Amended IN Assembly March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 83Introduced by Assembly Member PachecoDecember 20, 2024An act to add Division 27 (commencing with Section 120000) to the Financial Code, relating to business. financial institutions.LEGISLATIVE COUNSEL'S DIGESTAB 83, as amended, Pacheco. Department of Financial Protection and Innovation: elder abuse prevention plan. The California Elder Financial Abuse Prevention Act.Existing law establishes in the Business, Consumer Services, and Housing Agency a Department of Financial Protection and Innovation under the direction of the Commissioner of Financial Protection and Innovation. Under existing law, the department has charge of the execution of specified laws relating to various financial institutions and financial products and services.This bill would direct the department to require companies to submit to the department an elder abuse prevention plan. enact the California Elder Financial Abuse Prevention Act, which would authorize a depository institution, as defined, to take specified actions when, based on their own observations or information received from a governmental or law enforcement agency, the institution believes that an eligible adult, as defined, is the victim or target of financial abuse, including delaying or refusing a transaction involving the eligible adult and preventing the transfer of funds from the eligible adults account. The bill would authorize a depository institution to notify an associated third party, as defined, if the depository institution believes an eligible adult may be the victim of financial abuse, and would exempt that disclosure from state privacy laws or requirements.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Division 27 (commencing with Section 120000) is added to the Financial Code, to read:DIVISION 27. California Elder Financial Abuse Prevention Act120000. This division may be cited as the California Elder Financial Abuse Prevention Act.120001. For purposes of this section:(a) Account means a contract of deposit of funds between the depositor and a depository institution that satisfies any of the following:(1) The account is a consumer account owned by an eligible adult, whether individually or with one or more other persons.(2) The account is a line of credit owned by an eligible adult, whether individually or with one or more other persons.(b) Associated third party means an individual who is any of the following:(1) An adult authorized by the eligible adult to be contacted by the depository institution or any individual who is a parent, spouse, or other adult family member of an eligible adult who the depository institution believes is closely associated with the eligible adult.(2) A coowner, additional authorized signatory, agent under a power of attorney, or beneficiary on an eligible adults account.(3) An attorney, trustee, conservator, guardian, or other fiduciary.(c) Depository institution means a bank or credit union doing business in accordance with a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. Depository institution includes officers and employees of the depository institution.(d) Eligible adult means either of the following:(1) A person 65 years of age or older.(2) A person 18 years of age or older who satisfies both of the following:(A) Has a substantial mental or functional impairment that significantly interferes with their ability to make financial decisions or for whom a guardian or conservator has been appointed under state law.(B) The depository institution has actual knowledge that the person is a dependent adult.(e) Financial abuse means:(1) Taking, appropriating, obtaining, or retaining the property of an elder or dependent adult for a wrongful use or with intent to defraud.(2) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to do either of the following:(A) Obtain control, through deception, intimidation, or undue influence, over the eligible adults money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.(B) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.120002. (a) When a depository institution, based on information they observe or receive from a governmental or law enforcement agency, believes that an eligible adult may be the victim or target of financial abuse, the depository institution may take any of the following actions:(1) Delay or refuse one or more transactions involving the eligible adult.(2) Delay or refuse to permit the withdrawal or disbursement of funds in the eligible adults account.(3) Prevent a change in ownership of the eligible adults account.(4) Prevent a transfer of funds from the eligible adults account to an account owned wholly or partially by another person.(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for an agent under a power of attorney signed, or purported to have been signed, by the eligible adult.(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.(b) A depository institution may use their sole discretion to determine whether to act under subdivision (a) based on the information available to them at the time.(c) The authority to delay a transaction pursuant to subdivision (a) expires upon the earlier of the following:(1) Thirty business days after the date on which the depository institution first acted under subdivision (a).(2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial abuse of the eligible adult.(3) Upon an order of a court directing the release of funds.(d) Unless otherwise directed by order of a court, a depository institution may extend the duration of a delay under subdivision (a) based on a reasonable belief that the financial abuse of an eligible adult may continue to occur or continue to be attempted.120003. Notwithstanding any other law:(a) The refusal to engage in a transaction as authorized under subdivision (a) shall not constitute the wrongful dishonor of an item under Section 4402 of the Commercial Code.(b) A reasonable belief that payment of a check will facilitate the financial abuse of an eligible adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act (12 U.S.C. Sec. 5001 et seq.), the federal Expedited Funds Availability Act (12 U.S.C. Sec. 4001 et seq.), and Part 229 (commencing with Section 229.1) of Title 12 of the Code of Federal Regulations. This section does not require depository institutions to review the checks of eligible adults.(c) (1) A delay or refusal to complete a funds transfer request, as authorized under subdivision (a) of Section 120002, does not violate Division 11 (commencing with Section 11101) of the Commercial Code. If a transaction is delayed, the payment order is not deemed as received until the hold is removed and the depository institution submits the payment order for processing.(2) The term funds transfer has the same meaning as in Section 11104 of the Commercial Code. The term payment order has the same meaning as in Section 11103 of the Commercial Code.(d) (1) A depository institution may notify an associated third party if the depository institution believes the eligible adult may be the victim of financial abuse.(2) A depository institution may choose not to notify an associated third party if the depository institution believes that the third party engaged in the financial abuse of the eligible adult.(3) When providing information under paragraph (1), a depository institution may limit the information provided to disclosing their suspicion that the eligible adult may be a victim or target of financial abuse.(4) A disclosure under paragraph (1) is exempt from state privacy laws or requirements.SECTION 1.Division 27 (commencing with Section 120000) is added to the Financial Code, to read:27.Elder Abuse Prevention120000.The Department of Financial Protection and Innovation shall require companies to submit to the department an elder abuse prevention plan.
