BILL ANALYSIS                                                                                                                                                                                                    Ó






                                                                    AB 1754


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          Date of Hearing:  March 15, 2016
          Counsel:               Sandra Uribe


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY


                       Reginald Byron Jones-Sawyer, Sr., Chair





          AB  
                       1754 (Waldron) - As Amended  March 7, 2016


                       As Proposed to be Amended in Committee


          SUMMARY:  Creates a pilot program in San Diego County permitting  
          the Victims of Crime Program (CalVCP) to reimburse victims of  
          elder and dependent adult financial abuse for costs of financial  
          and mental-health counseling.  Specifically, this bill:  

          1)Contains legislative findings and declaration about the extent  
            of financial abuse of the elderly and dependent adults, the  
            response of other legislative bodies to the problem, of the  
            need for a pilot program, and of why San Diego County is  
            well-situated for the pilot program.

          2)Establishes the San Diego County Elder or Dependent Adult  
            Financial Abuse Crime Victim Compensation Pilot Program.

          3)Limits compensation to direct victims of theft, identity  
            theft, embezzlement, forgery, or fraud of an elder or  
            dependent adult, and deems derivative victims ineligible.  

          4)Limits compensation to a particular victim to $3,000.











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          5)Permits compensation for up to 10 sessions of mental health  
            counseling and up to 10 session of financial counseling. 

          6)Limits the distribution of the total funds under the pilot  
            program to one million dollars.

          7)States that funding authorization stops on January 1, 2019.

          8)Sunsets the program on January 1, 2020.  

          9)Requires the California Victim Compensation and Government  
            Claims Board (board) to report to the Legislature and the  
            Governor, by July 1, 2020, the following:

             a)   The number of victims who received payment under the  
               pilot program;

             b)   The number of victims who received mental health  
               counseling;

             c)   The average payment for mental health counseling per  
               recipient;

             d)   The number of victims who received financial counseling;

             e)   The average payment for financial counseling per  
               recipient; and, 

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

          10)States that a special law is necessary 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.

          EXISTING LAW:  












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          1)States that all persons who suffer loss as a result of  
            criminal activity shall have the right to restitution from the  
            perpetrators.  (Cal. Const. Art. 1, § 28(b).)

          2)Establishes Victim's Compensation Program (CalVCP)  
            administered by the board to reimburse crime victims for the  
            pecuniary losses they suffer as a direct result of criminal  
            acts.  Indemnification is made from the Restitution Fund,  
            which is continuously appropriated to the board for these  
            purposes.  (Gov. Code, §§ 13901 & 13950 et. seq.)  

          3)Authorizes the board to reimburse victims of crimes causing  
            physical injury or emotional injury with a threat of physical  
            injury for pecuniary loss for specified types of losses,  
            including medical expenses, mental-health counseling, loss of  
            income or loss of support, and installing or increasing  
            residential security.  (Gov. Code, §§ 13955, subd. (f), and  
            13957.)

          4)Authorizes the board to establish maximum rates and service  
            limitations for medical and medical-related services, and for  
            mental health and counseling services.  (Gov. Code, § 13957.2)

          5)Defines an "elder" as "any person who is 65 years of age or  
            older."  (Pen. Code, § 368, subd. (g).)

          6)Defines a "dependent adult" as "any person who is between the  
            ages of 18 and 64, who has physical or mental limitations  
            which restrict his or her ability to carry out normal  
            activities or to protect his or her rights, including, but not  
            limited to, persons who have physical or developmental  
            disabilities or whose physical or mental abilities have  
            diminished because of age."  (Pen. Code, § 368, subd. (h).)

          7)Specifies that any person who is not a caretaker who violates  
            any provision of law proscribing theft, embezzlement, forgery,  
            fraud, or identity theft, with respect to the property or  
            personal identifying information of an elder or a dependent  
            adult, and who knows or reasonably should know that the victim  











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            is an elder or a dependent adult, is punishable as follows:

             a)   By a fine not exceeding $2,500, or by imprisonment in a  
               county jail not exceeding one year, or by both that fine  
               and imprisonment, or by a fine not exceeding $10,000, or by  
               imprisonment in the county jail for two, three, or four  
               years, or by both that fine and imprisonment, when the  
               moneys, labor, goods, services, or real or personal  
               property taken or obtained is of a value exceeding $950.

             b)   By a fine not exceeding $1,000, by imprisonment in a  
               county jail not exceeding one year, or by both that fine  
               and imprisonment, when the moneys, labor, goods, services,  
               or real or personal property taken or obtained is of a  
               value not exceeding $950. (Pen. Code, § 368, subd. (d).)

