BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
SB 586 (Pavley)
Hearing Date: 5/23/2011 Amended: 5/10/2011
Consultant: Maureen Ortiz Policy Vote: BFI: 5-2 Pub Saf:
5-2
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BILL SUMMARY: SB 586 regulates the issuance of signature
stamps, increases the fines for elder abuse, and allocates that
increased revenue to the adult protective services agency as
specified.
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Admin expenses ---------minor,
absorbable------------- Special*
Penalty revenue -------unknown increase in
revenue----- Local
*Financial Institutions Fund
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STAFF COMMENTS:
The Department of Financial Institutions indicates minor,
absorbable costs. SB 586 increases the maximum of several
existing fines for engaging in elder abuse, and specifies that
50% of the fine will be allocated to the adult protective
services agency, or equivalent elder abuse prevention agency, of
the county prosecuting the offense. To ensure that this does
not result in a reduction in fines presently collected and
deposited in other local funds, staff recommends an amendment to
clarify that any fine that is imposed above the current maximum
fine will be allocated to the adult protective services agency.
Specifically, SB 586 does the following:
1) Defines "signature stamp" as a rubber or other synthetic
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stamp or device that is used to accurately imitate the signature
of an individual.
2) Provides that a bank or credit union may only issue a
signature stamp to an account holder that is present in the bank
and witnessed by a bank employee, or by use of a notarized
physician's letter in the case of a disabled customer.
3) Requires banks and credit unions that issue signature stamps
to inform the account holder of the risks associated with loss,
theft, or misuse of the stamp.
4) Prohibits a bank or credit union from opening a new account
based on a request by mail from a signature stamp holder.
5) Requires any person who uses a signature stamp in connection
with elder abuse to pay restitution of all funds fraudulently
obtained.
6) Doubles the fine for a second or subsequent violation for
engaging in causing physical harm or pain in the abuse of an
elder or dependent adult, and allocates the increase to the
adult protective services agency, or equivalent elder abuse
prevention agency, in the county prosecuting the offense.
Existing law, known as the Elder and Dependent Adult Financial
Abuse Reporting Act, requires all officers and employees of
financial institutions to act as mandated reporters of elder and
dependent adult financial abuse.
Existing law makes it a wobbler punishable by up to one year in
county jail or a fine of up to $6,000 or 2, 3 or 4 years in
state prison for a person who knows or reasonably should know
that a person is an elder or dependent adult to, under
circumstance or conditions likely to produce great bodily harm
or death, willfully causes or permits any elder or dependent
adult to suffer, or inflicts thereon unjustifiable physical pain
or mental suffering, or having the care or custody of any elder
or dependent adult, willfully causes or permits the person or
health of the elder or dependent adult to be injured, or
willfully causes or permits the elder or dependent adult to be
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placed in a situation in which his or her person or health is
endangered. (Penal Code � 368 (b).) SB 586 increases the
allowable fine to $12,000 of which 50% shall be allocated to the
adult protective services agency, or equivalent elder abuse
prevention agency, of the county prosecuting the offense.
Existing law makes it a misdemeanor for any person who knows or
reasonably should know that a person is an elder or dependent
adult and who, under circumstances or conditions other than
those likely to produce great bodily harm or death, willfully
causes or permits any elder or dependent adult to suffer, or
inflicts thereon unjustifiable physical pain or mental
suffering, or having the care or custody of any elder or
dependent adult to be placed in a situation in which his or her
person or health may be endangered. A second or subsequent
violation is punishable by a fine not to exceed $2,000 (Penal
Code � 368 (c).) SB 586 provides that the fine for a second or
subsequent violation is up to $4,000, 50% of which shall be
allocated to the adult protective services agency, or equivalent
elder abuse prevention agency, of the county prosecuting the
offense.
Existing law provides that any person who is not a caretaker who
violates any provision of law proscribing theft, embezzlement,
forgery or fraud or who violates Section 530.5 proscribing
identity theft with respect to the property or personal
identifying information of an elder or dependent adult, and who
knows or reasonably should know that the victim is an elder or
dependent adult is guilty of a wobbler punishable by up to one
year in county jail or in the state prison for 2, 3 or 4 years
when the moneys, labor, goods, services or real or personal
property taken or obtained is of a value not exceeding $950 and
by a fine not exceeding $1,000 or imprisonment in the county
jail for up to one year when the value is less than $950. (Penal
Code � 368 (d).) SB 586 provides that the fine for a violation
not exceeding $1,000 shall be up to $2,000 and allocates 50% of
the fine to the adult protective services agency.
Existing law provides that any caretaker of an elder or
dependent adult who violates any provision of law proscribing
theft, embezzlement, forger, or fraud, or who commits identity
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theft with respect to the property or personal identifying
information of that elder or dependent adult, is guilty of a
wobbler punishable by imprisonment in the county jail for not
more than one year or in the state prison for 2, 3 or 4 years
when the value of what was taken was more than $950, with a fine
of up to $1,000. SB 586 increases that fine to $2,000, and
allocates 50% to the adult protective services agency.