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AN ACT
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relating to the financial exploitation of certain vulnerable |
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adults. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 281.001(5), Finance Code, is amended to |
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read as follows: |
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(5) "Vulnerable adult" means: |
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(A) an elderly person as that term is defined by |
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Section 48.002, Human Resources Code; or |
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(B) a person with a disability as that term is |
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defined by Section 48.002, Human Resources Code[; or |
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[(C) an individual receiving services as that |
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term is defined by rule by the executive commissioner of the Health |
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and Human Services Commission as authorized by Section 48.251(b), |
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Human Resources Code]. |
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SECTION 2. Sections 281.004(a) and (b), Finance Code, are |
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amended to read as follows: |
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(a) Notwithstanding any other law, [if] a financial |
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institution [submits a report of suspected financial exploitation |
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of a vulnerable adult to the department under Section 281.002(b), |
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the financial institution]: |
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(1) may place a hold on any transaction that[: |
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[(A)] involves an account of a [the] vulnerable |
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adult if[; and |
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[(B)] the financial institution: |
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(A) submits a report of suspected financial |
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exploitation of the vulnerable adult to the department under |
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Section 281.002(b); and |
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(B) has cause to believe the transaction is |
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related to the suspected financial exploitation alleged in the |
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report; and |
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(2) must place a hold on any transaction involving an |
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account of a [the] vulnerable adult if the hold is requested by the |
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department or a law enforcement agency. |
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(b) Subject to Subsection (c), a hold placed on any |
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transaction under Subsection (a) expires on the 10th business day |
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after the date the hold is placed [the financial institution |
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submits the report under Section 281.002(b)]. |
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SECTION 3. Sections 4004.355(a) and (b), Government Code, |
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as effective January 1, 2022, are amended to read as follows: |
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(a) Notwithstanding any other law, [if] a dealer or |
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investment adviser [submits reports of suspected financial |
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exploitation of a vulnerable adult to the commissioner and the |
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department under Section 4004.352(b), the dealer or investment |
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adviser]: |
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(1) may place a hold on any transaction that[: |
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[(A)] involves an account of a [the] vulnerable |
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adult if[; and |
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[(B)] the dealer or investment adviser: |
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(A) submits a report of suspected financial |
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exploitation of the vulnerable adult to the commissioner and the |
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department under Section 4004.352(b); and |
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(B) has cause to believe the transaction is |
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related to the suspected financial exploitation alleged in the |
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report; and |
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(2) must place a hold on any transaction involving an |
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account of a [the] vulnerable adult if the hold is requested by the |
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commissioner, the department, or a law enforcement agency. |
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(b) Subject to Subsection (c), a hold placed on any |
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transaction under Subsection (a) expires on the 10th business day |
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after the date the hold is placed [the dealer or investment adviser |
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submits the reports under Section 4004.352(b)]. |
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SECTION 4. Subsections G and H, Section 45, The Securities |
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Act (Article 581-45, Vernon's Texas Civil Statutes), are amended to |
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read as follows: |
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G. Notwithstanding any other law, [if] a dealer or |
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investment adviser [submits reports of suspected financial |
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exploitation of a vulnerable adult to the Securities Commissioner |
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and the department under Subsection C of this section, the dealer or |
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investment adviser]: |
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(1) may place a hold on any transaction that[: |
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[(A)] involves an account of a [the] vulnerable |
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adult if[; and |
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[(B)] the dealer or investment adviser: |
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(A) submits a report of suspected financial |
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exploitation of the vulnerable adult to the Securities Commissioner |
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and the department under Subsection C of this section; and |
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(B) has cause to believe the transaction is |
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related to the suspected financial exploitation alleged in the |
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report; and |
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(2) must place a hold on any transaction involving an |
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account of a [the] vulnerable adult if the hold is requested by the |
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Securities Commissioner, the department, or a law enforcement |
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agency. |
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H. Subject to Subsection I of this section, a hold placed on |
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any transaction under Subsection G of this section expires on the |
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10th business day after the date the hold is placed [the dealer or |
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investment adviser submits the reports under Subsection C of this |
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section]. |
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SECTION 5. Except as otherwise provided by this Act, this |
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Act takes effect September 1, 2021. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 4477 was passed by the House on May 8, |
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2021, by the following vote: Yeas 115, Nays 24, 2 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 4477 was passed by the Senate on May |
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22, 2021, by the following vote: Yeas 30, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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_____________________ |
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Governor |