SACRAMENTO, Calif. - A bill that among its provisions would require financial institutions to "organize, develop, and implement a model training program available...for purposes of elder and dependent financial fraud prevention, detection, and reporting," was among the list of bills scheduled to be heard by the state Senate Judiciary Committee before the July 4 holiday and whose hearing was canceled at the request of the author. A.B. 2253 was introduced by state Assembly Member Hannah-Beth Jackson (D-35) in February. It was passed by the full Assembly in May and was referred to the Senate committee. It was originally scheduled for its first hearing there June 21. The bill is sponsored by the California Bankers Association and supported by the California Credit Union League. A.B. 2253 would allow people who work for any types of state-chartered financial institution and who suspect a member or other consumer of being financially abused, to disclose certain information on that person to the appropriate government authorities for investigation purposes. The bill also provides that the financial institution and its officers, employees and agents are not liable to any person for disclosing information and facts. Existing state law makes it a misdemeanor the withholding of or failure to report "physical abuse, abandonment, isolation, financial abuse, or neglect of an elder or dependent adult." Another bill also pending a hearing in the Senate Judiciary Committee is A.B. 1973 which seeks to regulate payday lenders. A.B. 1973 was introduced in February by Assembly Member Herb Wesson (D-47). It was passed by the full Assembly 66-3 in May. Existing state law requires that the face amount of a deferred deposit check not exceed $300 and that a deferred deposit transaction be made after receiving written agreement. A.B. 1973 would cap the face value of a check at $300 or 25% of a customer's gross monthly income, whichever is less. The bill would also require a check casher provide the Department of Justice with specified information, and permit the customer who enters into a deferred deposit agreement to rescind the transaction at no cost at any time prior to the close of business following the date of the transaction by paying the check casher back the amount advanced. Check cashers would be required to make credit counseling information to their customers. Not included under the provisions of the bill are check cashers associated with state-chartered credit unions or state or federally-chartered banks or savings associations. -
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