AB 386: California Right to Financial Privacy Act.
- Session Year: 2023-2024
- House: Assembly
- Latest Version Date: 2023-10-08
Current Status:
Passed
(2023-10-08: Chaptered by Secretary of State - Chapter 433, Statutes of 2023.)
Introduced
In Committee
First Chamber
In Committee
Second Chamber
Enacted
Existing law, the California Right to Financial Privacy Act, generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. Existing law establishes an exception by authorizing various state and local agencies, when certification is made to a bank, credit union, or savings association by specified law enforcement entities that a crime report has been filed that involves the alleged fraudulent use of orders drawn upon a bank, credit union, or savings association in this state, to request from such a bank, credit union, or savings association, and requires the bank, credit union, or savings association to furnish, a statement setting forth certain information with respect to a customer account specified by the requesting party, for a period of 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account.
This bill would expand the period covered by that statement of information to a period 90 days before, and up to 60 days following, the date of occurrence. The bill would require specified additional items of information to be included in the statement about the account.
Existing law, the California Right to Financial Privacy Act, generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. Existing law establishes an exception by authorizing various state and local agencies, when certification is made to a bank, credit union, or savings association by specified law enforcement entities that a crime report has been filed that involves the alleged fraudulent use of orders drawn upon a bank, credit union, or savings association in this state, to request from such a bank, credit union, or savings association, and requires the bank, credit union, or savings association to furnish, a statement setting forth certain information with respect to a customer account specified by the requesting party, for a period of 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account.
This bill would expand the period covered by that statement of information to a period 90 days before, and up to 60 days following, the date of occurrence. The bill would require specified additional items of information to be included in the statement about the account.
Existing law, the California Right to Financial Privacy Act, generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. Existing law establishes an exception by authorizing various state and local agencies, when certification is made to a bank, credit union, or savings association by specified law enforcement entities that a crime report has been filed that involves the alleged fraudulent use of orders drawn upon a bank, credit union, or savings association in this state, to request from such a bank, credit union, or savings association, and requires the bank, credit union, or savings association to furnish, a statement setting forth certain information with respect to a customer account specified by the requesting party, for a period of 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account.
This bill would expand the period covered by that statement of information to a period 90 days before, and up to 90 60 days following, the date of occurrence. The bill would require specified additional items of information to be included in the statement about the account.
Existing law, the California Right to Financial Privacy Act, generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. Existing law establishes an exception by authorizing various state and local agencies, when certification is made to a bank, credit union, or savings association by specified law enforcement entities that a crime report has been filed that involves the alleged fraudulent use of orders drawn upon a bank, credit union, or savings association in this state, to request from such a bank, credit union, or savings association, and requires the bank, credit union, or savings association to furnish, a statement setting forth certain information with respect to a customer account specified by the requesting party, for a period of 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account.
This bill would expand the entities that may make such a certification to include an adult protective services agency and would expand the reports eligible for such a certification to include an elder or dependent adult abuse report. The bill would expand the period covered by such a that statement of information to a period 90 days before, and up to 90 days following, the date of occurrence. The bill would require specified additional items of information to be included in the statement about the account.
Existing law, the California Right to Financial Privacy Act, generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. Existing law establishes an exception by authorizing various state and local agencies, when certification is made to a bank, credit union, or savings association by specified law enforcement entities that a crime report has been filed that involves the alleged fraudulent use of orders drawn upon a bank, credit union, or savings association in this state, to request from such a bank, credit union, or savings association, and requires the bank, credit union, or savings association to furnish, a statement setting forth certain information with respect to a customer account specified by the requesting party, for a period of 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account.
This bill would expand the entities that may make such a certification to include an adult protective services agency and would expand the reports eligible for such a certification to include an elder or dependent adult abuse report. The bill would expand the period covered by such a statement of information to a period 90 days before, and up to 360 90 days following, the date of occurrence. The bill would require specified additional items of information to be included in the statement about the account.
Existing law, the California Right to Financial Privacy Act, generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. Existing law establishes an exception by authorizing various state and local agencies, when certification is made to a bank, credit union, or savings association by specified law enforcement entities that a crime report has been filed that involves the alleged fraudulent use of orders drawn upon a bank, credit union, or savings association in this state, to request from such a bank, credit union, or savings association, and requires the bank, credit union, or savings association to furnish, a statement setting forth certain information with respect to a customer account specified by the requesting party, for a period of 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account.
This bill would expand the entities that may make such a certification to include an adult protective services agency and would expand the reports eligible for such a certification to include an elder or dependent adult abuse report. The bill would expand the period covered by such a statement of information to a period 90 days before, and up to 360 days following, the date of occurrence. The bill would require specified additional items of information to be included in the statement about the account.
Nothing in this chapter shall prohibit any of the following:
(a)The dissemination of any financial information that is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, or a county adult protective services agency when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request a bank, credit union, or savings association to furnish, and a bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 90 days before, and up to 60 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)New bank cards issued.
(7)Change of address requests received.
(8)Power of attorney or trust documents submitted or executed.
(9)The date the account opened and, if applicable, the date the account closed.
(10)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving the account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(11)A bank, credit union, or savings association that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(c)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association doing business in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request, with the consent of the accountholder, the bank, credit union, or savings association to furnish, and the bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)The date the account opened and, if applicable, the date the account closed.
(7)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving this account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8)A bank, credit union, or savings association doing business in this state that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(d)For purposes of subdivision (c), consent of the accountholder shall be satisfied if an accountholder provides to the financial institution and the person or entity seeking disclosure, a signed and dated statement containing all of the following:
(1)Authorization of the disclosure for the period specified in subdivision (c).
(2)The name of the agency or department to which disclosure is authorized and, if applicable, the statutory purpose for which the information is to be obtained.
(3)A description of the financial records that are authorized to be disclosed.
(e)(1)The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller, or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriffs department or district attorney, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, a county welfare department when investigating welfare fraud, a county auditor-controller or director of finance when investigating fraud against the county, or the Department of Financial Protection and Innovation when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Financial Protection and Innovation, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
(2)No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholders written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(3)A county auditor-controller or director of finance who unlawfully discloses information they are authorized to request under this subdivision is guilty of the unlawful disclosure of confidential data, a misdemeanor, which shall be punishable as set forth in Section 7485.
(f)The examination by, or disclosure to, any supervisory agency of financial records that relate solely to the exercise of its supervisory function. The scope of an agencys supervisory function shall be determined by reference to statutes that grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)With respect to the Commissioner of Financial Protection and Innovation by reference to Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000), of the Financial Code.
(2)With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(3)With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(g)The disclosure to the Franchise Tax Board of (1) the amount of any security interest that a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return that are required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or Part 18 (commencing with Section 38001), of the Revenue and Taxation Code.
(h)The disclosure to the State Board of Equalization of any of the following:
(1)The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Part 1 (commencing with Section 6001), Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), Part 13 (commencing with Section 30001), Part 14 (commencing with Section 32001), and Part 17 (commencing with Section 37001), of Division 2 of the Revenue and Taxation Code.
(3)The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(j)The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(k)The disclosure by a construction lender, as defined in Section 8006 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(l)Upon receipt of a written request from a local child support agency referring to a support order pursuant to Section 17400 of the Family Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the local child support agency shall identify, whenever possible, by social security number:
(1)If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branchs computerized search, the name and address of any other person listed as an owner.
(4)Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, employees of the local child support agencies, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
(6)The local child support agency may request information pursuant to this subdivision only when the local child support agency has received at least one of the following types of physical evidence:
(A)Any of the following, dated within the last three years:
(i)Form 599.
(ii)Form 1099.
(iii)A bank statement.
(iv)A check.
(v)A bank passbook.
(vi)A deposit slip.
(vii)A copy of a federal or state income tax return.
(viii)A debit or credit advice.
(ix)Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)An asset identification report from a federal agency.
(B)A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
(7)Information obtained by a local child support agency pursuant to this subdivision shall be used only for purposes that are directly connected with the administration of the duties of the local child support agency pursuant to Section 17400 of the Family Code.
(m)(1)As provided in paragraph (1) of subdivision (c) of Section 666 of Title 42 of the United States Code, upon receipt of an administrative subpoena on the current federally approved interstate child support enforcement form, as approved by the federal Office of Management and Budget, a financial institution shall provide the information or documents requested by the administrative subpoena.
(2)The administrative subpoena shall refer to the current federal Office of Management and Budget control number and be signed by a person who states that they are an authorized agent of a state or county agency responsible for implementing the child support enforcement program set forth in Part D (commencing with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the United States Code. A financial institution may rely on the statements made in the subpoena and has no duty to inquire into the truth of any statement in the subpoena.
(3)If the person who signs the administrative subpoena directs a financial institution in writing not to disclose either the subpoena or its response to any owner of an account covered by the subpoena, the financial institution shall not disclose the subpoena or its response to the owner.
(4)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information or providing documents in response to a subpoena pursuant to this subdivision, (B) failing to notify any owner of an account covered by the subpoena or complying with a request not to disclose to the owner, the subpoena or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the subpoena pursuant to a computerized search of the records of the financial institution.
(n)The dissemination of financial information and records pursuant to any of the following:
(1)Compliance by a financial institution with the requirements of Section 2892 of the Probate Code.
(2)Compliance by a financial institution with the requirements of Section 2893 of the Probate Code.
(3)An order by a judge upon a written ex parte application by a peace officer showing specific and articulable facts that there are reasonable grounds to believe that the records or information sought are relevant and material to an ongoing investigation of a felony violation of Section 186.10 or of any felony subject to the enhancement set forth in Section 186.11.
(A)The ex parte application shall specify with particularity the records to be produced, which shall be only those of the individual or individuals who are the subject of the criminal investigation.
(B)The ex parte application and any subsequent judicial order shall be open to the public as a judicial record unless ordered sealed by the court, for a period of 60 days. The sealing of these records may be extended for 60-day periods upon a showing to the court that it is necessary for the continuance of the investigation. Sixty-day extensions may continue for up to one year or until termination of the investigation of the individual or individuals, whichever is sooner.
(C)The records ordered to be produced shall be returned to the peace officer applicant or their designee within a reasonable time period after service of the order upon the financial institution.
(D)Nothing in this subdivision shall preclude the financial institution from notifying a customer of the receipt of the order for production of records unless a court orders the financial institution to withhold notification to the customer upon a finding that the notice would impede the investigation.
(E)Where a court has made an order pursuant to this paragraph to withhold notification to the customer under this paragraph, the peace officer or law enforcement agency who obtained the financial information shall notify the customer by delivering a copy of the ex parte order to the customer within 10 days of the termination of the investigation.
(4)An order by a judge issued pursuant to subdivision (c) of Section 532f of the Penal Code.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for any of the following:
(A)Disclosing information to a probate court pursuant to Sections 2892 and 2893.
(B)Disclosing information in response to a court order pursuant to paragraph (3).
(C)Complying with a court order under this subdivision not to disclose to the customer, the order, or the dissemination of information pursuant to the court order.
(o)Disclosure by a financial institution to a peace officer, as defined in Section 830.1 of the Penal Code, pursuant to the following:
(1)Paragraph (1) of subdivision (a) of Section 1748.95 of the Civil Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 1748.95 of the Civil Code.
(2)Paragraph (1) of subdivision (a) of Section 4002 of the Financial Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 4002 of the Financial Code.
(3)Paragraph (1) of subdivision (a) of Section 22470 of the Financial Code, provided that any financial institution that is a finance lender has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 22470 of the Financial Code.
(p)When the governing board of the Public Employees Retirement System or the State Teachers Retirement System certifies in writing to a financial institution that a benefit recipient has died and that transfers to the benefit recipients account at the financial institution from the retirement system occurred after the benefit recipients date of death, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of the benefit recipients death, or if the account has been closed, the name and address of the person who closed the account.
(q)When the retirement board of a retirement system established under the County Employees Retirement Law of 1937 certifies in writing to a financial institution that a retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or beneficiary of a retired member, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of death of the retired member or beneficiary of a retired member, or if the account has been closed, the name and address of the person who closed the account.
(r)When the Franchise Tax Board certifies in writing to a financial institution that (1) a taxpayer filed a tax return that authorized a direct deposit refund with an incorrect financial institution account or routing number that resulted in all or a portion of the refund not being received, directly or indirectly, by the taxpayer; (2) the direct deposit refund was not returned to the Franchise Tax Board; and (3) the refund was deposited directly on a specified date into the account of an accountholder of the financial institution who was not entitled to receive the refund, then the financial institution shall furnish to the Franchise Tax Board the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of direct deposit refund, or if the account has been closed, the name and address of the person who closed the account.
Nothing in this chapter shall prohibit any of the following:
(a)The dissemination of any financial information that is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, or a county adult protective services agency when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request a bank, credit union, or savings association to furnish, and a bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 90 days before, and up to 60 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)New bank cards issued.
(7)Change of address requests received.
(8)Power of attorney or trust documents submitted or executed.
(9)The date the account opened and, if applicable, the date the account closed.
(10)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving the account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(11)A bank, credit union, or savings association that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(c)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association doing business in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request, with the consent of the accountholder, the bank, credit union, or savings association to furnish, and the bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)The date the account opened and, if applicable, the date the account closed.
(7)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving this account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8)A bank, credit union, or savings association doing business in this state that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(d)For purposes of subdivision (c), consent of the accountholder shall be satisfied if an accountholder provides to the financial institution and the person or entity seeking disclosure, a signed and dated statement containing all of the following:
(1)Authorization of the disclosure for the period specified in subdivision (c).
(2)The name of the agency or department to which disclosure is authorized and, if applicable, the statutory purpose for which the information is to be obtained.
(3)A description of the financial records that are authorized to be disclosed.
(e)(1)The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller, or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriffs department or district attorney, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, a county welfare department when investigating welfare fraud, a county auditor-controller or director of finance when investigating fraud against the county, or the Department of Financial Protection and Innovation when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Financial Protection and Innovation, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
(2)No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholders written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(3)A county auditor-controller or director of finance who unlawfully discloses information they are authorized to request under this subdivision is guilty of the unlawful disclosure of confidential data, a misdemeanor, which shall be punishable as set forth in Section 7485.
(f)The examination by, or disclosure to, any supervisory agency of financial records that relate solely to the exercise of its supervisory function. The scope of an agencys supervisory function shall be determined by reference to statutes that grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)With respect to the Commissioner of Financial Protection and Innovation by reference to Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000), of the Financial Code.
(2)With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(3)With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(g)The disclosure to the Franchise Tax Board of (1) the amount of any security interest that a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return that are required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or Part 18 (commencing with Section 38001), of the Revenue and Taxation Code.
(h)The disclosure to the State Board of Equalization of any of the following:
(1)The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Part 1 (commencing with Section 6001), Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), Part 13 (commencing with Section 30001), Part 14 (commencing with Section 32001), and Part 17 (commencing with Section 37001), of Division 2 of the Revenue and Taxation Code.
(3)The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(j)The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(k)The disclosure by a construction lender, as defined in Section 8006 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(l)Upon receipt of a written request from a local child support agency referring to a support order pursuant to Section 17400 of the Family Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the local child support agency shall identify, whenever possible, by social security number:
(1)If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branchs computerized search, the name and address of any other person listed as an owner.
(4)Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, employees of the local child support agencies, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
(6)The local child support agency may request information pursuant to this subdivision only when the local child support agency has received at least one of the following types of physical evidence:
(A)Any of the following, dated within the last three years:
(i)Form 599.
(ii)Form 1099.
(iii)A bank statement.