Amended IN Assembly March 24, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 83Introduced by Assembly Member PachecoDecember 20, 2024An act to add Division 27 (commencing with Section 120000) to the Financial Code, relating to business. financial institutions.LEGISLATIVE COUNSEL'S DIGESTAB 83, as amended, Pacheco. Department of Financial Protection and Innovation: elder abuse prevention plan. The California Elder Financial Abuse Prevention Act.Existing law establishes in the Business, Consumer Services, and Housing Agency a Department of Financial Protection and Innovation under the direction of the Commissioner of Financial Protection and Innovation. Under existing law, the department has charge of the execution of specified laws relating to various financial institutions and financial products and services.This bill would direct the department to require companies to submit to the department an elder abuse prevention plan. enact the California Elder Financial Abuse Prevention Act, which would authorize a depository institution, as defined, to take specified actions when, based on their own observations or information received from a governmental or law enforcement agency, the institution believes that an eligible adult, as defined, is the victim or target of financial abuse, including delaying or refusing a transaction involving the eligible adult and preventing the transfer of funds from the eligible adults account. The bill would authorize a depository institution to notify an associated third party, as defined, if the depository institution believes an eligible adult may be the victim of financial abuse, and would exempt that disclosure from state privacy laws or requirements.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
Amended IN Assembly March 24, 2025
Amended IN Assembly March 24, 2025
CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION
Assembly Bill
No. 83
Introduced by Assembly Member PachecoDecember 20, 2024
Introduced by Assembly Member Pacheco
December 20, 2024
An act to add Division 27 (commencing with Section 120000) to the Financial Code, relating to business. financial institutions.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 83, as amended, Pacheco. Department of Financial Protection and Innovation: elder abuse prevention plan. The California Elder Financial Abuse Prevention Act.
Existing law establishes in the Business, Consumer Services, and Housing Agency a Department of Financial Protection and Innovation under the direction of the Commissioner of Financial Protection and Innovation. Under existing law, the department has charge of the execution of specified laws relating to various financial institutions and financial products and services.This bill would direct the department to require companies to submit to the department an elder abuse prevention plan. enact the California Elder Financial Abuse Prevention Act, which would authorize a depository institution, as defined, to take specified actions when, based on their own observations or information received from a governmental or law enforcement agency, the institution believes that an eligible adult, as defined, is the victim or target of financial abuse, including delaying or refusing a transaction involving the eligible adult and preventing the transfer of funds from the eligible adults account. The bill would authorize a depository institution to notify an associated third party, as defined, if the depository institution believes an eligible adult may be the victim of financial abuse, and would exempt that disclosure from state privacy laws or requirements.
Existing law establishes in the Business, Consumer Services, and Housing Agency a Department of Financial Protection and Innovation under the direction of the Commissioner of Financial Protection and Innovation. Under existing law, the department has charge of the execution of specified laws relating to various financial institutions and financial products and services.
