SACRAMENTO - When Gov. Arnold Schwarzenegger signed Senate Bill 1018 into law this week, he helped write the final chapter in a years-long effort by Patty Berg that began long before she was elected to the Assembly.

Senate Bill 1018, by state Sen. Joe Simitian and co-authored by Assemblywomen Patty Berg, D-Eureka and Lois Wolk, D-Davis, requires banks and credit unions to notify authorities when they see suspicious transactions which seem to suggest that someone is trying to bilk an elderly person of their savings.

“I hope this sends a message to the crooks and scammers who want to drain an older person’s bank account,” said Berg, D-Eureka. “And the message is we’re going to shine a light on you, and you’re not going to get away with it.”

Berg, who served for 20 years as the executive director of the Area One Agency on Aging, has been calling for such a measure for many years. It had consistently been blocked by the financial industry which did not want to be held liable for failing to detect when a customer was being bilked.

But this year, all sides were able to reach an agreement that requires reporting while also protecting bank tellers from being sued by crime victims.

“The fact is, the people on the front lines, the people most likely to see this crime taking place, are the people behind the counter in the financial institutions,” said Berg. “Enlisting them in the effort to battle this growing problem is a major victory in the war against elder abuse.”

Schwarzenegger signed the bill into law Monday. “Our older Californians have worked hard all their lives and should enjoy the fruits of their labor,” he said.

The law takes effect Jan. 1, 2007, giving financial institutions time to train employees on spotting and reporting suspected abuse.

Individual tellers will not be held responsible if they are wrong about a report or if they fail to report possible abuse. But state and local prosecutors could seek civil penalties up to $5,000 against the financial institution's failure to report suspected financial crimes involving elderly victims.

Health care professionals, social workers, nursing home workers and members of the clergy were already required under existing law to report suspected elder abuse.