(iv)A check.
(v)A bank passbook.
(vi)A deposit slip.
(vii)A copy of a federal or state income tax return.
(viii)A debit or credit advice.
(ix)Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)An asset identification report from a federal agency.
(B)A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
(7)Information obtained by a local child support agency pursuant to this subdivision shall be used only for purposes that are directly connected with the administration of the duties of the local child support agency pursuant to Section 17400 of the Family Code.
(m)(1)As provided in paragraph (1) of subdivision (c) of Section 666 of Title 42 of the United States Code, upon receipt of an administrative subpoena on the current federally approved interstate child support enforcement form, as approved by the federal Office of Management and Budget, a financial institution shall provide the information or documents requested by the administrative subpoena.
(2)The administrative subpoena shall refer to the current federal Office of Management and Budget control number and be signed by a person who states that they are an authorized agent of a state or county agency responsible for implementing the child support enforcement program set forth in Part D (commencing with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the United States Code. A financial institution may rely on the statements made in the subpoena and has no duty to inquire into the truth of any statement in the subpoena.
(3)If the person who signs the administrative subpoena directs a financial institution in writing not to disclose either the subpoena or its response to any owner of an account covered by the subpoena, the financial institution shall not disclose the subpoena or its response to the owner.
(4)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information or providing documents in response to a subpoena pursuant to this subdivision, (B) failing to notify any owner of an account covered by the subpoena or complying with a request not to disclose to the owner, the subpoena or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the subpoena pursuant to a computerized search of the records of the financial institution.
(n)The dissemination of financial information and records pursuant to any of the following:
(1)Compliance by a financial institution with the requirements of Section 2892 of the Probate Code.
(2)Compliance by a financial institution with the requirements of Section 2893 of the Probate Code.
(3)An order by a judge upon a written ex parte application by a peace officer showing specific and articulable facts that there are reasonable grounds to believe that the records or information sought are relevant and material to an ongoing investigation of a felony violation of Section 186.10 or of any felony subject to the enhancement set forth in Section 186.11.
(A)The ex parte application shall specify with particularity the records to be produced, which shall be only those of the individual or individuals who are the subject of the criminal investigation.
(B)The ex parte application and any subsequent judicial order shall be open to the public as a judicial record unless ordered sealed by the court, for a period of 60 days. The sealing of these records may be extended for 60-day periods upon a showing to the court that it is necessary for the continuance of the investigation. Sixty-day extensions may continue for up to one year or until termination of the investigation of the individual or individuals, whichever is sooner.
(C)The records ordered to be produced shall be returned to the peace officer applicant or their designee within a reasonable time period after service of the order upon the financial institution.
(D)Nothing in this subdivision shall preclude the financial institution from notifying a customer of the receipt of the order for production of records unless a court orders the financial institution to withhold notification to the customer upon a finding that the notice would impede the investigation.
(E)Where a court has made an order pursuant to this paragraph to withhold notification to the customer under this paragraph, the peace officer or law enforcement agency who obtained the financial information shall notify the customer by delivering a copy of the ex parte order to the customer within 10 days of the termination of the investigation.
(4)An order by a judge issued pursuant to subdivision (c) of Section 532f of the Penal Code.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for any of the following:
(A)Disclosing information to a probate court pursuant to Sections 2892 and 2893.
(B)Disclosing information in response to a court order pursuant to paragraph (3).
(C)Complying with a court order under this subdivision not to disclose to the customer, the order, or the dissemination of information pursuant to the court order.
(o)Disclosure by a financial institution to a peace officer, as defined in Section 830.1 of the Penal Code, pursuant to the following:
(1)Paragraph (1) of subdivision (a) of Section 1748.95 of the Civil Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 1748.95 of the Civil Code.
(2)Paragraph (1) of subdivision (a) of Section 4002 of the Financial Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 4002 of the Financial Code.
(3)Paragraph (1) of subdivision (a) of Section 22470 of the Financial Code, provided that any financial institution that is a finance lender has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 22470 of the Financial Code.
(p)When the governing board of the Public Employees Retirement System or the State Teachers Retirement System certifies in writing to a financial institution that a benefit recipient has died and that transfers to the benefit recipients account at the financial institution from the retirement system occurred after the benefit recipients date of death, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of the benefit recipients death, or if the account has been closed, the name and address of the person who closed the account.
(q)When the retirement board of a retirement system established under the County Employees Retirement Law of 1937 certifies in writing to a financial institution that a retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or beneficiary of a retired member, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of death of the retired member or beneficiary of a retired member, or if the account has been closed, the name and address of the person who closed the account.
(r)When the Franchise Tax Board certifies in writing to a financial institution that (1) a taxpayer filed a tax return that authorized a direct deposit refund with an incorrect financial institution account or routing number that resulted in all or a portion of the refund not being received, directly or indirectly, by the taxpayer; (2) the direct deposit refund was not returned to the Franchise Tax Board; and (3) the refund was deposited directly on a specified date into the account of an accountholder of the financial institution who was not entitled to receive the refund, then the financial institution shall furnish to the Franchise Tax Board the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of direct deposit refund, or if the account has been closed, the name and address of the person who closed the account.
Nothing in this chapter shall prohibit any of the following:
(a)The dissemination of any financial information that is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, or a county adult protective services agency when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request a bank, credit union, or savings association to furnish, and a bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 90 days before, and up to 90 60 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)New bank cards issued.
(7)Change of address requests received.
(8)Power of attorney or trust documents submitted or executed.
(9)The date the account opened and, if applicable, the date the account closed.
(10)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving the account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(11)A bank, credit union, or savings association that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(c)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association doing business in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request, with the consent of the accountholder, the bank, credit union, or savings association to furnish, and the bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)The date the account opened and, if applicable, the date the account closed.
(7)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving this account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8)A bank, credit union, or savings association doing business in this state that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(d)For purposes of subdivision (c), consent of the accountholder shall be satisfied if an accountholder provides to the financial institution and the person or entity seeking disclosure, a signed and dated statement containing all of the following:
(1)Authorization of the disclosure for the period specified in subdivision (c).
(2)The name of the agency or department to which disclosure is authorized and, if applicable, the statutory purpose for which the information is to be obtained.
(3)A description of the financial records that are authorized to be disclosed.
(e)(1)The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller, or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriffs department or district attorney, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, a county welfare department when investigating welfare fraud, a county auditor-controller or director of finance when investigating fraud against the county, or the Department of Financial Protection and Innovation when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Financial Protection and Innovation, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
(2)No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholders written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(3)A county auditor-controller or director of finance who unlawfully discloses information they are authorized to request under this subdivision is guilty of the unlawful disclosure of confidential data, a misdemeanor, which shall be punishable as set forth in Section 7485.
(f)The examination by, or disclosure to, any supervisory agency of financial records that relate solely to the exercise of its supervisory function. The scope of an agencys supervisory function shall be determined by reference to statutes that grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)With respect to the Commissioner of Financial Protection and Innovation by reference to Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000), of the Financial Code.
(2)With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(3)With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(g)The disclosure to the Franchise Tax Board of (1) the amount of any security interest that a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return that are required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or Part 18 (commencing with Section 38001), of the Revenue and Taxation Code.
(h)The disclosure to the State Board of Equalization of any of the following:
(1)The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Part 1 (commencing with Section 6001), Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), Part 13 (commencing with Section 30001), Part 14 (commencing with Section 32001), and Part 17 (commencing with Section 37001), of Division 2 of the Revenue and Taxation Code.
(3)The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(j)The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(k)The disclosure by a construction lender, as defined in Section 8006 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(l)Upon receipt of a written request from a local child support agency referring to a support order pursuant to Section 17400 of the Family Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the local child support agency shall identify, whenever possible, by social security number:
(1)If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branchs computerized search, the name and address of any other person listed as an owner.
(4)Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, employees of the local child support agencies, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
(6)The local child support agency may request information pursuant to this subdivision only when the local child support agency has received at least one of the following types of physical evidence:
(A)Any of the following, dated within the last three years:
(i)Form 599.
(ii)Form 1099.
(iii)A bank statement.
(iv)A check.
(v)A bank passbook.
(vi)A deposit slip.
(vii)A copy of a federal or state income tax return.
(viii)A debit or credit advice.
(ix)Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)An asset identification report from a federal agency.
(B)A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
(7)Information obtained by a local child support agency pursuant to this subdivision shall be used only for purposes that are directly connected with the administration of the duties of the local child support agency pursuant to Section 17400 of the Family Code.
(m)(1)As provided in paragraph (1) of subdivision (c) of Section 666 of Title 42 of the United States Code, upon receipt of an administrative subpoena on the current federally approved interstate child support enforcement form, as approved by the federal Office of Management and Budget, a financial institution shall provide the information or documents requested by the administrative subpoena.
(2)The administrative subpoena shall refer to the current federal Office of Management and Budget control number and be signed by a person who states that they are an authorized agent of a state or county agency responsible for implementing the child support enforcement program set forth in Part D (commencing with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the United States Code. A financial institution may rely on the statements made in the subpoena and has no duty to inquire into the truth of any statement in the subpoena.
(3)If the person who signs the administrative subpoena directs a financial institution in writing not to disclose either the subpoena or its response to any owner of an account covered by the subpoena, the financial institution shall not disclose the subpoena or its response to the owner.
(4)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information or providing documents in response to a subpoena pursuant to this subdivision, (B) failing to notify any owner of an account covered by the subpoena or complying with a request not to disclose to the owner, the subpoena or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the subpoena pursuant to a computerized search of the records of the financial institution.
(n)The dissemination of financial information and records pursuant to any of the following:
(1)Compliance by a financial institution with the requirements of Section 2892 of the Probate Code.
(2)Compliance by a financial institution with the requirements of Section 2893 of the Probate Code.
(3)An order by a judge upon a written ex parte application by a peace officer showing specific and articulable facts that there are reasonable grounds to believe that the records or information sought are relevant and material to an ongoing investigation of a felony violation of Section 186.10 or of any felony subject to the enhancement set forth in Section 186.11.
(A)The ex parte application shall specify with particularity the records to be produced, which shall be only those of the individual or individuals who are the subject of the criminal investigation.
(B)The ex parte application and any subsequent judicial order shall be open to the public as a judicial record unless ordered sealed by the court, for a period of 60 days. The sealing of these records may be extended for 60-day periods upon a showing to the court that it is necessary for the continuance of the investigation. Sixty-day extensions may continue for up to one year or until termination of the investigation of the individual or individuals, whichever is sooner.
(C)The records ordered to be produced shall be returned to the peace officer applicant or their designee within a reasonable time period after service of the order upon the financial institution.
(D)Nothing in this subdivision shall preclude the financial institution from notifying a customer of the receipt of the order for production of records unless a court orders the financial institution to withhold notification to the customer upon a finding that the notice would impede the investigation.
(E)Where a court has made an order pursuant to this paragraph to withhold notification to the customer under this paragraph, the peace officer or law enforcement agency who obtained the financial information shall notify the customer by delivering a copy of the ex parte order to the customer within 10 days of the termination of the investigation.
(4)An order by a judge issued pursuant to subdivision (c) of Section 532f of the Penal Code.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for any of the following:
(A)Disclosing information to a probate court pursuant to Sections 2892 and 2893.
(B)Disclosing information in response to a court order pursuant to paragraph (3).
(C)Complying with a court order under this subdivision not to disclose to the customer, the order, or the dissemination of information pursuant to the court order.
(o)Disclosure by a financial institution to a peace officer, as defined in Section 830.1 of the Penal Code, pursuant to the following:
(1)Paragraph (1) of subdivision (a) of Section 1748.95 of the Civil Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 1748.95 of the Civil Code.
(2)Paragraph (1) of subdivision (a) of Section 4002 of the Financial Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 4002 of the Financial Code.
(3)Paragraph (1) of subdivision (a) of Section 22470 of the Financial Code, provided that any financial institution that is a finance lender has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 22470 of the Financial Code.
(p)When the governing board of the Public Employees Retirement System or the State Teachers Retirement System certifies in writing to a financial institution that a benefit recipient has died and that transfers to the benefit recipients account at the financial institution from the retirement system occurred after the benefit recipients date of death, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of the benefit recipients death, or if the account has been closed, the name and address of the person who closed the account.
(q)When the retirement board of a retirement system established under the County Employees Retirement Law of 1937 certifies in writing to a financial institution that a retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or beneficiary of a retired member, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of death of the retired member or beneficiary of a retired member, or if the account has been closed, the name and address of the person who closed the account.
(r)When the Franchise Tax Board certifies in writing to a financial institution that (1) a taxpayer filed a tax return that authorized a direct deposit refund with an incorrect financial institution account or routing number that resulted in all or a portion of the refund not being received, directly or indirectly, by the taxpayer; (2) the direct deposit refund was not returned to the Franchise Tax Board; and (3) the refund was deposited directly on a specified date into the account of an accountholder of the financial institution who was not entitled to receive the refund, then the financial institution shall furnish to the Franchise Tax Board the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of direct deposit refund, or if the account has been closed, the name and address of the person who closed the account.
Nothing in this chapter shall prohibit any of the following:
(a)The dissemination of any financial information that is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)When any police, sheriffs department, district attorney, or special agent with the Department of Justice, or adult protective services agency Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report or elder or dependent adult abuse report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, or a county adult protective services agency when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request a bank, credit union, or savings association to furnish, and a bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 90 days before, and up to 90 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)New bank cards issued.
(7)Change of address requests received.
(8)Power of attorney or trust documents submitted or executed.
(9)The date the account opened and, if applicable, the date the account closed.
(10)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving the account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(11)A bank, credit union, or savings association that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(c)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association doing business in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, may request, with the consent of the accountholder, the bank, credit union, or savings association to furnish, and the bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)The date the account opened and, if applicable, the date the account closed.
(7)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving this account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8)A bank, credit union, or savings association doing business in this state that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(d)For purposes of subdivision (c), consent of the accountholder shall be satisfied if an accountholder provides to the financial institution and the person or entity seeking disclosure, a signed and dated statement containing all of the following:
(1)Authorization of the disclosure for the period specified in subdivision (c).
(2)The name of the agency or department to which disclosure is authorized and, if applicable, the statutory purpose for which the information is to be obtained.
(3)A description of the financial records that are authorized to be disclosed.
(e)(1)The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller, or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriffs department or district attorney, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, a long-term care ombudsperson when investigating the financial abuse of an elder or dependent adult, a county welfare department when investigating welfare fraud, a county auditor-controller or director of finance when investigating fraud against the county, or the Department of Financial Protection and Innovation when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Financial Protection and Innovation, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
(2)No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholders written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(3)A county auditor-controller or director of finance who unlawfully discloses information they are authorized to request under this subdivision is guilty of the unlawful disclosure of confidential data, a misdemeanor, which shall be punishable as set forth in Section 7485.
(f)The examination by, or disclosure to, any supervisory agency of financial records that relate solely to the exercise of its supervisory function. The scope of an agencys supervisory function shall be determined by reference to statutes that grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)With respect to the Commissioner of Financial Protection and Innovation by reference to Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000), of the Financial Code.
(2)With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(3)With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(g)The disclosure to the Franchise Tax Board of (1) the amount of any security interest that a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return that are required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or Part 18 (commencing with Section 38001), of the Revenue and Taxation Code.
(h)The disclosure to the State Board of Equalization of any of the following:
(1)The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Part 1 (commencing with Section 6001), Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), Part 13 (commencing with Section 30001), Part 14 (commencing with Section 32001), and Part 17 (commencing with Section 37001), of Division 2 of the Revenue and Taxation Code.