This bill would direct the department to require companies to submit to the department an elder abuse prevention plan. enact the California Elder Financial Abuse Prevention Act, which would authorize a depository institution, as defined, to take specified actions when, based on their own observations or information received from a governmental or law enforcement agency, the institution believes that an eligible adult, as defined, is the victim or target of financial abuse, including delaying or refusing a transaction involving the eligible adult and preventing the transfer of funds from the eligible adults account. The bill would authorize a depository institution to notify an associated third party, as defined, if the depository institution believes an eligible adult may be the victim of financial abuse, and would exempt that disclosure from state privacy laws or requirements.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Division 27 (commencing with Section 120000) is added to the Financial Code, to read:DIVISION 27. California Elder Financial Abuse Prevention Act120000. This division may be cited as the California Elder Financial Abuse Prevention Act.120001. For purposes of this section:(a) Account means a contract of deposit of funds between the depositor and a depository institution that satisfies any of the following:(1) The account is a consumer account owned by an eligible adult, whether individually or with one or more other persons.(2) The account is a line of credit owned by an eligible adult, whether individually or with one or more other persons.(b) Associated third party means an individual who is any of the following:(1) An adult authorized by the eligible adult to be contacted by the depository institution or any individual who is a parent, spouse, or other adult family member of an eligible adult who the depository institution believes is closely associated with the eligible adult.(2) A coowner, additional authorized signatory, agent under a power of attorney, or beneficiary on an eligible adults account.(3) An attorney, trustee, conservator, guardian, or other fiduciary.(c) Depository institution means a bank or credit union doing business in accordance with a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. Depository institution includes officers and employees of the depository institution.(d) Eligible adult means either of the following:(1) A person 65 years of age or older.(2) A person 18 years of age or older who satisfies both of the following:(A) Has a substantial mental or functional impairment that significantly interferes with their ability to make financial decisions or for whom a guardian or conservator has been appointed under state law.(B) The depository institution has actual knowledge that the person is a dependent adult.(e) Financial abuse means:(1) Taking, appropriating, obtaining, or retaining the property of an elder or dependent adult for a wrongful use or with intent to defraud.(2) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to do either of the following:(A) Obtain control, through deception, intimidation, or undue influence, over the eligible adults money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.(B) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.120002. (a) When a depository institution, based on information they observe or receive from a governmental or law enforcement agency, believes that an eligible adult may be the victim or target of financial abuse, the depository institution may take any of the following actions:(1) Delay or refuse one or more transactions involving the eligible adult.(2) Delay or refuse to permit the withdrawal or disbursement of funds in the eligible adults account.(3) Prevent a change in ownership of the eligible adults account.(4) Prevent a transfer of funds from the eligible adults account to an account owned wholly or partially by another person.(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for an agent under a power of attorney signed, or purported to have been signed, by the eligible adult.(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.(b) A depository institution may use their sole discretion to determine whether to act under subdivision (a) based on the information available to them at the time.(c) The authority to delay a transaction pursuant to subdivision (a) expires upon the earlier of the following:(1) Thirty business days after the date on which the depository institution first acted under subdivision (a).(2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial abuse of the eligible adult.(3) Upon an order of a court directing the release of funds.(d) Unless otherwise directed by order of a court, a depository institution may extend the duration of a delay under subdivision (a) based on a reasonable belief that the financial abuse of an eligible adult may continue to occur or continue to be attempted.120003. Notwithstanding any other law:(a) The refusal to engage in a transaction as authorized under subdivision (a) shall not constitute the wrongful dishonor of an item under Section 4402 of the Commercial Code.(b) A reasonable belief that payment of a check will facilitate the financial abuse of an eligible adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act (12 U.S.C. Sec. 5001 et seq.), the federal Expedited Funds Availability Act (12 U.S.C. Sec. 4001 et seq.), and Part 229 (commencing with Section 229.1) of Title 12 of the Code of Federal Regulations. This section does not require depository institutions to review the checks of eligible adults.(c) (1) A delay or refusal to complete a funds transfer request, as authorized under subdivision (a) of Section 120002, does not violate Division 11 (commencing with Section 11101) of the Commercial Code. If a transaction is delayed, the payment order is not deemed as received until the hold is removed and the depository institution submits the payment order for processing.(2) The term funds transfer has the same meaning as in Section 11104 of the Commercial Code. The term payment order has the same meaning as in Section 11103 of the Commercial Code.(d) (1) A depository institution may notify an associated third party if the depository institution believes the eligible adult may be the victim of financial abuse.(2) A depository institution may choose not to notify an associated third party if the depository institution believes that the third party engaged in the financial abuse of the eligible adult.