BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Kevin de León, Chair
SB 60 (Wright) - Crime victims: human trafficking and
elder/dependent adult abuse.
Amended: March 18, 2013 Policy Vote: Public Safety 7-0
Urgency: No Mandate: No
Hearing Date: May 23, 2013 Consultant: Jolie Onodera
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: SB 60 would expand eligibility for compensation
from the Victim Compensation Program (CalVCP) to victims who
have suffered emotional injury resulting from the crime of human
trafficking or the crime of theft from an elder or dependent
adult. This bill would also provide for reimbursement for
financial counseling for victims of financial crimes against
elderly or dependent adults, as specified.
Fiscal Impact:
Potential increase in program payments to human trafficking
victims of up to $100,000 (Restitution Fund) per year, based
on an increase of 40 additional approved applications per
year at an average claim payment of $2,500 per victim.
Potential increase in annual program payments to victims of
elder/dependent financial abuse in the range of $1.8 million
to $2.4 million (Restitution Fund) for ten percent of
financial elder abuse cases investigated annually.
Potential future cost pressure (Restitution Fund) to
compensate non-elderly dependent/adult victims of financial
crimes who are not similarly covered.
One-time costs to VCGCB for resource needs potentially in
excess of $250,000 (Restitution Fund) for programming
changes necessary to the automated claims processing system.
Ongoing increased administrative workload for claims
processing of increased applications.
Significant future increases in annual federal VOCA grant
funds (Federal) of 60 percent reimbursement for state funds
used to compensate victims. As VOCA grant awards are based
on prior years of state expenditures, the potential
increases to the VOCA grant award would not be received
until 2016-17.
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Background: The CalVCP, which is administered by the California
Victim Compensation and Government Claims Board (VCGCB),
provides compensation for victims and derivative victims
(including spouses, domestic partners, children, parents, legal
guardians, siblings, grandparents, and grandchildren) who suffer
physical or emotional injury, or the threat of physical injury,
as a direct result of a violent crime. Crimes covered by the
program include domestic violence, child abuse, sexual and
physical assault, homicide, human trafficking, robbery, and
vehicular manslaughter.
Subject to specified eligibility criteria, CalVCP compensates
eligible victims for various crime-related expenses that are not
covered by other sources. Services covered include medical and
dental care, mental health services, income loss, funeral
expenses, home security, rehabilitation and relocation. Funding
for the program is provided by the Restitution Fund, which
derives its revenue from restitution fines and orders, diversion
fees, and penalty assessments levied on persons convicted of
crimes and traffic offenses. CalVCP also receives federal grant
monies from the Victims of Crime Act (VOCA) funds. VOCA funds
come from penalties paid by offenders convicted of federal
crimes.
Human Trafficking
Under existing law, a victim or derivative victim of human
trafficking who has suffered physical injury, or has suffered
emotional injury and a threat of physical injury, may seek
reimbursement for expenses directly resulting from the crime.
However, a victim or derivative victim of human trafficking who
has suffered emotional injury alone, but has not sustained
physical injury or a threat of physical injury, is not
specifically included under current law as eligible for similar
compensation. This bill would allow both victims and derivative
victims of human trafficking who have suffered emotional injury
to seek reimbursement for expenses related to the crime.
Elder and Dependent Adult Financial Abuse
The Department of Social Services (DSS) administers oversight of
the Adult Protective Services (APS) program, which provides
assistance to elder (65 years and older) and dependent adults
(18-64 years of age who are disabled), who are unable to meet
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their own needs, or are victims of abuse, neglect, or
exploitation. SB 2199 (Lockyer) Chapter 946/1998 established a
statewide mandated APS program and provided funds for expanded
APS activities. It required the reporting of elder or dependent
adult abuse on a 24-hour emergency response basis, the
completion of investigation and needs assessments, and the
provision of case management services.
County APS agencies investigate reports of abuse of elder and
dependent adults who live in private homes and hotels, or
hospitals and health clinics when the alleged abuser is not a
staff member. County APS staff evaluate abuse cases and arrange
for services such as advocacy, counseling, financial management,
out-of-home placement, or conservatorship.
Under existing law, victims of elder or dependent adult
financial abuse who suffer emotional injury are not eligible to
seek reimbursement for crime-related expenses through the
CalVCP. This bill would expand eligibility for compensation
through the CalVCP to include victims of elder or dependent
adult financial abuse who have suffered emotional injury, and
would expand the list of crime-related reimbursable expenses for
these victims to include financial counseling.
Proposed Law: This bill adds human trafficking and financial
abuse of an elder or dependent adult to the list of crimes for
which a victim or derivative victim who has suffered emotional
injury may seek compensation from CalVCP. Additionally, this
bill:
Authorizes VCGCB to reimburse the cost of financial
counseling for a victim of elder or dependent adult
financial abuse in an amount not to exceed $2,000.
