Gov. Schwarzenegger Signs Financial Elder Abuse Reporting Act; Protects Seniors from Financial Abuse

Governor Arnold Schwarzenegger today signed the Financial Elder Abuse Reporting Act, SB 1018 by Senator Joe Simitian (D-Palo Alto), to help protect California's elderly and dependent adults from financial abuse.

"I am committed to ensuring the safety and security of California's growing population of seniors. Our older Californians have worked hard all their lives and should enjoy the fruits of their labor," said Governor Schwarzenegger. "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. 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."

The Elder Abuse Reporting Act will assist in reducing the number of financial abuse incidents against elder and dependent adults by requiring employees of banks, savings associations and credit unions to be mandated reporters of suspected financial abuse. The Act requires reporting to be done immediately to either the local adult protective services department or law enforcement agency and applies up to a $5,000 civil penalty for failure to report. It also extends immunity from civil liability for making such reports to employees of financial institutions.

In addition to signing this legislation, Governor Schwarzenegger has taken steps to protect California's seniors by:

• Establishing a task force through Executive Order S-17-04, headed up by the Office of Emergency Services, to work with other law enforcement and governmental agencies to review existing programs intended to detect, investigate, prosecute and prevent elder and dependent adult abuse. The Office is required to make recommendations focused on enhancing coordination among the various law enforcement and governmental agencies in the areas of information-sharing, training, and crime prevention, and identify any available private or federal funding sources to help carry out these recommendations by December 31, 2006.
  
  
• Strengthening penalties for misrepresentation of insurance policies that induce a person to take actions that are not in his or her best interest through signing SB 1273 (Chapter 730, Statutes of 2004 ). This bill addresses the financial crime in insurance called "twisting and churning," which often targets senior citizens.
  
  
• Increasing criminal penalties for elder and dependent adult abuse through enacting AB 2611 (Chapter 886, Statutes of 2004).