Wisconsin 2021-2022 Regular Session Status: To Executive 12 R cosponsors

AB 45 — Relating to: financial exploitation of vulnerable adults with securities accounts, violations of the Wisconsin Uniform Securities Law, granting rule-making authority, and providing a penalty.

Last action — Failed to concur in pursuant to Senate Joint Resolution 1

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Bill Text

What changed in the latest version

248 added · 18 removed

Plain-language change summary

The amendment to Assembly Bill 45 adds provisions that allow financial professionals, such as brokers and investment advisers, to refuse to accept a power of attorney if they suspect that the person granting it may be a vulnerable adult at risk of financial exploitation. This change is important because it gives these professionals the authority to act in the best interest of potentially exploited individuals, helping to protect them from fraud or harm. Additionally, it provides legal protection for these professionals when they make such decisions based on reasonable suspicion. Overall, the amendment enhances the safeguards for vulnerable adults dealing with securities-related matters.

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- 2022 LEGISLATURE LRBa0111/1 ARG:cdc ASSEMBLY AMENDMENT 1, TO ASSEMBLY BILL 45 February 23, 2021 - Offered by Representative ACCO.
- 2022 LEGISLATURE LRB-0551/1 ARG:wlj ASSEMBLY BILL 45 February 10, 2021 - Introduced by Representatives MACCO, WITTKE, ARMSTRONG , C ABRAL-GUEVARA , C ALLAHAN, D ITTRICH, E DMING, H ORLACHER , K ATSMA , K ERKMAN , NODL , UGLITSCH, MAGNAFICI, MILRO, MURPHY , ETRYK, AMTHUN , SKOWRONSKI , S NYDER, STEFFEN , SUMMERFIELD , TRANEL and Z IMMERMAN , cosponsored by Senators TESTIN, CARPENTER, BALLWEG , ELZKOWSKI , EYEN , JACQUE , MARKLEINand L T AYLOR.
At the locations indicated, amend the bill as follows:
Referred to Committee on Criminal Justice and Public Safety.
A N A CT to amend 551.508 (1m) (a) and (c), 551.603 (4) (a) and (c) and 551.604 (4);
and to create 551.102 (33) and 551.413 of the statutes;
relating to:
financial exploitation of vulnerable adults with securities accounts, violations of the Wisconsin Uniform Securities Law, granting rule-making authority, and providing a penalty.
Analysis by the Legislative Reference Bureau This bill allows securities industry professionals to provide to the Department of Financial Institutions, adult protective service agencies, and other persons notice of suspected financial exploitation of certain vulnerable adults and allows broker-dealers and investment advisers to temporarily delay transactions or disbursements from the accounts of vulnerable adults when financial exploitation of a vulnerable adult is suspected.
The bill also increases penalties for securities violations committed against these vulnerable adults.
Under current law, upon receiving a report of alleged abuse, financial exploitation, neglect, or self-neglect of any person age 60 or older who has experienced, is experiencing, or is at risk of experiencing abuse, neglect, self-neglect, or financial exploitation (an elder adult at risk), the elder-adult-at-risk agency in a county must respond by investigating or must refer the report to another agency for investigation.
Similarly, if the adult-at-risk agency in a county has reason to believe that an adult who has a physical or mental condition that substantially impairs his or her ability to care for his or her needs and who has experienced, is - 2022 Legislature - 2 - LRB-0551/1 ARG:wlj ASSEMBLY BILL 45 experiencing, or is at risk of experiencing abuse, neglect, self-neglect, or financial exploitation (an adult at risk) is the subject of abuse, financial exploitation, neglect, or self-neglect, the adult-at-risk agency may respond by investigating to determine whether the adult at risk is in need of protective services.
“Financial exploitation” includes obtaining an individual's money or property by deceiving or enticing the individual or by coercing the individual to give, sell at less than fair value, or convey money or property against his or her will without his or her informed consent, and also includes certain crimes such as theft and forgery.
Current law also requires, with exceptions, certain securities industry professionals to be registered with the Division of Securities in DFI, including an individual who represents a broker-dealer in securities transactions (securities agent) and an investment adviser representative.
This bill allows a securities agent, investment adviser representative, or other individual serving in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser (qualified individual) who reasonably suspects that financial exploitation of an adult at risk or an individual who is 60 years of age or older (together, vulnerable adult) has occurred or is being attempted to notify the division, an adult-at-risk agency or elder-adult-at-risk agency (together, APS agency), a law enforcement agency, or any combination of these, as well as certain other persons, including a legal guardian, a person identified on a contact list provided by the vulnerable adult, and a spouse, parent, adult child, or other individual reasonably associated with the vulnerable adult.
The bill also allows a broker-dealer or investment adviser to delay a transaction on, or disbursement from, an account of a vulnerable adult or an account on which a vulnerable adult is a beneficiary if all of the following apply:
1) the broker-dealer, investment adviser, or qualified individual reasonably suspects that the requested transaction or disbursement may result in financial exploitation of a vulnerable adult;
and 2) the broker-dealer or investment adviser promptly notifies the division, an APS agency, or a law enforcement agency and provides written notice of the delay and the reason for the delay to all parties authorized to transact business on the account.
The division may, by rule, establish additional guidelines for the delay of a transaction or disbursement.
Any delay of a transaction or disbursement expires on the earlier of the following:
a determination by the broker-dealer or investment adviser that the transaction or disbursement is not reasonably likely to result in financial exploitation of the vulnerable adult;
