[Congressional Record Volume 169, Number 97 (Monday, June 5, 2023)]
[House]
[Pages H2721-H2723]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
NATIONAL SENIOR INVESTOR INITIATIVE ACT OF 2023
Mrs. WAGNER. Mr. Speaker, I move to suspend the rules and pass the
bill (H.R. 2593) to create an interdivisional taskforce at the
Securities and Exchange Commission for senior investors, as amended.
The Clerk read the title of the bill.
The text of the bill is as follows:
H.R. 2593
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 ``National Senior Investor
Initiative Act of 2023'' or the ``Senior Security Act of
2023''.
SEC. 2. SENIOR INVESTOR TASKFORCE.
Section 4 of the Securities Exchange Act of 1934 (15 U.S.C.
78d) is amended by adding at the end the following:
``(l) Senior Investor Taskforce.--
``(1) Establishment.--There is established within the
Commission the Senior Investor Taskforce (in this subsection
referred to as the `Taskforce').
``(2) Director of the taskforce.--The head of the Taskforce
shall be the Director, who shall--
``(A) report directly to the Chairman; and
``(B) be appointed by the Chairman, in consultation with
the Commission, from among individuals--
``(i) currently employed by the Commission or from outside
of the Commission; and
``(ii) having experience in advocating for the interests of
senior investors.
``(3) Staffing.--The Chairman shall ensure that--
``(A) the Taskforce is staffed sufficiently to carry out
fully the requirements of this subsection; and
``(B) such staff shall include individuals from the
Division of Enforcement, Office of Compliance Inspections and
Examinations, and Office of Investor Education and Advocacy.
``(4) No compensation for members of taskforce.--All
members of the Taskforce appointed under paragraph (2) or (3)
shall serve without compensation in addition to that received
for their services as officers or employees of the United
States.
``(5) Minimizing duplication of efforts.--In organizing and
staffing the Taskforce, the Chairman shall take such actions
as may be necessary to minimize the duplication of efforts
within the divisions and offices described under paragraph
(3)(B) and any other divisions, offices, or taskforces of the
Commission.
``(6) Functions of the taskforce.--The Taskforce shall--
``(A) identify challenges that senior investors encounter,
including problems associated with financial exploitation and
cognitive decline;
``(B) identify areas in which senior investors would
benefit from changes in the regulations of the Commission or
the rules of self-regulatory organizations;
``(C) coordinate, as appropriate, with other offices within
the Commission, other taskforces that may be established
within the Commission, self-regulatory organizations, and the
Elder Justice Coordinating Council; and
``(D) consult, as appropriate, with State securities and
law enforcement authorities, State insurance regulators, and
other Federal agencies.
``(7) Report.--The Taskforce, in coordination, as
appropriate, with the Office of the Investor Advocate and
self-regulatory organizations, and in consultation, as
appropriate, with State securities and law enforcement
authorities, State insurance regulators, and Federal
agencies, shall issue a report every 2 years to the Committee
on Banking, Housing, and Urban Affairs and the Special
Committee on Aging of the Senate and the Committee on
Financial Services of the House of Representatives, the first
of which shall not be issued until after the report described
in section 3 of the National Senior Investor Initiative Act
of 2023 has been issued and considered by the Taskforce,
containing--
``(A) appropriate statistical information and full and
substantive analysis;
``(B) a summary of recent trends and innovations that have
impacted the investment landscape for senior investors;
``(C) a summary of regulatory initiatives that have
concentrated on senior investors and industry practices
related to senior investors;
``(D) key observations, best practices, and areas needing
improvement, involving senior investors identified during
examinations, enforcement actions, and investor education
outreach;
``(E) a summary of the most serious issues encountered by
senior investors, including issues involving financial
products and services;
``(F) an analysis with regard to existing policies and
procedures of brokers, dealers, investment advisers, and
other market participants related to senior investors and
senior investor-related topics and whether these policies and
procedures need to be further developed or refined;
``(G) recommendations for such changes to the regulations,
guidance, and orders of the Commission and self-regulatory
organizations and such legislative actions as may be
appropriate to resolve problems encountered by senior
investors; and
``(H) any other information, as determined appropriate by
the Director of the Taskforce.
``(8) Request for reports.--The Taskforce shall make any
report issued under paragraph (7) available to a Member of
Congress who requests such a report.
