Brief Summary of Substitute Bill

(As Amended by House)

Prohibits wrongful control over or withholding of a vulnerable adult's property and gives examples of situations constituting financial exploitation.
Requires the Department of Social and Health Services (Department) to provide a statement of rights to vulnerable adults whose cases are under investigation.
Provides standards for the Department to agree with federally recognized tribes to investigate reported abuse or financial exploitation on tribal land.

Background:

Protection of Vulnerable Adults.

Washington law prohibits abandonment, abuse, financial exploitation, and neglect of vulnerable adults and sets forth ways to stop abuse and compensate victims.

Vulnerable adults are people 60 years of age or older who cannot care for themselves, are legally incapacitated, have developmental disabilities, are admitted to facilities, or are receiving services from certain care agencies. The law covers boarding homes, nursing homes, adult family homes, residential rehabilitation centers, and other facilities licensed by the Department of Social and Health Services (Department).

A person commits abuse when he or she intentionally acts or fails to act in a way that causes injury, unreasonable confinement, intimidation, or punishment of a vulnerable adult. Financial exploitation occurs when a person illegally or improperly uses property, income, resources, or trust funds of a vulnerable adult for the exploiter's profit or advantage, rather than to benefit the victim.

Various statutes establish a system for the Department to receive reports of and investigate incidents of suspected abuse or financial exploitation of vulnerable adults. In addition, the Department or interested parties may request judicial protection orders to restrain someone from abusing or financially exploiting an adult.

Slayer Statute.

Washington's "slayer statute" (chapter 11.84 RCW) prohibits anyone who financially exploits a vulnerable adult or who kills a person from inheriting from his or her victim. The slayer statute refers to and incorporates the definition of "financial exploitation" found in the statute protecting vulnerable adults from abuse or financial exploitation.

Under the slayer statute, a party may bring a civil lawsuit to have an alleged abuser effectively disinherited. A defendant can be found to be an abuser if a fact finder determines that the person was convicted of committing certain crimes (such as theft, fraud, or identity theft) against the victim, or if the fact finder determines upon "clear, cogent, and convincing" evidence that the defendant participated in financial abuse. An abuser may still inherit if clear, cogent, and convincing evidence shows that the victim knew of the exploitation and still wanted that abuser to inherit.

Summary of Amended Bill:

The definition of "financial exploitation" is expanded beyond illegal or improper use of a vulnerable adult's property to include the illegal or improper control over or withholding of property by a person or an entity. Financial exploitation includes but is not limited to situations where a person:

in a position of trust and confidence with a vulnerable adult uses deception, intimidation, or undue influence to obtain or use the vulnerable adult's property for that person's benefit;
breaches a fiduciary duty, such as misusing the power of attorney, trust, or a guardianship appointment, resulting in unauthorized appropriation, sale, or transfer of property of a vulnerable adult for someone else's benefit; and
who knows or clearly should know a vulnerable adult lacks the capacity to consent to the release of his or her property obtains or uses the vulnerable adult's property without lawful authority.

When the Department opens an investigation into suspected abuse or financial exploitation of an adult, it must provide a written statement of rights under existing law at the time of the initial interview. The statement must include the Department's name, address, and telephone number and may include other appropriate referrals.

The Department may agree with federally recognized tribes to investigate reports of abuse or financial exploitation of vulnerable adults occurring on property over which a tribe has exclusive jurisdiction. If the Department receives information that abuse is occurring on tribal land that is criminal or that creates a potential risk of personal or financial harm to the victim, the Department may notify tribal law enforcement or another tribal representative. The tribe may then take jurisdiction over the matter, in which case neither the Department nor its employees may participate in the investigation. Once a tribe assumes jurisdiction, the Department and its officers or employees are not liable for any action or failure to act on the part of the tribe for harm occurring to any party. The Department's jurisdiction and authority over facilities or entities that the Department licenses or certifies is not limited by these provisions.

Staff Summary of Public Testimony:

(In support) The Department requested this legislation after seriously looking into problems with long-term care in the state. In particular, the Department was concerned about adult family homes after investigations revealed a few incidents of financial exploitation. There also has been an increase in exploitation of vulnerable adults by their own family members. The changes to the definition of "financial exploitation" give the state more leverage to sue those who exploit vulnerable adults. The requirement that victims be informed of their rights allows them to take action and to know that they are supported. If a report of abuse on tribal lands is referred to the Department, the Department asks permission to investigate and respects tribal sovereignty. The Confederated Tribes of the Colville Reservation is the only tribe that currently conducts their own investigations, although the Department expects more tribes will assume jurisdiction over future investigations. The liability language in Substitute House Bill 1104 is preferable and should be adopted in the Senate version of the bill.

(Opposed) None.