BILL NUMBER: AB 1525	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 22, 2012

INTRODUCED BY   Assembly Members Allen and Alejo
   (Principal coauthor: Senator Pavley)

                        JANUARY 19, 2012

   An act to amend Section 15630.1 of the Welfare and Institutions
Code, relating to elder or dependent adult financial abuse.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1525, as amended, Allen. Elder or dependent adult financial
abuse: mandated reporters.
   Existing law requires a mandated reporter of suspected financial
abuse of an elder or dependent adult to report the known or suspected
instance of financial abuse to specified entities. Existing law
defines a mandated reporter for these purposes as an employee or
officer of a financial institution, as defined. Existing law imposes
civil penalties for the failure to report financial abuse, and
requires these civil penalties to be recovered in a civil action
brought against the financial institution by the Attorney General,
district attorney, or county counsel.
   This bill would include a person or entity engaged in money
transmission, as defined, in the definition of a mandated reporter of
suspected financial abuse of an elder or dependent adult.
   This bill also would make various technical and conforming
changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 15630.1 of the Welfare and Institutions Code is
amended to read:
   15630.1.  (a) As used in this section, the following definitions
apply:
    (1) "Financial abuse" means financial abuse as defined in Section
15610.30.
   (2)  "Financial   "Financial 
institution" means any of the following:
   (A) A depository institution, as defined in Section 3(c) of the
Federal Deposit Insurance Act (12 U.S.C. Sec. 1813(c)).
   (B) An institution-affiliated party, as defined in Section 3(u) of
the Federal Deposit Insurance Act (12 U.S.C. Sec. 1813(u)).
   (C) A federal credit union or state credit union, as defined in
Section 101 of the Federal Credit Union Act (12 U.S.C. Sec. 1752),
including, but not limited to, an institution-affiliated party of a
credit union, as defined in Section 206(r) of the Federal Credit
Union Act (12 U.S.C. Sec. 1786(r)).
   (3) "Mandated reporter of suspected financial abuse of an elder or
dependent adult" means either of the following:
   (A) An officer or employee of a financial institution.
   (B) A money transmitter.
   (4) "Money transmitter" means a person or entity engaged in
 money transmission as defined in subdivision (o) of Section
2003 of the Financial Code.   either of the following:
 
   (A) Selling or issuing payment instruments, as defined in
subdivision (q) of Section 2003 of the Financial Code.  
   (B) Receiving money for transmission, as defined in subdivision
(s) of Section 2003 of the Financial Code. 
   (b) (1) 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 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
or 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 employment or professional practice, that
reasonably appears to be financial abuse, or who reasonably suspects
that abuse, based solely on the information before him or her at the
time of reviewing or approving the document, record, or transaction
in the case of mandated reporters who do not have direct contact with
the elder or dependent adult, shall report the known or suspected
instance of financial abuse by telephone or through a confidential
Internet reporting tool, as authorized pursuant to Section 15658,
immediately, or as soon as practicably possible. If reported by
telephone, a written report shall be sent, or an Internet report
shall be made through the confidential Internet reporting tool
established in Section 15658, within two working days to the local
adult protective services agency or the local law enforcement agency.

   (2) When two or more mandated reporters jointly have knowledge or
reasonably suspect that financial abuse of an elder or a dependent
adult for which the report is mandated has occurred, and when there
is an agreement among them, the telephone report or Internet report,
as authorized by Section 15658, may be made by a member of the
reporting team who is selected by mutual agreement. A single report
may be made and signed by the selected member of the reporting team.
Any member of the team who has knowledge that the member designated
to report has failed to do so shall thereafter make that report.
   (3) If the mandated reporter knows that the elder or dependent
adult resides in a long-term care facility, as defined in Section
15610.47, the report shall be made to the local ombudsman or local
law enforcement agency.
   (c) 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 under this section if both of the
following conditions are met:
   (1) The mandated reporter of suspected financial abuse of an elder
or dependent adult is aware of no other corroborating or independent
evidence of the alleged financial abuse of an elder or dependent
adult. The mandated reporter of suspected financial abuse of an elder
or dependent adult is not required to investigate any accusations.
   (2) In the exercise of his or her professional judgment, the
mandated reporter of suspected financial abuse of an elder or
dependent adult reasonably believes that financial abuse of an elder
or dependent adult did not occur.
   (d) Failure to report financial abuse under this section shall be
subject to a civil penalty not exceeding one thousand dollars
($1,000) or if the failure to report is willful, a civil penalty not
exceeding five thousand dollars ($5,000), which shall be paid by the
financial institution that is the employer of the mandated reporter,
the money transmitter, or, as applicable, the employer of the money
transmitter, to the party bringing the action. Subdivision (h) of
Section 15630 shall not apply to violations of this section.
   (e) (1) The civil penalty provided for in subdivision (d) shall be
recovered only in a civil action brought against the financial
institution or the money transmitter by the Attorney General,
district attorney, or county counsel. No action shall be brought
under this section by any person other than the Attorney General,
district attorney, or county counsel. Multiple actions for the civil
penalty shall not be brought for the same violation.
   (2) Nothing in the Financial Elder Abuse Reporting Act of 2005
shall be construed to limit, expand, or otherwise modify any civil
liability or remedy that may exist under this or any other law.
   (f) As used in this section, "suspected financial abuse of an
elder or dependent adult" occurs when a person who is required to
report under paragraph (3) of subdivision (a) observes or has
knowledge of behavior or unusual circumstances or transactions, or a
pattern of behavior or unusual circumstances or transactions, that
would lead an individual with like training or experience, based on
the same facts, to form a reasonable belief that an elder or
dependent adult is the victim of financial abuse.
   (g) Reports of suspected financial abuse of an elder or dependent
adult made by an employee or officer of a financial institution or a
money transmitter pursuant to this section are covered under
subdivision (b) of Section 47 of the Civil Code.