``(9) Sunset.--The Taskforce shall terminate after the end
of the 10-year period beginning on the date of the enactment
of this subsection.
``(10) Senior investor defined.--For purposes of this
subsection, the term `senior investor' means an investor over
the age of 65.
``(11) Use of existing funds.--The Commission shall use
existing funds to carry out this subsection.''.
SEC. 3. GAO STUDY.
(a) Study.--Not later than 2 years after the date of
enactment of this Act, the Comptroller General of the United
States shall submit to Congress and the Senior Investor
Taskforce the results of a study of financial exploitation of
senior citizens.
(b) Contents.--The study required under subsection (a)
shall include information with respect to--
(1) economic costs of the financial exploitation of senior
citizens--
(A) associated with losses by victims that were incurred as
a result of the financial exploitation of senior citizens;
(B) incurred by State and Federal agencies, law enforcement
and investigatory agencies,
[[Page H2722]]
public benefit programs, public health programs, and other
public programs as a result of the financial exploitation of
senior citizens;
(C) incurred by the private sector as a result of the
financial exploitation of senior citizens; and
(D) any other relevant costs that--
(i) result from the financial exploitation of senior
citizens; and
(ii) the Comptroller General determines are necessary and
appropriate to include in order to provide Congress and the
public with a full and accurate understanding of the economic
costs resulting from the financial exploitation of senior
citizens in the United States;
(2) frequency of senior financial exploitation and
correlated or contributing factors--
(A) information about percentage of senior citizens
financially exploited each year; and
(B) information about factors contributing to increased
risk of exploitation, including such factors as race, social
isolation, income, net worth, religion, region, occupation,
education, home-ownership, illness, and loss of spouse; and
(3) policy responses and reporting of senior financial
exploitation--
(A) the degree to which financial exploitation of senior
citizens unreported to authorities;
(B) the reasons that financial exploitation may be
unreported to authorities;
(C) to the extent that suspected elder financial
exploitation is currently being reported--
(i) information regarding which Federal, State, and local
agencies are receiving reports, including adult protective
services, law enforcement, industry, regulators, and
professional licensing boards;
(ii) information regarding what information is being
collected by such agencies; and
(iii) information regarding the actions that are taken by
such agencies upon receipt of the report and any limits on
the agencies' ability to prevent exploitation, such as
jurisdictional limits, a lack of expertise, resource
challenges, or limiting criteria with regard to the types of
victims they are permitted to serve;
(D) an analysis of gaps that may exist in empowering
Federal, State, and local agencies to prevent senior
exploitation or respond effectively to suspected senior
financial exploitation; and
(E) an analysis of the legal hurdles that prevent Federal,
State, and local agencies from effectively partnering with
each other and private professionals to effectively respond
to senior financial exploitation.
(c) Senior Citizen Defined.--For purposes of this section,
the term ``senior citizen'' means an individual over the age
of 65.
The SPEAKER pro tempore. Pursuant to the rule, the gentlewoman from
Missouri (Mrs. Wagner) and the gentleman from California (Mr. Sherman)
each will control 20 minutes.
The Chair recognizes the gentlewoman from Missouri.
General Leave
Mrs. WAGNER. Mr. Speaker, I ask unanimous consent that all Members
may have 5 legislative days in which to revise and extend their remarks
and include extraneous material on the bill.
The SPEAKER pro tempore. Is there objection to the request of the
gentlewoman from Missouri?
There was no objection.
Mrs. WAGNER. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I rise in support of H.R. 2593, the Senior Security Act.
I am proud to be an original cosponsor of this bill, and I thank my
colleagues from both sides of the aisle, Representatives Gottheimer and
Lawler, for working on this important piece of bipartisan legislation
that will assist in the protection of our senior investors.
Fraud and exploitation of any kind in our capital markets threaten
the integrity of our markets. It is especially problematic when such
fraudulent activity targets senior investors.
According to some reports, around 20 percent of senior investors fall
prey to fraudulent investment schemes. Similar reports show that
seniors lose nearly $3 billion annually from financial fraud and
exploitation.
The Senior Security Act is designed to support and enhance efforts to
protect against and prevent the financial exploitation of senior
investors.
This bill establishes the senior investors task force within the
Securities and Exchange Commission, which must report on industry
trends and serious issues impacting investors over the age of 65. The
task force will also help inform policymaking in Washington by making
recommendations for legislative or regulatory actions to address
problems encountered by our senior investors.