(3) When providing information under paragraph (1), a depository institution may limit the information provided to disclosing their suspicion that the eligible adult may be a victim or target of financial abuse.(4) A disclosure under paragraph (1) is exempt from state privacy laws or requirements.SECTION 1.Division 27 (commencing with Section 120000) is added to the Financial Code, to read:27.Elder Abuse Prevention120000.The Department of Financial Protection and Innovation shall require companies to submit to the department an elder abuse prevention plan.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Division 27 (commencing with Section 120000) is added to the Financial Code, to read:DIVISION 27. California Elder Financial Abuse Prevention Act120000. This division may be cited as the California Elder Financial Abuse Prevention Act.120001. For purposes of this section:(a) Account means a contract of deposit of funds between the depositor and a depository institution that satisfies any of the following:(1) The account is a consumer account owned by an eligible adult, whether individually or with one or more other persons.(2) The account is a line of credit owned by an eligible adult, whether individually or with one or more other persons.(b) Associated third party means an individual who is any of the following:(1) An adult authorized by the eligible adult to be contacted by the depository institution or any individual who is a parent, spouse, or other adult family member of an eligible adult who the depository institution believes is closely associated with the eligible adult.(2) A coowner, additional authorized signatory, agent under a power of attorney, or beneficiary on an eligible adults account.(3) An attorney, trustee, conservator, guardian, or other fiduciary.(c) Depository institution means a bank or credit union doing business in accordance with a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. Depository institution includes officers and employees of the depository institution.(d) Eligible adult means either of the following:(1) A person 65 years of age or older.(2) A person 18 years of age or older who satisfies both of the following:(A) Has a substantial mental or functional impairment that significantly interferes with their ability to make financial decisions or for whom a guardian or conservator has been appointed under state law.(B) The depository institution has actual knowledge that the person is a dependent adult.(e) Financial abuse means:(1) Taking, appropriating, obtaining, or retaining the property of an elder or dependent adult for a wrongful use or with intent to defraud.(2) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to do either of the following:(A) Obtain control, through deception, intimidation, or undue influence, over the eligible adults money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.(B) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.120002. (a) When a depository institution, based on information they observe or receive from a governmental or law enforcement agency, believes that an eligible adult may be the victim or target of financial abuse, the depository institution may take any of the following actions:(1) Delay or refuse one or more transactions involving the eligible adult.(2) Delay or refuse to permit the withdrawal or disbursement of funds in the eligible adults account.(3) Prevent a change in ownership of the eligible adults account.(4) Prevent a transfer of funds from the eligible adults account to an account owned wholly or partially by another person.(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for an agent under a power of attorney signed, or purported to have been signed, by the eligible adult.(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.(b) A depository institution may use their sole discretion to determine whether to act under subdivision (a) based on the information available to them at the time.(c) The authority to delay a transaction pursuant to subdivision (a) expires upon the earlier of the following:(1) Thirty business days after the date on which the depository institution first acted under subdivision (a).(2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial abuse of the eligible adult.(3) Upon an order of a court directing the release of funds.(d) Unless otherwise directed by order of a court, a depository institution may extend the duration of a delay under subdivision (a) based on a reasonable belief that the financial abuse of an eligible adult may continue to occur or continue to be attempted.120003. Notwithstanding any other law:(a) The refusal to engage in a transaction as authorized under subdivision (a) shall not constitute the wrongful dishonor of an item under Section 4402 of the Commercial Code.(b) A reasonable belief that payment of a check will facilitate the financial abuse of an eligible adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act (12 U.S.C. Sec. 5001 et seq.), the federal Expedited Funds Availability Act (12 U.S.C. Sec. 4001 et seq.), and Part 229 (commencing with Section 229.1) of Title 12 of the Code of Federal Regulations. This section does not require depository institutions to review the checks of eligible adults.(c) (1) A delay or refusal to complete a funds transfer request, as authorized under subdivision (a) of Section 120002, does not violate Division 11 (commencing with Section 11101) of the Commercial Code. If a transaction is delayed, the payment order is not deemed as received until the hold is removed and the depository institution submits the payment order for processing.(2) The term funds transfer has the same meaning as in Section 11104 of the Commercial Code. The term payment order has the same meaning as in Section 11103 of the Commercial Code.(d) (1) A depository institution may notify an associated third party if the depository institution believes the eligible adult may be the victim of financial abuse.(2) A depository institution may choose not to notify an associated third party if the depository institution believes that the third party engaged in the financial abuse of the eligible adult.(3) When providing information under paragraph (1), a depository institution may limit the information provided to disclosing their suspicion that the eligible adult may be a victim or target of financial abuse.(4) A disclosure under paragraph (1) is exempt from state privacy laws or requirements.