or, subject to exceptions, 15 business days after the date on which the broker-dealer or investment adviser first delayed the transaction or disbursement of the funds.
The bill provides for immunity from liability for a broker-dealer, investment adviser, or qualified individual that, in good faith and exercising reasonable care, acts in accordance with these provisions.
Current law includes numerous provisions prohibiting specified conduct in connection with securities transactions or the offering or sale of securities.
Under current law, a person who violates the state's securities laws may be subject to criminal liability or civil liability or both.
A person who willfully violates the state's securities laws, with certain exceptions, is guilty of a Class H felony, punishable by a maximum fine of $10,000 or a maximum term of imprisonment of six years or both.
LRB-0551/1 - 2022 Legislature - 3 - ARG:wlj ASSEMBLY BILL 45 A person may also be subject to a civil enforcement proceeding for violating the state's securities laws.
In a civil enforcement proceeding, the court in a circuit court proceeding or the division in an administrative proceeding may impose a civil penalty of not more than $5,000 for a single violation or not more than $250,000 for more than one violation.
Current law also includes a penalty enhancer for securities law violations committed against a person who is at least 65 years of age.
For criminal offenses, the maximum fine may be increased by not more than $5,000 and the maximum term of imprisonment may be increased by not more than five years, and for civil offenses the civil penalty may be increased by not more than $5,000 for a single violation or not more than $250,000 for more than one violation.
Under this bill, this penalty enhancer applies to violations committed against a vulnerable adult.
Because this bill creates a new crime or revises a penalty for an existing crime, the Joint Review Committee on Criminal Penalties may be requested to prepare a report.
The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:
S ECTION 1.
551.102 (33) of the statutes is created to read:
551.102 (33) “Vulnerable adult" means an adult at risk, as defined in s.
55.01 (1e), or an individual who is at least 60 years of age.
S ECTION 2.
551.413 of the statutes is created to read:
551.413 Financial exploitation of vulnerable adults.
(1) D EFINITIONS.
In this section:
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(a) “Adult-at-risk agency” has the meaning given in s.
55.01 (1f).
(b) “Elder-adult-at-risk agency” has the meaning given in s.
46.90 (1) (bt).
(c) “Financial exploitation” has the meaning given in s.
46.90 (1) (ed).
(d) “Law enforcement agency” has the meaning given in s.
165.77 (1) (b).
(e) “Qualified individual” means any agent representing a broker-dealer, any investment adviser representative, or any individual who serves in a supervisory, compliance, or legal capacity for a broker-dealer or investment adviser.
- 2022 Legislature - 4 - LRB-0551/1 ARG:wlj ASSEMBLY BILL 45 SECTION 2 (2) NOTICE OF SUSPECTED FINANCIAL EXPLOITATION(a) If a qualified individual reasonably suspects that financial exploitation of a vulnerable adult may have occurred, may have been attempted, or is being attempted, the qualified individual, in cooperation with the qualified individual's broker-dealer or investment adviser, may notify the division, an adult-at-risk agency, an elder-adult-at-risk agency, or a law enforcement agency, or any combination of these.
(b) After notifying the division or agency under par.
(a), a qualified individual may, to the extent permitted under federal law, notify any of the following concerning the qualified individual's suspicion that financial exploitation may have occurred, may have been attempted, or is being attempted:
Page 7, line 7:
Any person identified in a list provided by the vulnerable adult under sub.
after that line insert:
(4).
“(7) QUALIFIED INDIVIDUALS MAY REFUSE POWER OF ATTORNEY.
2.
(a) Notwithstanding s.
The vulnerable adult's spouse, parent, or adult child, or any other individual reasonably associated with the vulnerable adult.
244.20, a qualified individual may refuse to accept an acknowledged power of attorney if the principal is a vulnerable adult and the qualified individual has reasonable cause to suspect that the principal is or may be the victim or target of financial exploitation by the agent or person acting for or with the agent.
3.
(b) A qualified individual acting in good faith is immune from all criminal, civil, and administrative liability for refusing to accept a power of attorney or for accepting a power of attorney under this subsection and for actions taken in furtherance of that determination if the determination was based on reasonable suspicion.”.
Any legal guardian of the vulnerable adult.
4.
Any trustee, cotrustee, or successor trustee of the account of the vulnerable adult.
5.
Any agent under a power of attorney of the vulnerable adult.
6.
Any other person permitted under applicable law or rule of the division.
(3) DELAY OF TRANSACTION OR DISBURSEMENT.(a) A broker-dealer or investment adviser may delay a transaction on, or disbursement from, an account of a vulnerable adult or an account on which a vulnerable adult is a beneficiary if all of the following apply:
1.
The broker-dealer, investment adviser, or qualified individual reasonably suspects, after initiating an internal review of the requested transaction or LRB-0551/1 - 2022 Legislature - 5 - ARG:wlj SECTION 2 ASSEMBLY BILL 45 disbursement and the suspected financial exploitation, that the requested transaction or disbursement may result in financial exploitation of a vulnerable adult.
2.
The broker-dealer or investment adviser does all of the following:
a.
As soon as possible, but not more than 2 business days after it first delays the requested transaction or disbursement, provides written notification of the delay and the reason for the delay to all parties authorized to transact business on the account, except to any party reasonably suspected to have engaged in or attempted financial exploitation of the vulnerable adult.
b.
