Senate Bill 419

SENATE BILL 419

57th legislature - STATE OF NEW MEXICO - first session, 2025

INTRODUCED BY

Leo Jaramillo

 

 

 

 

 

AN ACT

RELATING TO PROTECTING VULNERABLE ADULTS FROM FINANCIAL EXPLOITATION; PROVIDING FOR ADDITIONAL REASONS TO DELAY DISBURSEMENTS OR TRANSACTIONS; EXPANDING WHO MAY INITIATE A DELAY; PROVIDING FOR ADDITIONAL EXTENSIONS OF A DISBURSEMENT DELAY IN CERTAIN CIRCUMSTANCES.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 58-13D-5 NMSA 1978 (being Laws 2017, Chapter 106, Section 5) is amended to read:

     "58-13D-5. DELAYING DISBURSEMENTS OR TRANSACTIONS.--

          A. A broker-dealer or investment adviser may delay a disbursement or transaction from an account of an eligible adult or an account on which an eligible adult is a beneficiary if:

                (1) the broker-dealer, investment adviser or qualified individual reasonably believes, after initiating an internal review of the requested disbursement or transaction and the suspected financial exploitation, that [the requested disbursement or transaction may result in financial exploitation of an eligible adult] financial exploitation of the eligible adult has occurred, is occurring, has been attempted or will be attempted; and

                (2) the broker-dealer or investment adviser:

                     (a) immediately, but in no event more than two business days after the requested disbursement or transaction, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, unless any such party is reasonably believed to have engaged in suspected or attempted financial exploitation of the eligible adult;

                     (b) immediately, but in no event more than two business days after the requested disbursement or transaction, notifies the agencies; and

                     (c) provides, upon a request by the securities division of the regulation and licensing department or the adult protective services division of the aging and long-term services department, a status report of the internal review required pursuant to Paragraph (1) of this subsection.

          B. Any delay of a disbursement or transaction as authorized by this section will expire upon the sooner of:

                (1) a determination by the broker-dealer or investment adviser that the disbursement or transaction will not result in financial exploitation of the eligible adult; or

                (2) fifteen business days after the date on which the broker-dealer or investment adviser first delayed disbursement or transaction, unless [either of the agencies requests that the broker-dealer or investment adviser extend the delay, in which case the delay shall expire no more than twenty-five business days after the date on which the broker-dealer or investment adviser first delayed disbursement or transaction unless] otherwise terminated or extended by either of the agencies, a state regulator or agency of competent jurisdiction or an order of a court of competent jurisdiction or extended pursuant to Subsection C of this section.

          C. Provided that the broker-dealer's, investment adviser's or qualified individual's internal review of the facts and circumstances supports the broker-dealer's, investment adviser's or qualified individual's reasonable belief that financial exploitation of the eligible adult has occurred, is occurring, has been attempted or will be attempted, the temporary hold authorized in Subsection A of this section may be extended by the broker-dealer or investment adviser for no longer than ten business days following the date authorized by Paragraph (2) of Subsection B of this section, unless otherwise terminated by either of the agencies, a state regulator or agency of competent jurisdiction or a court of competent jurisdiction or extended pursuant to Subsection D of this section.

          D. Provided that the broker-dealer's or investment adviser's internal review of the facts and circumstances supports the broker-dealer's, investment adviser's or qualified individual's reasonable belief that financial exploitation of the eligible adult has occurred, is occurring, has been attempted or will be attempted and the broker-dealer or investment adviser has provided notification of the broker-dealer's or investment adviser's reasonable belief to the agencies, the temporary hold authorized by this section may be extended by the broker-dealer or investment adviser for no longer than thirty business days following the date authorized by Subsection C of this section, unless otherwise terminated by either of the agencies, a state regulator or agency of competent jurisdiction or a court of competent jurisdiction.

          [C.] E. A court of competent jurisdiction may enter an order extending the delay of the disbursement or transaction or may order other protective relief based on the petition of the director of the securities division of the regulation and licensing department, the director of the adult protective services division of the aging and long-term services department, a state regulator or agency of competent jurisdiction, the broker-dealer or investment adviser that initiated the delay under this section or other interested party."

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