Existing law provides for the compensation of victims and derivative victims of specified types of crimes by the California Victim Compensation Board from the Restitution Fund, a continuously appropriated fund, for specified losses suffered as a result of those crimes. Existing law sets forth eligibility requirements and specified limits on the amount of compensation the board may award, and requires applications for compensation to be verified under penalty of perjury.

This bill would create the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program and would authorize the board, upon appropriation by the Legislature before January 1, 2020, to provide victims of elder or dependent adult financial abuse compensation to reimburse costs for financial counseling, mental health counseling, or supportive services, as specified, if the crime occurred in the County of San Diego. The bill would limit compensation pursuant to this authorization to $3,000 per person and an aggregate total of $1,000,000. The bill would exclude a derivative victim from eligibility for compensation if the only crime the victim suffered was elder or dependent adult financial abuse. The bill would authorize the pilot program to operate until January 1, 2021. The bill would require the board to report specified information related to the pilot program to the Legislature and Governor on or before July 1, 2021. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. The bill would repeal these provisions on January 1, 2022.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Existing law provides for the compensation of victims and derivative victims of specified types of crimes by the California Victim Compensation Board from the Restitution Fund, a continuously appropriated fund, for specified losses suffered as a result of those crimes. Existing law sets forth eligibility requirements and specified limits on the amount of compensation the board may award, and requires applications for compensation to be verified under penalty of perjury.

This bill would create the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program and would authorize the board, upon appropriation by the Legislature before January 1, 2020, to provide victims of elder or dependent adult financial abuse compensation to reimburse costs for financial counseling, mental health counseling, or supportive services, as specified, if the crime occurred in the County of San Diego. The bill would limit compensation pursuant to this authorization to $3,000 per person and an aggregate total of $1,000,000. The bill would exclude a derivative victim from eligibility for compensation if the only crime the victim suffered was elder or dependent adult financial abuse. The bill would authorize the pilot program to operate until January 1, 2021. The bill would require the board to report specified information related to the pilot program to the Legislature and Governor on or before July 1, 2021. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. The bill would repeal these provisions on January 1, 2022.

This bill would make legislative findings and declarations as to the necessity of a special statute for the County of San Diego.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Date of Hearing: April 26, 2017

ASSEMBLY COMMITTEE ON APPROPRIATIONS

Lorena Gonzalez Fletcher, Chair

ABPCA Bill Id:AB 502

Author:(Waldron) – As Amended Ver:March 16, 2017

Urgency: No State Mandated Local Program: Yes Reimbursable: No

SUMMARY:

This bill creates a pilot program in San Diego County to permit the Victims of Crime Program (CalVCP) to reimburse victims of elder and dependent adult financial abuse, subject to an appropriation, for costs of financial and mental-health counseling, and requires the California Victim Compensation Board to report to the Legislature and the Governor. Specifically, this bill:

• 1. Establishes the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program within San Diego County, and authorizes the pilot project to provide direct victims of elder or dependent adult financial abuse pecuniary compensation for expenses associated with financial counseling, mental health counseling or supportive services.
  2. Limits compensation to $3,000 per client for the total costs of not more than 10 financial counseling sessions, as defined, 10 mental health counseling sessions and supportive services such as emergency shelter, cognitive assessments, and transportation.
  3. Limits compensation authorized by the pilot project for all persons compensated at $1 million and permits the compensation if funds are appropriated by the Legislature before January 1, 2020.
  4. Requires the CalVCP to report on or before July 1, 2020, both electronically and in writing to the Legislature and the Governor, specific statistical information on the clients and the services provided.
  5. Sunsets project on January 1, 2022.

FISCAL EFFECT:

Cost pressures of up to $1 million on the Restitution Fund, over three years, or less time if an appropriation is delayed. Since this bill limits the compensation to $3,000 per client, at least 333 eligible senior citizens could receive services; and up to 667 if the average compensation were $1,500.

COMMENTS:

1. Purpose. According to the author, “Elder and dependent adult financial abuse can lead to large costs to victims, families, and society. This bill establishes a three-year pilot project in San Diego County to provide mental health and financial counseling, as well as in-home counseling or transportation to appointments.
2. Background. The CalVCP provides compensation for victims of violent crime, or more specifically those who have been physically injured or threatened with injury. It reimburses eligible victims for many crime-related expenses, such as medical treatment, mental health services, funeral expenses, and home security. Funding for the board comes from restitution fines and penalty assessments paid by criminal offenders, as well as from federal matching funds. Currently, the program is not authorized by state law to address elder and dependent adult financial crimes. Financial counseling is not currently a reimbursable expense.

