BILL ANALYSIS Ó
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2015 - 2016 Regular Session
AB 1754 (Waldron) - Crime victim compensation: elder or
dependent adult financial abuse
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|Version: May 31, 2016 |Policy Vote: PUB. S. 7 - 0 |
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|Urgency: No |Mandate: Yes |
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|Hearing Date: August 1, 2016 |Consultant: Jolie Onodera |
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This bill meets the criteria for referral to the Suspense File.
Bill
Summary: AB 1754 would establish a three-year 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.
Fiscal
Impact:
CalVCP payments : Up to $1 million (Special Fund*) in program
payments to victims of elder or dependent adult financial
abuse for financial and mental health counseling services.
Board workload : One-time workload costs of $35,000 to $50,000
(Special Fund*) to the Board for programming changes to the
automated claims management system, updating internal
policies, training staff, processing additional claims for
review during the pilot period, and staff time to prepare and
submit the legislative report.
Pilot program impact : Potential major future cost pressure in
the millions of dollars (Special Fund*) to expand the pilot
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program statewide, as well as to compensate non-elderly
dependent/adult victims of financial crimes who are not
similarly compensated for financial crimes.
Federal VOCA funding : Potential future increase in annual
federal VOCA grant funds (Federal Funds) 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 2017-18 and beyond.
*Restitution Fund - staff notes the Restitution Fund is
structurally imbalanced, with the fund potentially reaching
insolvency in FY 2018-19 at its current operating level.
Background: The CalVCP, which is administered by the California Victim
Compensation Board (Board), 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.
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
their own needs, or are victims of abuse, neglect, or
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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 would establish the San Diego County Elder or
Dependent Adult Financial Abuse Crime Victim Compensation Pilot
Program, as follows:
Provides that a person who meets the requirements of being a
victim under the CalVCP, regardless of whether the victim is a
resident of this state, shall be eligible for compensation
under the pilot program if he or she was a victim of elder or
dependent adult financial abuse (PC § 368(d) or (e)), and the
crime occurred in the County of San Diego.
Provides that a person shall not be eligible for compensation
if he or she is a derivative victim and the only crime the
victim suffered is elder or dependent adult financial abuse.
Authorizes the Board to 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 elder or dependent adult financial abuse or financial abuse
as defined by Section 15610.30 of the Welfare and Institutions
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Code, that occurred in the County of San Diego, as follows, up
to a total of not more than $3,000 per person:
o The cost of not more than 10 sessions of financial
counseling provided by a financial counselor, as
specified, 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.
o The cost of not more than 10 sessions of mental
health counseling.
Provides that compensation shall not exceed an aggregate total
of $1 million for all persons compensated pursuant to the San
Diego County Elder or Dependent Adult Financial Abuse Crime
Victim Compensation Pilot Program.
Sunsets the pilot program on January 1, 2020.
Requires the Board to, on or before July 1, 2020, 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.
Sunsets the bill's provisions on January 1, 2021.
Provides that the Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable 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
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underserved population.
Prior
Legislation: AB 1140 (Bonta) Chapter 569/2015 revised various
rules governing the CalVCP, including expanded and revised
eligibility criteria related to lack of cooperation with law
enforcement.
SB 519 (Hancock) 2015, as introduced, would have expanded
eligibility under the CalVCP to victims of elder financial abuse
and raised the funeral burial limit amount. This bill was
ultimately rewritten to address the issue of youthful offender
parole hearings.
SB 60 (Wright) Chapter 147/2013 expanded eligibility for
compensation from the CalVCP to include human trafficking
victims who have suffered emotional injury. Early versions of
the bill contained provisions expanding eligibility for
compensation from the CalVCP to victims of elder or dependent
adult financial abuse, however, those provisions were amended
out of the bill by this Committee.
Staff
Comments: By expanding eligibility and benefits provided under
the CalVCP in the pilot county of San Diego for three years, the
provisions of this bill will increase submissions of
applications and program payments from the Restitution Fund to
victims of elder or dependent adult financial abuse.
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, up to a maximum of $1
million as capped under the provisions of this measure.
Pilot projects generally create future cost pressure to expand
the operation of the program statewide. 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 statewide, and close to 10,000 reports of financial abuse
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were filed independently by financial institutions.
Additionally, investigations of over 24,350 cases of elder or
dependent adult financial abuse were completed in 2012
statewide. It is unknown what percentage of cases investigated
would potentially seek reimbursement and result in an eligible
claim if the pilot were to be expanded statewide, but for every
10 percent of victims that ultimately receive compensation,
annual payments could increase by over $6.5 million (Restitution
Fund). Consequently, the future cost pressure on the Restitution
Fund resulting from the operation of the pilot program is
substantial.
Staff notes the Restitution Fund is structurally imbalanced with
an estimated FY 2016-17 ending reserve balance of $36.2 million.
At the current level of annual expenditures ($117.5 million) and
revenues ($93.7 million), the Fund is projected to be insolvent
by FY 2018-19.
The expanded eligibility and benefit classifications will also
increase administrative costs to the Board. The Board estimates
minor workload will be required to complete the programming
changes to the automated claims processing system. The
additional workload impact to update internal policies, train
staff, process additional claims for review during the pilot
period, and prepare/submit the legislative report are likewise
estimated to be minor and absorbable within the Board's existing
resources. The costs for these administrative activities are
projected to cost in the range of $35,000 to $50,000 of staff
time.
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.
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