BILL ANALYSIS �
AB 1525
Page 1
Date of Hearing: April 26, 2012
Counsel: Sandy Uribe
ASSEMBLY COMMITTEE ON PUBLIC SAFETY
Tom Ammiano, Chair
AB 1525 (Allen) - As Amended: March 22, 2012
PENDING TWO-DAY FILE NOTICE WAIVER
SUMMARY : Makes a person or entity engaged in money transmission
a mandated reporter of suspected financial abuse of an elder or
dependent adult. Specifically, this bill :
1)Adds money transmitters to the list of mandated reporters of
suspected elder and dependent adult financial abuse, and
subjects money transmitters to the same reporting standards as
those that currently apply to employees and officers of
banking institutions in California.
2)Defines "money transmitter" as a person or entity engaged in
selling or issuing payment instruments, or in receiving money
for transmission.
3)Makes a money transmitter, and the employer of a money
transmitter, subject to civil penalties for failure to report
suspected financial abuse of an elder or dependent adult.
EXISTING LAW :
1)Defines a "mandated reporter of suspected financial abuse of
an elder or dependent adult" as all officers and employees of
financial institutions. �Welfare and Institutions Code (WIC)
Section 15630.1(a).]
2)Defines a "financial institution" as a depository institution,
an institution-affiliated party, or a federal, state or
institution-affiliated party credit union. �WIC Section
15630.1(b).]
3)States that "financial abuse" of an elder or dependent adult
occurs when a person or entity does any of the following:
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a) Takes, secretes, appropriates, or retains real or
personal property of an elder or dependent adult to a
wrongful use or with intent to defraud, or both; or,
b) Assists in taking, secreting, appropriating, or
retaining real or personal property of an elder or
dependent adult to a wrongful use or with intent to
defraud, or both. �WIC Section 15630.1(c).]
4)Provides that 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's 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 and 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 practice, that reasonably appears to be
financial abuse, or who reasonably suspects that abuse based
upon the information before him or her standing alone, shall
report the known or suspected instance of financial abuse by
telephone immediately, or as soon as practicably possible; and
by written report sent within two working days to the local
adult protective services or the local law enforcement agency.
�WIC Section 15630.1(d).]
5)Specifies that 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 if both of the
following conditions are met:
a) The mandated reporter is aware of no other corroborating
or independent evidence of the alleged abuse; and
b) In the exercise of his or her professional judgment, the
mandated reporter reasonably believes that the abuse did
not occur. �WIC Section 15630.1(e).]
6)Provides that a mandated reporter of suspected financial abuse
of an elder or dependent adult who fails to report financial
abuse shall be subject to a civil penalty not exceeding $1,000
or if the failure to report is willful, a civil penalty not to
exceed $5,000, which shall be paid by the financial
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institution that is the employer of the mandated reporter to
the party bringing the action. �WIC Section 15630(f).]
7)Requires any mandated reporter under the Elder Abuse and Adult
Civil Protection Act who, within the scope of his or her
employment, observes, has knowledge of physical abuse,
financial abuse or neglect, or is told by an elder or
dependent adult that he or she has experienced abuse, or
reasonably suspects abuse, to immediately report the known or
suspected abuse, as specified. �WIC Section 15630(b)(1).]
8)Defines a "mandated reporter" as any person who has assumed
the care or custody of an elder or dependent adult, including
administrators, supervisors, or licensed staff of a public or
private facility that provides care to elder or dependent
adults, elder or dependent adult care custodian, health
practitioner, clergy member, employee of county adult
protective services, or a local law enforcement agency. �WIC
Section 15630(a).]
9)Provides that failure to report elder abuse under the mandated
reporting requirement is a misdemeanor, punishable by
imprisonment in the county jail not to exceed six months; by a
fine of not more than $1,000; or by both. Failure to report
abuse that results in a death or great bodily injury shall be
punished by imprisonment in the county jail not to exceed one
year; by a fine not to exceed $5,000; or by both. �WIC
Section 15630(h).]
FISCAL EFFECT : Unknown
COMMENTS :
1)Author's Statement : According to the author, "AB 1525
improves public safety by putting into statute that money wire
transmitters are mandated reporters under the Elder Abuse Act.
Specifically, AB 1525 will amend Welfare and Institutions Code
Section 15630.1 to include a person or business engaged in
money transmission in the definition of a mandated reporter of
suspected financial abuse of an elderly or dependent adult.
