BILL NUMBER: AB 1525	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Members Allen and Alejo
   (Principal coauthor: Senator Pavley)

                        JANUARY 19, 2012

   An act to amend Section 15630.1 of the Welfare and Institutions
Code, relating to elder or dependent adult financial abuse.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1525, as introduced, Allen. Elder or dependent adult financial
abuse: mandated reporters.
   Existing law requires a mandated reporter of suspected financial
abuse of an elder or dependent adult to report the known or suspected
instance of financial abuse to specified entities. Existing law
defines a mandated reporter for these purposes as an employee or
officer of a financial institution, as defined. Existing law imposes
civil penalties for the failure to report financial abuse, and
requires these civil penalties to be recovered in a civil action
brought against the financial institution by the Attorney General,
district attorney, or county counsel.
   This bill would include a person or entity engaged in money
transmission, as defined, in the definition of a mandated reporter of
suspected financial abuse of an elder or dependent adult.
   This bill also would make various technical and conforming
changes.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 15630.1 of the Welfare and Institutions Code is
amended to read:
   15630.1.  (a) As used in this section,  "mandated reporter
of suspected financial abuse of an elder or dependent adult" means
all officers and employees of financial institutions. 
    (b)     As used in this
section, the term "financial institution"   the
following definitions apply: 
    (1)     "Financial abuse" means financial
abuse as defined in Section 15610.30. 
    (2)     "Financial institution"  means
any of the following: 
   (1) 
    (A)  A depository institution, as defined in Section 3
(c) of the Federal Deposit Insurance Act (12 U.S.C. Sec. 1813(c)).

   (2) 
    (B)  An institution-affiliated party, as defined in
Section 3(u) of the Federal Deposit Insurance Act (12 U.S.C. Sec.
1813(u)). 
   (3) 
    (C)  A federal credit union or state credit union, as
defined in Section 101 of the Federal Credit Union Act (12 U.S.C.
Sec. 1752), including, but not limited to, an institution-affiliated
party of a credit union, as defined in Section 206(r) of the Federal
Credit Union Act (12 U.S.C. Sec. 1786(r)). 
   (c) As used in this section, "financial abuse" has the same
meaning as in Section 15610.30.  
   (3) "Mandated reporter of suspected financial abuse of an elder or
dependent adult" means either of the following:  
   (A) An officer or employee of a financial institution.  
   (B) A money transmitter.  
   (4) "Money transmitter" means a person or entity engaged in money
transmission as defined in subdivision (o) of Section 2003 of the
Financial Code.  
   (d) 
    (b)  (1) Any mandated reporter of suspected financial
abuse of an elder or dependent adult who has direct contact with the
elder or dependent adult or who reviews or approves the elder or
dependent adult's financial documents, records, or transactions, in
connection with providing financial services with respect to an elder
or dependent adult, and who, within the scope of his or her
employment or professional practice, has observed or has knowledge of
an incident, that is directly related to the transaction or matter
that is within that scope of employment or professional practice,
that reasonably appears to be financial abuse, or who reasonably
suspects that abuse, based solely on the information before him or
her at the time of reviewing or approving the document, record, or
transaction in the case of mandated reporters who do not have direct
contact with the elder or dependent adult, shall report the known or
suspected instance of financial abuse by telephone or through a
confidential Internet reporting tool, as authorized pursuant to
Section 15658, immediately, or as soon as practicably possible. If
reported by telephone, a written report shall be sent, or an Internet
report shall be made through the confidential Internet reporting
tool established in Section 15658, within two working days to the
local adult protective services agency or the local law enforcement
agency.
   (2) When two or more mandated reporters jointly have knowledge or
reasonably suspect that financial abuse of an elder or a dependent
adult for which the report is mandated has occurred, and when there
is an agreement among them, the telephone report or Internet report,
as authorized by Section 15658, may be made by a member of the
reporting team who is selected by mutual agreement. A single report
may be made and signed by the selected member of the reporting team.
Any member of the team who has knowledge that the member designated
to report has failed to do so shall thereafter make that report.
   (3) If the mandated reporter knows that the elder or dependent
adult resides in a long-term care facility, as defined in Section
15610.47, the report shall be made to the local ombudsman or local
law enforcement agency. 
   (e) 
    (c)  An allegation by the elder or dependent adult, or
any other person, that financial abuse has occurred is not sufficient
to trigger the reporting requirement under this section if both of
the following conditions are met:
   (1) The mandated reporter of suspected financial abuse of an elder
or dependent adult is aware of no other corroborating or independent
evidence of the alleged financial abuse of an elder or dependent
adult. The mandated reporter of suspected financial abuse of an elder
or dependent adult is not required to investigate any accusations.
   (2) In the exercise of his or her professional judgment, the
mandated reporter of suspected financial abuse of an elder or
dependent adult reasonably believes that financial abuse of an elder
or dependent adult did not occur. 
   (f) 
    (d)  Failure to report financial abuse under this
section shall be subject to a civil penalty not exceeding one
thousand dollars ($1,000) or if the failure to report is willful, a
civil penalty not exceeding five thousand dollars ($5,000), which
shall be paid by the financial institution that is the employer of
the mandated reporter  , the money transmitter, or, as
applicable, the employer of the money transmitter,  to the party
bringing the action. Subdivision (h) of Section 15630 shall not
apply to violations of this section. 
   (g) 
    (e)  (1) The civil penalty provided for in subdivision
 (f)   (d)  shall be recovered only in a
civil action brought against the financial institution  or the
money transmitter  by the Attorney General, district attorney,
or county counsel. No action shall be brought under this section by
any person other than the Attorney General, district attorney, or
county counsel. Multiple actions for the civil penalty  may
  shall  not be brought for the same violation.
   (2) Nothing in the Financial Elder Abuse Reporting Act of 2005
shall be construed to limit, expand, or otherwise modify any civil
liability or remedy that may exist under this or any other law.

   (h) 
    (f)  As used in this section, "suspected financial abuse
of an elder or dependent adult" occurs when a person who is required
to report under  paragraph (3) of  subdivision (a) observes
or has knowledge of behavior or unusual circumstances or
transactions, or a pattern of behavior or unusual circumstances or
transactions, that would lead an individual with like training or
experience, based on the same facts, to form a reasonable belief that
an elder or dependent adult is the victim of financial abuse
 as defined in Section 15610.30  . 
   (i) 
    (g)  Reports of suspected financial abuse of an elder or
dependent adult made by an employee or officer of a financial
institution  or a money transmitter  pursuant to this
section are covered under subdivision (b) of Section 47 of the Civil
Code.