Mr. Speaker, H.R. 2593 has received very strong bipartisan support in
the past, passing by suspension in both the 116th and 117th Congresses.
It remains a sensible solution to ensure that senior investors receive
adequate protection against fraud and exploitation.
For this reason, I urge my colleagues to support H.R. 2593, and I
reserve the balance of my time.
Mr. SHERMAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, I do have a question for the chairwoman of our
subcommittee. We are taking these bills in a different order than I was
told. We are now dealing with H.R. 2593. Will we then return to H.R.
2608 and H.R. 2610?
Mrs. WAGNER. Mr. Speaker, will the gentleman yield for the purpose of
a colloquy?
Mr. SHERMAN. Mr. Speaker, I yield to the gentlewoman from Missouri.
Mrs. WAGNER. Mr. Speaker, I am happy to inform the ranking member
that we may be a bit out of order here. My deepest apologies, and we
will be returning to that order right after this bill is finished.
Mr. SHERMAN. Mr. Speaker, the one person that may be most surprised
by us going out of order is the author of this bill, Mr. Gottheimer. I
know he is on his way now to this floor, so in order for him to get
here before he would have expected to be needed, I will speak very
slowly.
Mr. Speaker, I rise slowly in support of H.R. 2593, the Senior
Security Act sponsored by the gentleman from New Jersey, who is on his
way to this floor right now.
Scams targeting seniors, which can include harassing robocalls and
phone calls impersonating the government, cost older Americans more
than $36 billion a year, according to the National Council on Aging.
According to AARP, these kinds of senior scams have more than doubled
just since 2020.
Financial scams can leave a devastating and lasting impact on our
seniors, causing significant financial loss. Recovering lost funds is a
very challenging process, and in many cases, the money is simply not
retrieved.
Scams also lead to significant emotional distress, resulting in
feelings of embarrassment, guilt, shame, and a diminished sense of
self-worth. The emotional impact can exacerbate health conditions or
lead to depression and anxiety. Once scammed, seniors might lose trust
in people, which can lead to further isolation and reluctance to seek
help.
Mr. Gottheimer's bill takes key steps to help protect older Americans
nationwide from getting scammed out of their hard-earned money by
establishing a senior investor task force within the SEC. This task
force must report on topics relating to investors over the age of 65
and make recommendations for actions to address problems encountered by
senior investors.
I will also point out that this is important for our capital markets
and for companies trying to raise money because every time a senior is
subject to one of these scams, others become less interested in
investing, and we need Americans to feel that they are protected and
not cheated when they invest in stocks, bonds, and our capital markets.
Mr. Speaker, I urge my colleagues to support this bill. I am pleased
that the gentleman from New Jersey has arrived, and I reserve the
balance of my time.
Mrs. WAGNER. Mr. Speaker, I, too, am pleased to see that the author
of the bill, the gentleman from New Jersey (Mr. Gottheimer), is here to
speak on his very fine piece of legislation that we are all supportive
of, in a bipartisan manner, H.R. 2593, and I reserve the balance of my
time.
Mr. SHERMAN. Mr. Speaker, I yield such time as he may consume to the
gentleman from New Jersey (Mr. Gottheimer), the author of this bill.
Mr. GOTTHEIMER. Mr. Speaker, I rise in support of my bipartisan bill,
the Senior Security Act, to help protect vulnerable seniors who are
being targeted by fraudsters who seek to take financial advantage of
them.
I first thank my colleague, Republican Congresswoman Ann Wagner, for
her friendship and her leadership. I am very grateful for her continued
fight to have the backs of our seniors.
Mr. Speaker, I also thank Senators Sinema and Collins, who have
introduced the companion legislation to the Senior Security Act in the
United States Senate.
This legislation builds on Congresswoman Wagner's and my previous
[[Page H2723]]
work this Congress when we advanced the Financial Exploitation
Prevention Act that would give asset managers more tools to prevent
suspected financial exploitation of seniors and vulnerable adults.
Since I took office, I have been committed to helping seniors save
their hard-earned money for retirement, help cut their taxes, afford
prescription drugs, and protect Social Security and Medicare so that,
at the end of the day, they can afford to stay where I live in northern
New Jersey and enjoy their lives with their friends, children, and
grandchildren.