It is estimated that elder victims of financial abuse suffer upwards of $2.9 billion annual financial loss. Data from the National Center on Elder Abuse shows that women are about twice as likely as men to be abused, and that the older one is, the greater the risk is for suffering abuse.

1. Support: The California Commission on Aging, a co-sponsor with the California Elder Justice Coalition, states that “studies show that elderly and dependent adult victims of financial abuse have a decreased lifespan, suffer emotional trauma, and often face impoverishment,” and note that other states have already moved ahead to extend assistance to elderly and dependent adult victims of financial abuse, including Colorado, Florida, Idaho, New York, Oklahoma, and Wyoming, among others. The Commission notes that despite having the largest population of residents over 65, California does not allow Cal-VCP funds to be used to reimburse for services that older and dependent adult victims of financial crimes need to recover.

1. Prior Legislation: AB 1754 (Waldron), of the 2015-16 Legislative Session, was almost identical to this bill in that it would have established the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program. AB 1754 was held on the Senate Appropriations suspense file.

Analysis Prepared by: Pedro Reyes / APPR. / (916) 319-2081

Date of Hearing: April 4, 2017

ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE

Ash Kalra, Chair

ABPCA Bill Id:AB 502 (

Author:Waldron) – As Amended Ver:March 16, 2017

SUBJECT: Crime victim compensation: elder or dependent adult financial abuse.

SUMMARY: Creates a pilot program in San Diego County permitting the Victims of Crime Program (CalVCP) to reimburse victims of elder and dependent adult financial abuse for costs of financial and mental-health counseling, or supportive services as specified. Specifically, this bill:

• 1. Establishes the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program within San Diego County;
  2. Authorizes the pilot project to provide direct victims of elder or dependent adult financial abuse pecuniary compensation for expenses associated with financial counseling, mental health counseling or supportive services;
  3. Makes compensation limited to $3,000 per client for the total costs of not more than 10 financial counseling sessions, as defined, 10 mental health counseling sessions and supportive services such as emergency shelter, cognitive assessments, and transportation;
  4. Places a limit on the total compensation authorized by the pilot project for all persons at $1,000,000;
  5. Authorizes the pilot program to operate until January 1, 2021;
  6. On or before July 1, 2021, the California Victim Compensation Board shall report to the Legislature and the Governor;
  7. Concludes that a pilot is necessary to inform legislative members of the demand for, costs of, and outcomes of victim services leading to best practice protocols;
  8. Makes various findings and declarations regarding the steep increase in California’s population of those aged 65 and greater than that of any other state, reaching 4.2 million in 2010;
  9. Makes various findings and declarations regarding elder or dependent adult financial abuse, that elderly and other dependent adults are seen as prey for financial scam artists who capitalize upon their loneliness, isolation, and vulnerability and that this victimization can decrease life spans, generate severe anxiety and hopelessness; and,
  10. Requires the California Victim Compensation and Government Claims Board to report on or before July 1, 2021, both electronically and in writing to the Legislature and the Governor, data related to the number of victims who received payments, the number of victims who received mental health counseling, the average payment for mental health counseling per recipient, the number of victims who received financial counseling and the average payment for financial counseling per recipient; and any other data that the Board wishes to provide.

EXISTING LAW:

1) Protects seniors and dependent adults with the Elder Abuse and Dependent Adult Civil Protection Act (EADACPA), which provides civil protections and remedies for victims of elder and dependent adult abuse and neglect.

2) Defines elder as any person who is 65 years of age or older and defines “dependent adult” as any person who is between the ages of 18 and 64, who has physical or mental limitations which restrict his or her ability to carry out normal activities or to protect his or her rights, including, but not limited to, persons who have physical or developmental disabilities or whose physical or mental disabilities have been diminished because of age, or any person between the ages of 18 and 64 who is admitted as an inpatient to a 24-hour health facility.

3) Provides for referrals of abuse to Adult Protective Services agencies, Long-Term Care Ombudsman (LTCO) programs, and local law enforcement agencies from public or private agencies, mandated reporters, or any other source having reasonable cause to know that the welfare of an elder or dependent adult is endangered.