"This bill will add another level of protection by requiring
those working in the money transferring business to be
vigilant and help protect against elder financial abuse."
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2)Argument in Support : According to the California Commission
of Aging (CCoA), "The CCoA is 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 arena.
"Incidents of elder and dependent adult financial abuse are
increasing at an alarming rate. More often than not, the
victims of such abuse are frail, isolated, or suffer cognitive
impairments. The designation of banking personnel as mandated
reports has been a positive change in tracking financial abuse
cases. CCoA believes that institutions that handle money
transmissions are similarly positioned to notice when an
elderly person or dependent adult appears to be coerced or
under undue influence of another."
3)Argument in Opposition : According to The Money Services
Roundtable (TMSRT), "TMSRT opposes AB 1525 since it would
inject money transmitters into an existing reporting framework
that was designed for traditional account-based financial
institutions (e.g., banks, credit unions, etc.). . . . �N]ot
only is the reporting requirement for money transmitters under
AB 1525 incompatible with the practices of the money
transmitter licensee/agent framework, but it also would
subject money transmitter licensees to substantial civil
penalties for acts that are out of the licensees' control . .
. .
"In California, as in other jurisdictions, it is the agent
that has the direct retail contact with the customer-not the
licensee. These agents provide money transmission services as
an ancillary service in conjunction with their core business,
which is typically a convenience store, grocery store,
supermarket, pharmacy, etc. Given the nature of these core
businesses, an agent may conduct very few money transmission
transactions per month . . . .
"Perhaps more important, however, the money transmitter
business model described above stands in stark contrast to the
of the depository institutions that are currently subject to
reporting . . . . For example, a depository institution
primarily deals with customers that it 'knows' (e.g., name,
address, age, etc.) because the customer has an account
relationship with the depository institution. On the other
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hand, a money transmitter operating through its retail
point-of-sale agents, does not have account-based customer
relationships. Rather, a money transmitter interacts with its
customers, through its agents, on a one-off basis and,
depending on the type of many transmission transaction, may
not know the sending customer's name, let alone the sending
customer's age or other factors that would assist the money
transmitter in accurately identifying the customer as an
'elder or dependent adult' or whether there are grounds to
know or reasonably suspect that financial abuse has occurred.
"In addition, the depository institutions currently subject to
the financial abuse reporting requirement under Section
15630.1 employee full-time tellers and other who engage in a
wide range of financial services transactions with their
account holders-that is their primary business. However,
employees of transmitter agents (e.g. convenience stores,
grocery stores, pharmacies and other retailers) spend the
majority of their time selling goods and services unrelated to
financial service transactions. Moreover, employees in
convenience stores, supermarkets, etc.-typical agent
locations-turn over often.
"Accordingly, while it may be realistic to train and expect a
bank employee to recognize financial abuse based on experience
and the recurring account-based customer relationship, it is
not realistic to expect a part-time employee of an agent to
perform in a similar manner."
4)Related Legislation :
a) SB 33 (Simitian), Chapter 372, Statutes of 2011, deleted
the January 1, 2013 repeal date on the Financial Elder
Abuse Reporting Act of 2005.
b) AB 518 (Wagner) also eliminates the sunset date on the
elder and dependent adult financial reporting act. The
author of AB 518 was a principal co-author of SB 33 and did
not move AB 518.
5)Prior Legislation :
a) SB 1018 (Simitian), Chapter 140, Statutes of 2005,
established the Elder and Dependent Adult Reporting Act
scheduled to sunset on January 1, 2013.
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b) AB 2105 (DeSaulnier), of the 2007-08 Legislative
Session, would have made licensed finance lenders or
brokers and real estate brokers who engage in specified
transactions mandated reporters of suspected financial
abuse for the purpose of the Elder Abuse and Dependent
Adult Civil Protection Act. AB 2105 was vetoed.
REGISTERED SUPPORT / OPPOSITION :
Support
California Senior Legislature (Co-Sponsor)
San Diego County District Attorney (Co-sponsor)
AARP
American Federation of State, County and Municipal Employees
Area Agency on Aging Advisory Council
California Advocates for Nursing Home Reform
California Commission on Aging
Crime Victims Actions Alliance
Los Angeles County District Attorney's Office
Older Women's League of California
San Francisco Advisory Council to Aging and Adult Services
Opposition
The Money Services Roundtable
Analysis Prepared by : Sandy Uribe / PUB. S. / (916) 319-3744