Financial elder abuse bill moves forward

Bill overcomes heavy-handed lobbying by banks and credit unions

Senate Bill 1018 by Senator Joe Simitian (D-Palo Alto) and Assembly Members Lois Wolk (D-Davis) would 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. This would trigger a response by local agencies to investigate and intervene to help prevent financial loss.

“Senator Simitian and supporters of SB 1018 won a significant victory today, overcoming attempts to derail this important legislation,” said Wolk. “The only opposition we saw came from the bank lobby, which failed to persuade the committee that the sky would fall if this bill was passed. I was especially disappointed to see credit union lobbyists working to defeat this bill. I encourage anyone who is a credit union member to ask their own credit union to support this important legislation. Credit unions are member-driven organizations that should respond to requests from their own members.

Lobbyists for the banking industry testified in force at the hearing, making claims refuted by Yolo County Sheriff Ed Prieto. Prieto, who testified on behalf of the bill’s cosponsor, the California State Sheriff’s Association, pointed to success in 18 other states that have passed mandated reporting laws for financial institutions without negative consequences.

“We saw an outpouring of support from law enforcement officials, local governments and senior advocacy groups today. In the end, the legislation and the seniors it would protect won out. We took strides today toward seeing this legislation signed into law, but we still have a long road ahead of us,” concluded Wolk.

SB 1018 will next be heard in the Senate Judiciary Committee, and is supported by many groups including Attorney General Bill Lockyer; Yolo County District Attorney; the California Welfare Directors Association; the AARP; Gray Panthers; California Senior Legislature; Alzheimer’s Association; and the California State Association of Public Administrators, Public Guardians and Public Conservators.