(3)The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(j)The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(k)The disclosure by a construction lender, as defined in Section 8006 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(l)Upon receipt of a written request from a local child support agency referring to a support order pursuant to Section 17400 of the Family Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the local child support agency shall identify, whenever possible, by social security number:
(1)If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branchs computerized search, the name and address of any other person listed as an owner.
(4)Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, employees of the local child support agencies, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
(6)The local child support agency may request information pursuant to this subdivision only when the local child support agency has received at least one of the following types of physical evidence:
(A)Any of the following, dated within the last three years:
(i)Form 599.
(ii)Form 1099.
(iii)A bank statement.
(iv)A check.
(v)A bank passbook.
(vi)A deposit slip.
(vii)A copy of a federal or state income tax return.
(viii)A debit or credit advice.
(ix)Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)An asset identification report from a federal agency.
(B)A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
(7)Information obtained by a local child support agency pursuant to this subdivision shall be used only for purposes that are directly connected with the administration of the duties of the local child support agency pursuant to Section 17400 of the Family Code.
(m)(1)As provided in paragraph (1) of subdivision (c) of Section 666 of Title 42 of the United States Code, upon receipt of an administrative subpoena on the current federally approved interstate child support enforcement form, as approved by the federal Office of Management and Budget, a financial institution shall provide the information or documents requested by the administrative subpoena.
(2)The administrative subpoena shall refer to the current federal Office of Management and Budget control number and be signed by a person who states that they are an authorized agent of a state or county agency responsible for implementing the child support enforcement program set forth in Part D (commencing with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the United States Code. A financial institution may rely on the statements made in the subpoena and has no duty to inquire into the truth of any statement in the subpoena.
(3)If the person who signs the administrative subpoena directs a financial institution in writing not to disclose either the subpoena or its response to any owner of an account covered by the subpoena, the financial institution shall not disclose the subpoena or its response to the owner.
(4)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information or providing documents in response to a subpoena pursuant to this subdivision, (B) failing to notify any owner of an account covered by the subpoena or complying with a request not to disclose to the owner, the subpoena or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the subpoena pursuant to a computerized search of the records of the financial institution.
(n)The dissemination of financial information and records pursuant to any of the following:
(1)Compliance by a financial institution with the requirements of Section 2892 of the Probate Code.
(2)Compliance by a financial institution with the requirements of Section 2893 of the Probate Code.
(3)An order by a judge upon a written ex parte application by a peace officer showing specific and articulable facts that there are reasonable grounds to believe that the records or information sought are relevant and material to an ongoing investigation of a felony violation of Section 186.10 or of any felony subject to the enhancement set forth in Section 186.11.
(A)The ex parte application shall specify with particularity the records to be produced, which shall be only those of the individual or individuals who are the subject of the criminal investigation.
(B)The ex parte application and any subsequent judicial order shall be open to the public as a judicial record unless ordered sealed by the court, for a period of 60 days. The sealing of these records may be extended for 60-day periods upon a showing to the court that it is necessary for the continuance of the investigation. Sixty-day extensions may continue for up to one year or until termination of the investigation of the individual or individuals, whichever is sooner.
(C)The records ordered to be produced shall be returned to the peace officer applicant or their designee within a reasonable time period after service of the order upon the financial institution.
(D)Nothing in this subdivision shall preclude the financial institution from notifying a customer of the receipt of the order for production of records unless a court orders the financial institution to withhold notification to the customer upon a finding that the notice would impede the investigation.
(E)Where a court has made an order pursuant to this paragraph to withhold notification to the customer under this paragraph, the peace officer or law enforcement agency who obtained the financial information shall notify the customer by delivering a copy of the ex parte order to the customer within 10 days of the termination of the investigation.
(4)An order by a judge issued pursuant to subdivision (c) of Section 532f of the Penal Code.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for any of the following:
(A)Disclosing information to a probate court pursuant to Sections 2892 and 2893.
(B)Disclosing information in response to a court order pursuant to paragraph (3).
(C)Complying with a court order under this subdivision not to disclose to the customer, the order, or the dissemination of information pursuant to the court order.
(o)Disclosure by a financial institution to a peace officer, as defined in Section 830.1 of the Penal Code, pursuant to the following:
(1)Paragraph (1) of subdivision (a) of Section 1748.95 of the Civil Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 1748.95 of the Civil Code.
(2)Paragraph (1) of subdivision (a) of Section 4002 of the Financial Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 4002 of the Financial Code.
(3)Paragraph (1) of subdivision (a) of Section 22470 of the Financial Code, provided that any financial institution that is a finance lender has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 22470 of the Financial Code.
(p)When the governing board of the Public Employees Retirement System or the State Teachers Retirement System certifies in writing to a financial institution that a benefit recipient has died and that transfers to the benefit recipients account at the financial institution from the retirement system occurred after the benefit recipients date of death, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of the benefit recipients death, or if the account has been closed, the name and address of the person who closed the account.
(q)When the retirement board of a retirement system established under the County Employees Retirement Law of 1937 certifies in writing to a financial institution that a retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or beneficiary of a retired member, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of death of the retired member or beneficiary of a retired member, or if the account has been closed, the name and address of the person who closed the account.
(r)When the Franchise Tax Board certifies in writing to a financial institution that (1) a taxpayer filed a tax return that authorized a direct deposit refund with an incorrect financial institution account or routing number that resulted in all or a portion of the refund not being received, directly or indirectly, by the taxpayer; (2) the direct deposit refund was not returned to the Franchise Tax Board; and (3) the refund was deposited directly on a specified date into the account of an accountholder of the financial institution who was not entitled to receive the refund, then the financial institution shall furnish to the Franchise Tax Board the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of direct deposit refund, or if the account has been closed, the name and address of the person who closed the account.
Nothing in this chapter shall prohibit any of the following:
(a)The dissemination of any financial information that is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)When any police, sheriffs department, district attorney, special agent with the Department of Justice, or adult protective services agency in this state certifies to a bank, credit union, or savings association in writing that a crime report or elder or dependent adult abuse report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, or a county adult protective services agency when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsman ombudsperson when investigating the financial abuse of an elder or dependent adult, may request a bank, credit union, or savings association to furnish, and a bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 90 days before, and up to 360 90 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)New bank cards issued.
(7)Change of address requests received.
(8)Power of attorney or trust documents submitted or executed.
(9)The date the account opened and, if applicable, the date the account closed.
(10)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving the account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(11)A bank, credit union, or savings association that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(c)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association doing business in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsman ombudsperson when investigating the financial abuse of an elder or dependent adult, may request, with the consent of the accountholder, the bank, credit union, or savings association to furnish, and the bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)The date the account opened and, if applicable, the date the account closed.
(7)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving this account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8)A bank, credit union, or savings association doing business in this state that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(d)For purposes of subdivision (c), consent of the accountholder shall be satisfied if an accountholder provides to the financial institution and the person or entity seeking disclosure, a signed and dated statement containing all of the following:
(1)Authorization of the disclosure for the period specified in subdivision (c).
(2)The name of the agency or department to which disclosure is authorized and, if applicable, the statutory purpose for which the information is to be obtained.
(3)A description of the financial records that are authorized to be disclosed.
(e)(1)The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller, or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriffs department or district attorney, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, a long-term care ombudsman ombudsperson when investigating the financial abuse of an elder or dependent adult, a county welfare department when investigating welfare fraud, a county auditor-controller or director of finance when investigating fraud against the county, or the Department of Financial Protection and Innovation when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Financial Protection and Innovation, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
(2)No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholders written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(3)A county auditor-controller or director of finance who unlawfully discloses information they are authorized to request under this subdivision is guilty of the unlawful disclosure of confidential data, a misdemeanor, which shall be punishable as set forth in Section 7485.
(f)The examination by, or disclosure to, any supervisory agency of financial records that relate solely to the exercise of its supervisory function. The scope of an agencys supervisory function shall be determined by reference to statutes that grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)With respect to the Commissioner of Financial Protection and Innovation by reference to Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000), of the Financial Code.
(2)With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(3)With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(g)The disclosure to the Franchise Tax Board of (1) the amount of any security interest that a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return that are required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or Part 18 (commencing with Section 38001), of the Revenue and Taxation Code.
(h)The disclosure to the State Board of Equalization of any of the following:
(1)The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Part 1 (commencing with Section 6001), Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), Part 13 (commencing with Section 30001), Part 14 (commencing with Section 32001), and Part 17 (commencing with Section 37001), of Division 2 of the Revenue and Taxation Code.
(3)The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(j)The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(k)The disclosure by a construction lender, as defined in Section 8006 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(l)Upon receipt of a written request from a local child support agency referring to a support order pursuant to Section 17400 of the Family Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the local child support agency shall identify, whenever possible, by social security number:
(1)If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branchs computerized search, the name and address of any other person listed as an owner.
(4)Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, employees of the local child support agencies, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
(6)The local child support agency may request information pursuant to this subdivision only when the local child support agency has received at least one of the following types of physical evidence:
(A)Any of the following, dated within the last three years:
(i)Form 599.
(ii)Form 1099.
(iii)A bank statement.
(iv)A check.
(v)A bank passbook.
(vi)A deposit slip.
(vii)A copy of a federal or state income tax return.
(viii)A debit or credit advice.
(ix)Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)An asset identification report from a federal agency.
(B)A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
(7)Information obtained by a local child support agency pursuant to this subdivision shall be used only for purposes that are directly connected with the administration of the duties of the local child support agency pursuant to Section 17400 of the Family Code.
(m)(1)As provided in paragraph (1) of subdivision (c) of Section 666 of Title 42 of the United States Code, upon receipt of an administrative subpoena on the current federally approved interstate child support enforcement form, as approved by the federal Office of Management and Budget, a financial institution shall provide the information or documents requested by the administrative subpoena.
(2)The administrative subpoena shall refer to the current federal Office of Management and Budget control number and be signed by a person who states that they are an authorized agent of a state or county agency responsible for implementing the child support enforcement program set forth in Part D (commencing with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the United States Code. A financial institution may rely on the statements made in the subpoena and has no duty to inquire into the truth of any statement in the subpoena.
(3)If the person who signs the administrative subpoena directs a financial institution in writing not to disclose either the subpoena or its response to any owner of an account covered by the subpoena, the financial institution shall not disclose the subpoena or its response to the owner.
(4)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information or providing documents in response to a subpoena pursuant to this subdivision, (B) failing to notify any owner of an account covered by the subpoena or complying with a request not to disclose to the owner, the subpoena or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the subpoena pursuant to a computerized search of the records of the financial institution.
(n)The dissemination of financial information and records pursuant to any of the following:
(1)Compliance by a financial institution with the requirements of Section 2892 of the Probate Code.
(2)Compliance by a financial institution with the requirements of Section 2893 of the Probate Code.
(3)An order by a judge upon a written ex parte application by a peace officer showing specific and articulable facts that there are reasonable grounds to believe that the records or information sought are relevant and material to an ongoing investigation of a felony violation of Section 186.10 or of any felony subject to the enhancement set forth in Section 186.11.
(A)The ex parte application shall specify with particularity the records to be produced, which shall be only those of the individual or individuals who are the subject of the criminal investigation.
(B)The ex parte application and any subsequent judicial order shall be open to the public as a judicial record unless ordered sealed by the court, for a period of 60 days. The sealing of these records may be extended for 60-day periods upon a showing to the court that it is necessary for the continuance of the investigation. Sixty-day extensions may continue for up to one year or until termination of the investigation of the individual or individuals, whichever is sooner.
(C)The records ordered to be produced shall be returned to the peace officer applicant or their designee within a reasonable time period after service of the order upon the financial institution.
(D)Nothing in this subdivision shall preclude the financial institution from notifying a customer of the receipt of the order for production of records unless a court orders the financial institution to withhold notification to the customer upon a finding that the notice would impede the investigation.
(E)Where a court has made an order pursuant to this paragraph to withhold notification to the customer under this paragraph, the peace officer or law enforcement agency who obtained the financial information shall notify the customer by delivering a copy of the ex parte order to the customer within 10 days of the termination of the investigation.
(4)An order by a judge issued pursuant to subdivision (c) of Section 532f of the Penal Code.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for any of the following:
(A)Disclosing information to a probate court pursuant to Sections 2892 and 2893.
(B)Disclosing information in response to a court order pursuant to paragraph (3).
(C)Complying with a court order under this subdivision not to disclose to the customer, the order, or the dissemination of information pursuant to the court order.
(o)Disclosure by a financial institution to a peace officer, as defined in Section 830.1 of the Penal Code, pursuant to the following:
(1)Paragraph (1) of subdivision (a) of Section 1748.95 of the Civil Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 1748.95 of the Civil Code.
(2)Paragraph (1) of subdivision (a) of Section 4002 of the Financial Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 4002 of the Financial Code.
(3)Paragraph (1) of subdivision (a) of Section 22470 of the Financial Code, provided that any financial institution that is a finance lender has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 22470 of the Financial Code.
(p)When the governing board of the Public Employees Retirement System or the State Teachers Retirement System certifies in writing to a financial institution that a benefit recipient has died and that transfers to the benefit recipients account at the financial institution from the retirement system occurred after the benefit recipients date of death, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of the benefit recipients death, or if the account has been closed, the name and address of the person who closed the account.
(q)When the retirement board of a retirement system established under the County Employees Retirement Law of 1937 certifies in writing to a financial institution that a retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or beneficiary of a retired member, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of death of the retired member or beneficiary of a retired member, or if the account has been closed, the name and address of the person who closed the account.
(r)When the Franchise Tax Board certifies in writing to a financial institution that (1) a taxpayer filed a tax return that authorized a direct deposit refund with an incorrect financial institution account or routing number that resulted in all or a portion of the refund not being received, directly or indirectly, by the taxpayer; (2) the direct deposit refund was not returned to the Franchise Tax Board; and (3) the refund was deposited directly on a specified date into the account of an accountholder of the financial institution who was not entitled to receive the refund, then the financial institution shall furnish to the Franchise Tax Board the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of direct deposit refund, or if the account has been closed, the name and address of the person who closed the account.
Nothing in this chapter shall prohibit any of the following:
(a)The dissemination of any financial information that is not identified with, or identifiable as being derived from, the financial records of a particular customer.
(b)When any police, sheriffs department, district attorney, or special agent with the Department of Justice Justice, or adult protective services agency in this state certifies to a bank, credit union, or savings association in writing that a crime report or elder or dependent adult abuse report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, or a county adult protective services office agency when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsman when investigating the financial abuse of an elder or dependent adult, may request a bank, credit union, or savings association to furnish, and a bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 90 days before, and up to 30 360 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)New bank cards issued.
(7)Change of address requests received.
(8)Power of attorney or trust documents submitted or executed.
(6)(9)The date the account opened and, if applicable, the date the account closed.
(7)(10)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving the account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8)(11)A bank, credit union, or savings association that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(c)When any police, sheriffs department, district attorney, or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association doing business in this state, the police, sheriffs department, district attorney, special agent with the Department of Justice, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, or a long-term care ombudsman when investigating the financial abuse of an elder or dependent adult, may request, with the consent of the accountholder, the bank, credit union, or savings association to furnish, and the bank, credit union, or savings association shall furnish, a statement setting forth the following information with respect to a customer account specified by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account:
(1)The number of items dishonored.
(2)The number of items paid that created overdrafts.
(3)The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the bank, credit union, or savings association and customer to pay overdrafts.
(4)The dates and amounts of deposits and debits and the account balance on these dates.