SECTION 1. Division 27 (commencing with Section 120000) is added to the Financial Code, to read:
### SECTION 1.
DIVISION 27. California Elder Financial Abuse Prevention Act120000. This division may be cited as the California Elder Financial Abuse Prevention Act.120001. For purposes of this section:(a) Account means a contract of deposit of funds between the depositor and a depository institution that satisfies any of the following:(1) The account is a consumer account owned by an eligible adult, whether individually or with one or more other persons.(2) The account is a line of credit owned by an eligible adult, whether individually or with one or more other persons.(b) Associated third party means an individual who is any of the following:(1) An adult authorized by the eligible adult to be contacted by the depository institution or any individual who is a parent, spouse, or other adult family member of an eligible adult who the depository institution believes is closely associated with the eligible adult.(2) A coowner, additional authorized signatory, agent under a power of attorney, or beneficiary on an eligible adults account.(3) An attorney, trustee, conservator, guardian, or other fiduciary.(c) Depository institution means a bank or credit union doing business in accordance with a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. Depository institution includes officers and employees of the depository institution.(d) Eligible adult means either of the following:(1) A person 65 years of age or older.(2) A person 18 years of age or older who satisfies both of the following:(A) Has a substantial mental or functional impairment that significantly interferes with their ability to make financial decisions or for whom a guardian or conservator has been appointed under state law.(B) The depository institution has actual knowledge that the person is a dependent adult.(e) Financial abuse means:(1) Taking, appropriating, obtaining, or retaining the property of an elder or dependent adult for a wrongful use or with intent to defraud.(2) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to do either of the following:(A) Obtain control, through deception, intimidation, or undue influence, over the eligible adults money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.(B) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.120002. (a) When a depository institution, based on information they observe or receive from a governmental or law enforcement agency, believes that an eligible adult may be the victim or target of financial abuse, the depository institution may take any of the following actions:(1) Delay or refuse one or more transactions involving the eligible adult.(2) Delay or refuse to permit the withdrawal or disbursement of funds in the eligible adults account.(3) Prevent a change in ownership of the eligible adults account.(4) Prevent a transfer of funds from the eligible adults account to an account owned wholly or partially by another person.(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for an agent under a power of attorney signed, or purported to have been signed, by the eligible adult.(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.(b) A depository institution may use their sole discretion to determine whether to act under subdivision (a) based on the information available to them at the time.(c) The authority to delay a transaction pursuant to subdivision (a) expires upon the earlier of the following:(1) Thirty business days after the date on which the depository institution first acted under subdivision (a).(2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial abuse of the eligible adult.(3) Upon an order of a court directing the release of funds.(d) Unless otherwise directed by order of a court, a depository institution may extend the duration of a delay under subdivision (a) based on a reasonable belief that the financial abuse of an eligible adult may continue to occur or continue to be attempted.120003. Notwithstanding any other law:(a) The refusal to engage in a transaction as authorized under subdivision (a) shall not constitute the wrongful dishonor of an item under Section 4402 of the Commercial Code.(b) A reasonable belief that payment of a check will facilitate the financial abuse of an eligible adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act (12 U.S.C. Sec. 5001 et seq.), the federal Expedited Funds Availability Act (12 U.S.C. Sec. 4001 et seq.), and Part 229 (commencing with Section 229.1) of Title 12 of the Code of Federal Regulations. This section does not require depository institutions to review the checks of eligible adults.(c) (1) A delay or refusal to complete a funds transfer request, as authorized under subdivision (a) of Section 120002, does not violate Division 11 (commencing with Section 11101) of the Commercial Code. If a transaction is delayed, the payment order is not deemed as received until the hold is removed and the depository institution submits the payment order for processing.(2) The term funds transfer has the same meaning as in Section 11104 of the Commercial Code. The term payment order has the same meaning as in Section 11103 of the Commercial Code.(d) (1) A depository institution may notify an associated third party if the depository institution believes the eligible adult may be the victim of financial abuse.(2) A depository institution may choose not to notify an associated third party if the depository institution believes that the third party engaged in the financial abuse of the eligible adult.(3) When providing information under paragraph (1), a depository institution may limit the information provided to disclosing their suspicion that the eligible adult may be a victim or target of financial abuse.(4) A disclosure under paragraph (1) is exempt from state privacy laws or requirements.
