An Act To Protect Vulnerable Adults from Financial Exploitation
Maine Legislature, Session 129, LD 0566
Committee: Health Coverage, Insurance and Financial Services
Sponsors: BAILEY, FOLEY, BABINE, COREY, FAY, MASTRACCIO, PRESCOTT, TEPLER, TUELL, SANBORN

Legislative Document
No. 566
H.P. 410
House of Representatives, February 5, 2019
An Act To Protect Vulnerable Adults from Financial Exploitation
Reference to the Committee on Health Coverage, Insurance and Financial Services 
suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative BAILEY of Saco.
Cosponsored by Senator FOLEY of York and
Representatives: BABINE of Scarborough, COREY of Windham, FAY of Raymond, 
MASTRACCIO of Sanford, PRESCOTT of Waterboro, TEPLER of Topsham, TUELL of East 
Machias, Senator: SANBORN, H. of Cumberland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  32 MRSA c. 135, sub-c. 8 is enacted to read:
SUBCHAPTER 8
PROTECTION OF VULNERABLE ADULTS FROM FINANCIAL 
EXPLOITATION
§16801.  Definitions
As used in this subchapter, unless the context otherwise indicates, the following 
terms have the following meanings.
1.  Eligible adult.  "Eligible adult" means:
A.  An individual 65 years of age or older; or
B.  An individual protected under the Adult Protective Services Act.
2.  Financial exploitation.  "Financial exploitation" means:
A.  The wrongful or unauthorized taking, withholding, appropriation or use of 
money, assets or property of an eligible adult; or
B.  Any act or omission made by a person, including through the use of a power of 
attorney, guardianship or conservatorship of an eligible adult, to:
(1)  Obtain control, through deception, intimidation or undue influence, over the 
eligible adult's money, assets or property to deprive the eligible adult of the 
ownership, use, benefit or possession of the eligible adult's money, assets or 
property; or
(2)  Convert money, assets or property of the eligible adult to deprive the eligible 
adult of the ownership, use, benefit or possession of the eligible adult's money, 
assets or property.
3.  Qualified individual.  "Qualified individual" means an agent, investment adviser 
representative or individual who serves in a supervisory, compliance or legal capacity for 
a broker-dealer or investment adviser.
§16802.  Governmental disclosures
If a qualified individual reasonably believes that financial exploitation of an eligible 
adult may have occurred, may have been attempted or is being attempted, the qualified 
individual shall promptly notify the Department of Health and Human Services and the 
administrator.
§16803.  Immunity for governmental disclosures
A qualified individual who in good faith and exercising reasonable care makes a 
disclosure of information pursuant to section 16802 is immune from any administrative or 
civil liability that might otherwise arise from the disclosure or for a failure to notify the 
eligible adult of the disclosure.
§16804.  Third-party disclosures
If a qualified individual reasonably believes that financial exploitation of an eligible 
adult may have occurred, may have been attempted or is being attempted, the qualified 
individual may notify any 3rd party previously designated by the eligible adult.  
Disclosure may not be made to any designated 3rd party that is suspected of financial 
exploitation or other abuse of the eligible adult.
§16805.  Immunity for 3rd-party disclosures
A qualified individual who in good faith and exercising reasonable care complies 
with section 16804 is immune from any administrative or civil liability that might 
otherwise arise from a disclosure under section 16804.
§16806.  Delaying disbursements
A broker-dealer or investment adviser may delay disbursements in accordance with 
this section.
1.  Disbursement delay authorized.  A broker-dealer or investment adviser may 
delay a disbursement from an account of an eligible adult or an account on which an 
eligible adult is a beneficiary if the broker-dealer or investment adviser or a qualified 
individual reasonably believes, after initiating an internal review of the requested 
disbursement and the suspected financial exploitation, that the requested disbursement 
may result in financial exploitation of the eligible adult.  If a broker-dealer or investment 
adviser delays a disbursement under this subsection, the broker-dealer or investment 
adviser shall:
A.  Within 2 business days after the requested disbursement, provide written 
notification of the delay and the reason for the delay to all parties authorized to 
transact business on the account, except that notification may not be provided to a 3rd 
party reasonably believed to have engaged in suspected or attempted financial 
exploitation of the eligible adult;
B.  Within 2 business days after the requested disbursement, notify the Department of 
Health and Human Services and the administrator; and
C.  Continue the broker-dealer's or investment adviser's internal review of the 
suspected or attempted financial exploitation of the eligible adult, as necessary, and 
report the results of the internal review to the Department of Health and Human 
Services and the administrator within 7 business days after the requested 
disbursement.
2.  Expiration.  A delay of a disbursement as authorized by this section expires upon 
the sooner of:
A.  A determination by the broker-dealer or investment adviser that the disbursement 
will not result in financial exploitation of the eligible adult; or
B.  Fifteen business days after the date on which the broker-dealer or investment 
adviser first delayed disbursement of the funds unless the Department of Health and 
Human Services or the administrator requests that the broker-dealer or investment 
adviser extend the delay, in which case the delay expires no more than 25 business 
days after the date on which the broker-dealer or investment adviser first delayed 
disbursement of the funds unless terminated earlier by the Department of Health and 
Human Services or the administrator or by an order of a court of competent 
jurisdiction.
3.  Judicial order.  A court of competent jurisdiction may enter an order extending 
the delay of the disbursement of funds or may order other protective relief based on a 
petition from the Department of Health and Human Services or the administrator or from 
the broker-dealer or the investment adviser that initiated the delay under this section or 
from another interested party.
§16807.  Immunity for delaying disbursements
A broker-dealer or investment adviser that in good faith and exercising reasonable 
care complies with section 16806 is immune from any administrative or civil liability that 
might otherwise arise from a delay in a disbursement in accordance with section 16806.
§16808.  Records
A broker-dealer or investment adviser shall provide access to or copies of records that 
are relevant to the suspected or attempted financial exploitation of an eligible adult to the 
Department of Health and Human Services and to a law enforcement agency as part of a 
referral to the department or to a law enforcement agency or upon request of the 
department or a law enforcement agency pursuant to an investigation.  The records may 
include historical records and records relating to recent transactions that may constitute 
financial exploitation of an eligible adult.  All records made available to agencies under 
this section are not public records for purposes of Title 1, chapter 13, subchapter 1.  
Nothing in this section limits or otherwise impedes the authority of the administrator to 
access or examine the books and records of broker-dealers and investment advisers as 
otherwise provided by law.
SUMMARY
This bill requires reporting to the Securities Administrator within the Department of 
Professional and Financial Regulation, Office of Securities and the Department of Health 
and Human Services by qualified individuals who reasonably believe that financial 
exploitation of a vulnerable adult may have occurred, may have been attempted or is 
being attempted.  It defines "qualified individual" to mean an agent, an investment 
adviser representative and a person who serves in a supervisory, compliance or legal 
capacity for a broker-dealer or investment adviser.  The bill also:
1.  Authorizes broker-dealers and investment advisers who suspect financial 
exploitation to delay disbursing funds from a vulnerable adult's account;
2.  Authorizes disclosure by qualified individuals to 3rd parties in certain instances in 
which a vulnerable adult has previously designated the 3rd party;
3.  Prohibits disclosure to the 3rd party if the qualified individual suspects the 3rd 
party of the financial exploitation;
4.  Provides immunity from administrative and civil liability for actions taken 
consistent with the law; and
5.  Requires that broker-dealers and investment advisers comply with certain requests 
for information.