BILL ANALYSIS �
AB 477
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GOVERNOR'S VETO
AB 477 (Chau)
As Amended September 3, 2013
2/3 vote
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|ASSEMBLY: |59-16|(May 9, 2013) |SENATE: |30-8 |(September 9, 2013) |
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|COMMITTEE VOTE: |4-1 |(September 10, |RECOMMENDATION: |concur |
|(AGING) | |2013) | | |
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|ASSEMBLY: |59-17|(September 11, | | | |
| | |2013) | | | |
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Original Committee Reference: AGING & L.T.C.
SUMMARY : Includes notaries public in the definition of mandated
reporters of suspected financial abuse of an elder or dependent
adult, and requires notaries to report suspected or known
financial abuse in connection with providing notary services.
The Senate amendments :
1)Add a notary public's reporting mandate in Division 2, Part 4
of the Government Code relating to proof and acknowledgement
of instruments in transfers of acquired property.
2)Add a notary public's duty to report to Title 2, Division 1 of
the Government Code relating to duties of commissioned
notaries public.
3)Clarify that officers of financial institutions who are also
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notaries public must report under mandates upon them as an
officer of a financial institution, not as a notary public.
4)Make reports of suspected financial abuse of an elder or
dependent adult made by a mandated reporter a privileged
publication not subject to a defamation action, and clarify
that the attorney-client privilege is not solely applicable to
attorneys, but rather applies to the information that would
otherwise be required to be reported.
5)Extend access to resources through the California Victim
Compensation and Government Claims Board (VCGCB) for
reasonable attorney's fees if an action is brought against a
notary public for making a report of known or suspected elder
or dependent adult abuse.
6)Assure interagency cross-reporting of reports of known or
suspected elder or dependent adult abuse made by notaries
public.
7)Assure that a county adult protective services agency makes
training materials available to notaries public which includes
explanations of abuse, information on how to recognize abuse,
information on investigations, and instructions on how to
report abuse.
EXISTING LAW :
1)Grants the Secretary of State authority over notaries public.
2)Establishes the Elder and Dependent Adult Abuse Civil
Protection Act to protect the state's elder and dependent
adult population from abuse and exploitation.
3)Establishes the Financial Abuse Reporting Act of 2005.
4)Directs county adult protective services (APS) on
cross-reporting obligations for reports of financial abuse.
5)Requires APS to provide financial abuse reporting
instructional materials to mandated reporters.
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AS PASSED BY THE ASSEMBLY , this bill mandated notaries public as
reporters of known or suspected elder or dependent financial
abuse.
FISCAL EFFECT : According to the Senate Appropriations
Committee, non-reimbursable local enforcement costs offset to a
degree by fine revenue to the extent the expansion of mandated
reporting requirements to notaries public results in additional
violations for failure to report or for misdemeanor violations
of the confidentiality provisions of mandated reports; potential
increase in future state General Fund appropriations likely less
than $50,000 per year to the extent the expansion of eligibility
for reimbursement of attorney's fees through the VCGCB to
notaries public results in additional claims submitted and paid;
minor, absorbable administrative workload impact on the VCGCB to
process additional claims. Also, potential state costs in
excess of $50,000 (General Fund) for mandating additional duties
on county APS agencies to report to law enforcement and public
agencies, as well as provide information to notaries public;
ongoing costs to the Judicial Branch, potentially in the range
of $25,000 to $50,000 for additional misdemeanor and felony
court filings; potential ongoing increased local and state
incarceration costs in excess of $100,000 to the extent the
provisions of this bill result in a significant increase in
reports to law enforcement and subsequent prosecutions.
COMMENTS :
Background and Discussion : Reporting of suspected elder and
dependent adult financial abuse was mandated for employees of
financial institutions starting in 2006, sunsetting in 2013 (SB
1018 (Simitian), Chapter 140, Statutes of 2005). In 2011,
reporting was made permanent when the sunset date was removed
with financial industry support, due to the success of the act
(SB 33 (Simitian), Chapter 372, Statutes of 2011). This bill
extends similar reporting requirements, responsibilities and
protections to notaries public.
The Secretary of State is charged with the responsibility of
appointing and commissioning notaries public in the State of
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California. Character is germane to the qualifications of the
office of a notary public, given the nature of the duties and
responsibilities.
GOVERNOR'S VETO MESSAGE :
Assembly Bill 477 would add notaries public to the
list of professionals mandated to report suspected
financial abuse of elder and dependent adults.
I am not convinced that notaries, with their very
limited interactions, should be placed in the position
of being a mandated reporter. Others who are expressly
mandated by law to report abuse typically have some
level of relationship or more regular contact with the
elder or dependent adult, or have some level of
training in identifying abuse. For mandated reporting
of financial abuse, officers and employees of
financial institutions are required to report based on
their access to financial information.
Notaries generally have no more than fleeting contact
with individuals who request their services. If some
transaction or situation should arise that gives them
pause or appears suspect, notaries may already make a
report without this law.
I believe that voluntary education and outreach
efforts to notaries about financial abuse would better
suit this class of professionals.
Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. /
(916) 319-3990
FN:
0002913
AB 477
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