Amended in Assembly March 16, 2016

Amended in Assembly March 7, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 1754

Introduced by Assembly Member Waldron

(Coauthor: Assembly Member Chávez)

(Coauthor: Senator Bates)

February 2, 2016

An act to add and repeal Article 7 (commencing with Section 13967) to Chapter 5 of Part 4 of Division 3 of Title 2 of the Government Code, relating to crime victims.

LEGISLATIVE COUNSEL’S DIGEST

AB 1754, as amended, Waldron. Crime victim compensation: elder or dependent adult financial abuse.

Existing law provides for the compensation of victims and derivative victims of specified types of crimes by the California Victim Compensation and Government Claims Board from the Restitution Fund, a continuously appropriated fund, for specified losses suffered as a result of those crimes. Existing law sets forth eligibility requirements and specified limits on the amount of compensation the board may award, and requires applications for compensation to be verified under penalty of perjury.

This bill would create the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program and would authorize the board, upon appropriation by the Legislature before January 1, 2019, to provide victims of elder or dependent adult financial abuse compensation to reimburse costs for financial counseling, mental health counseling, or supportive services, as specified, if the crime occurred in the County of San Diego. The bill would limit compensation pursuant to this authorization to begin delete $5,000 end delete begin insert $3,000 end insert per person and an aggregate total of $1,000,000. The bill would exclude a derivative victim from eligibility for compensation if the only crime the victim suffered was elder or dependent adult financial abuse. The bill would authorize the pilot program to operate until January 1, 2020. The bill would require the board to report specified information related to the pilot program to the Legislature and Governor on or before July 1, 2020. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. The bill would repeal these provisions on January 1, 2021.

This bill would make related legislative findings and declarations, including findings and declarations as to the necessity of a special statute enacting a pilot program in the County of San Diego.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

The people of the State of California do enact as follows:

SECTION 1.  

The Legislature finds and declares all of the
following:

(a) California has the highest number of older adults compared
to any other state in the nation, with 4.2 million individuals over
65 years of age counted in the 2010 census.

(b) Elderly and dependent adults are seen as easy targets by
financial predators who take advantage of their victims’ loneliness,
isolation, and vulnerability. This population often falls victim to
scams such as foreign lotteries, the sale of costly and ineffective
annuities, identity theft, reverse mortgage scams, and fraudulent
home repairs. Financial abuse is also committed by family members
or caregivers who take advantage of an elder’s isolation and
dependence.

(c) A 1998 study reported in the Journal of the American
Medical Association found that an elder victimized by financial
abuse has a decreased projected lifespan when compared to elders
who have not suffered that exploitation.

(d) The State Department of Social Services reports that as many
as 1,600 reports of elder and dependent adult financial abuse are
under investigation per month by Adult Protective Services offices
statewide.

(e) The California Victims of Crime Program does not serve
this population even though federal law allows Victims of Crime
Act funds to be used to do so. Federal guidelines identify elders
and dependent adults as being underserved in this area.

(f) Many states already provide assistance to victims of financial
crimes, including Colorado, Florida, Idaho, New Jersey, New
York, Oklahoma, Pennsylvania, Vermont, and Wyoming.

(g) Elderly and dependent adult victims who lack the means to
recover or replace misappropriated assets or property often suffer
severe consequences including failing health; severe anxiety,
depression, and hopelessness; and dependence on public assistance.
Research has shown the benefits of mental health and financial
counseling in helping these victims remain independent and regain
the confidence to take perpetrators to court.

(h) A pilot program is needed to provide the Legislature with
data on the demand for victim services, including mental health
and financial counseling, by this population and the costs and
outcomes of these services. The collection of this data could further
help the state track the types and frequency of financial crimes
against elder and dependent adults, identify services that are most
needed by victims and the rates at which these services are utilized,
and establish best practice protocols for serving these victims.

(i) The County of San Diego is well-situated to provide victims
of elder and dependent adult financial abuse with access to services,
including mental health and financial counseling. begin delete The county’s
Financial Abuse Specialist Team (FAST), which provides expertise
to law enforcement, adult protective services, and others in
investigating cases of elder and dependent adult financial abuse,
would provide another avenue to identify victims in need of
immediate support services following victimization. end delete

SEC. 2.  

