[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 3529 Introduced in Senate (IS)]
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117th CONGRESS
2d Session
S. 3529
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.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 20, 2022
Mr. Van Hollen (for himself, Mr. Scott of South Carolina, Mr. Warnock,
and Ms. Lummis) introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
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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