SB20,2 4Section 2. 551.413 of the statutes is created to read:
SB20,3,6 5551.413 Financial exploitation of vulnerable adults. (1) Definitions. In
6this section:
SB20,3,77 (a) “Adult-at-risk agency” has the meaning given in s. 55.01 (1f).
SB20,3,88 (b) “Elder-adult-at-risk agency” has the meaning given in s. 46.90 (1) (bt).
SB20,3,99 (c) “Financial exploitation” has the meaning given in s. 46.90 (1) (ed).
SB20,3,1010 (d) “Law enforcement agency” has the meaning given in s. 165.77 (1) (b).
SB20,3,1311 (e) “Qualified individual” means any agent representing a broker-dealer, any
12investment adviser representative, or any individual who serves in a supervisory,
13compliance, or legal capacity for a broker-dealer or investment adviser.
SB20,4,6
1(2) Notice of suspected financial exploitation. (a) If a qualified individual
2reasonably suspects that financial exploitation of a vulnerable adult may have
3occurred, may have been attempted, or is being attempted, the qualified individual,
4in cooperation with the qualified individual's broker-dealer or investment adviser,
5may notify the division, an adult-at-risk agency, an elder-adult-at-risk agency, or
6a law enforcement agency, or any combination of these.
SB20,4,107 (b) After notifying the division or agency under par. (a), a qualified individual
8may, to the extent permitted under federal law, notify any of the following concerning
9the qualified individual's suspicion that financial exploitation may have occurred,
10may have been attempted, or is being attempted:
SB20,4,1211 1. Any person identified in a list provided by the vulnerable adult under sub.
12(4).
SB20,4,1413 2. The vulnerable adult's spouse, parent, or adult child, or any other individual
14reasonably associated with the vulnerable adult.
SB20,4,1515 3. Any legal guardian of the vulnerable adult.
SB20,4,1716 4. Any trustee, cotrustee, or successor trustee of the account of the vulnerable
17adult.
SB20,4,1818 5. Any agent under a power of attorney of the vulnerable adult.
SB20,4,1919 6. Any other person permitted under applicable law or rule of the division.
SB20,4,23 20(3) Delay of transaction or disbursement. (a) A broker-dealer or investment
21adviser may delay a transaction on, or disbursement from, an account of a vulnerable
22adult or an account on which a vulnerable adult is a beneficiary if all of the following
23apply:
SB20,5,324 1. The broker-dealer, investment adviser, or qualified individual reasonably
25suspects, after initiating an internal review of the requested transaction or

1disbursement and the suspected financial exploitation, that the requested
2transaction or disbursement may result in financial exploitation of a vulnerable
3adult.
SB20,5,44 2. The broker-dealer or investment adviser does all of the following:
SB20,5,95 a. As soon as possible, but not more than 2 business days after it first delays
6the requested transaction or disbursement, provides written notification of the delay
7and the reason for the delay to all parties authorized to transact business on the
8account, except to any party reasonably suspected to have engaged in or attempted
9financial exploitation of the vulnerable adult.
SB20,5,1310 b. As soon as possible, but not more than 2 business days after it first delays
11the requested transaction or disbursement, notifies the division, an adult-at-risk
12agency, an elder-adult-at-risk agency, or a law enforcement agency, or any
13combination of these.
SB20,5,1514 (b) The division may, by rule, establish additional guidelines for the delay of
15a transaction or disbursement under par. (a).
SB20,5,2016 (c) Upon request by the division or agency to which a broker-dealer or
17investment adviser provided notice under par. (a) 2. b., the broker-dealer or
18investment adviser shall provide to the division or agency the results of any
19continued internal review of the suspected financial exploitation conducted after the
20notice under par. (a) 2. b. was provided.
SB20,5,2221 (d) Any delay of a transaction or disbursement under this subsection expires
22on the earlier of the following:
SB20,5,2523 1. A determination by the broker-dealer or investment adviser that the
24transaction or disbursement is not reasonably likely to result in financial
25exploitation of the vulnerable adult.
SB20,6,7
12. Fifteen business days after the date on which the broker-dealer or
2investment adviser first delayed the transaction or disbursement of the funds, unless
3the division or agency to which notice was provided under par. (a) 2. b. requests that
4the broker-dealer or investment adviser extends the delay, in which case the delay
5shall expire no more than 25 business days after the date on which the broker-dealer
6or investment adviser first delayed the transaction or disbursement of the funds
7unless it is otherwise terminated or extended by the division or court order.
