BILL ANALYSIS Ó
AB 1525
Page 1
ASSEMBLY THIRD READING
AB 1525 (Allen and Alejo)
As Amended March 22, 2012
Majority vote
AGING 4-1 PUBLIC SAFETY 4-1
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|Ayes:|Yamada, Pan, V. Manuel |Ayes:|Ammiano, Yamada, |
| |Pérez, Torres | |Mitchell, Skinner |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Wagner |Nays:|Hagman |
| | | | |
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APPROPRIATIONS 12-5
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|Ayes:|Fuentes, Blumenfield, |
| |Bradford, Charles |
| |Calderon, Campos, Davis, |
| |Gatto, Hall, Hill, Lara, |
| |Mitchell, Solorio |
| | |
|-----+--------------------------|
|Nays:|Harkey, Donnelly, |
| |Nielsen, Norby, Wagner |
| | |
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SUMMARY : Includes Money Transmitters as mandated reporters of
suspected elder and dependent financial abuse. Specifically,
this bill :
1)Adds "money transmitter" to the definition of a mandated
reporter of suspected elder and dependent adult financial
abuse, and requires them to report known or suspected elder or
dependent adult financial abuse to county adult protective
services (APS) agencies or local law enforcement.
2)Defines money transmitter as a person or entity engaged in
selling or issuing payment instruments, or receiving money for
transmission.
3)Makes a money transmitter, and the employer of a money
AB 1525
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transmitter, subject to civil penalties for failure to report
suspected financial abuse of an elder or dependent adult.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, potential minor court costs if this bill resulted in
a small number of new limited civil filings for failure to
report suspected financial abuse.
COMMENTS : The Federal Trade Commission (FTC) considers money
transfers risky, and inappropriate for anything other than
exchanges between people who know each other. According to the
Federal Bureau of Investigation (FBI), seniors become targets of
elaborate fraud schemes because they are likely to have savings,
own their home, and have good credit.
Con artists capitalize on the nature of wire transfers because
it is similar to sending cash: recipients obtain the money
quickly, and typically, there is no way to reverse or trace a
transfer. Con artists use a range of techniques to lure older
people into sending money via wire transfer services: "lottery
and sweepstakes scams" where "lucky winners" are asked to wire
cash to cover taxes and fees; "mystery shopper scams" which
request unsuspecting consumers to deposit a fraudulent check
into their bank account and to wire the amount to someone
measuring "customer service" criteria; "online purchase scams"
demand wire transfer of funds for goods that never arrive;
"advance fee loans" promising loans and credit regardless of
one's credit history, for a wire-transferred fee. Typically,
fraud starts by enticing individuals through e-mail, mass
marketing or telephone solicitations.
In certain circumstances, the wire transfer "agents" were found
to be complicit in the fraud. According to a 2009 settlement
with the FTC, MoneyGram International, Inc., paid $18 million in
consumer redress after charges were filed that assert the
company allowed its money transfer system to be used by
fraudulent telemarketers. Between 2004 and 2008, MoneyGram
agents assisted con artists who tricked U.S. consumers into
transferring over $84 million after consumers were told they had
won a lottery, or were hired for a secret shopper program, or
were guaranteed loans.
Money transmitters operate in a variety of commercial retail
settings. For instance, Money Gram operates out of 98 outlets
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in the City of Sacramento alone, including, among others, some
Bel Air grocery outlets, Longs Drugs stores, 7-Elevens, Advance
America outlets, and Ace Cash Express outlets. Money
Transmission Act licensees, such as Money Gram and Western
Union, typically do not have direct contact with customers at
point of sale. Money Transmission Act licensees consider those
who have direct customer contact at point of sale "agents," and
include employees of outlets, as well as the outlets themselves.
Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. /
(916) 319-3990
FN: 0003568