DIVISION 27. California Elder Financial Abuse Prevention Act120000. This division may be cited as the California Elder Financial Abuse Prevention Act.120001. For purposes of this section:(a) Account means a contract of deposit of funds between the depositor and a depository institution that satisfies any of the following:(1) The account is a consumer account owned by an eligible adult, whether individually or with one or more other persons.(2) The account is a line of credit owned by an eligible adult, whether individually or with one or more other persons.(b) Associated third party means an individual who is any of the following:(1) An adult authorized by the eligible adult to be contacted by the depository institution or any individual who is a parent, spouse, or other adult family member of an eligible adult who the depository institution believes is closely associated with the eligible adult.(2) A coowner, additional authorized signatory, agent under a power of attorney, or beneficiary on an eligible adults account.(3) An attorney, trustee, conservator, guardian, or other fiduciary.(c) Depository institution means a bank or credit union doing business in accordance with a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. Depository institution includes officers and employees of the depository institution.(d) Eligible adult means either of the following:(1) A person 65 years of age or older.(2) A person 18 years of age or older who satisfies both of the following:(A) Has a substantial mental or functional impairment that significantly interferes with their ability to make financial decisions or for whom a guardian or conservator has been appointed under state law.(B) The depository institution has actual knowledge that the person is a dependent adult.(e) Financial abuse means:(1) Taking, appropriating, obtaining, or retaining the property of an elder or dependent adult for a wrongful use or with intent to defraud.(2) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to do either of the following:(A) Obtain control, through deception, intimidation, or undue influence, over the eligible adults money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.(B) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.120002. (a) When a depository institution, based on information they observe or receive from a governmental or law enforcement agency, believes that an eligible adult may be the victim or target of financial abuse, the depository institution may take any of the following actions:(1) Delay or refuse one or more transactions involving the eligible adult.(2) Delay or refuse to permit the withdrawal or disbursement of funds in the eligible adults account.(3) Prevent a change in ownership of the eligible adults account.(4) Prevent a transfer of funds from the eligible adults account to an account owned wholly or partially by another person.(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for an agent under a power of attorney signed, or purported to have been signed, by the eligible adult.(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.(b) A depository institution may use their sole discretion to determine whether to act under subdivision (a) based on the information available to them at the time.(c) The authority to delay a transaction pursuant to subdivision (a) expires upon the earlier of the following:(1) Thirty business days after the date on which the depository institution first acted under subdivision (a).(2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial abuse of the eligible adult.(3) Upon an order of a court directing the release of funds.(d) Unless otherwise directed by order of a court, a depository institution may extend the duration of a delay under subdivision (a) based on a reasonable belief that the financial abuse of an eligible adult may continue to occur or continue to be attempted.120003. Notwithstanding any other law:(a) The refusal to engage in a transaction as authorized under subdivision (a) shall not constitute the wrongful dishonor of an item under Section 4402 of the Commercial Code.(b) A reasonable belief that payment of a check will facilitate the financial abuse of an eligible adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act (12 U.S.C. Sec. 5001 et seq.), the federal Expedited Funds Availability Act (12 U.S.C. Sec. 4001 et seq.), and Part 229 (commencing with Section 229.1) of Title 12 of the Code of Federal Regulations. This section does not require depository institutions to review the checks of eligible adults.(c) (1) A delay or refusal to complete a funds transfer request, as authorized under subdivision (a) of Section 120002, does not violate Division 11 (commencing with Section 11101) of the Commercial Code. If a transaction is delayed, the payment order is not deemed as received until the hold is removed and the depository institution submits the payment order for processing.(2) The term funds transfer has the same meaning as in Section 11104 of the Commercial Code. The term payment order has the same meaning as in Section 11103 of the Commercial Code.(d) (1) A depository institution may notify an associated third party if the depository institution believes the eligible adult may be the victim of financial abuse.(2) A depository institution may choose not to notify an associated third party if the depository institution believes that the third party engaged in the financial abuse of the eligible adult.(3) When providing information under paragraph (1), a depository institution may limit the information provided to disclosing their suspicion that the eligible adult may be a victim or target of financial abuse.(4) A disclosure under paragraph (1) is exempt from state privacy laws or requirements.