Specifies the combined reimbursement to a victim who
receives both mental health counseling and financial
counseling may not exceed $10,000.
Requires financial counseling to be provided by a certified
financial counselor or advisor, as specified, in order to be
eligible for reimbursement.
Contains Legislative findings and declarations regarding
the extent of elder and dependent adult financial abuse in
the state.
Related Legislation: SB 1299 (Wright) Chapter 870/2012 extended
the time period allowed for victims of crime to file an
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application for compensation for crime-related expenses from one
year to three years. This bill made other changes to the CalVCP
including but not limited to modifying the reasons for good
cause and authorizing social workers to represent a child or an
elder abuse victim if unable to file on his or her own behalf.
This bill's provisions became effective January 1, 2013.
Staff Comments: By expanding eligibility and benefits provided
under the CalVCP, the provisions of this bill will increase
submissions of applications and program payments from the
Restitution Fund to victims and derivative victims of the
specified crimes in cases where violence or the threat of
violence did not occur.
Human Trafficking
According to VCGCB, 40 applications per year have been received
from victims of human trafficking over the past three fiscal
years. Other applications relating to human trafficking have
been received but have been classified under other primary
crimes.
VCGCB has indicated that of the applications classified under
the crime of human trafficking, it appears that no applications
have been denied because the victim suffered emotional but not
physical injury. Given very few applications are denied
compensation, even if physical injury is not a factor, a
significant increase in program payments is not anticipated.
Based on the average claim payment of $2,500, even if the number
of human trafficking applications for victims and derivative
victims were to increase by 100 percent, additional program
payments would be projected to increase by approximately
$100,000 (Restitution Fund) per year.
Elder/Dependent Adult Financial Abuse
Expanding victim reimbursement to victims of elder and dependent
financial abuse could significantly increase reimbursements paid
annually from the Restitution Fund. According to the DSS report
(SOC 242 - APS Monthly Statistical Report), nearly 133,000
reports of elder and dependent adult abuse were filed in 2012,
and close to 10,000 reports of financial abuse were filed
independently by financial institutions. Additionally,
investigations of over 24,350 cases of elder/dependent adult
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financial abuse were completed in 2012.
It is unknown what percentage of those cases investigated would
potentially seek reimbursement and result in an eligible claim,
but should ten percent of victims ultimately receive
compensation, annual payments could increase by $6 million
(Restitution Fund), assuming the average claim of $2,500 per
victim. Adding the new benefit classification of financial
counseling (assuming $1,000 per claim, or 50 percent of the
$2,000 maximum allowed) could increase annual costs by $2.4
million.
The expanded eligibility and benefit classifications will
increase administrative costs. The VCGCB estimates limited-term
staffing will be required to complete significant programming
changes to the automated claims processing system. Additionally,
claims processing resources may be required to accommodate the
increased number of applications. Program applications and
outreach material would also need to be revised and reprinted.
To the extent victims, regardless of age, of financial crimes
arguably suffer emotional injury, and this type of injury is not
exclusive to elder/dependent adults, staff notes that expanding
compensation for expenses related to non-violent financial
crimes could create future cost pressure on the Restitution Fund
to compensate non-elderly/dependent adults who have similarly
suffered as victims of financial crimes.
In FY 2011-12, $91million in victim's claims were paid through
direct payment to victims of $73.6 million and $13.4 million
through compacts with local agencies. The Governor's Budget
projects a Restitution Fund balance of $55 million for FY
2012-13 and $40 million for FY 2013-14. Staff notes the VCGCB
voted in 2011-12 to adopt a number of reductions in the rates
paid for specific types of services provided. Among other
reductions, the reimbursement rates for funeral/burial expenses
and the maximum benefit cap of $70,000 were reduced. Due to the
significant uncertainty of revenue projections resulting from
the implementation of 2011 Public Safety Realignment, it was
recommended at the January 2013 VCGCB board meeting that no
restorations to the rate reductions be made at this time.
Additionally, the full impact on the Restitution Fund due to
enactment of SB 1299 (Wright) Chapter 870/2012, which tripled
the time period allowed for crime victims to apply for financial
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assistance for crime-related expenses, has yet to occur as the
bill's provisions recently became effective January 1, 2013.
Recommended Amendments: To clarify that victims of either of the
specified crimes of elder or dependent adult financial abuse are
covered under the provisions of this bill, staff recommends the
following technical amendment to Government Code §13955(f)(3):
(E) Subdivision s (d) and or (e) of Section 368 of the Penal
Code.
Author amendments do the following:
Make the technical amendment recommended above.
Remove program payments to derivative victims for
violations of elder financial abuse.
Reduce program payment caps for financial and mental
health counseling to elder/dependent adults.