BILL ANALYSIS
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|SENATE RULES COMMITTEE | SB 1018|
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UNFINISHED BUSINESS
Bill No: SB 1018
Author: Simitian (D), et al
Amended: 7/13/05
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE : 4-0, 4/19/05
AYES: Alquist, Cedillo, Migden, Perata
NO VOTE RECORDED: Poochigian, Margett, Romero
SENATE JUDICIARY COMMITTEE : 4-2, 5/3/05
AYES: Dunn, Cedillo, Figueroa, Kuehl
NOES: Morrow, Ackerman
NO VOTE RECORDED: Escutia
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SENATE FLOOR : 24-14, 5/26/05
AYES: Alarcon, Alquist, Bowen, Cedillo, Chesbro, Ducheny,
Dunn, Escutia, Figueroa, Florez, Kehoe, Kuehl, Lowenthal,
Machado, Migden, Ortiz, Perata, Romero, Scott, Simitian,
Soto, Speier, Torlakson, Vincent
NOES: Aanestad, Ackerman, Ashburn, Campbell, Cox, Denham,
Dutton, Hollingsworth, Maldonado, Margett, McClintock,
Morrow, Poochigian, Runner
NO VOTE RECORDED: Battin, Murray
ASSEMBLY FLOOR : 59-12, 7/13/05 - See last page for vote
SUBJECT : Mandated reporters: elder and dependent adult
financial
abuse
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SOURCE : County Welfare Directors Association of
California
California State Sheriffs Association
DIGEST : This bill enacts the Financial Elder Abuse
Reporting Act of 2005. This bill, from January 1, 2007
until January 1, 2013, makes all officers and employees of
banks, federal and state credit unions and their affiliates
who suspect financial elder or dependent adult abuse, as
specified, mandated reporters of suspected financial abuse
of elders and dependent adults. This bill makes a failure
by a mandated reporter to report suspected financial abuse
of an elder or dependent adult subject to civil penalties
currently imposed on other mandated reporters of elder or
dependent adult abuse, and makes such penalties payable by
the employer financial institution.
Assembly Amendments (1) make the provisions, relative to
mandated reporting time specific beginning January 1, 2007
and sunsetting January 1, 2013, (2) include in the mandated
reporting officers and employees of specified financial
institutions, and (3) add co-authors.
ANALYSIS : Existing law, the Elder and Dependent Adult
Civil Protection Act (Act), is a comprehensive statutory
scheme enacted to prevent elder and dependent adult abuse
and neglect and to prosecute those that inflict that abuse
or neglect on elders and dependent adults. The Act and
other related provisions:
1. Requires mandated reporters who observes or has
knowledge of elder or dependent adult physical or
financial abuse or neglect, or is told by the elder or
dependent adult that he/she has experienced abuse, to
immediately report the known or suspected abuse, as
specified.
2. Defines "mandated reporter" as any person who is a
provider of care to the elder or dependent adult, a
health practitioner, clergy member, employee of county
adult protective services or a local law enforcement and
custody.
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3. Provides that a mandated reporter's failure to report
elder or dependent adult abuse is a misdemeanor,
punishable by imprisonment in county jail for up to six
months or a fine not to exceed $1,000 or by both, and if
the failure to report results in death or great bodily
injury the punishment is imprisonment in county jail for
up to one year or a fine not to exceed $5,000 or both.
4. Provides that mandated reporters are immune from
criminal or civil liability as a result of any report of
any known or suspected abuse of an elder or dependent
adult, unless it can be proven that a false report was
made and the person knew the report was false.
5. Allows, but does not require, any person who is not a
mandated reporter and who suspects an elder or dependent
adult has been the victim of abuse to report the same to
a long-term care ombudsman program or local law
enforcement agency when the abuse is alleged to have
occurred in a long-term facility, or to the county adult
protective services agency when the suspected abuse has
occurred elsewhere.
6. Authorizes various agencies, including investigators
from adult protective services, local law enforcement,
the Bureau of Medi-Cal Fraud, and the Department of
Consumer Affairs, to receive information relevant to an
incident of elder or dependent adult abuse.
7. Requires the county adult protective services to provide
humane societies, fire departments, and environmental
health and building code enforcement offices with
instructional materials regarding elder and dependent
adult abuse and neglect.
8. Defines "financial abuse" of an elder or dependent adult
as the taking, secreting, appropriation, or retention of
real or personal property of the elder or dependent
adult to a wrongful use or with intent to defraud, or
both or assisting another person in the above
activities, and deems the taking, secreting,
appropriating, or retaining of property for a wrongful
use if it is done in bad faith, as defined. [Section
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15600 et seq. of the Welfare and Institutions Code]
This bill establishes the Financial Elder Abuse Reporting
Act of 2005 which extends mandated reporting requirements
for financial abuse of an elder or dependent adult to all
officers and employees of certain financial institutions.
