Bill > AB83

This bill, known as the California Elder Financial Abuse Prevention Act, establishes legal protections for vulnerable adults aged 65 or older, or adults 18 and older with substantial mental or functional impairments, against financial exploitation. The bill empowers depository institutions (banks and credit unions) to take protective actions when they suspect financial abuse, such as delaying or refusing transactions, preventing fund transfers, or changing account ownership. Financial abuse is defined broadly as wrongfully taking, appropriating, or converting an eligible adult's property through deception, intimidation, or undue influence. Banks can use their discretion to delay transactions for up to 30 business days or longer if they reasonably believe financial abuse may continue, and they are authorized to notify an associated third party (like a family member, power of attorney, or guardian) about suspected abuse. Importantly, the bill provides legal protection for financial institutions taking these actions, ensuring they cannot be penalized for refusing transactions in good faith to protect vulnerable adults. The legislation aims to create a proactive mechanism for preventing financial exploitation of seniors and adults with impairments by giving financial institutions tools to intervene when they detect potential abuse.

Budget and Finance

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB83