Governor Newsom approved Assembly Bill 871 on September 20, 2026. It was chaptered the same day as Chapter 360 of the Statutes of 2026, and its operative date is January 1, 2028.
California already treats every officer and employee of a bank or credit union as a mandated reporter of suspected elder financial abuse. Under existing law that report goes to Adult Protective Services or local law enforcement, in writing, within two working days. AB 871 keeps that channel and adds a second one.
From 2028, the chaptered text requires the same report to reach the FBI's Internet Crime Complaint Center within two working days.
Within 48 hours of that filing, the institution must tell the older customer that it reported on their behalf, encourage them to file their own IC3 complaint, and give them IC3's contact details. The notice goes by the customer's preferred method of communication, as the bank has recorded it.
The bill also requires each institution to train its mandated reporters every year on escalating internally and reporting to local and federal authorities, naming IC3 and the Federal Trade Commission. Neither the IC3 filing nor the customer notice is subject to the existing $1,000 and $5,000 civil penalties for failing to report.
Two consequences are worth separating. The first is volume. Every California bank report of suspected elder financial abuse will now also land in the FBI's national complaint database. For the APS caseworkers and investigators who receive the state-level version, that is the same case arriving by two routes.
The second is the letter. An older customer, and often a family member opening the mail, will learn from the bank that a report was filed.
That letter will sometimes be the first time anyone in the family hears that something happened. How a household responds to it, within days rather than weeks, matters more than the letter itself.
The training clause lands on financial institutions. The receiving end, and the family conversation the notice will start, are where the practical change sits.
If this is your family
Agree now that if your parent ever receives a letter or call from their bank saying it filed a fraud or abuse report, they will tell you the same day.
Treat it as information, not an accusation. Sit down together, read it, and file their own report with the FBI's Internet Crime Complaint Center while the details are fresh.
Sources
Governor of California, legislative update, September 20, 2026: https://www.gov.ca.gov/2026/09/20/governor-newsom-issues-legislative-update-9-20-2026/
AB 871 chaptered text, Chapter 360, Statutes of 2026 (LegiScan): https://legiscan.com/CA/text/AB871/2025
AB 871 status and history (LegiScan): https://legiscan.com/CA/bill/AB871/2025