California Assembly Bill AB2159

California 2017-2018 Regular Session

• Introduced: 2/12/18
• Refer: 3/19/18
• Report Pass: 3/21/18
• Refer: 3/22/18
• Report Pass: 4/18/18
• Refer: 4/18/18
• Report Pass: 4/24/18
• Refer: 4/26/18
• Report Pass: 5/15/18
• Refer: 5/16/18

Caption

Financial abuse.

Impact

The implications of AB 2159 are significant as it not only adds new responsibilities to money transmitters but also strengthens the existing framework for preventing and addressing financial abuse of elders and dependent adults. By mandating fraud warnings and requiring appropriate training for agents, the bill seeks to lower instances of financial exploitation. The civil penalties imposed for failures to comply with these provisions, including fines and reimbursement requirements for employers, are designed to incentivize adherence to the new regulations and protect vulnerable populations effectively.

Summary

Assembly Bill 2159 aims to enhance protections against financial abuse of elders and dependent adults in California by amending existing laws related to mandated reporters and introducing new protocols for money transmitters. It requires money transmitters to implement specific fraud prevention measures, such as providing consumer fraud warnings on transmittal forms and training their agents on recognizing and preventing fraud. The bill recognizes money transmitters as mandated reporters, obligating them to report any suspected financial abuse of vulnerable adults, thereby expanding the scope of responsibility for financial institutions in safeguarding these individuals.

Sentiment

General sentiment surrounding AB 2159 appears to be supportive of its goals of protecting elderly and dependent adults from financial abuse. Advocates for the elderly and consumer rights groups likely view this legislation as a positive step toward fortifying the defenses against financial exploitation. However, there may also be concerns regarding the additional regulatory burdens placed on businesses in the money transmission sector, potentially leading to discussions on the efficacy and feasibility of compliance with the new requirements.

Contention

While AB 2159 is broadly aimed at enhancing protections, notable points of contention could include discussions about the adequacy of penalties and whether they are sufficient to deter non-compliance. Additionally, the definition of mandated reporters has expanded, which may raise concerns among money transmitters about increased liability or the scope of their obligations under the law. Critics may argue that adding more layers of regulation could lead to unintended consequences, such as a reluctance among money transmitters to engage with vulnerable populations for fear of legal repercussions.