(5)A copy of the signature card, including the signature and any addresses appearing on a customers signature card.
(6)The date the account opened and, if applicable, the date the account closed.
(7)Surveillance photographs and video recordings of persons accessing the crime victims financial account via an automated teller machine (ATM) or from within the financial institution for dates on which illegal acts involving this account were alleged to have occurred. Nothing in this paragraph does any of the following:
(A)Requires a financial institution to produce a photograph or video recording if it does not possess the photograph or video recording.
(B)Affects any existing civil immunities as provided in Section 47 of the Civil Code or any other provision of law.
(8)A bank, credit union, or savings association doing business in this state that provides the requesting party with copies of one or more complete account statements prepared in the regular course of business shall be deemed to be in compliance with paragraphs (1), (2), (3), and (4).
(d)For purposes of subdivision (c), consent of the accountholder shall be satisfied if an accountholder provides to the financial institution and the person or entity seeking disclosure, a signed and dated statement containing all of the following:
(1)Authorization of the disclosure for the period specified in subdivision (c).
(2)The name of the agency or department to which disclosure is authorized and, if applicable, the statutory purpose for which the information is to be obtained.
(3)A description of the financial records that are authorized to be disclosed.
(e)(1)The Attorney General, a supervisory agency, the Franchise Tax Board, the State Board of Equalization, the Employment Development Department, the Controller, or an inheritance tax referee when administering the Prohibition of Gift and Death Taxes (Part 8 (commencing with Section 13301) of Division 2 of the Revenue and Taxation Code), a police or sheriffs department or district attorney, a county adult protective services office when investigating the financial abuse of an elder or dependent adult, a long-term care ombudsman when investigating the financial abuse of an elder or dependent adult, a county welfare department when investigating welfare fraud, a county auditor-controller or director of finance when investigating fraud against the county, or the Department of Financial Protection and Innovation when conducting investigations in connection with the enforcement of laws administered by the Commissioner of Financial Protection and Innovation, from requesting of an office or branch of a financial institution, and the office or branch from responding to a request, as to whether a person has an account or accounts at that office or branch and, if so, any identifying numbers of the account or accounts.
(2)No additional information beyond that specified in this section shall be released to a county welfare department without either the accountholders written consent or a judicial writ, search warrant, subpoena, or other judicial order.
(3)A county auditor-controller or director of finance who unlawfully discloses information they are authorized to request under this subdivision is guilty of the unlawful disclosure of confidential data, a misdemeanor, which shall be punishable as set forth in Section 7485.
(f)The examination by, or disclosure to, any supervisory agency of financial records that relate solely to the exercise of its supervisory function. The scope of an agencys supervisory function shall be determined by reference to statutes that grant authority to examine, audit, or require reports of financial records or financial institutions as follows:
(1)With respect to the Commissioner of Financial Protection and Innovation by reference to Division 1 (commencing with Section 99), Division 1.1 (commencing with Section 1000), Division 1.2 (commencing with Section 2000), Division 1.6 (commencing with Section 4800), Division 2 (commencing with Section 5000), Division 5 (commencing with Section 14000), Division 7 (commencing with Section 18000), Division 15 (commencing with Section 31000), and Division 16 (commencing with Section 33000), of the Financial Code.
(2)With respect to the Controller by reference to Title 10 (commencing with Section 1300) of Part 3 of the Code of Civil Procedure.
(3)With respect to the Administrator of Local Agency Security by reference to Article 2 (commencing with Section 53630) of Chapter 4 of Part 1 of Division 2 of Title 5 of the Government Code.
(g)The disclosure to the Franchise Tax Board of (1) the amount of any security interest that a financial institution has in a specified asset of a customer or (2) financial records in connection with the filing or audit of a tax return or tax information return that are required to be filed by the financial institution pursuant to Part 10 (commencing with Section 17001), Part 11 (commencing with Section 23001), or Part 18 (commencing with Section 38001), of the Revenue and Taxation Code.
(h)The disclosure to the State Board of Equalization of any of the following:
(1)The information required by Sections 6702, 6703, 8954, 8957, 30313, 30315, 32383, 32387, 38502, 38503, 40153, 40155, 41122, 41123.5, 43443, 43444.2, 44144, 45603, 45605, 46404, 46406, 50134, 50136, 55203, 55205, 60404, and 60407 of the Revenue and Taxation Code.
(2)The financial records in connection with the filing or audit of a tax return required to be filed by the financial institution pursuant to Part 1 (commencing with Section 6001), Part 2 (commencing with Section 7301), Part 3 (commencing with Section 8601), Part 13 (commencing with Section 30001), Part 14 (commencing with Section 32001), and Part 17 (commencing with Section 37001), of Division 2 of the Revenue and Taxation Code.
(3)The amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(i)The disclosure to the Controller of the information required by Section 7853 of the Revenue and Taxation Code.
(j)The disclosure to the Employment Development Department of the amount of any security interest a financial institution has in a specified asset of a customer, if the inquiry is directed to the branch or office where the interest is held.
(k)The disclosure by a construction lender, as defined in Section 8006 of the Civil Code, to the Registrar of Contractors, of information concerning the making of progress payments to a prime contractor requested by the registrar in connection with an investigation under Section 7108.5 of the Business and Professions Code.
(l)Upon receipt of a written request from a local child support agency referring to a support order pursuant to Section 17400 of the Family Code, a financial institution shall disclose the following information concerning the account or the person named in the request, whom the local child support agency shall identify, whenever possible, by social security number:
(1)If the request states the identifying number of an account at a financial institution, the name of each owner of the account.
(2)Each account maintained by the person at the branch to which the request is delivered, and, if the branch is able to make a computerized search, each account maintained by the person at any other branch of the financial institution located in this state.
(3)For each account disclosed pursuant to paragraphs (1) and (2), the account number, current balance, street address of the branch where the account is maintained, and, to the extent available through the branchs computerized search, the name and address of any other person listed as an owner.
(4)Whenever the request prohibits the disclosure, a financial institution shall not disclose either the request or its response, to an owner of the account or to any other person, except the officers and employees of the financial institution who are involved in responding to the request and to attorneys, employees of the local child support agencies, auditors, and regulatory authorities who have a need to know in order to perform their duties, and except as disclosure may be required by legal process.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information in response to a request pursuant to this subdivision, (B) failing to notify the owner of an account, or complying with a request under this paragraph not to disclose to the owner, the request or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the request pursuant to a computerized search of the records of the financial institution.
(6)The local child support agency may request information pursuant to this subdivision only when the local child support agency has received at least one of the following types of physical evidence:
(A)Any of the following, dated within the last three years:
(i)Form 599.
(ii)Form 1099.
(iii)A bank statement.
(iv)A check.
(v)A bank passbook.
(vi)A deposit slip.
(vii)A copy of a federal or state income tax return.
(viii)A debit or credit advice.
(ix)Correspondence that identifies the child support obligor by name, the bank, and the account number.
(x)Correspondence that identifies the child support obligor by name, the bank, and the banking services related to the account of the obligor.
(xi)An asset identification report from a federal agency.
(B)A sworn declaration of the custodial parent during the 12 months immediately preceding the request that the person named in the request has had or may have had an account at an office or branch of the financial institution to which the request is made.
(7)Information obtained by a local child support agency pursuant to this subdivision shall be used only for purposes that are directly connected with the administration of the duties of the local child support agency pursuant to Section 17400 of the Family Code.
(m)(1)As provided in paragraph (1) of subdivision (c) of Section 666 of Title 42 of the United States Code, upon receipt of an administrative subpoena on the current federally approved interstate child support enforcement form, as approved by the federal Office of Management and Budget, a financial institution shall provide the information or documents requested by the administrative subpoena.
(2)The administrative subpoena shall refer to the current federal Office of Management and Budget control number and be signed by a person who states that they are an authorized agent of a state or county agency responsible for implementing the child support enforcement program set forth in Part D (commencing with Section 651) of Subchapter IV of Chapter 7 of Title 42 of the United States Code. A financial institution may rely on the statements made in the subpoena and has no duty to inquire into the truth of any statement in the subpoena.
(3)If the person who signs the administrative subpoena directs a financial institution in writing not to disclose either the subpoena or its response to any owner of an account covered by the subpoena, the financial institution shall not disclose the subpoena or its response to the owner.
(4)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for (A) disclosing information or providing documents in response to a subpoena pursuant to this subdivision, (B) failing to notify any owner of an account covered by the subpoena or complying with a request not to disclose to the owner, the subpoena or disclosure under this subdivision, or (C) failing to discover any account owned by the person named in the subpoena pursuant to a computerized search of the records of the financial institution.
(n)The dissemination of financial information and records pursuant to any of the following:
(1)Compliance by a financial institution with the requirements of Section 2892 of the Probate Code.
(2)Compliance by a financial institution with the requirements of Section 2893 of the Probate Code.
(3)An order by a judge upon a written ex parte application by a peace officer showing specific and articulable facts that there are reasonable grounds to believe that the records or information sought are relevant and material to an ongoing investigation of a felony violation of Section 186.10 or of any felony subject to the enhancement set forth in Section 186.11.
(A)The ex parte application shall specify with particularity the records to be produced, which shall be only those of the individual or individuals who are the subject of the criminal investigation.
(B)The ex parte application and any subsequent judicial order shall be open to the public as a judicial record unless ordered sealed by the court, for a period of 60 days. The sealing of these records may be extended for 60-day periods upon a showing to the court that it is necessary for the continuance of the investigation. Sixty-day extensions may continue for up to one year or until termination of the investigation of the individual or individuals, whichever is sooner.
(C)The records ordered to be produced shall be returned to the peace officer applicant or their designee within a reasonable time period after service of the order upon the financial institution.
(D)Nothing in this subdivision shall preclude the financial institution from notifying a customer of the receipt of the order for production of records unless a court orders the financial institution to withhold notification to the customer upon a finding that the notice would impede the investigation.
(E)Where a court has made an order pursuant to this paragraph to withhold notification to the customer under this paragraph, the peace officer or law enforcement agency who obtained the financial information shall notify the customer by delivering a copy of the ex parte order to the customer within 10 days of the termination of the investigation.
(4)An order by a judge issued pursuant to subdivision (c) of Section 532f of the Penal Code.
(5)No financial institution, or any officer, employee, or agent thereof, shall be liable to any person for any of the following:
(A)Disclosing information to a probate court pursuant to Sections 2892 and 2893.
(B)Disclosing information in response to a court order pursuant to paragraph (3).
(C)Complying with a court order under this subdivision not to disclose to the customer, the order, or the dissemination of information pursuant to the court order.
(o)Disclosure by a financial institution to a peace officer, as defined in Section 830.1 of the Penal Code, pursuant to the following:
(1)Paragraph (1) of subdivision (a) of Section 1748.95 of the Civil Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 1748.95 of the Civil Code.
(2)Paragraph (1) of subdivision (a) of Section 4002 of the Financial Code, provided that the financial institution has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 4002 of the Financial Code.
(3)Paragraph (1) of subdivision (a) of Section 22470 of the Financial Code, provided that any financial institution that is a finance lender has first complied with the requirements of paragraph (2) of subdivision (a) and subdivision (b) of Section 22470 of the Financial Code.
(p)When the governing board of the Public Employees Retirement System or the State Teachers Retirement System certifies in writing to a financial institution that a benefit recipient has died and that transfers to the benefit recipients account at the financial institution from the retirement system occurred after the benefit recipients date of death, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of the benefit recipients death, or if the account has been closed, the name and address of the person who closed the account.
(q)When the retirement board of a retirement system established under the County Employees Retirement Law of 1937 certifies in writing to a financial institution that a retired member or the beneficiary of a retired member has died and that transfers to the account of the retired member or beneficiary of a retired member at the financial institution from the retirement system occurred after the date of death of the retired member or beneficiary of a retired member, the financial institution shall furnish the retirement system with the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of death of the retired member or beneficiary of a retired member, or if the account has been closed, the name and address of the person who closed the account.
(r)When the Franchise Tax Board certifies in writing to a financial institution that (1) a taxpayer filed a tax return that authorized a direct deposit refund with an incorrect financial institution account or routing number that resulted in all or a portion of the refund not being received, directly or indirectly, by the taxpayer; (2) the direct deposit refund was not returned to the Franchise Tax Board; and (3) the refund was deposited directly on a specified date into the account of an accountholder of the financial institution who was not entitled to receive the refund, then the financial institution shall furnish to the Franchise Tax Board the name and address of any coowner, cosigner, or any other person who had access to the funds in the account following the date of direct deposit refund, or if the account has been closed, the name and address of the person who closed the account.
|
Date
|
Status
|
|---|---|
| Oct 8, 2023 | Chaptered by Secretary of State - Chapter 433, Statutes of 2023. |
| Oct 8, 2023 | Approved by the Governor. |
| Sep 19, 2023 | Enrolled and presented to the Governor at 4 p.m. |
| Sep 12, 2023 | In Assembly. Ordered to Engrossing and Enrolling. |
| Sep 12, 2023 | Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 2685.). |
| Sep 8, 2023 | Ordered to special consent calendar. |
| Sep 5, 2023 | Read second time. Ordered to third reading. |
| Sep 1, 2023 | From committee: Do pass. (Ayes 7. Noes 0.) (September 1). |
| Jul 10, 2023 | In committee: Referred to APPR. suspense file. |
| Jun 21, 2023 | From committee: Do pass and re-refer to Com. on APPR with recommendation: To Consent Calendar. (Ayes 7. Noes 0.) (June 21). Re-referred to Com. on APPR. |
| Jun 13, 2023 | From committee: Do pass and re-refer to Com. on B. & F.I. with recommendation: To Consent Calendar. (Ayes 5. Noes 0.) (June 13). Re-referred to Com. on B. & F.I. |
| May 10, 2023 | Referred to Coms. on PUB S. and B. & F.I. |
| May 2, 2023 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 1, 2023 | Read third time. Passed. Ordered to the Senate. (Ayes 78. Noes 0. Page 1410.) |
| Apr 27, 2023 | Read third time and amended. Ordered to third reading. (Page 1361.) |
| Apr 24, 2023 | Ordered to third reading. |
| Apr 24, 2023 | From Consent Calendar. |
| Apr 20, 2023 | Read second time. Ordered to Consent Calendar. |
| Apr 19, 2023 | From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (April 19). |
| Mar 22, 2023 | From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (March 21). Re-referred to Com. on APPR. |
| Mar 20, 2023 | Re-referred to Com. on P. & C.P. |
| Mar 16, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended. |
| Mar 9, 2023 | Re-referred to Com. on P. & C.P. |
| Mar 8, 2023 | From committee chair, with author's amendments: Amend, and re-refer to Com. on P. & C.P. Read second time and amended. |
| Feb 17, 2023 | Referred to Com. on P. & C.P. |
| Feb 3, 2023 | From printer. May be heard in committee March 5. |
| Feb 2, 2023 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 12, 2023 | Special Consent AB386 Stephanie Nguyen By Caballero | Senate Floor |
Passed |
|
| Sep 1, 2023 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| Jul 10, 2023 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Jun 21, 2023 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Banking and Financial Institutions |
Passed |
|
| Jun 13, 2023 | Do pass, but first be re-referred to the Committee on [Banking and Financial Institutions] with the recommendation: To Consent Calendar | Senate Standing Committee on Public Safety |
Passed |
|
| May 1, 2023 | AB 386 Stephanie Nguyen Assembly Third Reading | Assembly Floor |
Passed |
|
| Apr 19, 2023 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Mar 21, 2023 | Do pass and be re-referred to the Committee on [Appropriations] | Assembly Standing Committee on Privacy and Consumer Protection |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| AARP | ** Support | |
| Alameda County Board of Supervisors | ** Support | |
| California Alliance For Retired Americans | ** Support | |
| California Bankers Association | ** Support | |
| California Credit Union League | ** Support | |
| California Elder Justice Coalition | ** Support | |
| California Office Of The State Long-Term Care Ombudsman | ** Support | |
| California Senior Legislature | ** Support | |
| California State Association Of Counties | ** Support | |
| City and County of San Francisco | ** Support | |
| City and County of San Francisco Human Services Agency | ** Support | |
| Consumer Attorneys Of California | ** Support | |
| County of Riverside | ** Support | |
| county of sacramento | ** Support | |
| County of Santa Clara | ** Support | |
| County of Santa Cruz Human Services Department | ** Support | |
| County Welfare Directors Association of California | ** Support | |
| RCRC | ** Support | |
| Riverside Board of County Supervisors | * Support | Mar 21, 2023 |
| Riverside County Department of Public Social Services | * Indeterminate | Mar 21, 2023 |
| Rural County Representatives of California | ** Support | |
| San Francisco Human Services Agency | ** Support | |
| San Mateo County Board of Supervisors | ** Support | |
| Sonoma County Human Services Department | ** Support | |
| Urban Counties of California | ** Support |
SENATE RULES COMMITTEE Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB 386 |
THIRD READING
Bill No: AB 386
Author: Stephanie Nguyen (D)
Amended: 4/27/23 in Assembly
Vote: 21
SENATE PUBLIC SAFETY COMMITTEE: 5-0, 6/13/23
AYES: Wahab, Ochoa Bogh, Bradford, Skinner, Wiener
SENATE BANKING & F.I. COMMITTEE: 7-0, 6/21/23
AYES: Limón, Niello, Bradford, Caballero, Min, Nguyen, Portantino
SENATE APPROPRIATIONS COMMITTEE: 7-0, 9/1/23
AYES: Portantino, Jones, Ashby, Bradford, Seyarto, Wahab, Wiener
ASSEMBLY FLOOR: 78-0, 5/1/23 - See last page for vote
SUBJECT: California Right to Financial Privacy Act
SOURCE: County Welfare Directors Association
DIGEST:
This bill expands the type and amount of financial records that must be provided during investigations of suspected financial elder abuse.
