|
|
Financial Elder Abuse Legislation Closer to Approval
Daily Democrat
July 15, 2005
The State Assembly Wednesday voted 54-10 to pass legislation by assemblywoman Lois Wolk, D-Davis, and Senator Joe Simitian, D-Palo Alto, to require banks and credit unions to report financial elder abuse.
Senate Bill 1018, identical legislation to Assembly Bill 1605 by Assembly members Wolk and Patty Berg, D-Eureka, will require employees of financial institutions, including banks and credit unions, to report to local law enforcement or an adult protective services agency if they know of or reasonably suspect financial abuse is occurring. These reports would trigger a response by local agencies to investigate and intervene to help prevent financial loss.
"This is a great day," said Wolk. "Two years ago, Senator Simitian and I began working on this issue, prompted by a growing concern among our senior, law enforcement and adult protective services communities. All agreed that we needed more help from financial institutions to detect and report financial abuse when it is first suspected, not after the money has been stolen and recovery is impossible."
"Advanced age and accumulated assets makes seniors a tempting target. A simple, timely phone call can help prevent the loss of a lifetime's savings," said Simitian, who decried the current lack of protection for seniors against financial swindles where financial institutions are involved, a policy he characterized as, "see no evil, hear no evil, speak no evil."
"It's encouraging that the banks and credit unions are beginning to acknowledge the value of this effort," Simitian said. "Ultimately, it will help them to better meet their obligation to protect their customers against fraud; and I believe the amendments to the bill have addressed any legitimate concerns the banking industry may have had."
"This legislation will help ensure a timely response to financial exploitation," said Frank Mecca with County Welfare Directors Association, one of the SB 1018's cosponsors. "The results of elder financial abuse can be devastating to those on fixed or limited incomes, both financially and to their health and well-being."
"The measure will provide protection to our most vulnerable population while fairly addressing the concerns of the banking community," said Nick Warner, legislative director of the California State Sheriffs Association, the bill's other cosponsor. "We believe this measure is a major advancement in the fight to deter, detect and prevent elder financial abuse."
The bill's wide range of support includes Attorney General Bill Lockyer and State Treasurer Phil Angelides, who spoke last month to the growing threat of financial abuse posed to the state's elderly and dependent adults, and the importance of SB 1018 and AB 1605.
The legislation's only opponents have been financial institutions, which recently removed their opposition after Wolk and Simitian made amendments to guarantee that the bill would not result in expanded liability beyond a maximum civil fine of $1,000 for failure to report abuse.
"We've worked long and hard to see this important legislation sent to the Governor," said Wolk. "I thank the representatives of the banking industry and the credit unions, the Speaker and his staff, and the Senate pro tem, all of whom worked hard over the last two weeks to make this bill something we can be proud of. I also want to thank Yolo County District Attorney Dave Henderson, who first brought this issue to my attention."
SB 1018 now goes to the Senate for concurrence. The legislation is supported by more than 100 groups and elected officials, including Attorney General Bill Lockyer; State Treasurer Phil Angelides; California District Attorneys Association; California Welfare Directors Association; AARP; California Senior Legislature; Alzheimer's Association; and California State Association of Public Administrators, Public Guardians and Public Conservators.
|
|