Specifically, this bill:
1. Defines "mandated reporter of suspected financial abuse
of an elder or dependent adult" as all officers and
employees of financial institutions.
2. Defines "financial institution" as a depository
institution, an institution-affiliated party, or a
federal, state, or institution-affiliated party credit
union.
3. Incorporates the existing definition of "financial
abuse" in Section 15610.30 of the Welfare and
Institutions Code, which states that financial abuse of
an elder or dependent adult occurs when a person or
entity does any of the following:
A. Takes, secretes, appropriates, or retains real or
personal property of an elder or dependent adult to a
wrongful use or with intent to defraud, or both.
B. Assists in taking, secreting, appropriating, or
retaining real or personal property of an elder or
dependent adult to a wrongful use or with intent to
defraud, or both.
4. Specifies that any mandated reporter of suspected
financial abuse of an elder or dependent adult who has
direct contact with the elder or dependent adult or who
reviews or approves the elder's or dependent adult's
financial documents, records, or transactions in
connection with providing financial services with
respect to an elder or dependent adult, and who within
the scope of his or her employment and professional
practice, has observed or has knowledge of an incident,
that is directly related to the transaction or matter
that is within that scope of practice, that reasonably
appears to be financial abuse, or who reasonably
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suspects that abuse based upon the information before
him/her standing alone, shall report the known or
suspected instance of financial abuse by (a) telephone
immediately, or as soon as practicably possible, and (b)
written report sent within two working days to the local
adult protective services (APS) agency, or the local law
enforcement agency.
5. Specifies that an allegation by the elder or dependent
adult, or any other person, that financial abuse has
occurred is not sufficient to trigger the reporting
requirement if both of the following conditions are met:
A. The mandated reporter is aware of no other
corroborating or independent evidence of the alleged
abuse.
B. In the exercise of his/her professional judgment,
the mandated reporter reasonably believes that the
abuse did not occur.
6. Provides that a mandated reporter of suspected financial
abuse of an elder or dependent adult who fails to report
financial abuse shall be subject to a civil penalty not
exceeding $1,000. If the failure to report is willful,
the civil penalty may be up to $5,000.
7. Specifies that the civil penalty shall be paid by the
financial institution who is the employer of the
mandated reporter to the party bringing the action.
8. Provides that the foregoing civil penalty shall be
recovered only in a civil action brought against the
financial institution by the Attorney General (AG),
district attorney or county counsel, and that no action
may be brought under this section by any person other
than the AG, district attorney, or county counsel.
Further provides that multiple actions for the civil
penalty may not be brought for the same violation.
9. Provides that the act shall not be construed to limit,
expand, or otherwise modify any civil liability or
remedy which may exist under this or any other law.
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10.Provides that reports under the act are privileged
against defamation liability but are subject to
disclosure as required by law or court order.
11.Specifies that a county APS agency shall provide
mandated reporters of suspected financial abuse of an
elder or dependent adult with instructional materials
regarding elder and dependent adult abuse and neglect,
and their obligation to report such abuse.
12.Delays implementation of this bill for one year, until
January of 2007, and sunsets this bill after six years.
13.Makes additional technical and conforming changes to
related provisions of law.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 8/15/05)
County Welfare Directors Association of California
(co-source)
California State Sheriffs' Association (co-source)
American Association of Retired Persons California
American Federation of State, County, and Municipal
Employees, AFL-CIO
Alameda County Social Services Agency
Alameda County Board of Supervisors
Alzheimer's Association
Area 12 Agency on Aging (Alpine, Amador, Calaveras,
Mariposa, Tuolumne)
Arcadia Health Care (Modesto)
Attorney General Bill Lockyer
Butte County Board of Supervisors
Butte County Department of Employment and Social Services
Calaveras Works and Human Services Agency
California Alliance for Retired Americans
California Association of Area Agencies on Aging
California Association of Public Authorities for In-Home
Supportive Services
California District Attorneys Association
California Legislative Council for Older Americans
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California Police Chiefs Association
California Probation, Parole and Correctional Association
California Professional Firefighters
California Psychiatric Association
California Public Administrator/Public Guardian/Public
Conservator Association
California School Employees Association
California Senior Legislature
California Seniors Coalition
California State Association of Counties
City of Davis Police Chief Jim Hyde
Community Solutions (Modesto)
Congress of California Seniors
Contra Costa County Advisory Council on Aging
Contra Costa County Employment and Human Services
Contra Costa County District Attorney, Robert Kochly
Contra Costa County Sheriff-Coroner, Warren Rupf
El Dorado County Board of Supervisors
El Dorado County Commission on Aging
El Dorado County Sheriff-Coroner-Public Administrator, Jeff
Neves
Glenn County District Attorney, Robert Holzapfel
Gray Panthers California
Humboldt County Board of Supervisors
Humboldt County Department of Health and Human Services,
Social Services Branch
Imperial County Area Agency on Aging
IHSS Consortium (San Francisco)
Inyo County Health and Human Services Department
Junior Leagues of California State Public Affairs Committee
Kings/Tulare Area Agency on Aging
Linkages Site Association
Los Angeles County Board of Supervisors
Los Angeles County District Attorney, Steve Cooley
Marin County Board of Supervisors
Marin County Department of Health and Human Services
Multipurpose Senior Services Program Site Association
National Association of Social Workers, California Chapter
North Coast Opportunities, Area Agency on Aging/Council on
Aging (PSA 26)
Older Women's League
Orange County Council on Aging
Peace Officers Research Association of California
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Professional Fiduciary Association of California
Sacramento County Board of Supervisors
Sacramento Financial Abuse Specialist Team (Sac/FAST)
San Bernardino County Sheriff, Gary S. Penrod
San Diego County Board of Supervisors
San Francisco City and County
San Francisco City and County Aging and Adult Services
Commission
San Francisco City and County District Attorney, Kamala D.
