Chapter 225 |
2019 -- H 6091 SUBSTITUTE A Enacted 07/15/2019 |
A N A C T |
RELATING TO CORPORATIONS, ASSOCIATIONS, AND PARTNERSHIPS -- SENIOR SAVINGS PROTECTION ACT |
Introduced By: Representatives Serodio, Hawkins, Amore, Noret, and Shekarchi |
Date Introduced: May 09, 2019 |
It is enacted by the General Assembly as follows: |
SECTION 1. Title 7 of the General Laws entitled "CORPORATIONS, |
ASSOCIATIONS, AND PARTNERSHIPS" is hereby amended by adding thereto the following |
chapter: |
CHAPTER 11.2 |
SENIOR SAVINGS PROTECTION ACT |
7-11.2-1. Short title - Rules of construction. |
(a) This chapter shall be known as and may be cited as the "Senior Savings Protection |
Act.". |
(b) This chapter shall be liberally construed and applied to promote its underlying |
purposes and policy and to make uniform the laws with respect to the subject of this chapter |
among states enacting it. |
(c) Unless displaced by the particular provisions of this chapter, the principles of law and |
equity supplement its provisions. |
7-11.2-2. Definitions. |
As used in this chapter, the following words and phrases shall have the following |
meanings unless the context otherwise requires: |
(1) "Agent" means an individual, other than a broker-dealer, who represents a broker- |
dealer in effecting or attempting to effect purchases or sales of securities or represents an issuer in |
effecting or attempting to effect purchases or sales of the issuer's securities; provided, that a |
partner, officer, or director of a broker-dealer or issuer, or an individual having a similar status or |
performing similar functions, is an agent only if the individual otherwise comes within the term. |
The term does not include an individual excluded by rule adopted or order issued under this |
chapter. |
(2) "Broker-dealer" means a person engaged in the business of effecting transactions in |
securities for the account of others or for the person's own account. The term does not include: |
(i) An agent; |
(ii) An issuer; |
(iii) A bank, a trust company organized or chartered under the laws of this state, or a |
savings institution, if its activities as a broker-dealer are limited to those specified in the |
Securities Exchange Act of 1934, as amended (15 U.S.C. Section 78a, et seq.) or a bank that |
satisfies the conditions described in the Securities Exchange Act of 1934, as amended (15 U.S.C. |
Sections 78a et seq.); |
(iv) An international banking institution; or |
(v) A person excluded by rule adopted or order issued under this chapter. |
(3) "Financial exploitation" means the wrongful or unauthorized taking, withholding, |
appropriation, or use of money, real property, or personal property of a qualified adult. |
(4) "Immediate family member" means a spouse, child, parent, or sibling of a qualified |
adult;. |
(5) "Qualified adult" means: |
(i) A person sixty (60) years of age or older; or |
(ii) A person who: |
(A) Has a mental or physical impairment that substantially limits one or more major life |
activities, whether the impairment is congenital or acquired by accident, injury, or disease, where |
such the impairment is verified by medical findings; and |
(B) Is between the ages of eighteen (18) and fifty-nine (59);. |
(6) "Qualified individual" means a person associated with a broker-dealer who serves in a |
supervisory, compliance, or legal capacity as part of their his or her job. |
7-11.2-3. Notification of agencies and family members. |
If a qualified individual reasonably believes that financial exploitation of a qualified adult |
has occurred, has been attempted, or is being attempted, the qualified individual shall notify the |
department of business regulation as well as the division of elderly affairs office of healthy aging |
and law enforcement in accordance with § 42-66-8. Subsequent to providing this notification, an |
agent or qualified individual may notify an immediate family member, legal guardian, |
conservator, cotrustee, successor trustee, or agent under a power of attorney of the qualified adult |
of such the belief. |
7-11.2-4. Refusal of request for disbursement. |
(a) A qualified individual may refuse a request for disbursement from the account of a |
qualified adult, or an account on which a qualified adult is a beneficiary or beneficial owner, if: |
(1) The qualified individual reasonably believes that the requested disbursement will |
result in financial exploitation of the qualified adult; and |
(2) The broker-dealer or qualified individual: |
(i) Within two (2) business days makes a reasonable effort to notify all parties authorized |
to transact business on the account orally or in writing, unless such the parties are reasonably |
believed to have engaged in suspected or attempted financial exploitation of the qualified adult; |
and |
(ii) Complies with the notification requirements set forth in § 7-11.2-3. |
(b) Any refusal of a disbursement as authorized by this section shall expire upon the |
sooner of: |
(1) The time when the broker-dealer or qualified individual reasonably believes that the |
disbursement will not result in financial exploitation of the qualified adult; or |
(2) Ten (10) business days after the initial refusal of disbursement by the qualified |
individual. |
(c) A court of competent jurisdiction may enter an order extending the refusal of a |
disbursement or any other protective relief. |
7-11.2-5. Immunity from liability. |
Notwithstanding any other provision of law to the contrary, a broker-dealer, agent, or |
qualified individual who, in good faith and exercising reasonable care, complies with the |
provisions of this chapter shall be immune from any civil liability under this chapter. |
7-11.2-6. Website for training resources to prevent and detect financial exploitation. |
No later than July 1, 2020, the department of business regulation and the division of |
elderly affairs office of healthy aging shall develop and make available websites that include |
training resources to assist broker-dealers and agents in the prevention and detection of financial |
exploitation of qualified adults. Such The resources shall include, at a minimum, indicators of |
financial exploitation of qualified adults and potential steps broker-dealers and agents may take to |
prevent suspected financial exploitation of qualified adults as authorized by law. |
SECTION 2. This act shall take effect upon passage. |
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LC002374/SUB A |
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