[Congressional Record Volume 168, Number 78 (Tuesday, May 10, 2022)]
[House]
[Pages H4744-H4746]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
EMPOWERING STATES TO PROTECT SENIORS FROM BAD ACTORS ACT
Mr. GARCIA of Illinois. Madam Speaker, I move to suspend the rules
and pass the bill (H.R. 5914) 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, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 5914
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 (15 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,
[[Page H4745]]
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.''.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from
Illinois (Mr. Garcia) and the gentleman from Arkansas (Mr. Hill) each
will control 20 minutes.
The Chair recognizes the gentleman from Illinois.
General Leave
Mr. GARCIA of Illinois. Madam Speaker, I ask unanimous consent that
all Members may have 5 legislative days within which to revise and
extend their remarks on this legislation and to insert extraneous
material thereon.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Illinois?
There was no objection.
Mr. GARCIA of Illinois. Madam Speaker, I yield myself such time as I
may consume.
Madam Speaker, I rise to voice my support for H.R. 5914, the
Empowering States to Protect Seniors from Bad Actors Act. I thank Mr.
Gottheimer for introducing this legislation that provides grants to
State securities regulators to support programs that protect senior
investors. I also thank Mr. McHenry, the minority spokesperson, for
working with us on this important bill.
Madam Speaker, seniors are particularly vulnerable to investment
frauds, scams, and deceptive practices. In October of last year, in its
annual report on elder fraud and abuse, the Department of Justice
reported that in 2020 alone, seniors suffered over $1 billion in
financial losses due to fraud.
State securities and insurance regulators are on the front lines of
protecting our investors. The SEC, with the support of its Investor
Advocate and Division of Enforcement, is well placed to evaluate and
administer grant programs to bolster State regulators' efforts to
better protect senior investors.
This bill is widely supported by investor advocates and State
securities regulators, including the North American Securities
Administrators Association, the Consumer Federation of America, Public
Citizen, and the CFA Institute.
Madam Speaker, I, again, thank Members on both sides for coming
together on this bill, and I urge its passage.
Madam Speaker, I reserve the balance of my time.
Mr. HILL. Madam Speaker, I yield myself such time as I may consume.
I rise today in support of H.R. 5914, the Empowering States to
Protect Seniors from Bad Actors Act. I thank the gentleman from New
Jersey (Mr. Gottheimer), my friend, for his work on this important
legislation.
Protecting investors, especially the most vulnerable to financial
crimes and fraud, is a bipartisan effort. In the great State of
Arkansas, our seniors make up 17.4 percent of our population and,
across the Nation, with 54 million seniors over the age of 65, senior
investors are a frequent target of investment fraudsters.
It is especially important that we protect this population against
fraud and punish bad actors, especially since these investors are
largely on fixed incomes, living on their savings.
H.R. 5914 better equips State securities regulators and their
enforcement and investigative arms to pursue, punish, and deter
financial crimes and fraud committed against our seniors.
With this being a new grant program, important provisions have been
included that require an interim and final report to the Congress. This
will allow us to determine the effectiveness of this program before it
is renewed.
I urge colleagues on both sides of the aisle to support this
legislation, and I reserve the balance of my time.
Mr. GARCIA of Illinois. Madam Speaker, I yield 2 minutes to the
gentlewoman from Texas (Ms. Garcia).
[[Page H4746]]
Ms. GARCIA of Texas. Madam Speaker, I rise today in support of my
colleague from New Jersey Mr. Gottheimer's bill, H.R. 5914, the
Empowering States to Protect Seniors from Bad Actors Act, of which I am
a proud cosponsor.
Increasingly, senior investors and consumers have become the target
of financial exploitation. Sadly, one in five older Americans have been
victimized by financial fraud.
Madam Speaker, in today's world of technology and telemarketing calls
and robocalls, it is only getting worse.
I can tell you, Madam Speaker, that I have had many lives in my life.
I am like a cat. The first life I had was as a geriatric social worker.
I saw it back then, but it was a little bit different. Now, with
technology and all the high-tech things that one can do, it gets worse
and worse. The numbers are getting higher, and the dollar values are
getting higher.
Protecting seniors from financial exploitation is critical to
ensuring that seniors can maintain a secure retirement.
This bill will help do that. It creates a senior investor protection
grant program to be implemented by the Securities and Exchange
Commission, which will work closely with State securities regulators to
protect older investors and educate seniors about financial matters and
financial scams.
Madam Speaker, I thank Chairwoman Waters and Representative
Gottheimer for bringing this bipartisan bill before us today. I urge my
colleagues to vote ``yes'' on this bill, and I look forward to seeing
it come to fruition.
Mr. HILL. Madam Speaker, let me again urge our colleagues to provide
support for this bill.
Madam Speaker, I yield back the balance of my time.
Mr. GARCIA of Illinois. Madam Speaker, I yield myself the balance of
my time.
Madam Speaker, this is a strongly bipartisan bill aimed to strengthen
senior investment protection programs at our States' securities and
insurance regulators. It will help protect millions of seniors who are
vulnerable to scams and fraudsters.
I thank Mr. Gottheimer for his leadership on this bill, and I yield
back the balance of my time.
The SPEAKER pro tempore. The question is on the motion offered by the
gentleman from Illinois (Mr. Garcia) that the House suspend the rules
and pass the bill, H.R. 5914, as amended.
The question was taken.
The SPEAKER pro tempore. In the opinion of the Chair, two-thirds
being in the affirmative, the ayes have it.
Mr. ROY. Madam Speaker, on that I demand the yeas and nays.
The SPEAKER pro tempore. Pursuant to section 3(s) of House Resolution
8, the yeas and nays are ordered.
Pursuant to clause 8 of rule XX, further proceedings on this motion
are postponed.
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