ANALYSIS:
Existing law:
- Establishes the Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code § 15600 et seq.)
- Recognizes that elders and dependent adults may be subjected to abuse, neglect, or abandonment and that California has a responsibility to protect those persons. (Welf. & Inst. Code § 15600(a).)
- States that the purposes of the Act are to do the following:
- Require health practitioners, care custodians, clergy members, and employees of county APS agencies and local law enforcement agencies to report known or suspected cases of abuse of elders and dependent adults and to encourage community members in general to make such reports.
- Collect information on the numbers of abuse victims, circumstances surrounding the act of abuse, and other data that will aid the state in establishing adequate services to aid all victims of abuse in a timely, compassionate manner.
- Provide for protection under the law for all those persons who report suspected cases of abuse, provided that the report is not made with malicious intent. (Welf. & Inst. Code §15601.)
- Defines elder and dependent abuse as any of the following:
- Physical abuse, neglect, abandonment, isolation, abduction, or other treatment with resulting physical harm or pain or mental suffering.
- The deprivation by a care custodian of goods or services that are necessary to avoid physical harm or mental suffering.
- Financial abuse. (Welf. & Inst. Code § 15610.07)
- Authorizes a financial institution, broker-dealer, or investment adviser to disclose any reports or records relevant to the reports of abuse of an elder or dependent adult if the disclosure would be required of a financial institution, broker-dealer, or investment adviser by otherwise applicable state or federal law or court order. (Welf. & Inst. Code § 15633(c).)
- Requires information relevant to the incident of elder or dependent adult abuse to be given to an investigator from an adult protective services agency. (Welf. & Inst. Code § 15935.)
- Identifies all officers and employees of financial institutions as mandated reporters of suspected financial abuse of an elder or dependent adult. (Welf. & Inst. Code § 15630.1)
- Provides, under the California Constitution, that all people have inalienable rights, including the right to pursue and obtain privacy. (Cal. Const. art. I, § 1.)
- Establishes the California Right to Financial Privacy Act which generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. This Act establishes exceptions to those requirements by authorizing various state and local agencies to request information from financial institutions. (Gov. Code §§ 7460 et seq.)
- Requires that when a law enforcement agency investigating financial abuse of an elder or dependent adult certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders, the bank, credit union, or savings association must furnish a statement setting forth specific information with respect to a customer account by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account. This information includes the dates and amounts of debits, a copy of the signature card, and the date the account opened and, if applicable, closed. (Gov. Code § 7480(b).)
This bill:
- Expands the requesting period to 90 days before, and up to 60 days after the date of the alleged illegal activity.
- Expands the type of information the financial institution must provide to include, bank cards issued, change of address requests, and power of attorney or trust documents submitted.
Background
According to the author:
Financial attacks and scams against California’s seniors are rampant and on the rise. Existing law limits state and local agencies’ ability to effectively protect our older and dependent adults, because investigators have limited access to financial records, and cannot obtain the necessary documents to stop or prevent further harm.
AB 386 improves financial abuse investigations by extending the time frame of accessible records from 30 days prior and 30 days following the alleged illegal act to 90 days prior and 60 after, which allows a thorough investigation to identify normal spending habits of the alleged victim. This bill also expands the information APS can receive to identify potentially critical evidence to uncover financial abuse. This includes: (1) new bank cards issued, (2) change of address requests, (3) and power of attorney. This bill goes a long way to prevent financial abuse ensuring the financial safety of some of the most vulnerable in our community.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Appropriations Committee, unknown, potentially significant court workload cost pressures resulting from additional felony and misdemeanor prosecutions that are made possible by the expanded disclosures of financial records proposed by AB 386 (Trial Court Trust Fund, General Fund). See Staff Comments for additional detail.
SUPPORT: (Verified 9/1/23)
County Welfare Directors Association of California (source)
AARP
Alameda County Board of Supervisors
California Alliance for Retired Americans
California Bankers Association
California Credit Union League
California Elder Justice Coalition
California Office of the State Long-Term Care Ombudsman
California Senior Legislature
California State Association of Counties
City and County of San Francisco
City and County of San Francisco Human Services Agency
Consumer Attorneys of California
County of Riverside
County of Sacramento
County of Santa Clara
County of Santa Cruz Human Services Department
Rural County Representatives of California
San Francisco Human Services Agency
San Mateo County Board of Supervisors
Sonoma County Human Services Department
Urban Counties of California
OPPOSITION: (Verified 9/1/23)
None received
ARGUMENTS IN SUPPORT: The California Elder Justice Coalition supports this bill stating:
Access to bank customer records is a top priority for Adult Protective Services investigators during fraud and exploitation inquiries. Although authorization for records sharing exists in both state and federal law, a lack of clarity and confusion from duplicative code provisions leaves many bank officials unclear on their obligations under the law. AB 386 helps address this problem by adding clear parameters for APS investigators’ records requests in California’s Financial Privacy Act, as well as eliminating the requirement for a criminal case number to be included with the request.
ASSEMBLY FLOOR: 78-0, 5/1/23
AYES: Addis, Aguiar-Curry, Alanis, Alvarez, Arambula, Bains, Bauer-Kahan, Bennett, Berman, Boerner, Bonta, Bryan, Calderon, Juan Carrillo, Wendy Carrillo, Cervantes, Chen, Connolly, Megan Dahle, Davies, Dixon, Essayli, Flora, Mike Fong, Vince Fong, Friedman, Gabriel, Gallagher, Garcia, Gipson, Grayson, Haney, Hart, Holden, Hoover, Irwin, Jackson, Jones-Sawyer, Kalra, Lackey, Lee, Low, Lowenthal, Maienschein, Mathis, McCarty, Muratsuchi, Stephanie Nguyen, Ortega, Pacheco, Papan, Jim Patterson, Joe Patterson, Pellerin, Petrie-Norris, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Sanchez, Santiago, Schiavo, Ta, Ting, Valencia, Villapudua, Waldron, Wallis, Ward, Weber, Wicks, Wilson, Wood, Zbur, Rendon
NO VOTE RECORDED: McKinnor, Soria
Prepared by: Mary Kennedy / PUB. S. /
9/9/23 9:04:49**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Anthony Portantino, Chair
2023 - 2024 Regular Session
AB 386 (Stephanie Nguyen) - California Right to Financial Privacy Act
Version: April 27, 2023 | Policy Vote: PUB. S. 5 - 0, B. & F.I. 7 - 0 |
Urgency: No | Mandate: No |
Hearing Date: July 10, 2023 | Consultant: Matthew Fleming |
Bill Summary:
AB 386 would expand the type and amount of financial records that must be provided during law enforcement investigations of suspected financial elder abuse.
Fiscal Impact:
Unknown, potentially significant court workload cost pressures resulting from additional felony and misdemeanor prosecutions that are made possible by the expanded disclosures of financial records proposed by AB 386 (Trial Court Trust Fund, General Fund). See Staff Comments for additional detail.
Background:
Financial crime and fraud is a large and growing problem. In 2022 the Federal Trade Commission received reports of consumers losing $8.8 billion to fraud, an increase of 30% over the previous year. The most popular categories of fraud were scams related to imposters; online shopping; prizes, sweepstakes, and lotteries; investments; and business and job opportunities. Credit and debit card transactions were the most common payment methods reported in frauds, generating losses of $2,676 per consumer on average. On the other hand, while reported less frequently, bank transfers and cryptocurrency transactions generated the majority of reported fraud losses, averaging $34,618 per consumer.
Law enforcement agencies face challenges in investigating cases of alleged financial fraud and prosecuting perpetrators. Financial fraud often occurs online or over the phone, meaning victims have little to no information about the identity of the fraudster. Further complicating law enforcement’s work, a significant amount of fraud is perpetrated by people located in other countries, which makes investigations more complex and costly to pursue. Fraudsters also have the ability to change their schemes or quickly create new forms of fraud, which requires law enforcement to constantly train investigators on new threat vectors and evolve investigatory strategies.
To fight financial fraud, law enforcement agencies rely heavily on information provided by financial institutions, such as banks and credit unions. The California Right to Financial Privacy Act limits the access that state and local governments have to the financial information of Californians. The law provides various exemptions, including in instances where a law enforcement official certifies that a crime report has been filed that alleges financial fraud and allows specified law enforcement agencies or a county adult protective services office to access certain information. Through the California Right to Financial Privacy Act, state law aims to provide Californians with stronger privacy protections than those granted by federal law, while providing processes through which law enforcement agencies may pursue investigations of financial fraud and related crimes.
This bill would expand both the type of information that can be requested under the Financial Right to Privacy act, to include new bank cards issued, change of address requests, and all power of attorney or trust documents submitted or executed, and the time frame for the request to include all records 90 days prior to the incident and 60 days after the incident.
Proposed Law:
- Expands the time period during which specified law enforcement agencies may request a financial institution to furnish a statement setting forth specified information with respect to a customer account to a period of 90 days before, and up to 60 days following, the date of occurrence of an alleged crime involving the account.
- Expands the types of information that law enforcement may request to include new bank cards issued, change of address requests, and power of attorney or trust documents.
Related Legislation:
AB 3229 (Burke) Chapter 288, Stats. of 2018, added the Department of Justice (DOJ) to the list of agencies that may receive financial records from a financial institution, provided that a crime report involving fraud has been filed.
Staff Comments:
The offense of elder abuse is punishable as either a misdemeanor or a realigned felony, depending on the circumstances. To the extent that the expanded investigatory authority proposed by this measure leads to additional arrests and charges, it will require additional court staff time and resources to prosecute. These prosecutions carry the potential for incarceration and therefore certain defendants’ rights are attached to the proceedings. These include the right to a jury trial and the right to appointed counsel at public expense if the defendant cannot afford to hire an attorney. Invocation of these rights can lead to lengthier and more complex court proceedings. It generally costs about $1,000 to operate a courtroom for one hour. Although courts are not funded on the basis of workload, increased pressure on staff time and resources may create a need for increased funding for courts from the General Fund (GF) to perform existing duties. Numerous trial court operations are funded through the imposition and collection of criminal fines and fees. However, the Legislature has reduced and eliminated criminal fines and fees over the past decade. As a result, the 2023-24 May Revision proposes an ongoing annual allocation of $105.1 million from the GF to backfill declining revenue to the Trial Court Trust Fund.
-- END --
SENATE COMMITTEE ON
BANKING AND FINANCIAL INSTITUTIONS
Senator Monique Limón, Chair
2023 - 2024 Regular
Bill No: AB 386 Hearing Date: June 21, 2023
Author: | Stephanie Nguyen | ||
Version: | April 27, 2023 Amended | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | Michael Burdick | ||
Subject: California Right to Financial Privacy Act
SUMMARY
This bill expands the time period covered by requests from specified law enforcement agencies for financial information related to an alleged illegal act involving an account and specifies additional information about the account that can be disclosed to law enforcement agencies.
EXISTING LAW
- Provides the California Right to Financial Privacy Act (CRFPA), which aims to clarify and protect the confidential relationship between financial institutions and their customers and to balance a citizen’s right of privacy with the governmental interest in obtaining information for specific purposes and by specified procedures, as provided by the law. (Government Code Section 7460 et seq.)
- Provides that specified law enforcement agencies may request a financial institution to furnish a statement setting forth specified information with respect to a customer account for a period 30 days before, and up to 30 days following, the date of occurrence of an alleged illegal act involving the account. That specified information includes information related to dishonored items, overdrafts, dates and amounts of deposits and debits, account balances, information provided at or related to the opening of the account, and surveillance footage of persons accessing the crime victim’s financial account from an ATM or from within the financial institution. (Government Code Section 7480)
THIS BILL
- Expands the time period covered by the provision described in Existing Law 2, above, to a period of 90 days before, and up to 60 days following, the date of occurrence of the alleged illegal act involving the account.
- Adds the following information to the list of specified information that law enforcement agencies may request pursuant to Existing Law 2, above:
- New bank cards issued.
- Change of address requests received.
- Power of attorney or trust documents submitted or executed.
COMMENTS
- PURPOSE
According to the author, the purpose of this bill is to “improve financial abuse investigations and better protect the assets of California’s vulnerable community of older and dependent adults by extending the time frame of accessing records, and expanding the information that can be received.”
- FINANCIAL FRAUD IS A GROWING THREAT
Financial crime and fraud is a large and growing problem. In 2022 the Federal Trade Commission received reports of consumers losing $8.8 billion to fraud, an increase of 30% over the previous year. The most popular categories of fraud were scams related to imposters; online shopping; prizes, sweepstakes, and lotteries; investments; and business and job opportunities. Credit and debit card transactions were the most common payment methods reported in frauds, generating losses of $2,676 per consumer on average. On the other hand, while reported less frequently, bank transfers and cryptocurrency transactions generated the majority of reported fraud losses, averaging $34,618 per consumer.[1]
Law enforcement agencies face challenges in investigating cases of alleged financial fraud and prosecuting perpetrators. Financial fraud often occurs online or over the phone, meaning victims have little to no information about the identity of the fraudster. Further complicating law enforcement’s work, a significant amount of fraud is perpetrated by people located in other countries, which makes investigations more complex and costly to pursue. Fraudsters also have the ability to change their schemes or quickly create new forms of fraud, which requires law enforcement to constantly train investigators on new threat vectors and evolve investigatory strategies.
