Empowering States to Protect Seniors from Bad Actors Act

To amend the Investor Protection and Securities Reform Act of 2010 to provide grants to States for enhanced protection of senior investors and senior policyholders, and for other purposes. 1. Short title This Act may be cited as the Empowering States to Protect Seniors from Bad Actors Act 2. Grants to eligible entities for enhanced protection of senior investors and senior policyholders (a) In general Section 989A of the Investor Protection and Securities Reform Act of 2010 ( 12 U.S.C. 5537 989A. Grants to eligible entities for enhanced protection of senior investors and senior policyholders (a) Definitions In this section: (1) Eligible entity The term eligible entity (A) the securities commission (or any agency or office performing like functions) of any State; and (B) the insurance department (or any agency or office performing like functions) of any State. (2) Senior The term senior (3) Senior financial fraud The term senior financial fraud (A) uses the resources of a senior for monetary or personal benefit, profit, or gain; (B) results in depriving a senior of rightful access to or use of benefits, resources, belongings, or assets; or (C) is an action described in section 1348 of title 18, United States Code, that is taken against a senior. (4) Task force The term task force (b) Grant program (1) Task force (A) In general The Commission shall establish a task force to carry out the grant program under paragraph (2). (B) Membership The task force shall consist of the following members: (i) A Chair of the task force, who— (I) shall be appointed by the Chairman of the Commission, in consultation with the Commissioners of the Commission; and (II) may be a representative of the Office of the Investor Advocate of the Commission, the Division of Enforcement of the Commission, or such other representative as the Commission determines appropriate. (ii) If the Chair is not a representative of the Office of the Investor Advocate of the Commission, a representative of such Office. (iii) If the Chair is not a representative of the Division of Enforcement of the Commission, a representative of such Division. (iv) Such other representatives as the Commission determines appropriate. (C) Detail of executive agency employees Upon the request of the Commission, the head of any Federal agency may detail, on a reimbursable basis, any of the personnel of that Federal agency to the Commission to assist it in carrying out its functions under this section. The detail of any such personnel shall be without interruption or loss of civil service status or privilege. (2) Grants The task force shall carry out a program under which the task force shall make grants, on a competitive basis, to eligible entities, which— (A) may use the grant funds— (i) to hire staff to identify, investigate, and prosecute (through civil, administrative, or criminal enforcement actions) cases involving senior financial fraud; (ii) to fund technology, equipment, and training for regulators, prosecutors, and law enforcement officers, in order to identify, investigate, and prosecute cases involving senior financial fraud; (iii) to provide educational materials and training to seniors to increase awareness and understanding of senior financial fraud; (iv) to develop comprehensive plans to combat senior financial fraud; and (v) to enhance provisions of State law to provide protection from senior financial fraud; and (B) may not use the grant funds for any indirect expense, such as rent, utilities, or any other general administrative cost that is not directly related to the purpose of the grant program. (3) Authority of task force In carrying out paragraph (2), the task force— (A) may consult with staff of the Commission; and (B) shall make public all actions of the task force relating to carrying out that paragraph. (c) Applications An eligible entity desiring a grant under this section shall submit an application to the task force, in such form and in such a manner as the task force may determine, that includes— (1) a proposal for activities to protect seniors from senior financial fraud that are proposed to be funded using a grant under this section, including— (A) an identification of the scope of the problem of senior financial fraud in the applicable State; (B) a description of how the proposed activities would— (i) protect seniors from senior financial fraud, including by proactively identifying victims of senior financial fraud; (ii) assist in the investigation and prosecution of those committing senior financial fraud; and (iii) discourage and reduce cases of senior financial fraud; and (C) a description of how the proposed activities would be coordinated with other State efforts; and (2) any other information that the task force determines appropriate. (d) Performance objectives; reporting requirements; audits (1) In general The task force— (A) may establish such performance objectives and reporting requirements for eligible entities receiving a grant under this section as the task force determines are necessary to carry out and assess the effectiveness of the program under this section; and (B) shall require each eligible entity that receives a grant under this section to submit to the task force a detailed accounting of the use of grant funds, which shall be submitted at such time, in such form, and containing such information as the task force may require. (2) Report Not later than 2 years, and again not later than 5 years, after the date of the enactment of the Empowering States to Protect Seniors from Bad Actors Act, (A) specifies each recipient of a grant under this section; (B) includes a description of the programs that are supported by each such grant; and (C) includes an evaluation by the task force of the effectiveness of such grants. (3) Audits The task force shall annually conduct an audit of the program under this section to ensure that eligible entities to which grants are made under that program are, for the year covered by the audit, using grant funds for the intended purposes of those funds. (e) Maximum amount The amount of a grant to an eligible entity under this section may not exceed $500,000, which the task force shall adjust annually to reflect the percentage change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor. (f) Subgrants An eligible entity that receives a grant under this section may, in consultation with the task force, make a subgrant, as the eligible entity determines is necessary or appropriate— (1) to carry out the activities described in subsection (b)(2)(A); and (2) which may not be used for any activity described in subsection (b)(2)(B). (g) Authorization of appropriations There are authorized to be appropriated to carry out this section $10,000,000 for each of fiscal years 2023 through 2028. . (b) Conforming amendment The table of contents in section 1(b) of the Dodd-Frank Wall Street Reform and Consumer Protection Act is amended by striking the item relating to section 989A and inserting the following: Sec.989A. Grants to eligible entities for enhanced protection of senior investors and senior policyholders. .

Summary: Empowering States to Protect Seniors from Bad Actors Act This bill reauthorizes through FY2028 and otherwise revises the Senior Investor Protection Grant Program. The bill moves the program from the Consumer Financial Protection Bureau to the Securities and Exchange Commission, establishes a task force to oversee the program, and eliminates certain grant eligibility requirements.