4) Contains uniform state guidelines, which specify when county adult protective service agencies are to investigate allegations of abuse of elders and dependent adults and the appropriate role of local law enforcement is necessary in order to ensure that a minimum level of protection is provided to elders and dependent adults in each county.

1. Authorizes law enforcement, the LTCO and/or Adult Protective Services (APS) to take any actions considered necessary to protect the elder or dependent adult and correct the situation and ensure the individual’s safety.
2. Defines “financial abuse” of an elder or dependent adult occurs when a person or entity takes, secrets, appropriates, or retains real or personal property of an elder or dependent adult to a wrongful use or with intent to defraud.
3. Authorizes the California Victims and Government Claims Board to assist victims of crime.
4. Establishes the California Victim Compensation Program (CalVCP) which can help pay bills and expenses that result from certain violent crimes.

FISCAL EFFECT: The bill provides for an appropriation of one million dollars, but has not been analyzed by a fiscal committee yet.

COMMENTS:

Author’s Statement: “Assembly Bill 502 would establish a pilot program for victims of elder and dependent adult financial abuse in San Diego County to be eligible for financial assistance through the California Victims’ Compensation program. Elder and dependent adult financial abuse can lead to large costs to victims, families, and society. In 2014-2015, San Diego County’s Adult Protective Services confirmed a total of 1,148 unique cases of elder and dependent adult financial abuse. The San Diego District Attorney estimates approximately 600 elderly and dependent adult victims are served annually, averaging about 50 clients per month. …also gives the state the opportunity to gather essential data for the use of mental health and financial counseling by elderly and dependent adult victims of financial abuse.”

Elder Abuse: There has been a growing amount of research into the nature and extent of elder and dependent adult abuse. One study suggests that approximately 6% of the 65+ population will report physical, financial, mental and other forms of abuse in any given year. The Department of Social Services (DSS) oversees the Adult Protective Services (APS) program and reports approximately 9,500 cases per month of elder and dependent adult abuse are reported and investigated. About 1,600 of the reports reflect financial abuse or exploitation. In 2014-2015, San Diego County’s Adult Protective Services confirmed a total of 1,148 unique reports of elder and dependent adult financial abuse. The San Diego District Attorney estimates approximately 600 elderly and dependent adult victims are served annually, averaging about 50 clients per month. It is estimated that elder victims of financial abuse suffer upwards of $2.9 billion annual financial loss. Data from the National Center on Elder Abuse shows that women are about twice as likely as men to be abused, and that the older one is, the greater the risk is for suffering abuse.

Victim Relief: The Victims of Crime and Government Claims Board administers the State’s Government Claims Program, Victim Compensation Program, and Revenue Recovery Program. The California Victim Compensation Program (CalVCP) is designed to help pay bills and expenses that result from being a victim of certain crimes. Currently, the program is not authorized by state law to address elder and dependent adult financial crimes. Federal law already permits this funding purpose.

Arguments in Support: The California Commission on Aging, a co-sponsor in cooperation with the California Elder Justice Coalition, states that “studies show that elderly and dependent adult victims of financial abuse have a decreased lifespan, suffer emotional trauma, and often face impoverishment,” and note that other states have already moved ahead to extend assistance to elderly and dependent adult victims of financial abuse, including Colorado, Florida, Idaho, New York, Oklahoma, and Wyoming, among others. The Commission notes that despite having the largest population of residents over 60, California has not yet made Cal-VCP compensation available to these victims.

Arguments in Opposition: None.

Question: Why is San Diego the only county authorized to participate in this pilot?

Related Legislation:

SB 60 (Wright), Chapter 147, Statutes of 2013 as introduced, would have made elder and dependent adult victims of financial crimes (P.C. 368 (d) and (e)) eligible for up to $10,000 in compensation from the Victim Compensation Fund for mental health counseling and financial counseling. The elder abuse provision was amended out in Senate Appropriations and the bill went forward with provisions making victims of human trafficking eligible for benefits.

AB 1140 (Bonta), Chapter 569, Statutes of 2015 implemented recommendations made by the “CalVCP Statute Modernization Project.” The measure also made a number of other improvements to address emerging issues in law.

REGISTERED SUPPORT / OPPOSITION:

Support

California Commission on Aging (CCoA) – Co-Sponsor

California Elder Justice Coalition – Co-Sponsor

County Welfare Directors Association of California (CWDA)

Multipurpose Senior Services Program Site Association

Opposition

None on file.