SB20,6,128 (e) A court may enter an order extending the delay of the transaction or
9disbursement of funds or an order granting other protective relief based on the
10petition of the division, an agency to which notice was provided under par. (a) 2. b.,
11the broker-dealer or investment adviser that initiated the delay under this
12subsection, or any other interested party.
SB20,6,17 13(4) List of authorized contacts. A broker-dealer or investment adviser may
14offer to a vulnerable adult the opportunity to submit and periodically update a list
15of persons that the vulnerable adult authorizes to be contacted if a qualified
16individual reasonably suspects that financial exploitation of the vulnerable adult
17may have occurred, may have been attempted, or is being attempted.
SB20,6,20 18(5) Immunity from liability. A broker-dealer, investment adviser, or qualified
19individual that, in good faith and exercising reasonable care, complies with subs. (2)
20and (3) is immune from liability for such conduct.
SB20,7,2 21(6) Law enforcement access to records; status reports of investigation. (a)
22If a broker-dealer or investment adviser has reasonable cause to suspect that
23financial exploitation of a vulnerable adult may have occurred, may have been
24attempted, or is being attempted, any investigating law enforcement agency has the
25same privilege to obtain, from the broker-dealer or investment adviser, financial

1records and other information related to the suspected financial exploitation that an
2elder-adult-at-risk agency has under s. 46.90 (5) (b) 6.
SB20,7,73 (b) After a broker-dealer or investment adviser has provided notice to the
4division or an agency under sub. (3) (a) 2. b., the division or agency receiving the
5notice may, notwithstanding any other provision of law, disclose to the broker-dealer
6or investment adviser information relating to the status or results of any
7investigation arising from the notice.
SB20,3 8Section 3 . 551.508 (1m) (a) and (c) of the statutes are amended to read:
SB20,7,139 551.508 (1m) (a) If a person is convicted of a crime under sub. (1) and the crime
10is committed against another person who is at least 65 years of age a vulnerable adult
11when the crime is committed, for each such offense the maximum fine prescribed
12under sub. (1) may be increased by not more than $5,000 and the maximum term of
13imprisonment prescribed under sub. (1) may be increased by not more than 5 years.
SB20,7,1714 (c) It is no defense to the enhancement of penalties under this subsection that
15the person convicted did not know the age of that the victim was a vulnerable adult
16or reasonably believed that the victim was not at least 65 years of age a vulnerable
17adult
.
SB20,4 18Section 4 . 551.603 (4) (a) and (c) of the statutes are amended to read:
SB20,7,2419 551.603 (4) (a) In any action under this section, if the court imposes a civil
20penalty under sub. (2) (b) 3. for any violation against another person who is at least
2165 years of age
a vulnerable adult when the violation occurs, for each such violation
22the civil penalty prescribed under sub. (2) (b) 3. for a single violation may be
23increased by not more than $5,000 and the maximum civil penalty for more than one
24violation may be increased by not more than $250,000.
SB20,8,4
1(c) It is no defense to the enhancement of civil penalties under this subsection
2that the defendant did not know the age of that the victim was a vulnerable adult or
3reasonably believed that the victim was not at least 65 years of age a vulnerable
4adult
.
SB20,5 5Section 5 . 551.604 (4) of the statutes is amended to read:
SB20,8,156 551.604 (4) Civil penalty. In a final order under sub. (3), the administrator
7may impose a civil penalty in the form of an administrative assessment up to $5,000
8for a single violation or up to $250,000 for more than one violation except that, if the
9violation is committed against another person who is at least 65 years of age a
10vulnerable adult
when the violation occurs, for each such violation the civil penalty
11may be up to $10,000 for a single violation or up to $500,000 for more than one
12violation. It is no defense to the enhancement of civil penalties under this subsection
13that the defendant did not know the age of that the victim was a vulnerable adult or
14reasonably believed that the victim was not at least 65 years of age a vulnerable
15adult
.
SB20,6 16Section 6 . Initial applicability.
SB20,8,1917 (1) Penalty enhancement. The treatment of ss. 551.508 (1m) (a) and (c),
18551.603 (4) (a) and (c), and 551.604 (4) first applies to violations committed on the
19effective date of this subsection.
SB20,8,2020 (End)
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