Governor signs Financial Elder Abuse Reporting Act

New law by Simitian and Wolk requires bank employees to report financial abuse

“This legislation will both help protect our elderly citizens by keeping them out of the grasp of unscrupulous people, while also protecting our financial institutions from frivolous lawsuits,” said Governor Arnold Schwarzenegger. “I applaud the collaborative effort of the financial institution industry, law enforcement, senior groups, county welfare directors and legislators in crafting a workable and results-driven law to provide greater protection for California’s seniors.” During a bill signing ceremony, the governor praised the “bipartisan effort” and “balanced approach” of the bill.

“After a long, two-year struggle this important legislation is now law,” said Assemblywoman Wolk. “With this bill signing, an enormous gap is filled in the laws protecting against elder financial abuse. Bank employees will now join other professionals as mandated reporters of this growing crime. This sends a clear message that California treats this crime seriously and we expect those who witness elder financial abuse to understand they have not only a moral obligation to report it, but a legal one as well.”

SB 1018 will add employees of financial institutions—banks, credit unions, and savings and loans—as mandated reporters of financial abuse perpetrated against elder and dependent adults. Failure to report may result in a fine of up to $1,000, or $5,000 if the failure to report is willful. Fines will be paid by the institution. The bill also provides liability protection to employees who make reports.

Financial abuse is the fastest growing form of elder abuse and California has more residents over 65 than any other in the nation. Over 200,000 Californians are victims of elder and dependent adult abuse each year, yet only one in 100 cases are reported.

“I want to thank the sponsors of the bill,” said Wolk, “including the California Welfare Directors Association, the California State Sheriffs’ Association, California State Association of Counties, the Senior Legislature, the District Attorney Association, and especially the Los Angeles District Attorney and my own Yolo County District Attorney, who first brought this bill to me. It was a pleasure to work with Senator Simitian on this issue and I look forward to continuing our partnership in our ongoing efforts to stop elder abuse.