Analysis Prepared by: Barry Brewer / AGING & L.T.C. / (916) 319-3990

Date of Hearing:

Chief Counsel: Gregory Pagan

ASSEMBLY COMMITTEE ON PUBLIC SAFETY

Reginald Byron Jones-Sawyer, Sr., Chair

ABPCA Bill Id:AB 502

Author:(Waldron) – As Amended Ver:

SUMMARY:

Establishes the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program, and would authorize the board, upon appropriation by the Legislature, to provide victims of elder or dependent adult financial abuse compensation to reimburse costs for financial counseling, mental health counseling or supportive services. Specifically, this bill:

1. Establishes the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program.
   
2. Limits compensation to direct victims of theft, identity theft, embezzlement, forgery, or fraud of an elder or dependent adult, and deems derivative victims ineligible.
   
3. Limits compensation to a particular victim to $3,000.
   
4. Permits compensation for up to 10 sessions of mental health counseling and up to 10 session of financial counseling.
   
5. Allows compensation for the cost of transportation to appointments or the cost of counseling in the home.
   
6. Limits the distribution of the total funds under the pilot program to one million dollars ($1,000,000).
   
7. States that funding authorization stops on January 1, 2020.
   
8. States that the program shall become inoperative on January 1, 2021.
   
9. Requires the California Victim Compensation and Government Claims Board (board) to report to the Legislature and the Governor, by July 1, 2021, the following:
   
   1. The number of victims who received payment under the pilot program;
      
   2. The number of victims who received mental health counseling;
      
   3. The average payment for mental health counseling per recipient;
      
   4. The number of victims who received financial counseling;
      
   5. The average payment for financial counseling per recipient; and,
      
   6. Any other data on the pilot program that the board wishes to include.
      
10. States that a special law is necessary because of the unique circumstances in the County of San Diego where a high number of reported elder and dependent adult financial abuse crimes occur.
    
11. Contains legislative findings and declaration about the extent of financial abuse of the elderly and dependent adults, the response of other legislative bodies to the problem, of the need for a pilot program, and of why San Diego County is well-situated for the pilot program.

EXISTING LAW:

1. States that all persons who suffer loss as a result of criminal activity shall have the right to restitution from the perpetrators. (Cal. Const. Art. 1, § 28(b).)
   
2. Establishes Victim's Compensation Program (CalVCP) administered by the board to reimburse crime victims for the pecuniary losses they suffer as a direct result of criminal acts. Indemnification is made from the Restitution Fund, which is continuously appropriated to the board for these purposes. (Gov. Code, §§ 13901 & 13950 et. seq.)
   
3. Authorizes the board to reimburse victims of crimes causing physical injury or emotional injury with a threat of physical injury for pecuniary loss for specified types of losses, including medical expenses, mental-health counseling, loss of income or loss of support, and installing or increasing residential security. (Gov. Code, §§ 13955, subd. (f), and 13957.)
   
4. Authorizes the board to establish maximum rates and service limitations for medical and medical-related services, and for mental health and counseling services. (Gov. Code, § 13957.2)
   
5. Defines an "elder" as "any person who is 65 years of age or older." (Pen. Code, § 368, subd. (g).)
   
6. Defines a "dependent adult" as "any person who is between the ages of 18 and 64, who has physical or mental limitations which restrict his or her ability to carry out normal activities or to protect his or her rights, including, but not limited to, persons who have physical or developmental disabilities or whose physical or mental abilities have diminished because of age." (Pen. Code, § 368, subd. (h).)
   
7. Specifies that any person who is not a caretaker who violates any provision of law proscribing theft, embezzlement, forgery, fraud, or identity theft, with respect to the property or personal identifying information of an elder or a dependent adult, and who knows or reasonably should know that the victim is an elder or a dependent adult, is punishable as follows:
   
   1. By a fine not exceeding $2,500, or by imprisonment in a county jail not exceeding one year, or by both that fine and imprisonment, or by a fine not exceeding $10,000, or by imprisonment in the county jail for two, three, or four years, or by both that fine and imprisonment, when the moneys, labor, goods, services, or real or personal property taken or obtained is of a value exceeding $950.
   2. By a fine not exceeding $1,000, by imprisonment in a county jail not exceeding one year, or by both that fine and imprisonment, when the moneys, labor, goods, services, or real or personal property taken or obtained is of a value not exceeding $950. (Pen. Code, § 368, subd. (d).)
      