- BALANCING LAW ENFORCEMENT AND PRIVACY INTERESTS
To fight financial fraud, law enforcement agencies rely heavily on information provided by financial institutions, such as banks and credit unions. As outlined in the Senate Committee on Public Safety analysis of this bill, which is incorporated by reference herein, the federal government requires financial institutions to maintain records of their customers’ financial transactions in order to aid criminal, tax, or regulatory investigations and proceedings. Furthermore, the U.S. Supreme Court held that bank records are not subject to protection from illegal search and seizure under the Fourth Amendment to the U.S. Constitution. Generally, this means that law enforcement agencies may access a person’s financial records without first obtaining the person’s consent.
In response to federal requirements and interpretation of law, California enacted in 1976 the California Right to Financial Privacy Act, which limits the access that state and local governments have to the financial information of Californians. The law provides various exemptions, including in instances where a law enforcement official certifies that a crime report has been filed that alleges financial fraud and allows specified law enforcement agencies or a county adult protective services office to access certain information, as described in Existing Law #2 above. Through the California Right to Financial Privacy Act, state law aims to provide Californians with stronger privacy protections than those granted by federal law, while providing processes through which law enforcement agencies may pursue investigations of financial fraud and related crimes.
- THIS BILL PROPOSES MODEST EXPANSION IN SCOPE OF INFORMATION AVAILABLE TO LAW ENFORCEMENT
This bill is sponsored by the County Welfare Directors Association of California (CWDA) for the purpose of improving the capability of Adult Protective Services offices in protecting seniors and dependent adults from the growing threat of elder financial exploitation. As outlined in CWDA’s position letter, county APS departments are responsible for investigating alleged incidences of abuse of older and dependent adults, including financial abuse. Similar to financial fraud generally, elder financial exploitation is a large and growing problem – one that becomes more pronounced as the demographic shift in population becomes older at an increasing rate.[2]
CWDA argues that existing law overly restricts APS investigators’ ability to review pertinent financial records of alleged victims. Limiting records to 30 days before and 30 days after the date of alleged illegal activity “makes it significantly harder for APS to identify normal spending habits of the alleged victim, which is necessary to identify abnormal and potentially illegal activity.” CWDA also argues that the scope of information accessible to APS investigators under existing law excludes potentially important information to uncover financial abuse and scams. To remedy these deficiencies, this bill proposes an expansion of accessible records to those created 90 days before and 60 days after the date of alleged illegal activity and for information related to newly issued payment cards, changes of address, and information regarding trusts or Power of Attorney.
- DOUBLE-REFERRAL
This bill was first heard by the Senate Committee on Public Safety, which passed the bill with a unanimous vote of 5-0.
LIST OF REGISTERED SUPPORT/OPPOSITION
Support
AARP
Alameda County Board of Supervisors
California Alliance for Retired Americans
California Bankers Association
California Credit Union League
California Elder Justice Coalition (CEJC)
California Office of The State Long-term Care Ombudsman
California Senior Legislature
California State Association of Counties (CSAC)
City and County of San Francisco
City and County of San Francisco Human Services Agency
Consumer Attorneys of California
County of Riverside
County of Santa Clara
County of Santa Cruz Human Services Department
County Welfare Directors Association of California (CWDA) (SPONSOR)
Rural County Representatives of California (RCRC)
Sacramento; County of
San Mateo County Board of Supervisors
Sonoma County Human Services Department
Urban Counties of California (UCC)
Opposition
None received
-- END --
Data accessed here: https://ftc.gov/exploredata. ↑
See this committee’s analysis of SB 278 (Dodd) from this legislative session for more background on the problem of elder financial exploitation. ↑
SENATE COMMITTEE ON PUBLIC SAFETY
Senator Aisha Wahab, Chair
2023 - 2024 Regular
Bill No: AB 386 Hearing Date: June 13, 2023
Author: | Stephanie Nguyen | ||
Version: | April 27, 2023 | ||
Urgency: | No | Fiscal: | Yes |
Consultant: | MK | ||
Subject: California Right to Financial Privacy Act
HISTORY
Source: County Welfare Directors Association
Prior Legislation: AB 3229 (Burke) Chapter 288, Stat. of 2018
SB 679 (Mello) Chapter 774, Stats. 1991
Support: AARP; California Alliance for Retired Americans; California Bankers Association; California Credit Union League; California Elder Justice Coalition (CEJC); California Senior Legislature; CA State Association of Counties (CSAC); City and County of San Francisco; County of Riverside; County of Santa Clara; County of Santa Cruz Human Services Department; Rural County Representatives of California (RCRC); County of Sacramento; San Francisco Human Services Agency; Sonoma County Human Services Department; Urban Counties of California (UCC)
Opposition: None known
Assembly Floor Vote: 78 - 0
PURPOSE
The purpose of this bill is to expand the type and amount of financial records that must be provided during investigations of suspected financial elder abuse.
Existing law establishes the Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code § 15600 et seq.)
Existing law recognizes that elders and dependent adults may be subjected to abuse, neglect, or abandonment and that California has a responsibility to protect those persons. (Welf. & Inst. Code § 15600(a).)
Existing law states that the purposes of the Act are to do the following:
- Require health practitioners, care custodians, clergy members, and employees of county APS agencies and local law enforcement agencies to report known or suspected cases of abuse of elders and dependent adults and to encourage community members in general to make such reports.
- Collect information on the numbers of abuse victims, circumstances surrounding the act of abuse, and other data that will aid the state in establishing adequate services to aid all victims of abuse in a timely, compassionate manner.
- Provide for protection under the law for all those persons who report suspected cases of abuse, provided that the report is not made with malicious intent. (Welf. & Inst. Code §15601.)
Existing law defines elder and dependent abuse as any of the following:
- Physical abuse, neglect, abandonment, isolation, abduction, or other treatment with resulting physical harm or pain or mental suffering.
- The deprivation by a care custodian of goods or services that are necessary to avoid physical harm or mental suffering.
- Financial abuse. (Welf. & Inst. Code § 15610.07)
Existing law authorizes a financial institution, broker-dealer, or investment adviser to disclose any reports or records relevant to the reports of abuse of an elder or dependent adult if the disclosure would be required of a financial institution, broker-dealer, or investment adviser by otherwise applicable state or federal law or court order. (Welf. & Inst. Code § 15633(c).)
Existing law requires information relevant to the incident of elder or dependent adult abuse to be given to an investigator from an adult protective services agency. (Welf. & Inst. Code § 15935.)
Existing law identifies all officers and employees of financial institutions as mandated reporters of suspected financial abuse of an elder or dependent adult. (Welf. & Inst. Code § 15630.1)
Existing law provides, under the California Constitution, that all people have inalienable rights, including the right to pursue and obtain privacy. (Cal. Const. art. I, § 1.)
Existing law establishes the California Right to Financial Privacy Act which generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. This Act establishes exceptions to those requirements by authorizing various state and local agencies to request information from financial institutions. (Gov. Code §§ 7460 et seq.)
Existing law requires that when a law enforcement agency investigating financial abuse of an elder or dependent adult certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders, the bank, credit union, or savings association must furnish a statement setting forth specific information with respect to a customer account by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account. This information includes the dates and amounts of debits, a copy of the signature card, and the date the account opened and, if applicable, closed. (Gov. Code § 7480(b).)
This bill expands the requesting period to 90 days before, and up to 60 days after the date of the alleged illegal activity.
This bill expands the type of information the financial institution must provide to include, bank cards issued, change of address requests, and power of attorney or trust documents submitted.
COMMENTS
1. Need for This Bill
According to the author:
Financial attacks and scams against California’s seniors are rampant and on the rise. Existing law limits state and local agencies’ ability to effectively protect our older and dependent adults, because investigators have limited access to financial records, and cannot obtain the necessary documents to stop or prevent further harm.
AB 386 improves financial abuse investigations by extending the time frame of accessible records from 30 days prior and 30 days following the alleged illegal act to 90 days prior and 60 after, which allows a thorough investigation to identify normal spending habits of the alleged victim. This bill also expands the information APS can receive to identify potentially critical evidence to uncover financial abuse. This includes: (1) new bank cards issued, (2) change of address requests, (3) and power of attorney. This bill goes a long way to prevent financial abuse ensuring the financial safety of some of the most vulnerable in our community.
2. The California Right to Financial Privacy Act.
In 1970, Congress enacted the Bank Secrecy Act, which required banking institutions to maintain records of their customers’ financial transactions. Congress enacted these recordkeeping requirements because it recognized that records of the financial transactions of bank customers “have a high degree of usefulness in criminal, tax, or regulatory investigations and proceedings.” (Bank Secrecy Act, 12 U.S.C. § 1829b(a)(2); 31 U.S.C. § 5311.) Congress would also soon realize that, due to its expansion of bank recordkeeping requirements and precisely because of the usefulness of the records in the prosecution of individuals for the violation of numerous federal laws and regulations, taxpayers were becoming increasingly vulnerable to the Internal Revenue Service (IRS) prying into their records. Unfortunately, in 1976, the United States Supreme Court determined that a bank customer does not have a constitutionally protected privacy interest in bank records since the records are the property of the bank. As a result, customers have no standing under the Federal Constitution to contest government access to their bank records. (United States v. Miller (1976) 425 U.S. 435.)
After Miller, there was great concern that government agencies would have unfettered access to the bank records of individuals. In order to restrict the free flow of such information, California (acting more swiftly than the federal government, which would not enact its own Right to Financial Privacy Act until two years later) enacted the Right to Financial Privacy Act (hereinafter “ Privacy Act”) found at Gov. Code § 7460 et seq. The Privacy Act was enacted to establish procedures and policies to govern the relationship between financial institutions and government agencies in a way that ensures citizens’ constitutional rights, specifically to clarify and protect the confidential relationship between financial institutions and their customers and to balance a citizen’s right of privacy with the governmental interest in obtaining information for specific purposes. (Gov. Code § 7461.)
Currently, all financial institutions operating in California are covered under the Privacy Act, including: state and national banks, state and federal savings associations, trust companies, industrial loan companies, and state and federal credit unions. (Gov. Code § 7465(a).) The Privacy Act applies to “state agencies,” which means state offices, officers, departments, divisions, bureaus, boards, commissions, and other state agencies, including the Legislature (Gov. Code § 7465(e).) The Privacy Act also applies to “local agencies” such as counties; cities, whether general law or chartered; cities and counties; school districts; municipal corporations; districts; political subdivisions or boards, commissions, or agencies thereof; or other local public agencies. (Gov. Code § 7465(f).) When an agency is conducting an investigation and seeks the disclosure of a customer’s financial records, the Privacy Act prohibits any officer, employee, or agent of a state or local agency or department from requesting or receiving copies of, or the information contained in, a customer’s financial records from a financial institution unless the financial records are described with particularity and are consistent with the scope and requirements of the investigation giving rise to the request. (Gov. Code § 7470(a).) Further, the information may only be disclosed if one of the following additional requirements is met:
- The customer authorized disclosure to the officer, employee, or agent of the state or local agency or department of the agency.
- The disclosure is in response to an administrative subpoena or summons, as specified.
- The disclosure is in response to a search warrant.
- The disclosure is in response to a subpoena.
With regard to law enforcement investigations, the Privacy Act requires that financial institutions furnish a customer’s financial information when “any police, sheriff’s department, district attorney or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state” or “doing business in this state.” (Gov. Code § 7480.) The financial institution is required to turn over all of the following information:
- The number of items dishonored.
- The number of items paid that created overdrafts.
- The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the financial institution and customer to pay overdrafts.
- The dates and amounts of deposits and debits and the account balance on these dates.
- A copy of the signature card, including the signature and any addresses appearing on a customer’s signature card.
- The date the account opened and, if applicable, the date the account closed.
- Any surveillance photographs and video recordings of persons accessing the victim’s financial account.
Also with regard to law enforcement investigations, the Privacy Act allows the investigator to request records for up to 30 days prior to the alleged incident and 30 days after (for a total of 60 days). (Gov. Code § 7480(a))
This bill proposes to expand both the type of information that can be requested to include new bank cards issued, change of address requests, and all power of attorney or trust documents submitted or executed, and the time frame for the request to include all records 90 days prior to the incident and 60 days after the incident.
This bill also expands the types of personal financial records that can be provided to law enforcement during an investigation. The information released will also include: new bank cards issued; change of address requests received; and, power of attorney or trust documents submitted or executed.
3. Argument in Support
The California Elder Justice Coalition supports this bill stating:
Access to bank customer records is a top priority for Adult Protective Services investigators during fraud and exploitation inquiries. Although authorization for records sharing exists in both state and federal law, a lack of clarity and confusion from duplicative code provisions leaves many bank officials unclear on their obligations under the law. AB 386 helps address this problem by adding clear parameters for APS investigators’ records requests in California’s Financial Privacy Act, as well as eliminating the requirement for a criminal case number to be included with the request.
-- END –
ASSEMBLY THIRD READING
ATR Bill Id:AB 386
Author:(Stephanie Nguyen)
As Amended Ver:April 27, 2023
Majority vote
SUMMARY
Expands the type and amount of financial records that must be provided during investigations of suspected financial elder abuse.
Major Provisions
- Expands the period that records must be provided by financial institutions up to 90 days before, and up to 60 days after, the date of the alleged illegal activity, from the current 30 days.
- Expands the type of information the financial institution must provide to include, bank cards issued, change of address requests, and power of attorney or trust documents submitted.
COMMENTS
Purpose of this bill. This bill seeks to expand the type and amount of information that financial agencies must provide during investigations of suspected elder and dependent adult financial abuse.
Need for this bill. According to the United States (U.S.) Department of Justice 2021 Elder Fraud Report, in 2021 over 92,000 victims over the age of 60 reported losses of $1.7 billion. This represented a 74% increase over 2020. On average, each victim lost just over $18,000, and 3,133 victims lost more than $100,000. Of those 92,000 victims, 12,951 lived in California and accounted for over $425 million in reported losses. (U.S. Dept. of Justice, 2021 Elder Fraud Report, available at https://www.justice.gov/file/1523276/download.)
Background re: Adult Protective Services (APS). Similar to county child welfare services, county welfare agencies are responsible for APS. "Adult protective services" are those preventive and remedial activities performed on behalf of elders and dependent adults who are unable to protect their own interests, harmed or threatened with harm, caused physical or mental injury due to the action or inaction of another person or their own action as a result of ignorance, illiteracy, incompetence, mental limitation, substance abuse, or poor health, lacking in adequate food, shelter, or clothing, exploited of their income and resources, or deprived of an entitlement. (Welfare & Instiutions Code (WIC) Section 15610.10.) Under state law, each county must establish an emergency APS program that provides in-person response to reports of abuse or neglect of an elder or dependent adult for the purpose of providing immediate intake or intervention, or both, to new reports involving immediate life threats and to crises in existing cases. (WIC Section 15763(a).) County APS programs must include policies and procedures to accomplish specified requirements, including establishment of multidisciplinary teams to develop interagency treatment strategies, ensure maximum coordination with existing community resources, ensure maximum access on behalf of elders and dependent adults, and avoid duplication of efforts. (Id. at (a)(3).) APS include investigations, needs assessments, remedial and preventive social work activities; the necessary tangible resources such as food, transportation, emergency shelter, and in-home protective care; the use of multidisciplinary teams; and a system in which reporting of abuse can occur on a 24-hour basis. (WIC Section 15760.)
