[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.

                          ____________________