Harris
San Francisco County Human Services Agency
San Joaquin County Commission on Aging
San Luis Obispo County Victim/Witness Program
San Mateo County Board of Supervisors
San Mateo District Attorney, James P. Fox
Santa Clara County Board of Supervisors
Santa Clara County District Attorney, George W. Kennedy
Santa Clara County Victim Witness Assistance Center
Santa Cruz County Board of Supervisors
Service Employees International Union
Siskiyou County Human Services Department
Solano County Board of Supervisors
Solano County Health and Social Services Department
Sonoma County Area Agency on Aging
Sonoma County Board of Supervisors
Sonoma County District Attorney, Stephan R. Passalacqua
Stanislaus County Adult Protective Services
Stanislaus County Supervising Public Administrator
Stanislaus Elder Abuse Prevention Alliance
State Bar Association of California
State Treasurer Philip Angelides
Tehama County Board of Supervisors
Triple-A Council of California
United Domestic Workers of America
Ventura County Adult Abuse Prevention Council
Ventura County Board of Supervisors
Western Addition Senior Services Center, Inc.
Yolo County Board of Supervisors
Yolo County District Attorney, David Henderson
Yolo County Sheriff, E.G. Prieto
Yolo Federal Credit Union
ARGUMENTS IN SUPPORT : The County Welfare Directors
Association of California, sponsor of this bill, writes,
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"The financial service providers listed in the bill are in
a key position to spot financial exploitation and make
timely reports to law enforcement or Adult Protective
Services (APS)?Timely response is critical to preventing
the swift depletion of a victim's lifetime of savings. As
the population of seniors grows, tens of thousands of
elderly as well as dependent adults are increasingly
susceptible to financial exploitation. The results can be
devastating to those on fixed or limited incomes, both
financially and to their health and well-being."
The California District Attorneys Association states, "SB
1018 helps prevent elder financial abuse by mandating
financial institutions, at the frontline of witnessing
financial abuse, to report financial abuses if the abuse
becomes evident in their contacts with, or review of, an
elder's financial matters. Reporters must report only when
both reasonable belief and corroborating evidence indicates
that abuse exists?If abuse is suspected, reports are
directed to an adult protection services agency or law
enforcement agency to conduct a full investigation."
ASSEMBLY FLOOR :
AYES: Arambula, Baca, Bass, Berg, Bermudez, Bogh,
Calderon, Canciamilla, Chan, Chavez, Chu, Coto, Daucher,
De La Torre, Dymally, Emmerson, Evans, Frommer, Garcia,
Goldberg, Hancock, Harman, Jerome Horton, Shirley Horton,
Houston, Jones, Karnette, Klehs, Koretz, La Suer, Laird,
Leno, Leslie, Levine, Lieber, Liu, Matthews, Montanez,
Mountjoy, Mullin, Nation, Nava, Negrete McLeod, Oropeza,
Parra, Pavley, Richman, Ruskin, Saldana, Salinas,
Spitzer, Torrico, Tran, Umberg, Vargas, Wolk, Wyland,
Yee, Nunez
NOES: Aghazarian, DeVore, Haynes, Huff, Keene, La Malfa,
Maze, Nakanishi, Plescia, Sharon Runner, Strickland,
Walters
NO VOTE RECORDED: Benoit, Blakeslee, Cogdill, Cohn,
McCarthy, Niello, Ridley-Thomas, Villines, Vacancy
RJG:mel 8/15/05 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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