The California Right to Financial Privacy Act. California (acting more swiftly than the federal government, which would not enact its own Right to Financial Privacy Act until two years later) enacted the Right to Financial Privacy Act (hereinafter "Privacy Act") found at Government Code (GOV) Section 7460 et seq. The Privacy Act was enacted to establish procedures and policies to govern the relationship between financial institutions and government agencies in a way that ensures citizens' constitutional rights, specifically to clarify and protect the confidential relationship between financial institutions and their customers and to balance a citizen's right of privacy with the governmental interest in obtaining information for specific purposes. (GOV Section 7461.)
Currently, all financial institutions operating in California are covered under the Privacy Act, including: state and national banks, state and federal savings associations, trust companies, industrial loan companies, and state and federal credit unions. (GOV Section 7465(a).) The Privacy Act applies to "state agencies," which means state offices, officers, departments, divisions, bureaus, boards, commissions, and other state agencies, including the Legislature (GOV Section 7465(e).) The Privacy Act also applies to "local agencies" such as counties; cities, whether general law or chartered; cities and counties; school districts; municipal corporations; districts; political subdivisions or boards, commissions, or agencies thereof; or other local public agencies. (GOV Section 7465(f).)
How financial abuse investigations proceed. When an agency is conducting an investigation and seeks the disclosure of a customer's financial records, the Privacy Act prohibits any officer, employee, or agent of a state or local agency or department from requesting or receiving copies of, or the information contained in, a customer's financial records from a financial institution unless the financial records are described with particularity and are consistent with the scope and requirements of the investigation giving rise to the request. (GOV Section 7470(a).) Further, the information may only be disclosed if one of the following additional requirements is met:
- The customer authorized disclosure to the officer, employee, or agent of the state or local agency or department of the agency.
- The disclosure is in response to an administrative subpoena or summons, as specified.
- The disclosure is in response to a search warrant.
- The disclosure is in response to a subpoena.
With regard to law enforcement investigations, the Privacy Act requires that financial institutions furnish a customer's financial information when "any police, sheriff's department, district attorney or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state" or "doing business in this state." (GOV Section 7480.) The financial institution is required to turn over all of the following information:
- The number of items dishonored.
- The number of items paid that created overdrafts.
- The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the financial institution and customer to pay overdrafts.
- The dates and amounts of deposits and debits and the account balance on these dates.
- A copy of the signature card, including the signature and any addresses appearing on a customer's signature card.
- The date the account opened and, if applicable, the date the account closed.
- Any surveillance photographs and video recordings of persons accessing the victim's financial account.
Also with regard to law enforcement investigations, the Privacy Act allows the investigator to request records for up to 30 days prior to the alleged incident and 30 days after (for a total of 60 days). (GOV Section 7480(a))
What this bill would do. This bill would:
- Expand the type of information that can be requested to include new bank cards issued, change of address requests, and all power of attorney or trust documents submitted or executed.
- Extend the time frame for the request to include all records up to 90 days prior to the alleged incident and 60 days after (for a total of 150 days).
According to the Author
Financial Abuse of seniors is rampant and on the rise. AB 386 improves [Adult Protective Services (APS)] financial abuse investigations and better protects the assets of California's vulnerable community of older and dependent adults by: [1] Extending the time frame of accessible records from 30 days prior and 30 days following the alleged illegal act to 90 days prior and after, allowing a thorough investigation to identify normal spending habits of the alleged victim. [2] …it expands the information APS can receive to identify potentially critical evidence to uncover financial abuse. This bill goes a long way to prevent financial abuse ensuring the financial safety of some of the most vulnerable in our community.
Arguments in Support
Bill sponsor California Welfare Directors Association (CWDA) applauds this bill's benefits:
The changes included in this bill will better ensure that APS is able to meet the needs of the growing population of older and dependent adults and uncover incidences of financial abuse. In better protecting victims from identity theft and abuse, this bill ultimately improves victims' privacy from those who would do them harm.
Arguments in Opposition
None on file
FISCAL COMMENTS
According to the Assembly Appropriations Committee, negligible state costs.
VOTES
ASM PRIVACY AND CONSUMER PROTECTION: 11-0-0
YES: Gabriel, Joe Patterson, Bauer-Kahan, Bennett, Essayli, Vince Fong, Irwin, Lowenthal, Papan, Wicks, Wilson
ASM APPROPRIATIONS: 14-0-2
YES: Holden, Megan Dahle, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Robert Rivas, Sanchez, Weber, Wilson
ABS, ABST OR NV: Bryan, Pellerin
UPDATED
VERSION: April 27, 2023
CONSULTANT: Julie Salley / P. & C.P. / (916) 319-2200 FN: 0000244
ASSEMBLY THIRD READING
ATR Bill Id:AB 386
Author:(Stephanie Nguyen)
As Amended Ver:March 16, 2023
Majority vote
SUMMARY
Expands the type and amount of financial records that must be provided during investigations of suspected financial elder abuse.
Major Provisions
- Expands the period that records must be provided by financial institutions up to to 90 days before, and up to 90 days after, the date of the alleged illegal activity, from the current 30 days.
- Expands the type of information the financial institution must provide to include, bank cards issued, change of address requests, and power of attorney or trust documents submitted.
COMMENTS
Purpose of this bill. This bill seeks to expand the type and amount of information that financial agencies must provide during investigations of suspected elder and dependent adult financial abuse.
Need for this bill. According to the United States (U.S.) Department of Justice 2021 Elder Fraud Report, in 2021 over 92,000 victims over the age of 60 reported losses of $1.7 billion. This represented a 74% increase over 2020. On average, each victim lost just over $18,000, and 3,133 victims lost more than $100,000. Of those 92,000 victims, 12,951 lived in California and accounted for over $425 million in reported losses. (U.S. Department of Justice, 2021 Elder Fraud Report, available at https://www.justice.gov/file/1523276/download.)
Background re: Adult Protective Services (APS). Similar to county child welfare services, county welfare agencies are responsible for APS. "Adult protective services" are those preventive and remedial activities performed on behalf of elders and dependent adults who are unable to protect their own interests, harmed or threatened with harm, caused physical or mental injury due to the action or inaction of another person or their own action as a result of ignorance, illiteracy, incompetence, mental limitation, substance abuse, or poor health, lacking in adequate food, shelter, or clothing, exploited of their income and resources, or deprived of an entitlement. (Welfare and Institutions Code Section (WIC) 15610.10) Under state law, each county must establish an emergency APS program that provides in-person response to reports of abuse or neglect of an elder or dependent adult for the purpose of providing immediate intake or intervention, or both, to new reports involving immediate life threats and to crises in existing cases. (WIC 15763(a)) County APS programs must include policies and procedures to accomplish specified requirements, including establishment of multidisciplinary teams to develop interagency treatment strategies, ensure maximum coordination with existing community resources, ensure maximum access on behalf of elders and dependent adults, and avoid duplication of efforts. (Id. at (a)(3)) APS include investigations, needs assessments, remedial and preventive social work activities; the necessary tangible resources such as food, transportation, emergency shelter, and in-home protective care; the use of multidisciplinary teams; and a system in which reporting of abuse can occur on a 24-hour basis. (WIC 15760)
The California Right to Financial Privacy Act. California (acting more swiftly than the federal government, which would not enact its own Right to Financial Privacy Act until two years later) enacted the Right to Financial Privacy Act (hereinafter "Privacy Act") found at Government Code Section (GOV)7460 et seq. The Privacy Act was enacted to establish procedures and policies to govern the relationship between financial institutions and government agencies in a way that ensures citizens' constitutional rights, specifically to clarify and protect the confidential relationship between financial institutions and their customers and to balance a citizen's right of privacy with the governmental interest in obtaining information for specific purposes. (GOV 7461.)
Currently, all financial institutions operating in California are covered under the Privacy Act, including: state and national banks, state and federal savings associations, trust companies, industrial loan companies, and state and federal credit unions. (GOV 7465(a)) The Privacy Act applies to "state agencies," which means state offices, officers, departments, divisions, bureaus, boards, commissions, and other state agencies, including the Legislature (GOV 7465(e)) The Privacy Act also applies to "local agencies" such as counties; cities, whether general law or chartered; cities and counties; school districts; municipal corporations; districts; political subdivisions or boards, commissions, or agencies thereof; or other local public agencies. (GOV 7465(f))
How financial abuse investigations proceed. When an agency is conducting an investigation and seeks the disclosure of a customer's financial records, the Privacy Act prohibits any officer, employee, or agent of a state or local agency or department from requesting or receiving copies of, or the information contained in, a customer's financial records from a financial institution unless the financial records are described with particularity and are consistent with the scope and requirements of the investigation giving rise to the request. (GOV 7470(a).) Further, the information may only be disclosed if one of the following additional requirements is met:
- The customer authorized disclosure to the officer, employee, or agent of the state or local agency or department of the agency.
- The disclosure is in response to an administrative subpoena or summons, as specified.
- The disclosure is in response to a search warrant.
- The disclosure is in response to a subpoena.
With regard to law enforcement investigations, the Privacy Act requires that financial institutions furnish a customer's financial information when "any police, sheriff's department, district attorney or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state" or "doing business in this state." (GOV 7480.) The financial institution is required to turn over all of the following information:
- The number of items dishonored.
- The number of items paid that created overdrafts.
- The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the financial institution and customer to pay overdrafts.
- The dates and amounts of deposits and debits and the account balance on these dates.
- A copy of the signature card, including the signature and any addresses appearing on a customer's signature card.
- The date the account opened and, if applicable, the date the account closed.
- Any surveillance photographs and video recordings of persons accessing the victim's financial account.
Also with regard to law enforcement investigations, the Privacy Act allows the investigator to request records for up to 30 days prior to the alleged incident and 30 days after (for a total of 60 days). (GOV 7480(a))
What this bill would do. This bill would:
- Expand the type of information that can be requested to include new bank cards issued, change of address requests, and all power of attorney or trust documents submitted or executed.
- Extend the time frame for the request to include all records up to 90 days prior to the alleged incident and 90 days after (for a total of 180 days).
According to the Author
Financial Abuse of seniors is rampant and on the rise. AB 386 improves [Adult Protective Services (APS)] financial abuse investigations and better protects the assets of California's vulnerable community of older and dependent adults by: [1] Extending the time frame of accessible records from 30 days prior and 30 days following the alleged illegal act to 90 days prior and after, allowing a thorough investigation to identify normal spending habits of the alleged victim. [2] …it expands the information APS can receive to identify potentially critical evidence to uncover financial abuse. This bill goes a long way to prevent financial abuse ensuring the financial safety of some of the most vulnerable in our community.
Arguments in Support
Bill sponsor California Welfare Directors Association (CWDA) applauds this bill's benefits:
The changes included in this bill will better ensure that APS is able to meet the needs of the growing population of older and dependent adults and uncover incidences of financial abuse. In better protecting victims from identity theft and abuse, this bill ultimately improves victims' privacy from those who would do them harm.
Arguments in Opposition
None on file
FISCAL COMMENTS
None
VOTES
ASM PRIVACY AND CONSUMER PROTECTION: 11-0-0
YES: Gabriel, Joe Patterson, Bauer-Kahan, Bennett, Essayli, Vince Fong, Irwin, Lowenthal, Papan, Wicks, Wilson
ASM APPROPRIATIONS: 14-0-2
YES: Holden, Megan Dahle, Calderon, Wendy Carrillo, Dixon, Mike Fong, Hart, Lowenthal, Mathis, Papan, Robert Rivas, Sanchez, Weber, Wilson
ABS, ABST OR NV: Bryan, Pellerin
UPDATED
VERSION: March 16, 2023
CONSULTANT: Jith Meganathan / P. & C.P. / (916) 319-2200 FN: 0000243
Date of Hearing: April 19, 2023
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Chris Holden, Chair
ABPCA Bill Id:AB 386
Author:(Stephanie Nguyen) – As Amended Ver:March 16, 2023
Policy Committee: | Privacy and Consumer Protection | Vote: | 11 - 0 |
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Urgency: No State Mandated Local Program: No Reimbursable: No
SUMMARY:
This bill expands the amount and type of financial records a financial institution must provide upon request to a law enforcement agency, including a county adult protective services agency and a long-term care ombudsperson, during an investigation of elder and dependent adult financial abuse.
Specifically, this bill:
- Expands, from 30 days before and after an alleged incident to 90 days before and after the incident, the period of financial activity for which a law enforcement agency may compel a financial institution to provide information when the agency is investigating reports of elder and dependent adult financial abuse, from 30 days before and after the alleged incident, to 90 days before and after the alleged incident.
- Expands the type of information the financial institution must provide to include new bank cards issued, change of address requests, and power of attorney or trust documents submitted or executed.
FISCAL EFFECT:
Negligible state costs.
COMMENTS:
- Purpose. This bill seeks to better assist Adult Protective Services (APS) with investigations of elder and dependent financial abuse by expanding the type and amount of information that financial agencies must provide law enforcement agencies during investigations. This bill is sponsored by the County Welfare Directors Association.
- Background. According to the National Council on Aging, up to five million older Americans are abused every year and it takes many forms, including physical abuse, emotional abuse, neglect, and financial abuse. Most of the victims of abuse are women, but some are men. The most likely targets are older adults who have no family or friends nearby and people with disabilities, memory problems, and dementia. According to the U.S. Department of Justice 2021 Elder Fraud Report, in 2021, over 92,000 victims over the age of 60 reported financial losses totaling $1.7 billion. This represents a 74% increase over 2020. On average, each victim lost just over $18,000, and 3,133 victims lost more than $100,000. Of those 92,000 victims, 12,951 lived in California and accounted for over $425 million in reported losses.
Existing state law, the Right to Financial Privacy Act (Privacy Act), governs the relationship between financial institutions and government agencies to protect the confidential relationship between financial institutions and their customers and to balance a citizen’s right of privacy with the governmental interest in obtaining information for specific purposes. Currently, all financial institutions operating in California are covered under the Privacy Act.
With regard to law enforcement investigations, the Privacy Act requires financial institutions to furnish a customer’s financial information when the police, sheriff’s department, district attorney or Department of Justice certifies in writing that a crime report has been filed alleging fraud. The Privacy Act allows an investigator to compel records for up to 30 days prior to the alleged incident and 30 days after (for a total of 60 days).
This bill proposes to expand both the type of information that can be requested to include new bank cards issued, change of address requests, and all power of attorney or trust documents, and the time frame for the request to include all records 90 days prior to the incident and 90 days after (for a total of 180 days).
- Prior Legislation. AB 3229 (Burke), Chapter 288, Statutes of 2018, added the Department of Justice to the list of agencies that may receive financial records from a financial institution, provided that a crime report involving fraud has been filed.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: March 21, 2023
ASSEMBLY COMMITTEE ON PRIVACY AND CONSUMER PROTECTION
Jesse Gabriel, Chair
ABPCA Bill Id:AB 386 (
Author:Stephanie Nguyen) – As Amended Ver:March 16, 2023
SUBJECT: California Right to Financial Privacy Act
SYNOPSIS
In order to provide more information to Adult Protective Services (APS) investigators who are investigating reports of elder and dependent adult financial abuse, this bill would do two things. First, it would expand the amount of financial activity that can be requested from a financial institution from 30 days before and after the alleged incident to 90 days before and after. Second, it would expand the type of information that the financial institution must provide to include applications for bank cards, change of address requests, and powers of attorney and trust documents.