Unfortunately, far too many of our seniors have had their hard-earned
retirement savings stolen right out from under them when a scammer
calls or shows up at their door. Millions of seniors across the
country, including my own late mother, have been the victims of
financial scams, and far too many have been cheated out of their
retirement savings.
It is appalling. It is offensive. It is simply unacceptable. These
senior scams cost older Americans more than $36 billion a year, often
hitting their retirement nest eggs, not to mention the pain and anxiety
you can't put a dollar figure on. Plus, senior scams have more than
doubled since 2020.
We are here today to do something about it by advancing the Senior
Security Act to help protect American seniors from these shameless
criminals.
This bipartisan bill would create a senior investor task force at the
Securities and Exchange Commission that will exclusively focus on how
seniors are being targeted by fraudsters who seek to take financial
advantage of them.
Every 2 years, the task force will be required to submit a report to
Congress outlining trends and innovations, like robocalls and voice
spoofing, that are impacting senior investors, helping us stay ahead of
changes in financial scams as they arise.
Everyone should know they are incredibly sophisticated now. Literally
through AI and other spoofing, it sounds like someone's grandchild
calling when they scam them.
The task force will give law enforcement stronger tools and
information. The task force will coordinate with other Federal
regulators, State regulators, and law enforcement to ensure we are
doing as much as we can at every level of government to stop hucksters
from scamming our seniors. The task force will be a cop on the beat to
make sure we keep up with the changes in financial scams and, again,
stay ahead of new issues.
Our seniors have given us so much. We should always have their backs,
look out for them, and help protect them from predators and innovative
scammers who want to take advantage of them.
Mr. Speaker, I urge my colleagues to support this commonsense,
bipartisan legislation, the Senior Security Act. I thank my colleagues
and Congresswoman Wagner, again, for her friendship and her leadership.
Mrs. WAGNER. Mr. Speaker, I strongly urge all of my colleagues to
support H.R. 2593, and I reserve the balance of my time.
Mr. SHERMAN. Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this bill passed in committee 49-0. Our seniors are
particularly vulnerable to financial scams. As Members of Congress, we
must work to find effective ways to protect seniors from scamsters and
fraudsters.
Mr. Gottheimer's bill, a bill I commend him for drafting and one
that, once again, got 49 votes to 0 in our committee--I commend him for
crafting this legislation.
Mr. Speaker, I urge my colleagues to support the bill, and I yield
back the balance of my time.
Mrs. WAGNER. Mr. Speaker, once again, I urge all my colleagues to
support H.R. 2593, a wonderful piece of bipartisan legislation that is
going to help our seniors have the kind of financial security that they
need going forward.
Mr. Speaker, I yield back the balance of my time.
Ms. JACKSON LEE. Mr. Speaker, I rise today in support of H.R. 2593,
the Senior Security Act of 2023.
This bill establishes the Senior Investor Taskforce within the
Securities and Exchange Commission.
The taskforce must report on topics relating to investors over the
age of 65, including industry trends and serious issues impacting such
investors, and make recommendations for legislative or regulatory
actions to address problems encountered by senior investors.
The Government Accountability Office must report on the financial
exploitation of senior citizens.
The proposed taskforce would do the following:
A) identify challenges that senior investors encounter, including
problems associated with financial exploitation and cognitive decline;
B) identify areas in which senior investors would benefit from
changes in the regulations of the Commission or the rules of self-
regulatory organizations;
C) coordinate, as appropriate, with other offices within the
Commission, other taskforces that may be established within the
Commission, self-regulatory organizations, and the Elder Justice
Coordinating Council; and
D) consult, as appropriate, with State securities and law enforcement
authorities, State insurance regulators, and other Federal agencies.
The Government Accountability Office Study will observe the economic
costs, frequency, and policy responses of the financial exploitation of
senior citizens.
The Taskforce and the study that it will conduct is important because
it will help prevent the financial exploitation of senior citizens.
The Taskforce and its study could also inspire legislation to prevent
the financial exploitation of senior citizens.
The SPEAKER pro tempore. The question is on the motion offered by the
gentlewoman from Missouri (Mrs. Wagner) that the House suspend the
rules and pass the bill, H.R. 2593, as amended.
The question was taken; and (two-thirds being in the affirmative) the
rules were suspended and the bill, as amended, was passed.
A motion to reconsider was laid on the table.
____________________