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HD 3576

An Act protecting vulnerable adults from financial exploitation

194th Legislature (2025-2026) Introduced by Paul McMurtry

The act creates a new chapter to protect 60+ or disabled adults from financial exploitation by enabling reporting, protective transaction delays, and record access by designated ag

Senate concurred
0
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Bill Summary · HD 3576

Summary: An Act protecting vulnerable adults from financial exploitation (House Docket No. 3576)

Overview

HD 3576, titled “An Act protecting vulnerable adults from financial exploitation,” was introduced in the 2025-2026 Massachusetts General Court and has since advanced to Senate concurrence. As of February 27, 2025, the Senate concurred on the bill and it was referred to the Committee on Children, Families and Persons with Disabilities. The bill creates a new Chapter 110I in the General Laws to address financial exploitation of eligible adults (60 years or older or disabled).

Purpose and intent

  • To provide formal definitions and procedures to detect, report, and address financial exploitation of vulnerable adults.
  • To authorize timely protective actions by financial professionals (broker-dealers and investment advisers) and designated agencies to prevent further harm to eligible adults.
  • To establish immunities for individuals who act in good faith to report suspected exploitation or to delay disbursements for protective purposes.

Key provisions and changes

  • New Chapter 110I: Financial Exploitation
    Establishes definitions critical to enforcement, including:

    • Agencies: Secretary of the Commonwealth and the Disabled Persons Protection Commission (DPPC) for under-60 eligible adults, or the Executive Office of Elder Affairs for those 60 and older.
    • Eligible adult: 60+ or a disabled person as defined by relevant law.
    • Financial exploitation: wrongful or unauthorized taking, withholding, or use of an eligible adult’s money, assets, or property; or acts by someone with power of attorney, guardianship, or conservatorship to control or deprive the adult of ownership or benefit.
    • Qualified individuals: brokers, investment advisers/adviser representatives, and related supervisory or compliance roles.

  • Mandatory/encouraged reporting (Sections 2–5)

    • A qualified individual who reasonably believes exploitation may have occurred may promptly notify the appropriate agencies.
    • Good-faith disclosures grant immunity from administrative or civil liability (Section 3).
    • Qualified individuals may also notify a designated third party previously identified by the eligible adult or lawfully associated with the adult; disclosures to suspected exploiters are prohibited (Section 4). Immunity applies to complying with Section 4 (Section 5).

  • Protective delays for financial transactions (Section 6)

    • Broker-dealers or investment advisers may delay disbursements or transactions if there is a reasonable belief of exploitation after internal review.
    • Required actions within 2 business days: notify all authorized account parties, notify the relevant agencies, and provide ongoing status updates.
    • Delay duration: expires at the sooner of (a) a determination that exploitation will not occur, or (b) 15 business days; extensions up to 55 business days may occur if agencies request or order.
    • Courts may extend delays or grant protective relief upon petition by the agencies, the broker-dealer/investment adviser, or other interested parties.
    • Immunity for delaying in good faith (Section 7).

  • Record access (Section 8)
    Broker-dealers and investment advisers must provide access to or copies of relevant records (text appears truncated in the version provided but implies mandatory record access related to exploitation cases).

Who is affected

  • Eligible adults: 60+ or disabled individuals.
  • Financial professionals: broker-dealers, investment advisers, and their representatives, plus supervisory/compliance staff.
  • Agencies: Secretary of the Commonwealth, DPPC, and the Executive Office of Elder Affairs (depending on the adult’s age/condition).
  • Potential third parties designated by the eligible adult (subject to restrictions to avoid suspected exploiters).

Procedural and timeline aspects

  • Introduced: February 27, 2025.
  • Status: Senate concurred; referred to the Committee on Children, Families and Persons with Disabilities (as of the latest action).
  • Key timelines: discovery/reporting timelines (within days), notification requirements within 2 business days for delays and disclosures, and flexible yet bounded delay periods (up to 55 business days with agency involvement and court extensions).

Note: Section 8 text is truncated in the provided material; the section appears to address access to relevant records by the entities involved.

Compiled from official sources — confirm details with the bill’s official record.

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