BILL ANALYSIS �
SB 33
Page 1
Date of Hearing: June 21, 2011
ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
Mariko Yamada, Chair
SB 33 (Simitian) - As Amended: June 15, 2011
SENATE VOTE : 39-0
SUBJECT : Elder and dependent adult abuse.
SUMMARY : SB 33 (Simitian/Wolk) repeals the sunset date
associated with various Welfare and Institutions code sections
(WIC), known as the Elder and Dependent Adult Financial Abuse
Act. Specifically, this bill : Makes permanent a series of
code sections which are scheduled to become inoperative on
January 1, 2013. A description of current law affected by the
January 1, 2013 sunset date is as follows:
WIC Section 15630.1 which provides a comprehensive mandate which
defines who 'mandated reporters' of known financial abuse are,
the settings in which their legal obligation to report reside,
and the activities which constitute a reportable offense. WIC
section 15630.1 further details exceptions which would preclude
a 'mandated reporter' from reporting, penalties for failure to
report, and conditions under which suspected instances of
financial abuse may be reported.
WIC Section 15634 which offers immunity from criminal and civil
liability for mandated reporters who make reports of financial
abuse in good faith. Though immune from liability, action may
still be brought against reporters, could force reporters to
incur costs associated with a response. Senator Simitian
anticipated this in his original legislation and provided access
for reporters to the State Board of Control. SB 33 identifies
the California Victim Compensation and Government Claims Board
as the appropriate entity from which reporters may seek
compensation in the event legal action is brought against them
for fulfilling their legal reporting responsibility.
WIC Section 15640 which directs county adult protective services
(APS) on cross-reporting obligations for reports of financial
abuse which occur in the community, versus those that occur in a
long-term care facility. SB 33, as amended June 15th, also
identifies the Department of Public Health as the licensing
agency for skilled nursing facilities. When the originating
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legislation was passed in 2005, the department was known as the
Department of Health Services.
WIC Section 15655.5 which requires APS to provide financial
abuse reporting instructional materials to mandated reporters.
Recent Amendments :
Amendments adopted June 15th address the sunset date associated
with Government Code Section 7480 which empowers law enforcement
to obtain financial records related to criminal investigations.
The sunset date of that code section was repealed in 2010 and is
therefore no longer a subject of SB 33.
FISCAL EFFECT : SB 33 merely repeals sunset dates associated
with existing code sections and therefore does not create
additional costs for the state.
COMMENTS : According to the author, "(I)t is important to
delete the 2013 sunset because mandated reporting for financial
institutions has increased the number of confirmed reports of
elder financial abuse. According to data collected by APS, the
number of confirmed cases of elder and dependent adult financial
abuse rose over 16% from 4,784 in 2006 to 5,568 in 2007 (the law
was implemented in 2007). The number of confirmed cases in 2010
was 5,602.
"Starting in April 2007, APS has counted the number of reports
of elder financial abuse submitted by financial institutions.
Between April 2007 and 2010, financial institutions submitted
26,402 reports of elder financial abuse. Between 2008 and 2010,
financial institutions, on average, submit almost 7,000 reports
of elder financial abuse annually.
"Finally, mandated reporting has not produced a significant
increase in the number of frivolous or illegitimate reports of
abuse. Of all reports of abuse received by APS (including types
other than financial), 41.9% were confirmed in 2006 before
mandated reporting, and 41.5% were confirmed in 2007 after
mandated reporting; the most recent confirmation percentage for
2010 was 38.3%.
Related Legislation
SB 1018 (Simitian), Chapter 140, Statutes of 2005, originated
the Elder and Dependent Adult Financial Abuse Reporting Act.
Scheduled to sunset January 1, 2013.
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AB 2105 (DeSaulnier), 2007-08 Session, would have expanded the
list of those who are mandated reporters of elder and dependent
adult financial abuse to include California Finance Lenders Law
and California Residential Mortgage Lending Act licensees, and
would have added coursework in elder and dependent adult abuse
detection and reporting to the list of elective continuing
education courses available to real estate licensees. This
measure was vetoed by Governor Schwarzenegger.
AB 518 (Wagner), 2011-12 Session, is virtually identical to this
bill. Assemblyman Wagner has agreed to drop AB 518 and become a
principle co-author of SB 33.
Additional Background on elder and vulnerable adult financial
abuse:
Although California has benefited significantly from the
enactment of SB 1018 in 2005, other challenges exist. According
to the California Elder Justice Workgroup, elder and vulnerable
adult "financial abuse ranges from simple theft, forgery, and
the misuse of legal documents to complex schemes or fraud
involving reverse mortgages, annuities, identity theft, health
care fraud, telemarketing scams, affinity crimes, and predatory
lending. Residents of long-term care facilities may be
exploited by family members or trusted others who deplete their
bank accounts and appropriate assets, resulting in involuntary
discharge for nonpayment. These forms of abuse may have
catastrophic consequences, including the loss of homes, life
savings, and independence."
