Empowering States to Protect Seniors from Bad Actors Act
Bill: S.3529 | Sponsor: Sen. Van Hollen, Chris (D-MD)
Policy area: Finance and Financial Sector

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.

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Empowering States to Protect Seniors 
from Bad Actors Act''.

SEC. 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) is amended to read as 
follows:

``SEC. 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' means--
                    ``(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' means any individual who 
        has attained the age of 62 years or older.
            ``(3) Senior financial fraud.--The term `senior financial 
        fraud' means a fraudulent or otherwise illegal, unauthorized, 
        or improper act or process of an individual, including a 
        caregiver or a fiduciary, that--
                    ``(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' means the task 
        force established under subsection (b)(1).
    ``(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, the task force 
        shall submit to the Committee on Financial Services of the 
        House of Representatives and the Committee on Banking, Housing, 
        and Urban Affairs of the Senate a report that--
                    ``(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.''.
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