          8)Provides that any caretaker of an elder or a dependent adult  
            who violates any provision of law proscribing theft,  
            embezzlement, forgery, fraud, or identity theft, with respect  
            to the property or personal identifying information of that  
            elder or dependent adult, is punishable as follows:

             a)   By a fine not exceeding $2,500, or by imprisonment in a  
               county jail not exceeding one year, or by both that fine  
               and imprisonment, or by a fine not exceeding $10,000, or by  
               imprisonment in the county jail for two, three, or four  
               years, or by both that fine and imprisonment, when the  
               moneys, labor, goods, services, or real or personal  
               property taken or obtained is of a value exceeding $950; or

             b)   By a fine not exceeding $1,000, by imprisonment in a  
               county jail not exceeding one year, or by both that fine  
               and imprisonment, when the moneys, labor, goods, services,  
               or real or personal property taken or obtained is of a  
               value not exceeding $950. (Pen. Code, § 368, subd. (e).)

          FISCAL EFFECT:  Unknown

          COMMENTS:  











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          1)Author's Statement:  According to the author, "Assembly Bill  
            1754 would establish a pilot program for victims of elder and  
            dependent adult financial abuse in San Diego County to be  
            eligible for financial assistance through the California  
            Victims' Compensation program. Elder and dependent adult  
            financial abuse can lead to large costs to victims, families,  
            and society.  In 2014-2015, San Diego County's Adult  
            Protective Services confirmed a total of 1,148 unique cases of  
            elder and dependent adult financial abuse.  The San Diego  
            District Attorney estimates approximately 600 elderly and  
            dependent adult victims are served annually, averaging about  
            50 clients per month.  This bill establishes a two-year pilot  
            project in San Diego County to provide mental health and  
            financial counseling, as well as other support services to  
            this vulnerable population.  This bill also gives the state  
            the opportunity to gather essential data for the use of mental  
            health and financial counseling by elderly and dependent adult  
            victims of financial abuse."

          2)CalVCP:  The CalVCP provides compensation for victims of  
            violent crime, or more specifically those who have been  
            physically injured or threatened with injury.  It reimburses  
            eligible victims for many crime-related expenses, such as  
            medical treatment, mental health services, funeral expenses,  
            and home security.  Funding for the board comes from  
            restitution fines and penalty assessments paid by criminal  
            offenders, as well as from federal matching funds.  (See board  
            Website <  http://www.vcgcb.ca.gov/board  >.)

          3)Other Victims Services Programs:  The board is not the only  
            state agency which administers programs to assist victims.   
            The Office of Emergency Services (OES) also oversees several  
            such programs, including the Unserved/Underserved Victim  
            Advocacy and Outreach Program, the Victim/Witness Assistance  
            Program.  (See OES Website:   
            <  http://www.caloes.ca.gov/cal-oes-divisions/grants-management/c 
            riminal-justice-emergency-management-victim-services-grant-prog 
            rams/victim-services-programs  >.)  It is unclear whether elder  











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            or dependent adult victims of financial abuse qualify for  
            compensation through any OES programs, but the description of  
            both of the aforementioned programs do reference elder abuse  
            in general.  Thus, it is possible that funding for mental  
            health and financial counseling might be compensable through  
            one of these OES programs without broadening the scope of the  
            CalVCP program.

          For example, in January of this year, the Criminal  
            Justice/Emergency Management and Victims Services Branch of  
            the OES was soliciting proposals for the Elder Abuse (XE)  
            Program for fiscal year 2016-2017.  The stated purpose of the  
            the XE Program is to enhance the safety of elder and dependent  
            adult victims of crime by providing direct services to victims  
            and bridging the gap between elder justice service providers  
            (including Adult Protective Services (APS), Long-Term Care  
            Ombudsman programs, providers of legal assistance, etc.) and  
            victim service providers. (See Elder Abuse (XE) Program RFP,  
            pp, 3-4,  
            <  http://www.caloes.ca.gov/GrantsManagementSite/Documents/16XE%2 
            0RFP.pdf  >.)  Although the RFP period has closed, it is  
            possible that there are other funds available through OES to  
            fund the pilot program proposed by this bill.