APS, Ombudsman, law enforcement and others identify elder and
vulnerable adult financial abuse as some of their most difficult
cases. Some of the challenges and needs identified by the
California Elder Justice Workgroup to address these concerns
include:
1)Perpetrators adapt to changing environments: Perpetrators of
fraud, financial abuse, and exploitation have demonstrated
remarkable agility in changing practices in response to new
laws, regulations, and market forces. As a result, laws created
to respond to specific forms of abuse often quickly become
obsolete.
2)Need for broader definitions: The current definition of
financial abuse may be too limited, and fails to include common
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practices that may have devastating consequences. These include
withholding critical care in order to preserve estates, defying
advance directives, playing upon vulnerabilities, and exercising
undue influence.
3)Negative stereotypes and stigmas related to financial abuse
victims: Victims of financial abuse and exploitation are viewed
by some as gullible, na�ve, or complicit in their victimization.
These characterizations belie the fact that perpetrators are
often highly skilled manipulators who use coercion and
intimidation against victims.
4)Service programs inadvertently facilitate abuse: Some aging
service programs fail to adequately screen employees,
volunteers, or persons they permit to make presentations. Of
particular concern is financial predators who claim to be
objective financial advisors are making presentations at senior
centers. Common topics include living trusts, Medi-Cal planning,
long-term care, annuities, reverse mortgages, veterans pensions,
and tax planning. The underlying purpose of these seminars is to
sell products, often worthless or overpriced ones, to
participants, many of whom mistakenly believe that speakers have
been vetted. An investigation by the Securities and Exchange
Commission (2007) of 110 senior financial seminars found that
100% were actually sales presentations.
REGISTERED SUPPORT / OPPOSITION :
Support
The Arc
AFSCME
Alzheimer's Association
AARP
Area 12 Agency on Aging
Berkeley-East Bay Gray Panthers
Butte County Board of Supervisors
California Advocates for Nursing Home Reform (CANHR)
California Alliance for Retired Americans (CARA)
California Association of Public Authorities for IHSS (CAPA)
California Bankers Association (CBA)
California Commission on Aging (CCoA)
California Credit Union League (CCUL)
California District Attorneys Association (CDAA)
California Elder Abuse Forensic Centers of S.F., L.A., & Orange
County
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California Long-Term Care Ombudsman Association (CLTCOA)
California Professional Firefighters (CPF)
California Psychiatric Association (CPA)
California School Employees Association, AFL-CIO
California Senior Legislature (CSL)
California State Association of Counties (CSAC)
California State Sheriff's Association (CSSA)
Catholic Charities Diocese of Stockton
Congress of California Seniors (CCS)
Contra Costa County Advisory Council on Aging
Council on Aging Orange County
County Welfare Directors Association (CWDA)
County of San Diego
Humboldt County Board of Supervisors
Huntington Hospital Senior Care Network
In-Home Supportive Services (IHSS) Consortium of San Francisco
Independence at Home
Junior Leagues of California State Public Affairs Committee
(SPAC)
Junior Leagues of Palo Alto State Public Affairs Committee
(SPAC)
Los Angeles County Board of Supervisors
Marin County Board of Supervisors
Mother Lode Long-Term Care Ombudsman Program
Multipurpose Senior Services Program Site Association (MSA)
National Association of Social Workers, California Chapter
(NASW-CA)
Older Women's League of California (OWL)
Peace Officers Research of California (PORAC)
Professional Fiduciary Association of California (PFAC)
Planning & Service Area 2 Area Agency on Aging
Sacramento County Board of Supervisors
Sacramento Gray Panthers
San Francisco Department of Aging and Adult Services
San Joaquin County Commission on Aging
San Luis Obispo County District Attorney
San Mateo County Board of Supervisors
San Francisco City and County
Santa Clara County Board of Supervisors
Santa Clara County Social Services Agency
Silicon Valley Advisory Council on Aging
Siskiyou County Human Services Agency
Solano County Board of Supervisors
Solano County Adult Protective Services
Sonoma County Board of Supervisors
Sonoma County Area Agency on Aging
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Stanislaus Elder Abuse Prevention Alliance
State Treasurer of California
United Cerebral Palsy
United Domestic Providers of America/AFSCME
Vacaville Commission on Aging (COA)
Ventura County Board of Supervisors
Yolo County Sheriff's Department
Opposition
None on file.
Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. /
(916) 319-3990