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Bills

AB 2159: Financial abuse.

  • Session Year: 2017-2018
  • House: Assembly
  • Latest Version Date: 2018-05-15
Version:

Existing law establishes the Money Transmission Act for the purpose of protecting the interests of persons in this state who use money transmission services.

This bill would require a money transmitter to provide a consumer fraud warning on all money transmittal forms used by consumers to send money to an individual, to provide consumer fraud prevention training for its agents to monitor its agents, activities relating to consumer transmittals, and to establish a toll-free number for consumers to call to report fraud or suspected fraud. The bill would make a failure to implement the fraud prevention measures established by the bill subject to a civil penalty not to exceed $1,000, or if the violation is willful, a civil penalty not to exceed $5,000.

Existing law, the Elder Abuse and Dependent Adult Civil Protection Act, establishes procedures for the reporting, investigation, and prosecution of elder and dependent adult abuse. Existing law requires persons designated as mandated reporters of suspected financial abuse of an elder or dependent adult, as defined, to report known or suspected instances of elder or dependent adult financial abuse and makes failure to comply with these requirements subject to a civil penalty not exceeding $1,000 or if the failure to report is willful, a civil penalty not exceeding $5,000. Existing law defines mandated reporters for purposes of these requirements as all officers and employees of financial institutions.This bill would also include within the definition of mandated reporters for these purposes, a money transmitter. The bill would define money transmitter as a person or entity that sells or issues payment instruments, or that receives money for transmission, as specified, but would exclude from the definition a business entity in which money transmission is not a primary function. The bill would make a violation of the reporting requirements described above by a money transmitter subject to a penalty only if the violation is willful, with a civil penalty not exceeding $5,000 and full reimbursement to the victim for the financial loss suffered as a result of the financial abuse, to be paid by the employer of the money transmitter.

Discussed in Hearing

Assembly Standing Committee on Judiciary10MIN
Apr 24, 2018

Assembly Standing Committee on Judiciary

Assembly Standing Committee on Aging and Long-Term Care31MIN
Apr 17, 2018

Assembly Standing Committee on Aging and Long-Term Care

View Older Hearings

News Coverage:

AB 2159: Financial abuse. | Digital Democracy