HB 3921

85(R) - 2017
House Investments & Financial Services
Senate Business & Commerce
House Investments & Financial Services
Senate Business & Commerce

Vote Recommendation

  • Neutral
  • Neutral
  • Negative
  • Negative
  • Neutral


Tan Parker


Kelly Hancock

Bill Caption

Relating to the financial exploitation of vulnerable adults. 

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

This bill would require employees of financial institutions to report on financial exploitation of a vulnerable adult if they have good cause to believe that financial exploitation is occurring. The financial institution would be compelled to assess the suspected financial exploitation and submit a report to the Department of Family and Protective Services, in the same manner as, and containing the same information required to be reported under the Human Resources Code regarding abuse, neglect, and exploitation of an elderly person. It also requires the institutions to create their own internal policies for reporting financial exploitation, notifying third parties associated with the adult, and procedures for temporarily holding transactions of certain vulnerable adults.

HB 3921 would also authorize ‚Äúsecurities professionals‚ÄĚ under the adult protective services division to protect vulnerable adults, by providing procedures for them to notify certain dealers, investment advisers, and assessing a potential situation of financial exploration. They would be required to file certain reports with various state agencies, and would have the authority to place a temporary hold on any transaction that involves suspected financial exploitation.  

The bill establishes that this hold expires on the 10th business day after the date the financial institution, or the dealer or investment adviser submits the reports but authorizes the dealer or investment adviser to extend such a hold for a period not to exceed 30 business days after the expiration of the prescribed period if requested by a state or federal agency or a law enforcement agency investigating the suspected financial exploitation.

Financial institutions and their employees, and security professionals that act in good faith towards reporting, or lack thereof, would be immune from civil or criminal liabilities. 

Vote Recommendation Notes

We would have no objection to making it clear that financial exploitation of a vulnerable adult is a crime; however, it should not fall to the financial institutions to report, investigate, and enforce. This is a matter for law enforcement and the judicial system who have the clear authority to act and investigate. For these reasons, we oppose HB 3921.

Organizations Supporting

Center for Public Policy Priorities
Independent Bankers Association of Texas
JP Morgan Chase
Texas Appleseed
Texas Association of Life and Health Insurers
Texas Bankers Association