BILL ANALYSIS Ó AB 2721 Page 1 Date of Hearing: May 4, 2016 ASSEMBLY COMMITTEE ON APPROPRIATIONS Lorena Gonzalez, Chair AB 2721 (Rodriguez) - As Introduced February 19, 2016 ----------------------------------------------------------------- |Policy |Public Safety |Vote:|7 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Aging and Long Term Care | |6 - 0 | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill requires the Department of Justice (DOJ) to develop and distribute an informational notice that warns the public about elder and dependent adult fraud and provides information regarding how and where to file complaints. The bill also requires the notice to be made available on the DOJ website. FISCAL EFFECT: AB 2721 Page 2 Minor one-time cost of $32,000 to develop the informational notice, and ongoing absorbable costs to update the notice annually. COMMENTS: 1)Background. Current law provides that adult protective services agencies and local long-term care ombudsman programs also have jurisdiction within their statutory authority to investigate elder and dependent adult abuse and criminal neglect, and may assist local law enforcement agencies in criminal investigations at the law enforcement agencies' request, provided, however, that law enforcement agencies retain exclusive responsibility for criminal investigations. The United States Census Bureau projected in 2000 that California's elderly population will have doubled by 2025 to 6.4 million - a larger growth rate than any other state. As of 2010, there were 4.2 million people aged 65 years or older in California. The California Department of Finance projects that the number of California residents aged 65 and older - those who are most likely to need nursing homes or other long term care services and supports - will nearly double between 2010 and 2030. Based on monthly reports sent by local Adult Protection Services offices, the Attorney General estimates that 200,000 elders or dependent adults are abused each year. The California Commission on Aging states that "studies show that elderly and dependent adult victims of financial abuse have a decreased lifespan, suffer emotional trauma, and often face impoverishment." 2)Purpose. According to the author, "Each year, thousands of AB 2721 Page 3 California senior citizens find that they have become victims of various types of fraud. In some of these cases the crime is reported, but most are not because many seniors are simply too humiliated to report the fraud or may not know where to turn to for help. ?"While California cannot constantly be there to keep our citizens safe, we can create an informational brochure to be distributed to retail outlets and banks that access money or sell financial instruments. "AB 2721 will place vital information in locations where seniors typically access their funds when they are being scammed. The brochure will serve as a resource for seniors before they lose scarce retirement dollars and a source of information to let them know where to report fraud and scams." 3)Prior Legislation: a) AB 518 (Wagner) of 2011, would have removed the repeal date of section 15630.1 of the Welfare and Institutions Code. By doing so, AB 518 would extend the requirement that officers and employees of financial institutions act as mandated reporters of known or suspected financial elder abuse indefinitely, a mandate which currently sunsets on January 1, 2013 . By making section 15630.1 of the Welfare and Institutions Code permanent, it would continue the protection of elders and dependent adults from financial abuse. Failed in Senate Banking and Financial Institutions Committee. b) AB 140 (Dickinson), Chapter 668, Statues of 2013 established in the Elder Abuse and Dependent Adult Civil Protection Act a new definition of undue influence that focuses on excessive persuasion causing another person to act or refrain from action, by overcoming that person's AB 2721 Page 4 free will, resulting in inequity. This bill also provided a list of considerations for a court to utilize in determining whether an action constituted excessive persuasion. c) AB 1623 (Atkins), Chapter 85, Statutes of 2014 authorized a local government or nonprofit organization to establish a Family Justice Center to assist crime victims. d) SB 196 (Hancock), Chapter 285, Statutes of 2015 authorized a county adult protective services agency to file a petition for a protective order on behalf of an elder or dependent adult, as specified. Analysis Prepared by:Pedro Reyes / APPR. / (916) 319-2081 AB 2721 Page 5