8. Provides that any caretaker of an elder or a dependent adult who violates any provision of law proscribing theft, embezzlement, forgery, fraud, or identity theft, with respect to the property or personal identifying information of that elder or dependent adult, is punishable as follows:
   1. By a fine not exceeding $2,500, or by imprisonment in a county jail not exceeding one year, or by both that fine and imprisonment, or by a fine not exceeding $10,000, or by imprisonment in the county jail for two, three, or four years, or by both that fine and imprisonment, when the moneys, labor, goods, services, or real or personal property taken or obtained is of a value exceeding $950; or
   2. By a fine not exceeding $1,000, by imprisonment in a county jail not exceeding one year, or by both that fine and imprisonment, when the moneys, labor, goods, services, or real or personal property taken or obtained is of a value not exceeding $950. (Pen. Code, § 368, subd. (e).)

FISCAL EFFECT:

Unknown

COMMENTS:

1. Author's Statement: According to the author, "AB 502 will establish a pilot program for victims of elder and dependent adult financial abuse in San Diego County to be eligible for financial assistance through the California Victims’ Compensation program. Elder and dependent adult financial abuse can lead to large costs to victims, families, and society. This bill establishes a three-year pilot project in San Diego County to provide mental health and financial counseling, as well as transportation to appointments or in-home counseling appointments. This bill also gives the state the opportunity to gather essential data for the use of mental health and financial counseling by elderly and dependent adult victims of financial abuse."
   
2. CalVCP: The CalVCP provides compensation for victims of violent crime, or more specifically those who have been physically injured or threatened with injury. It reimburses eligible victims for many crime-related expenses, such as medical treatment, mental health services, funeral expenses, and home security. Funding for the board comes from restitution fines and penalty assessments paid by criminal offenders, as well as from federal matching funds. (See board Website <http://www.vcgcb.ca.gov/board>.)
   
3. Other Victims Services Programs: The board is not the only state agency which administers programs to assist victims. The Office of Emergency Services (OES) also oversees several such programs, including the Unserved/Underserved Victim Advocacy and Outreach Program, the Victim/Witness Assistance Program. (See OES Website: <http://www.caloes.ca.gov/cal-oes-divisions/grants-management/criminal-justice-emergency-management-victim-services-grant-programs/victim-services-programs>.) It is unclear whether elder or dependent adult victims of financial abuse qualify for compensation through any OES programs, but the description of both of the aforementioned programs do reference elder abuse in general. Thus, it is possible that funding for mental health and financial counseling might be compensable through one of these OES programs without broadening the scope of the CalVCP program.
   
   For example, in January of this year, the Criminal Justice/Emergency Management and Victims Services Branch of the OES was soliciting proposals for the Elder Abuse (XE) Program for fiscal year 2016-2017. The stated purpose of the XE Program is to enhance the safety of elder and dependent adult victims of crime by providing direct services to victims and bridging the gap between elder justice service providers (including Adult Protective Services (APS), Long-Term Care Ombudsman programs, providers of legal assistance, etc.) and victim service providers. (See Elder Abuse (XE) Program RFP, pp, 3-4, <http://www.caloes.ca.gov/GrantsManagementSite/Documents/16XE%20RFP.pdf >.) Although the RFP period has closed, it is possible that there are other funds available through OES to fund the pilot program proposed by this bill.
   
   On the other hand, the Governor’s budget for 2015-16 proposes to reorganize the board beginning in 2016-17. The proposed change would have the board primarily administer victim programs including some currently handled by other agencies, such as the OES.^[1]
   
4. Prior Legislation: AB 1754 (Waldron), of the 2015-16 Legislative Session, was identical to this bill in that it would have established the San Diego County Elder or Dependent Adult Financial Abuse Crime Victim Compensation Pilot Program. AB 1754 was held on the Senate Appropriations suspense file.

REGISTERED SUPPORT / OPPOSITION:

Support

California Commission on Aging Co-Sponsor
California Elder Justice Coalition Co-Sponsor
California Long Term Care Ombudsman Association
California District Attorneys Association
Consumer Federation of California
San Diego County District Attorney's Office
Multipurpose Senior Services Program Site Association

Opposition

California Public Defenders Association

Analysis Prepared by:

Gregory Pagan / PUB. S. /

1. Government claims would be moved to the Department of General Services. The board would still retain the responsibility for administering claims for the wrongfully convicted. ↑