Article 7 (commencing with Section 13967) is added
to Chapter 5 of Part 4 of Division 3 of Title 2 of the Government
Code, to read:

 

Article 7.  San Diego County Elder or Dependent Adult Financial
Abuse Crime Victim Compensation Pilot Program

 

13967.  

(a) The San Diego County Elder or Dependent Adult
Financial Abuse Crime Victim Compensation Pilot Program is
hereby established.

(b) Notwithstanding Section 13955, and except as otherwise
provided in subdivision (c), a person who meets the requirements
listed in subdivision (a) of Section 13955, shall be eligible for
compensation under subdivision (d) if he or she was a victim of a
violation of subdivision (d) or (e) of Section 368 of the Penal Code,
and the crime occurred in the County of San Diego.

(c) A person shall not be eligible for compensation pursuant to
subdivision (b) if he or she is a derivative victim and the only crime
the victim suffered is elder or dependent adult abuse described in
subdivision (d) or (e) of Section 368 of the Penal Code.

(d) Notwithstanding Section 13957, the board may grant for
pecuniary loss, upon appropriation by the Legislature before
January 1, 2019, if the board determines it will best aid the person
seeking compensation to reimburse the expense of financial
counseling, mental health counseling, or supportive services for a
victim of a crime described in subdivision (d) or (e) of Section
368 of the Penal Code or financial abuse as defined by Section
15610.30 of the Welfare and Institutions Code, that occurred in
the County of San Diego, as follows, up to a total of not more than
begin delete five end delete begin insert three end insert thousand dollars begin delete ($5,000) end delete begin insert ($3,000) end insert per person:

(1) The cost of not more than 10 sessions of financial counseling
provided by a financial counselor, as described in the Victims of
Crime Act Victim Compensation Grant Program (66 F.R.
27158-01), or an adviser providing services such as analysis of a
victim’s financial situation, including income-producing capacity
and crime-related financial obligations, assistance with
restructuring budget and debt, assistance in accessing insurance,
public assistance, and other benefits, and assistance in completing
the financial aspects of victim impact statements.

(2) The cost of not more than 10 sessions of mental health
counseling.

begin delete

(3) The cost of supportive services, including, but not limited
to, all of the following:

end delete begin delete

(A) Cognitive assessment for the purpose of determining
additional service needs.

end delete begin delete

(B) Emergency shelter or rehousing.

end delete begin delete

(C) Transportation to appointments.

end delete

(e) Compensation pursuant to subdivision (d) shall not exceed
an aggregate total of one million dollars ($1,000,000) for all
persons compensated pursuant to the San Diego County Elder or
Dependent Adult Financial Abuse Crime Victim Compensation
Pilot Program.

(f) This section shall become inoperative on January 1, 2020.

13967.1.  

(a) On or before July 1, 2020, the California Victim
Compensation and Government Claims Board shall report to the
Legislature and Governor all of the following:

(1) The number of victims who received payments pursuant to
this article.

(2) The number of victims who received mental health
counseling.

(3) The average payment for mental health counseling per
recipient.

(4) The number of victims who received financial counseling.

(5) The average payment for financial counseling per recipient.

(6) Any other data on the pilot program that the board wishes
to include.

(b) A report to be submitted pursuant to subdivision (a) shall
be submitted in compliance with Section 9795 of the Government
Code.

13967.5.  

This article shall remain in effect only until January
1, 2021, and as of that date is repealed.

SEC. 3.  

The Legislature finds and declares that a special law
is necessary and that a general law cannot be made applicable
within the meaning of Section 16 of Article IV of the California
Constitution because of the unique circumstances in the County
of San Diego where a high number of reported elder and dependent
adult financial abuse crimes occur. The County of San Diego is
well-suited for a pilot program that would allow the Legislature
to gather data on the demand for victim services, including mental
health and financial counseling, by elderly and dependent adult
victims of financial crimes so as to effectively develop policies
and resources for this underserved population. begin delete Furthermore, the
County of San Diego is well-situated to provide victims of elder
and dependent adult financial abuse with access to the mental
health and financial counseling services due in part to the existence
of its Financial Abuse Specialist Team (FAST), which investigates
cases of elder and dependent adult financial abuse. end delete

SEC. 4.  

No reimbursement is required by this act pursuant to
Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.