BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 180|
|Office of Senate Floor Analyses | |
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CONSENT
Bill No: SB 180
Author: Corbett (D)
Amended: 5/3/11
Vote: 21
SENATE VETERANS AFFAIRS COMMITTEE : 8-0, 4/12/11
AYES: Correa, Cannella, Berryhill, Calderon, Negrete
McLeod, Rubio, Runner, Lieu
SENATE JUDICIARY COMMITTEE : 5-0, 4/26/11
AYES: Evans, Harman, Blakeslee, Corbett, Leno
SUBJECT : Consumer transactions: public social services:
unreasonable
fees
SOURCE : California Advocates for Nursing Home Reform
DIGEST : This bill adds to the definition of public
social services activities and functions administered or
supervised by the United States Department of Veterans
Affairs and the California Department of Veterans Affairs.
ANALYSIS : Existing federal law prohibits the
preparation, presentation, or prosecution of any claim
under laws administered by the Secretary of the United
States Department of Veterans Affairs unless that
individual has been recognized for such purposes by the
Secretary. (38 U.S.C. Section 5901) Existing federal law
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prohibits charging fees for the aid, assistance, or
preparation of veteran's benefits applications. (38 U.S.C.
Section 5904)
Existing law provides that it is an unfair or deceptive
trade practice for any person to charge or receive an
unreasonable fee, as defined, to prepare or aid an
applicant or recipient in the procurement, maintenance, or
securing of public social services. (Civil Code Section
1770(24).) Existing law defines "public social services"
as those activities and functions of state and local
government administered or supervised by the Department of
Health Care Services, the Department of Public Health, or
the Department of Social Services, and involved in
providing aid or services, or both, including health care
services and medical assistance, to those persons who,
because of their economic circumstances or social
condition, are in need of that aid or those services and
may benefit from them. (Id)
Existing law requires the court to award treble damages to
the plaintiff whenever it is proven by a preponderance of
the evidence that a defendant has charged or received an
unreasonable fee for those services. (Civil Code Section
1780)
This bill includes in the definition of "public social
services" activities and functions administered or
supervised by the United States Department of Veterans
Affairs and the California Department of Veterans Affairs
involved in providing aid or services, or both, to
veterans, including pension benefits.
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 5/3/11)
California Advocates for Nursing Home Reform (source)
Consumer Attorneys of California
ARGUMENTS IN SUPPORT : According to the author:
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"The Aid and Attendance Program administered by the
federal Veterans Administration (VA) is a safety net for
low wealth veterans and their spouses who cannot afford
to pay for medical supplies or in-home healthcare.
"Financial predators target high wealth veterans who
otherwise would not qualify for the �Aid and Attendance
Program] and counsel them how to move their assets into
'safe harbors' such as irrevocable trusts and deferred
annuities. These advisors charge $10,000 or even more
for their services.
"SB 180 prohibits anyone from charging an unreasonable
fee for assisting a person to qualify for a federal
pension benefit program, such as Veterans Aid and
Attendance. SB 180 diminishes the incentive of financial
advisors who counsel seniors to artificially impoverish
themselves to qualify for a government benefit."
California Advocates for Nursing Home Reform (CANHR), the
bill's sponsor, writes:
"The Veterans Aid and Attendance Pension was designed to
assist low wealth veterans and their spouses to pay for
in-home care or for care in an assisted living facility.
This is a needs based program and the Veteran
Administration does not charge seniors to apply for the
benefits. Financial predators are targeting high wealth
veterans who otherwise will not qualify for the benefit?.
The advice given by these financial predators results in
the seniors artificially impoverish�ing] themselves by
moving their assets into irrevocable trusts or deferred
annuities. Often these advisors make commissions on the
annuities they counsel the seniors to purchase.
"SB 180 diminishes the incentive of financial advisors
who counsel seniors to artificially impoverish themselves
to qualify for a government benefit?. SB 180 is an
important senior consumer bill that protects the interest
of seniors and the state."
RJG:mw 5/2/11 Senate Floor Analyses
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SUPPORT/OPPOSITION: SEE ABOVE
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