Mandated reporters of suspected financial abuse of an elder or dependent adult.
Under the proposed changes, financial institutions are mandated to provide annual training to employees designated as mandated reporters on how to effectively report suspected cases to both local and federal authorities. It also obligates these institutions to promptly inform clients about reporting mechanisms as soon as any potential financial abuse is detected. These measures are intended to increase vigilance and awareness about financial abuse occurrences, ultimately strengthening protections for vulnerable populations.
Assembly Bill No. 871, introduced by Assembly Member Stefani, focuses on reinforcing the responsibilities of mandated reporters concerning suspected financial abuse of elderly and dependent adults in California. The bill seeks to amend Section 15630.1 of the Welfare and Institutions Code. Its primary aim is to enhance the reporting procedures and obligations of employees and officers within financial institutions when they suspect financial abuse. Previously, existing laws required reporting but lacked adequate training and systematic procedures specific to financial institutions.
One notable point of contention with AB 871 is the balance between imposing rigorous requirements on financial institutions and ensuring that such mandates do not inadvertently penalize institutions for delays in reporting, especially where no civil liability is applied for failures to disclose information when fraud is suspected. Additionally, the bill opens discussions regarding how effectively agencies can respond to these reports and what support systems are in place for the organizations tasked with compliance, thus raising questions about resource allocation.