This bill represents a significant increase in the amount of personal financial information that could be turned over during an investigation of suspected elder financial fraud, especially the threefold increase in the number of days of transactions that can be requested for the initial investigation. However, with increasingly sophisticated efforts to defraud older adults and a 74 percent increase in reported victims nationwide between 2020 and 2021, providing both law enforcement and APS investigators with additional financial records during their investigation appears to be a reasonable trade off.
The bill is sponsored by the County Welfare Directors Association and is supported by a number of organizations representing older adults, including the American Association of Retired Persons and the California Elder Justice Coalition. The California Credit Union League (CCUL) is currently opposed to the bill, expressing concerns about expanding the scope of information that is provided to law enforcement for these investigations. Nevertheless, CCUL states that it is working with the author’s office and remains confident that it will be able to resolve these concerns if the bill moves forward.
SUMMARY: Expands the type and amount of financial records that must be provided during investigations of suspected financial elder abuse. Specifically, this bill:
- Expands the requesting period to 90 days before, and up to 90 days after the date of the alleged illegal activity.
- Expands the type of information the financial institution must provide to include, bank cards issued, change of address requests, and power of attorney or trust documents submitted.
EXISTING LAW:
- Establishes the Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code § 15600 et seq.)
- Recognizes that elders and dependent adults may be subjected to abuse, neglect, or abandonment and that California has a responsibility to protect those persons. (Welf. & Inst. Code § 15600(a).)
- States that the purposes of the Act are to do the following:
- Require health practitioners, care custodians, clergy members, and employees of county APS agencies and local law enforcement agencies to report known or suspected cases of abuse of elders and dependent adults and to encourage community members in general to make such reports.
- Collect information on the numbers of abuse victims, circumstances surrounding the act of abuse, and other data that will aid the state in establishing adequate services to aid all victims of abuse in a timely, compassionate manner.
- Provide for protection under the law for all those persons who report suspected cases of abuse, provided that the report is not made with malicious intent. (Welf. & Inst. Code § 15601.)
- Defines elder and dependent abuse as any of the following:
- Physical abuse, neglect, abandonment, isolation, abduction, or other treatment with resulting physical harm or pain or mental suffering.
- The deprivation by a care custodian of goods or services that are necessary to avoid physical harm or mental suffering.
- Financial abuse. (Welf. & Inst. Code § 15610.07)
- Requires that when a law enforcement agency investigating financial abuse of an elder or dependent adult certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders, the bank, credit union, or savings association must furnish a statement setting forth specific information with respect to a customer account by the requesting party for a period 30 days before, and up to 30 days following, the date of occurrence of the alleged illegal act involving the account. This information includes the dates and amounts of debits, a copy of the signature card, and the date the account opened and, if applicable, closed. (Gov. Code § 7480(b).)
- Authorizes a financial institution, broker-dealer, or investment adviser to disclose any reports or records relevant to the reports of abuse of an elder or dependent adult if the disclosure would be required of a financial institution, broker-dealer, or investment adviser by otherwise applicable state or federal law or court order. (Welf. & Inst. Code § 15633(c).)
- Requires information relevant to the incident of elder or dependent adult abuse to be given to an investigator from an adult protective services agency. (Welf. & Inst. Code § 15935.)
- Identifies all officers and employees of financial institutions as mandated reporters of suspected financial abuse of an elder or dependent adult. (Welf. & Inst. Code § 15630.1)
- Provides, under the California Constitution, that all people have inalienable rights, including the right to pursue and obtain privacy. (Cal. Const. art. I, § 1.)
- Establishes the California Right to Financial Privacy Act which generally provides for the confidentiality of, and restricts access to, the financial records of people who transact business with, or use the services of, financial institutions or for whom a financial institution has acted as a fiduciary. This Act establishes exceptions to those requirements by authorizing various state and local agencies to request information from financial institutions. (Gov. Code §§ 7460 et seq.)
FISCAL EFFECT: As currently drafted, this bill is keyed fiscal.
COMMENTS:
1) Purpose of this bill. This bill seeks to expand the type and amount of information that financial agencies must provide during investigations of suspected elder and dependent adult financial abuse. This bill is sponsored by the County Welfare Directors Association.
2) Author’s Statement. According to the author:
Financial Abuse of seniors is rampant and on the rise. Existing Law limits Adult Protective Services (APS) ability to effectively and swiftly protect older and dependent adults when their investigators have limited access to financial records, and must file a police report even when APS has reasonable suspicion of abuse. The current statute prevents APS from obtaining the necessary documents to stop or prevent further harm.
AB 386 improves APS financial abuse investigations and better protects the assets of California’s vulnerable community of older and dependent adults by: (1) simplifying criteria to access financial records, which enables a faster response to protect older and disabled adults in a timely manner. (2) Extending the time frame of accessible records from 30 days prior and 30 days following the alleged illegal act to 90 days prior and after, allows a thorough investigation to identify normal spending habits of the alleged victim. (3) Finally, it expands the information APS can receive to identify potentially critical evidence to uncover financial abuse. This bill goes a long way to prevent financial abuse ensuring the financial safety of some of the most vulnerable in our community.
3) Abuse of Older Americans. According to the National Council on Aging, up to five million older Americans are abused every year and it takes many forms, including physical abuse, emotional abuse, neglect, and financial abuse. Most of the victims of abuse are women, but some are men. The most likely targets are older adults who have no family or friends nearby and people with disabilities, memory problems, and dementia. Elder abuse is a problem that robs older Americans of their dignity, security, and in some extreme cases, potentially their lives. (For more information, see National Institute on Aging, Elder Abuse, available at https://www.nia.nih.gov/health/elder-abuse.)
The National Center on Elder Abuse (NCEA) notes that studies have found that at least one in 10 community-dwelling older adults experienced some form of abuse in the prior year. Prevalence rates by type of abuse differ across studies. One study, relying on self-reports of abuse, assigned the following percentages by type of abuse: psychological (11.6%), physical (2.6%), financial (6.8%), neglect (4.2%), and sexual (0.9%) abuse. (NCEA collected statistics and data can be found at https://ncea.acl.gov/What-We-Do/Research/Statistics-and-Data.aspx along with citations for the studies the statistics are gleaned from.)
According to the U.S. Department of Justice 2021 Elder Fraud Report, in 2021 over 92,000 victims over the age of 60 reported losses of $1.7 billion. This represented a 74 percent increase over 2020. On average, each victim lost just over $18,000, and 3,133 victims lost more than $100,000. Of those 92,000 victims, 12,951 lived in California and accounted for over $425 million in reported losses. (U.S. Dept. of Justice, 2021 Elder Fraud Report, available at https://www.justice.gov/file/1523276/download.)
Similar to county child welfare services, county welfare agencies are responsible for adult protective services (APS). “Adult protective services” are those preventive and remedial activities performed on behalf of elders and dependent adults who are unable to protect their own interests, harmed or threatened with harm, caused physical or mental injury due to the action or inaction of another person or their own action as a result of ignorance, illiteracy, incompetence, mental limitation, substance abuse, or poor health, lacking in adequate food, shelter, or clothing, exploited of their income and resources, or deprived of an entitlement. (Welf. & Inst. Code § 15610.10.) Under state law, each county must establish an emergency APS program that provides in-person response to reports of abuse or neglect of an elder or dependent adult for the purpose of providing immediate intake or intervention, or both, to new reports involving immediate life threats and to crises in existing cases. (Welf. & Inst. Code § 15763(a).) County APS programs must include policies and procedures to accomplish specified requirements, including establishment of multidisciplinary teams to develop interagency treatment strategies, ensure maximum coordination with existing community resources, ensure maximum access on behalf of elders and dependent adults, and avoid duplication of efforts. (Id. at (a)(3).) APS include investigations, needs assessments, remedial and preventive social work activities; the necessary tangible resources such as food, transportation, emergency shelter, and in-home protective care; the use of multidisciplinary teams; and a system in which reporting of abuse can occur on a 24-hour basis. (Welf. & Inst. Code § 15760.)
4) The California Right to Financial Privacy Act. In 1970, Congress enacted the Bank Secrecy Act, which required banking institutions to maintain records of their customers’ financial transactions. Congress enacted these recordkeeping requirements because it recognized that records of the financial transactions of bank customers “have a high degree of usefulness in criminal, tax, or regulatory investigations and proceedings.” (Bank Secrecy Act, 12 U.S.C. § 1829b(a)(2); 31 U.S.C. § 5311.) Congress would also soon realize that, due to its expansion of bank recordkeeping requirements and precisely because of the usefulness of the records in the prosecution of individuals for the violation of numerous federal laws and regulations, taxpayers were becoming increasingly vulnerable to the Internal Revenue Service (IRS) prying into their records. Unfortunately, in 1976, the United States Supreme Court determined that a bank customer does not have a constitutionally protected privacy interest in bank records since the records are the property of the bank. As a result, customers have no standing under the Federal Constitution to contest government access to their bank records. (United States v. Miller (1976) 425 U.S. 435.)
After Miller, there was great concern that government agencies would have unfettered access to the bank records of individuals. In order to restrict the free flow of such information, California (acting more swiftly than the federal government, which would not enact its own Right to Financial Privacy Act until two years later) enacted the Right to Financial Privacy Act (hereinafter “ Privacy Act”) found at Gov. Code § 7460 et seq. The Privacy Act was enacted to establish procedures and policies to govern the relationship between financial institutions and government agencies in a way that ensures citizens’ constitutional rights, specifically to clarify and protect the confidential relationship between financial institutions and their customers and to balance a citizen’s right of privacy with the governmental interest in obtaining information for specific purposes. (Gov. Code § 7461.)
Currently, all financial institutions operating in California are covered under the Privacy Act, including: state and national banks, state and federal savings associations, trust companies, industrial loan companies, and state and federal credit unions. (Gov. Code § 7465(a).) The Privacy Act applies to “state agencies,” which means state offices, officers, departments, divisions, bureaus, boards, commissions, and other state agencies, including the Legislature (Gov. Code § 7465(e).) The Privacy Act also applies to “local agencies” such as counties; cities, whether general law or chartered; cities and counties; school districts; municipal corporations; districts; political subdivisions or boards, commissions, or agencies thereof; or other local public agencies. (Gov. Code § 7465(f).) When an agency is conducting an investigation and seeks the disclosure of a customer’s financial records, the Privacy Act prohibits any officer, employee, or agent of a state or local agency or department from requesting or receiving copies of, or the information contained in, a customer’s financial records from a financial institution unless the financial records are described with particularity and are consistent with the scope and requirements of the investigation giving rise to the request. (Gov. Code § 7470(a).) Further, the information may only be disclosed if one of the following additional requirements is met:
- The customer authorized disclosure to the officer, employee, or agent of the state or local agency or department of the agency.
- The disclosure is in response to an administrative subpoena or summons, as specified.
- The disclosure is in response to a search warrant.
- The disclosure is in response to a subpoena.
With regard to law enforcement investigations, the Privacy Act requires that financial institutions furnish a customer’s financial information when “any police, sheriff’s department, district attorney or special agent with the Department of Justice in this state certifies to a bank, credit union, or savings association in writing that a crime report has been filed that involves the alleged fraudulent use of drafts, checks, access cards, or other orders drawn upon any bank, credit union, or savings association in this state” or “doing business in this state.” (Gov. Code § 7480.) The financial institution is required to turn over all of the following information:
- The number of items dishonored.
- The number of items paid that created overdrafts.
- The dollar volume of the dishonored items and items paid which created overdrafts and a statement explaining any credit arrangement between the financial institution and customer to pay overdrafts.
- The dates and amounts of deposits and debits and the account balance on these dates.
- A copy of the signature card, including the signature and any addresses appearing on a customer’s signature card.
- The date the account opened and, if applicable, the date the account closed.
- Any surveillance photographs and video recordings of persons accessing the victim’s financial account.
Also with regard to law enforcement investigations, the Privacy Act allows the investigator to request records for up to 30 days prior to the alleged incident and 30 days after (for a total of 60 days). (Gov. Code § 7480(a))
This bill proposes to expand both the type of information that can be requested to include new bank cards issued, change of address requests, and all power of attorney or trust documents submitted or executed, and the time frame for the request to include all records 90 days prior to the incident and 90 days after (for a total of 180 days).
This bill allows for a significant expansion in the number of personal financial records that can be provided to law enforcement during an investigation, particularly the threefold increase in the number of days of banking activity that can be requested. As the CCUL notes in their opposition letter, the purpose of the 60-day statutory timeframe has always been used to determine whether there is sufficient evidence to suggest that a crime has occurred in order to request additional personal banking information. However, the 74 percent increase in reported financial fraud claims among adults over 60 between 2020 and 2021 suggests that there is an urgent need to insure that officials are able to collect enough evidence to apprehend and prosecute perpetrators of these crimes in order to reduce the number of victims over time. Given the data on the financial abuse of older and dependent adults, the trade-offs in terms of providing a greater number of personal financial documents appear to be outweighed by the need to protect vulnerable adults and their assets.
5) Related Legislation. AB 3229 (Burke, Ch. 288, Stat. of 2018) added the Department of Justice to the list of agencies that may receive financial records from a financial institution, provided that a crime report involving fraud has been filed.
SB 679 (Mello, Ch. 774, Stats. 1991), established the Elder Abuse and Dependent Adult Civil Protection Act.
ARGUMENTS IN SUPPORT: In support of the bill, the California Alliance for Retired Americans writes:
County APS Departments are responsible for investigating alleged incidents of abuse of older and dependent adults, including financial abuse. This role is expanding with the population that APS serves, which has grown and changed significantly since the program’s inception. By 2030, one in five Californians will be age 65 or older— double what the over-65 population is today. Many of these individuals will also be disabled, cognitively impaired, or facing housing instability. County APS programs struggle to address an evolving landscape of abuse and neglect, including an increase of financial abuse and scams targeting this growing population.
Existing Law limits Adult Protective Services ability to effectively and swiftly protect older and dependent adults when their investigators have limited access to financial records, and must file a police report even when APS has reasonable suspicion of abuse. The current statute prevents APS from obtaining the necessary documents to stop or prevent further harm. AB 386 ensures the financial safety of our vulnerable adults by simplifying criteria to access financial records, extending the time frame of accessible records, and expanding the information APS can receive. AB 386 improves Adult Protective Services (APS) financial abuse investigations and better protects the assets of California’s growing population of older and dependent adults.
ARGUMENTS IN OPPOSITION: In opposition to the bill, the California Credit Union League writes:
AB 386 would expand the scope of documents that a credit union must turn over from a 60 day period up to a 180 day period. The purpose of this statutory timeframe has always been used to determine whether there is sufficient basis to request further information. This expansion would not only increase the burden on a responding credit union but also would be another infringement on personal financial privacy.
Finally, CCUL is concerned with the inclusion of specific types of documentation that can be requested as they go beyond mere transactional record.
Despite our numerous concerns with AB 386, CCUL does remain committed to working with the author and sponsor on this important piece of legislation.
REGISTERED SUPPORT / OPPOSITION:
Support
County Welfare Directors Association (Sponsor)
AARP
California Alliance for Retired Americans
California Elder Justice Coalition (CEJC)
County of Riverside
CSAC
RCRC
Sacramento; County of
Urban Counties of California (UCC)
Opposition
California Credit Union League
Analysis Prepared by: Julie Salley / P. & C.P. / (916) 319-2200
Discussed in Hearing
1MIN
Assembly Floor
47SEC
Assembly Floor
10MIN
Assembly Standing Committee on Privacy and Consumer Protection
Bill Author
Bill Co-Author(s):