DIVISION 27. California Elder Financial Abuse Prevention Act
DIVISION 27. California Elder Financial Abuse Prevention Act
120000. This division may be cited as the California Elder Financial Abuse Prevention Act.
120000. This division may be cited as the California Elder Financial Abuse Prevention Act.
120001. For purposes of this section:(a) Account means a contract of deposit of funds between the depositor and a depository institution that satisfies any of the following:(1) The account is a consumer account owned by an eligible adult, whether individually or with one or more other persons.(2) The account is a line of credit owned by an eligible adult, whether individually or with one or more other persons.(b) Associated third party means an individual who is any of the following:(1) An adult authorized by the eligible adult to be contacted by the depository institution or any individual who is a parent, spouse, or other adult family member of an eligible adult who the depository institution believes is closely associated with the eligible adult.(2) A coowner, additional authorized signatory, agent under a power of attorney, or beneficiary on an eligible adults account.(3) An attorney, trustee, conservator, guardian, or other fiduciary.(c) Depository institution means a bank or credit union doing business in accordance with a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. Depository institution includes officers and employees of the depository institution.(d) Eligible adult means either of the following:(1) A person 65 years of age or older.(2) A person 18 years of age or older who satisfies both of the following:(A) Has a substantial mental or functional impairment that significantly interferes with their ability to make financial decisions or for whom a guardian or conservator has been appointed under state law.(B) The depository institution has actual knowledge that the person is a dependent adult.(e) Financial abuse means:(1) Taking, appropriating, obtaining, or retaining the property of an elder or dependent adult for a wrongful use or with intent to defraud.(2) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to do either of the following:(A) Obtain control, through deception, intimidation, or undue influence, over the eligible adults money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.(B) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.
120001. For purposes of this section:
(a) Account means a contract of deposit of funds between the depositor and a depository institution that satisfies any of the following:
(1) The account is a consumer account owned by an eligible adult, whether individually or with one or more other persons.
(2) The account is a line of credit owned by an eligible adult, whether individually or with one or more other persons.
(b) Associated third party means an individual who is any of the following:
(1) An adult authorized by the eligible adult to be contacted by the depository institution or any individual who is a parent, spouse, or other adult family member of an eligible adult who the depository institution believes is closely associated with the eligible adult.
(2) A coowner, additional authorized signatory, agent under a power of attorney, or beneficiary on an eligible adults account.
(3) An attorney, trustee, conservator, guardian, or other fiduciary.
(c) Depository institution means a bank or credit union doing business in accordance with a license, certificate, or charter issued by the United States or any state, district, territory, or commonwealth of the United States. Depository institution includes officers and employees of the depository institution.
(d) Eligible adult means either of the following:
(1) A person 65 years of age or older.
(2) A person 18 years of age or older who satisfies both of the following:
(A) Has a substantial mental or functional impairment that significantly interferes with their ability to make financial decisions or for whom a guardian or conservator has been appointed under state law.
(B) The depository institution has actual knowledge that the person is a dependent adult.
(e) Financial abuse means:
(1) Taking, appropriating, obtaining, or retaining the property of an elder or dependent adult for a wrongful use or with intent to defraud.
(2) An act or omission taken by a person, including through the use of a power of attorney, guardianship, trustee, or conservatorship of an eligible adult, to do either of the following:
(A) Obtain control, through deception, intimidation, or undue influence, over the eligible adults money, assets, or property to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.
(B) Convert money, assets, or property of the eligible adult to deprive the eligible adult of the ownership, use, benefit, or possession of the eligible adults money, assets, or property.
120002. (a) When a depository institution, based on information they observe or receive from a governmental or law enforcement agency, believes that an eligible adult may be the victim or target of financial abuse, the depository institution may take any of the following actions:(1) Delay or refuse one or more transactions involving the eligible adult.(2) Delay or refuse to permit the withdrawal or disbursement of funds in the eligible adults account.(3) Prevent a change in ownership of the eligible adults account.(4) Prevent a transfer of funds from the eligible adults account to an account owned wholly or partially by another person.(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for an agent under a power of attorney signed, or purported to have been signed, by the eligible adult.(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.(b) A depository institution may use their sole discretion to determine whether to act under subdivision (a) based on the information available to them at the time.(c) The authority to delay a transaction pursuant to subdivision (a) expires upon the earlier of the following:(1) Thirty business days after the date on which the depository institution first acted under subdivision (a).(2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial abuse of the eligible adult.(3) Upon an order of a court directing the release of funds.(d) Unless otherwise directed by order of a court, a depository institution may extend the duration of a delay under subdivision (a) based on a reasonable belief that the financial abuse of an eligible adult may continue to occur or continue to be attempted.
120002. (a) When a depository institution, based on information they observe or receive from a governmental or law enforcement agency, believes that an eligible adult may be the victim or target of financial abuse, the depository institution may take any of the following actions:
(1) Delay or refuse one or more transactions involving the eligible adult.
