[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4371 Introduced in Senate (IS)]
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118th CONGRESS
2d Session
S. 4371
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
May 21, 2024
Mr. Van Hollen (for himself and Mr. Warnock) 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. FINDINGS.
Congress finds the following:
(1) Data from the Federal Trade Commission shows that
consumers reported losing--
(A) more than $10,000,000,000 to fraud in 2023,
marking--
(i) the first time that fraud losses have
exceeded that amount; and
(ii) a 14 percent increase over those
reported losses in 2022; and
(B) more money to investment scams (specifically,
more than $4,600,000,000) than any other category in
2023, which represents a 21 percent increase over those
reported losses in 2022.
(2) Data from AARP, published in 2023, shows that 9 out of
10 adults in the United States encountered a fraud attempt in
the past year.
(3) In 2021, AARP found that servicemembers are nearly 40
percent more likely to lose money to scams and fraud than
civilians.
(4) For decades, State securities and insurance regulators
have been leaders in the effort to protect older and sometimes
vulnerable adults, including veterans, from financial
exploitation.
SEC. 3. 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.
``(b) Grant Program.--
``(1) In general.--The Commission shall carry out a program
under which the Commission 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.
``(2) Authority of commission.--
``(A) Public information.--In carrying out
paragraph (1), the Commission shall make public
relevant actions of the Commission relating to carrying
out that paragraph.
``(B) Sense of congress.--It is the sense of
Congress that, in carrying out paragraph (1), the
Commission should use the authority of the Commission
under section 4A of the Securities Exchange Act of 1934
(15 U.S.C. 78d-1) to delegate the functions of the
Commission under paragraph (1) to an employee or
employee board that has experience working with or for
State regulators on issues relating to the protection
of senior investors, including such investors who are
vulnerable.
``(c) Applications.--An eligible entity desiring a grant under this
section shall submit an application to the Commission, in such form and
in such a manner as the Commission 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 Commission determines
appropriate.
``(d) Performance Objectives; Reporting Requirements; Audits.--
``(1) In general.--The Commission--
``(A) may establish such performance objectives and
reporting requirements for eligible entities receiving
a grant under this section as the Commission 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
Commission 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 Commission
may require.
``(2) Report.--Not later than 2 years, and again not later
than 5 years, after the date of enactment of the Empowering
States to Protect Seniors from Bad Actors Act, the Commission
shall submit to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services
of the House of Representatives 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 Commission of
the effectiveness of such grants.
``(3) Audits.--The Commission 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) Amount of Grants.--The amount of a grant to an eligible
entity under this section may not exceed $500,000 each year, unless the
eligible entity serves as both the securities commission (or any agency
or office performing like functions), or the insurance department (or
any agency or office performing like functions), of a State, in which
case the maximum amount of the grant may not exceed $1,000,000 each
year.
``(f) Subgrants.--An eligible entity that receives a grant under
this section may, in consultation with the Commission, make a subgrant,
as the eligible entity determines is necessary or appropriate--
``(1) to carry out the activities described in subsection
(b)(1)(A); and
``(2) which may not be used for any activity described in
subsection (b)(1)(B).
``(g) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this section $10,000,000 for each of fiscal
years 2025 through 2030.''.
(b) Conforming Amendment.--The table of contents in section 1(b) of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (Public
Law 111-203) 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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