BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 33
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          Date of Hearing:   July 5, 2011
          Chief Counsel:      Gregory Pagan


                         ASSEMBLY COMMITTEE ON PUBLIC SAFETY
                                 Tom Ammiano, Chair

                    SB 33 (Simitian) - As Amended:  June 15, 2011


           SUMMARY  :   Deletes the January 1, 2013 repeal date on the 
          Financial Elder Abuse Reporting Act of 2005, which extends 
          mandated reporting requirements to officers and employees of 
          financial institutions, as defined, and makes conforming 
          changes.

           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 15630l.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 
            15630l.1(b).]

          3)States that "financial abuse" of an elder or dependent adult 
            occurs when a person or entity does any of the following:

             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 15630l.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 








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            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 15630l.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 
            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 








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            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)(1).]

          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, "It 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 �Adult Protective Services], the number of confirmed 
            cases of elder and dependent adult financial number of 
            confirmed cases of elder and dependent adult financial abuse 
            rose over 16% from 4,785 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 
            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%"

           2)Related Legislation  : 









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             a)    AB 518 (Wagner) is identical to this bill in that AB 
               518 eliminates the sunset date on the elder and dependent 
               adult financial reporting act.  The author of AB 518 is a 
               principal co-author of this measure and is not moving AB 
               518.

             b)   SB 1018 (Simitian), Chapter 140, Statutes of 2005, 
               established the Elder and Dependent Adult Reporting Act 
               scheduled to sunset on January 1, 2013.

           REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          AARP
          American Federation of State, County and Municipal Employees
          Arch and United Cerebral Palsy
          Area 12 Agency on Aging
          Berkeley-East Bay Gray Panthers
          Butte County
          California Advocates for Nursing Home Reform
          California Alliance for Retired Americans
          California Association of Public Authorities for IHSS
          California Bankers Association
          California Commission on Aging
          California Council of the Alzheimer's Association
          California Credit Union League
          California District Attorneys Association
          California Elder Abuse Forensic Centers
          California Long Term Care Ombudsman Association
          California Professional Firefighters
          California Psychiatric Association
          California School Employees Association
          California Senior Legislature
          California State Association of Counties
          California State Sheriffs' Association
          Catholic Charities, Diocese of Stockton (Mother Lode Long
            Term Care Ombudsman)
          Congress of California Seniors
          Contra Costa County Advisory Council on Aging
          County Welfare Directors Association
          Financial Abuse Specialist Team, Orange County
            Council on Aging
          Humboldt County
          Huntington Hospital Senior Care Network








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          In-Home Supportive Services Consortium of San Francisco
          Independence at Home
          Junior Leagues of California
          Junior League of Pal A lot/Mid Peninsula
          Long Term Care Ombudsman Program, Stanislaus County
          Los Angeles County
          Marin County 
          Multipurpose Senior Services Program Site Association
          National Association of Social Workers
          Older Women's League of California
          Older Women's League of California, Sacramento Chapter
          Orange County Council on Aging
          Peace Officers Research Association of California
          Professional Fiduciary Association of California
          PSA 2 Area Agency on Agency
          Sacramento County
          Sacramento Gray Panthers
          San Diego County
          San Francisco County
          San Francisco Department of Aging and Adult Services
          San Joaquin County Commission on Aging
          San Luis Obispo County Fire Responder Group for Incidents
            Involving Elders and Dependent Adults
          San Mateo County
          Santa Clara County
          Santa Clara County Social Services Agency
          Silicon Valley Council on Aging
          Siskiyou County Human Services Agency
          Solano County Board of Supervisors
          Solano County Health and Social Services Department
          Sonoma County Board of Supervisors
          Sonoma County Area Agency on Aging
          Stanislaus Elder Abuse Prevention Alliance
          State Treasurer
          Tehama County Department of Social Services
          United Domestic Workers of America
          Ventura County
          Yolo County Sheriff
           
            Opposition 
           
          None


           Analysis Prepared by  :    Gregory Pagan / PUB. S. / (916) 








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          319-3744