(2) Delay or refuse to permit the withdrawal or disbursement of funds in the eligible adults account.
(3) Prevent a change in ownership of the eligible adults account.
(4) Prevent a transfer of funds from the eligible adults account to an account owned wholly or partially by another person.
(5) Refuse to comply with instructions given to the depository institution by an agent or a person acting for an agent under a power of attorney signed, or purported to have been signed, by the eligible adult.
(6) Prevent the designation or change the designation of beneficiaries to receive any property, benefit, or contract rights for an eligible adult at death.
(b) A depository institution may use their sole discretion to determine whether to act under subdivision (a) based on the information available to them at the time.
(c) The authority to delay a transaction pursuant to subdivision (a) expires upon the earlier of the following:
(1) Thirty business days after the date on which the depository institution first acted under subdivision (a).
(2) When the depository institution is satisfied in its sole discretion that the transaction or act will not likely result in financial abuse of the eligible adult.
(3) Upon an order of a court directing the release of funds.
(d) Unless otherwise directed by order of a court, a depository institution may extend the duration of a delay under subdivision (a) based on a reasonable belief that the financial abuse of an eligible adult may continue to occur or continue to be attempted.
120003. Notwithstanding any other law:(a) The refusal to engage in a transaction as authorized under subdivision (a) shall not constitute the wrongful dishonor of an item under Section 4402 of the Commercial Code.(b) A reasonable belief that payment of a check will facilitate the financial abuse of an eligible adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act (12 U.S.C. Sec. 5001 et seq.), the federal Expedited Funds Availability Act (12 U.S.C. Sec. 4001 et seq.), and Part 229 (commencing with Section 229.1) of Title 12 of the Code of Federal Regulations. This section does not require depository institutions to review the checks of eligible adults.(c) (1) A delay or refusal to complete a funds transfer request, as authorized under subdivision (a) of Section 120002, does not violate Division 11 (commencing with Section 11101) of the Commercial Code. If a transaction is delayed, the payment order is not deemed as received until the hold is removed and the depository institution submits the payment order for processing.(2) The term funds transfer has the same meaning as in Section 11104 of the Commercial Code. The term payment order has the same meaning as in Section 11103 of the Commercial Code.(d) (1) A depository institution may notify an associated third party if the depository institution believes the eligible adult may be the victim of financial abuse.(2) A depository institution may choose not to notify an associated third party if the depository institution believes that the third party engaged in the financial abuse of the eligible adult.(3) When providing information under paragraph (1), a depository institution may limit the information provided to disclosing their suspicion that the eligible adult may be a victim or target of financial abuse.(4) A disclosure under paragraph (1) is exempt from state privacy laws or requirements.
120003. Notwithstanding any other law:
(a) The refusal to engage in a transaction as authorized under subdivision (a) shall not constitute the wrongful dishonor of an item under Section 4402 of the Commercial Code.
(b) A reasonable belief that payment of a check will facilitate the financial abuse of an eligible adult shall constitute reasonable grounds to doubt the collectability of the item for purposes of the federal Check Clearing for the 21st Century Act (12 U.S.C. Sec. 5001 et seq.), the federal Expedited Funds Availability Act (12 U.S.C. Sec. 4001 et seq.), and Part 229 (commencing with Section 229.1) of Title 12 of the Code of Federal Regulations. This section does not require depository institutions to review the checks of eligible adults.
(c) (1) A delay or refusal to complete a funds transfer request, as authorized under subdivision (a) of Section 120002, does not violate Division 11 (commencing with Section 11101) of the Commercial Code. If a transaction is delayed, the payment order is not deemed as received until the hold is removed and the depository institution submits the payment order for processing.
(2) The term funds transfer has the same meaning as in Section 11104 of the Commercial Code. The term payment order has the same meaning as in Section 11103 of the Commercial Code.
(d) (1) A depository institution may notify an associated third party if the depository institution believes the eligible adult may be the victim of financial abuse.
(2) A depository institution may choose not to notify an associated third party if the depository institution believes that the third party engaged in the financial abuse of the eligible adult.
(3) When providing information under paragraph (1), a depository institution may limit the information provided to disclosing their suspicion that the eligible adult may be a victim or target of financial abuse.
(4) A disclosure under paragraph (1) is exempt from state privacy laws or requirements.
The Department of Financial Protection and Innovation shall require companies to submit to the department an elder abuse prevention plan.