BILL ANALYSIS Ó
AB 1754
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Date of Hearing: April 19, 2016
ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
Cheryl Brown, Chair
AB 1754
(Waldron) - As Amended March 16, 2016
SUBJECT: Crime victim compensation: elder or dependent adult
financial abuse.
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, and requires the California Victim
Compensation and Government Claims Board to report to the
Legislature and the Governor. Specifically, this bill:
1)Makes various findings and declarations regarding the steep
increase in California's population of those aged 65 and
greater than that of any other state, reaching 4.2 million in
2010;
2)States that the Department of Social Services reports 1,600
reports of elder and dependent adult financial abuse are under
investigation per month by county Adult Protective Services
offices statewide;
3)Makes various findings and declarations regarding elder or
dependent adult financial abuse, that elderly and other
dependent adults are seen as prey for financial scam artists
who capitalize upon their loneliness, isolation, and
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vulnerability and that this victimization can decrease life
spans, generate severe anxiety and hopelessness;
4)Concludes that a pilot is necessary to inform legislative
members of the demand for, costs of, and outcomes of victim
services leading to best practices protocols;
5)Establishes the San Diego County Elder or Dependent Adult
Financial Abuse Crime Victim Compensation Pilot Program within
San Diego County;
6)Authorizes the pilot project to provide direct victims of
elder or dependent adult financial abuse pecuniary
compensation for expenses associated with financial
counseling, mental health counseling or supportive services;
7)Permits the compensation if funds are appropriated by the
Legislature before
January 1, 2019;
8)Makes compensation limited to $3,000 per client for the total
costs of not more than 10 financial counseling sessions, as
defined, 10 mental health counseling sessions and supportive
services such as emergency shelter, cognitive assessments, and
transportation;
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9)Places a limit on total compensation authorized by the pilot
project for all persons compensated at $1,000,000;
10)The provisions of the project become inoperative on January
1, 2020, and are repealed on January 1, 2021; and,
11)Requires the California Victim Compensation and Government
Claims Board to report on or before July 1, 2020, both
electronically and in writing to the Legislature and the
Governor, data related to the number of victims who received
payments, the number of victims who received mental health
counseling, the average payment for mental health counseling
per recipient, the number of victims who received financial
counseling and the average payment for financial counseling
per recipient; and any other data that the Board wishes to
provide.
EXISTING LAW:
1)Protects seniors and dependent adults with the Elder Abuse and
Dependent Adult Civil Protection Act (EADACPA) which provides
civil protections and remedies for victims of elder and
dependent adult abuse and neglect.
2)Defines elder as any person who is 65 years of age or older
and defines "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 disabilities have
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been diminished because of age, or any person between the ages
of 18 and 64 who is admitted as an inpatient to a 24-hour
health facility.
3)Provides for referrals of abuse to Adult Protective Services
agencies, Long-Term Care Ombudsman (LTCO) programs, and local
law enforcement agencies from public or private agencies,
mandated reporters, or any other source having reasonable
cause to know that the welfare of an elder or dependent adult
is endangered.
4)Contains uniform state guidelines, which specify when county
adult protective service agencies are to investigate
allegations of abuse of elders and dependent adults and the
appropriate role of local law enforcement is necessary in
order to ensure that a minimum level of protection is provided
to elders and dependent adults in each county.
5)Authorizes law enforcement, the LTCO and/or Adult Protective
Services (APS) to take any actions considered necessary to
protect the elder or dependent adult and correct the situation
and ensure the individual's safety.
6)Defines "financial abuse" of an elder or dependent adult
occurs when a person or entity takes, secrets, appropriates,
or retains real or personal property of an elder or dependent
adult to a wrongful use or with intent to defraud.
7)Authorizes the California Victims and Government Claims Board
to assist victims of crime.
8)Establishes the California Victim Compensation Program
(CalVCP) which can help pay bills and expenses that result
from certain violent crimes.
FISCAL EFFECT: Unknown
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COMMENTS:
Author's Statement: This bill "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. The Penal Code specifically cites the
increased vulnerability of the elderly and dependent adult
victims as a justification for higher criminal penalties for
perpetrators of financial crimes. In the Welfare and
Institutions Code, the Elder and Dependent Adult Civil
Protection Act cites the Legislature's responsibility to protect
this vulnerable population from criminal acts."
Elder Abuse: There has been a growing amount of research into
the nature and extent of elder and dependent adult abuse. One
study suggests that approximately 6% of the 65+ population will
report physical, financial, mental and other forms of abuse in
any given year. The Department of Social Services (DSS)
oversees the Adult Protective Services (APS) program and reports
approximately 9,500 cases per month of elder and dependent adult
abuse are reported and investigated. About 1,600 of the reports
reflect financial abuse or exploitation. In 2014-2015, San
Diego County's Adult Protective Services confirmed a total of
1,148 unique reports 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. It is estimated that
elder victims of financial abuse suffer upwards of $2.9 billion
annual financial loss. Data from the National Center on Elder
Abuse shows that women are about twice as likely as men to be
abused, and that the older one is, the greater the risk is for
suffering abuse.
Victim Relief: The Victims of Crime and Government Claims Board
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administers the State's Government Claims Program, Victim
Compensation Program, and Revenue Recovery Program. The
California Victim Compensation Program (CalVCP) is designed to
help pay bills and expenses that result from being a victim of
certain crimes. Currently, the program is not authorized by
state law to address elder and dependent adult financial crimes.
Federal law already permits this funding purpose.
Arguments in Support: The California Commission on Aging, a
co-sponsor with the California Elder Justice Coalition, states
that "studies show that elderly and dependent adult victims of
financial abuse have a decreased lifespan, suffer emotional
trauma, and often face impoverishment," and note that other
states have already moved ahead to extend assistance to elderly
and dependent adult victims of financial abuse, including
Colorado, Florida, Idaho, New York, Oklahoma, and Wyoming, among
others. The Commission notes that despite having the largest
population of residents over 65, California does not allow
Cal-VCP funds to be used to reimburse for services that older
and dependent adult victims of financial crimes need to recover.
The District Attorney of San Diego County, Bonnie Dumanis,
states that "one of the highest priorities of the office of the
District Attorney is protecting and assisting victims of crime"
and notes that this bill would provide an important solution to
address elder abuse.
Question: Why is San Diego the only county authorized to
participate in this pilot?
Related Legislation:
SB 60 (Wright), Chapter 147, Statutes of 2013 as introduced,
would have made elder and dependent adult victims of financial
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crimes (P.C. 368 (d) and (e)) eligible for up to $10,000 in
compensation from the Victim Compensation Fund for mental health
counseling and financial counseling. The elder abuse provision
was amended out in Senate Appropriations and the bill went
forward with provisions making victims of human trafficking
eligible for benefits.
AB 1140 (Bonta), Chapter 569, Statutes of 2015 implemented
recommendations made by the "CalVCP Statute Modernization
Project." The measure also made a number of other improvements
to address emerging issues in law.
REGISTERED SUPPORT / OPPOSITION:
Support
California Commission on Aging - Co-Sponsor
California Elder Justice Coalition - Co-Sponsor
AARP
The Arc and United Cerebral Palsy California Collaboration
California Association of Area Agencies on Aging
California Long-Term Care Ombudsman Association (CLTCOA)
Office of the State Long-Term Care Ombudsman
Professional Fiduciary Association of California
San Diego County District Attorney
Opposition
None on file.
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Analysis Prepared by:Gail Gronert / AGING & L.T.C. / (916)
319-3990