Wolk financial elder abuse bill passes key committees

Law enforcement and seniors team up to overcome banker opposition

Assembly Bill 1605 by Assembly Members Lois Wolk (D-Davis) and Patty Berg (D-Eureka) 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.

“This is a growing problem. Financial abuse is the most rapidly increasing form of abuse, constituting approximately 30 percent of all abuse cases,” said Assemblywoman Wolk. “Over 200,000 Californians fall victim to elder and dependent adult abuse each year. We need to act now, building on the successes of the 18 other states that have passed mandated reporting laws for financial institutions without negative consequences.”

Frank Mecca with County Welfare Directors Association (CWDA) and Nick Warner with the California State Sheriff’s Association (CSSA) testified on behalf of the bill, refuting claims by the bank lobbyists that mandated reporting is unnecessary for effective abuse prevention.

“Making bank employees mandated reporters of elder financial abuse makes perfect sense and is a critical component in our fight against elder financial abuse,” said Warner. “A trained bank teller is the first line of defense for the growing crime of elder financial abuse. Given that the duty to report is based on what a reasonable person would notice and suspect, the bar for any type of prosecution under this section is extraordinarily high.”

“Timely response is critical to preventing the swift depletion of a victim’s lifetime of savings,” said Mecca. “As the population of seniors grows, tens of thousands of elderly as well as dependent adults are increasingly susceptible to financial exploitation. The results can be devastating to those on fixed or limited incomes, both financially and to their health and well-being.”

AB 1605, which is principally co-authored by Senator Joe Simitian (D-Palo Alto), will next be heard in the Appropriations Committee. The bill is supported by over 50 groups, including Attorney General Bill Lockyer; Yolo County District Attorney; the California Welfare Directors Association; the AARP; AFSCME; Gray Panthers; California Senior Legislature; Alzheimer’s Association; and the California State Association of Public Administrators, Public Guardians and Public Conservators.

“This bill still faces an uncertain future,” said Wolk. “The bank industry has a great deal of influence in the legislature, and we’ll need the help of all those who support this important legislation to move it to the Senate. I encourage anyone who is a credit union member to ask their own credit union to support the bill.”