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AB 83

The California Elder Financial Abuse Prevention Act.

2025-2026 Regular Session Introduced by Cecilia Aguiar-Curry and 7 co-sponsors

Banks and credit unions may delay or block suspicious transactions for eligible adults (65+ or dependent adults) to prevent financial abuse, with limited hold periods.

Re-referred to Com. on B. & F.
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Bill Summary · AB 83

AB 83 — The California Elder Financial Abuse Prevention Act

Author: Assemblymember Pacheco
Status: Re‑referred to Committee on Budget & Finance (May 5, 2025)
Introduced: December 20, 2024
Adds Division 27 (Sections 120000–120003) to the Financial Code

Purpose / Intent

AB 83 creates a statutory framework that authorizes banks and credit unions to take protective actions when they believe an older adult or dependent adult (an “eligible adult”) may be the victim or target of financial abuse. The bill is intended to reduce financial exploitation of elders and dependent adults by allowing depository institutions to temporarily block or delay suspicious transactions and to notify trusted third parties.

Key definitions (selected)

  • Eligible adult: a person 65 or older; or an adult (18+) with a substantial mental/functional impairment who is a dependent adult or for whom a guardian/conservator has been appointed.
  • Depository institution: banks and credit unions (including their officers and employees).
  • Associated third party: e.g., authorized contacts, close family members, co‑owners, agents under power of attorney, attorneys, trustees, guardians, conservators, beneficiaries.

Principal provisions

  • Authorized actions (Financial Code §120002):
    • May delay or refuse transactions involving an eligible adult.
    • May delay/refuse withdrawals or disbursements from the eligible adult’s account.
    • May prevent changes in account ownership or beneficiary designations.
    • May prevent transfers from the eligible adult’s account to accounts owned by others.
    • May refuse to follow instructions from an agent or person purporting to act under a power of attorney.
  • Basis to act: action may be taken when the institution, based on its own observations or information received from a governmental or law‑enforcement agency, believes financial abuse may be occurring or being attempted.
  • Time limits and extensions:
    • Initial delay authority expires on the earlier of: 30 business days after first action; the institution’s determination that abuse is unlikely; or a court order releasing funds.
    • Unless a court orders otherwise, institutions may extend a delay if they reasonably believe abuse may continue.
  • Legal and regulatory clarifications (§120003):
    • A permissible refusal under this Act is not wrongful dishonor under the Commercial Code.
    • A reasonable belief that a check would facilitate financial abuse may constitute reasonable doubt about collectability for certain federal check/funds rules.
    • A hold on a funds transfer means the payment order is not “received” until the hold is removed.
  • Notification and privacy:
    • Institutions may notify an associated third party that an eligible adult may be a victim of financial abuse, and may limit the information disclosed.
    • Institutions may choose not to notify a third party if the institution believes that party engaged in the abuse.
    • The bill’s digest indicates disclosure to an associated third party is exempt from state privacy laws (text excerpt notes the exemption).

Who is affected

  • Depository institutions (banks and credit unions) — operational, compliance, and training impacts.
  • Eligible adults (persons 65+ or dependent adults) — potential protection from exploitation but also risk of delays to legitimate transactions.
  • Associated third parties, agents under power of attorney, fiduciaries, family members — may be notified or have transactions blocked.
  • Law enforcement and adult protective services — may be a source of information and a partner in resolving holds.

Procedural / timeline notes

  • Introduced Dec 20, 2024. Multiple committee amendments and referrals; most recently re‑referred to the Assembly Committee on Budget & Finance on May 5, 2025.
  • Digest notes: majority vote; no appropriation; referred to fiscal committee.

Potential impacts and considerations

  • Likely to reduce certain forms of elder financial exploitation by empowering institutions to act quickly.
  • May create operational burdens for institutions (policies, training, documentation, dispute resolution).
  • Could cause temporary interruptions in access to funds for eligible adults, which the bill mitigates by setting a 30‑business‑day initial limit and permitting institutions to seek court orders or extend holds when reasonable.
  • The permissive (“may”) structure leaves substantial discretion to institutions and raises questions about consistency of application and consumer notice processes.

This summary reflects the bill text as introduced and amended through May 5, 2025 (Division 27, Financial Code Sections 120000–120003).

Compiled from official sources — confirm details with the bill’s official record.

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