As soon as possible, but not more than 2 business days after it first delays the requested transaction or disbursement, notifies the division, an adult-at-risk agency, an elder-adult-at-risk agency, or a law enforcement agency, or any combination of these.
(b) The division may, by rule, establish additional guidelines for the delay of a transaction or disbursement under par.
(a).
(c) Upon request by the division or agency to which a broker-dealer or investment adviser provided notice under par.
(a) 2.
b., the broker-dealer or investment adviser shall provide to the division or agency the results of any continued internal review of the suspected financial exploitation conducted after the notice under par.
(a) 2.
b.
was provided.
(d) Any delay of a transaction or disbursement under this subsection expires on the earlier of the following:
1.
A determination by the broker-dealer or investment adviser that the transaction or disbursement is not reasonably likely to result in financial exploitation of the vulnerable adult.
- 2022 Legislature - 6 - LRB-0551/1 ARG:wlj ASSEMBLY BILL 45 SECTION 2 2.
Fifteen business days after the date on which the broker-dealer or investment adviser first delayed the transaction or disbursement of the funds, unless the division or agency to which notice was provided under par.
(a) 2.
b.
requests that the broker-dealer or investment adviser extends the delay, in which case the delay shall expire no more than 25 business days after the date on which the broker-dealer or investment adviser first delayed the transaction or disbursement of the funds unless it is otherwise terminated or extended by the division or court order.
(e) A court may enter an order extending the delay of the transaction or disbursement of funds or an order granting other protective relief based on the petition of the division, an agency to which notice was provided under par.
(a) 2.
b., the broker-dealer or investment adviser that initiated the delay under this subsection, or any other interested party.
(4) LIST OF AUTHORIZED CONTACTS.
A broker-dealer or investment adviser may offer to a vulnerable adult the opportunity to submit and periodically update a list of persons that the vulnerable adult authorizes to be contacted if a qualified individual reasonably suspects that financial exploitation of the vulnerable adult may have occurred, may have been attempted, or is being attempted.
(5) IMMUNITY FROM LIABILITY.A broker-dealer, investment adviser, or qualified individual that, in good faith and exercising reasonable care, complies with subs.
(2) and (3) is immune from liability for such conduct.
(6) LAW ENFORCEMENT ACCESS TO RECORDS;
STATUS REPORTS OF INVESTIGATION.
(a) If a broker-dealer or investment adviser has reasonable cause to suspect that financial exploitation of a vulnerable adult may have occurred, may have been attempted, or is being attempted, any investigating law enforcement agency has the same privilege to obtain, from the broker-dealer or investment adviser, financial LRB-0551/1 - 2022 Legislature - 7 - ARG:wlj SECTION 2 ASSEMBLY BILL 45 records and other information related to the suspected financial exploitation that an elder-adult-at-risk agency has under s.
46.90 (5) (b) 6.
(b) After a broker-dealer or investment adviser has provided notice to the division or an agency under sub.
(3) (a) 2.
b., the division or agency receiving the notice may, notwithstanding any other provision of law, disclose to the broker-dealer or investment adviser information relating to the status or results of any investigation arising from the notice.
SECTION 3.
551.508 (1m) (a) and (c) of the statutes are amended to read:
551.508 (1m) (a) If a person is convicted of a crime under sub.
(1) and the crime is committed against another person who is at least 65 years of age a vulnerable adult when the crime is committed, for each such offense the maximum fine prescribed under sub.
(1) may be increased by not more than $5,000 and the maximum term of imprisonment prescribed under sub.
(1) may be increased by not more than 5 years.
(c) It is no defense to the enhancement of penalties under this subsection that the person convicted did not know the age of that the victim was a vulnerable adult or reasonably believed that the victim was not at least 65 years of age a vulnerable adult.
SECTION 4.
551.603 (4) (a) and (c) of the statutes are amended to read:
551.603 (4) (a) In any action under this section, if the court imposes a civil penalty under sub.
(2) (b) 3.
for any violation against another person who is at least 65 years of age a vulnerable adult when the violation occurs, for each such violation the civil penalty prescribed under sub.
(2) (b) 3.
for a single violation may be increased by not more than $5,000 and the maximum civil penalty for more than one violation may be increased by not more than $250,000.
- 2022 Legislature - 8 - LRB-0551/1 ARG:wlj ASSEMBLY BILL 45 S ECTION 4 (c) It is no defense to the enhancement of civil penalties under this subsection that the defendant did not know the age of the victim was a vulnerable adult or reasonably believed that the victim was not at least 65 years ofa vulnerable adult.
S ECTION 5.
551.604 (4) of the statutes is amended to read:
551.604 (4) C IVIL PENALTYIn a final order under sub.
(3), the administrator may impose a civil penalty in the form of an administrative assessment up to $5,000 for a single violation or up to $250,000 for more than one violation except that, if the violation is committed against another person who is at least 65 years of age vulnerable adult when the violation occurs, for each such violation the civil penalty may be up to $10,000 for a single violation or up to $500,000 for more than one violation.
It is no defense to the enhancement of civil penalties under this subsection that the defendant did not know the age of that the victim was a vulnerable adult or reasonably believed that the victim was not at least 65 years of age a vulnerable adult.
S ECTION 60Initial applicability.
(1) P ENALTY ENHANCEMENT.
The treatment of ss.
551.508 (1m) (a) and (c), 551.603 (4) (a) and (c), and 551.604 (4) first applies to violations committed on the effective date of this subsection.
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Action History