          On the other hand, the Governor's budget for 2015-16 proposes to  
            reorganize the board beginning in 2016-17. The proposed change  
            would have the board primarily administer victim programs  
            including some currently handled by other agencies, such as  
            the OES.<1>

          4)Concerns Raised by San Diego County:  The County of San Diego  
            has submitted a letter raising some concerns with the bill.   
            The main concerns relate to workload and financial  
          ---------------------------
          <1> Government claims would be moved to the Department of  
          General Services.  The board would still retain the  
          responsibility for administering claims for the wrongfully  
          convicted.












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            implications.  The county is concerned that it would bear the  
            responsibility for the implementation and operation of the  
            program, as well as the data collection.  The financial  
            concerns lie in the fact that the "bill does not appear to  
            create a new funding stream for the Restitution Fund."

          As to workload concerns, it should be noted that the San Diego  
            County District Attorney's Office already operates the  
            Victim/Witness Assistance Program which helps victims with  
            filing compensation claims with CalVCP.   
            (<  http://www.sdcda.org/helping/victims/victim-services.html  >.)  
             Additionally, this bill directs the board, not the county, to  
            collect data and issue a report to the Governor and the  
            Legislature.  

          5)Argument in Support:  According to "California Commission on  
            Aging (CCoA), a co-sponsor of this bill, "This bill  
            establishes a pilot program in San Diego County to demonstrate  
            the cost and benefits of providing essential victim services  
            to these vulnerable groups.  San Diego County is well-situated  
            to implement this pilot program quickly, given the County's  
            strong array of victims' and aging services, as well as the  
            county's large retiree population.  County officials also  
            report a large number of elder/dependent adult financial abuse  
            cases.

          "The CCoA is a citizen's advisory body designated by law to act  
            as the principal advocate in the state on behalf of  
            California's older adults.  Our members are gubernatorial and  
            legislative appointees from throughout the state who represent  
            a wealth of experience both in and out of the aging services  
            area.  The California Elder Justice Coalition (CEJC) is a  
            statewide multidisciplinary network devoted to elder justice.

          "Studies show that elderly and dependent adult victims of  
            financial abuse have a decreased life-span, suffer emotional  
            trauma, and often face impoverishment.  The California  
            Department of Social Services reports that statewide as many  
            as 1,600 reports of elder and financial abuse are under  











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            investigation in a given month by Adult Protective Services,  
            yet almost no services are available for this population.

          "Many states have already begun providing assistance to elderly  
            and dependent victims of financial crimes, ? Covered services  
            include payment for mental health counseling, assistance with  
            travel to court, and financial counseling.  California,  
            despite having the largest over-60 population, has not yet  
            made CalVCP compensation available to these victims." 

          6)Related Legislation:  AB 1718 (Kim) authorizes the court to  
            sentence a defendant convicted of felony financial abuse of an  
            elder or dependent adult to state prison.  AB 1718 will be  
            heard by this committee today.
          
          7)Prior Legislation:  

             a)   SB 847 (Block), of the 2013-2014 Legislative session,  
               would have allowed an elderly person or dependent adult who  
               was the victim of financial abuse to seek reimbursement of  
               up to $2,000 for mental health and financial counseling  
               from the CalVCP.  SB 847 was held in the Senate  
               Appropriations Committee.

             b)   SB 60 (Wright), Chapter 147, Statutes of 2013, was  
               originally drafted to extend compensation to elderly and  
               dependent adult victims of financial abuse.  The bill was  
               amended to only extend eligibility to victims of human  
               trafficking.  

          REGISTERED SUPPORT / OPPOSITION:
          
          Support

          California Commission on Aging (Co-Sponsor)
          California Elder Justice Coalition (Co-Sponsor)
          Arc and Cerebral Palsy California Collaboration
          California Association of Area Agencies on Aging
          Office of the State Long-Term Care Ombudsman











                                                                    AB 1754


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          San Diego County District Attorney

          One Private Individual

          Opposition
          
          None

          Analysis Prepared  
          by:              Sandy Uribe / PUB. S. / (916) 319-3744