  1. Failed to concur in pursuant to Senate Joint Resolution 1

  2. Read first time and referred to committee on Financial Institutions and Revenue

  3. Received from Assembly

  4. Ordered immediately messaged

  5. Read a third time and passed

  6. Rules suspended

  7. Ordered to a third reading

  8. Assembly Amendment 1 adopted

  9. Read a second time

  10. Representative Subeck added as a coauthor

  11. Placed on calendar 5-11-2021 by Committee on Rules

  12. Referred to committee on Rules

  13. Report passage as amended recommended by Committee on Criminal Justice and Public Safety, Ayes 13, Noes 1

  14. Report Assembly Amendment 1 adoption recommended by Committee on Criminal Justice and Public Safety, Ayes 8, Noes 6

  15. Executive action taken

  16. Representative Stubbs added as a coauthor

  17. Representative Bowen added as a coauthor

  18. Public hearing held

  19. Assembly Amendment 1 offered by Representative Macco

  20. Representative James added as a coauthor

  21. Read first time and referred to Committee on Criminal Justice and Public Safety

  22. Introduced by Representatives Macco, Wittke, Armstrong, Cabral-Guevara, Callahan, Dittrich, Edming, Horlacher, Katsma, Kerkman, Knodl, Kuglitsch, Magnafici, Milroy, Murphy, Petryk, Ramthun, Skowronski, Snyder, Steffen, Summerfield, Tranel and Zimmerman; cosponsored by Senators Testin, Carpenter, Ballweg, Felzkowski, Feyen, Jacque, Marklein and L. Taylor

Sponsors

Sponsorship breakdown

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23 sponsors · 0 co-sponsors · 109 not signed on

Sponsors (23)

Co-sponsors (0)

None.

Not signed on (109)

109 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

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Frequently asked questions

Who sponsors AB 45?
AB 45 is sponsored by Zimmerman, Shannon (Republican), Tranel, Travis (Republican), Summerfield, Rob (Republican), Steffen, David (Republican), Snyder, Patrick (Republican), Skowronski, Ramthun, Petryk, Murphy, David (Republican), Milroy, Magnafici, Kuglitsch, Knodl, Daniel (Republican), Kerkman, Katsma, Horlacher, Edming, Dittrich, Barbara (Republican), Callahan, Calvin (Republican), Cabral-Guevara, Rachael (Republican), Armstrong, David (Republican), Wittke, Robert (Republican), and Macco.
What is the current status of AB 45?
This bill died with 2021-2022 Regular Session. It reached “To Executive” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 45?
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