CA SB278

Requires covered persons and entities (mandated reporters of financial abuse) to establish an emergency financial contact program for elder and dependent adult accountholders, effective January 1, 2026.

Mandates notification of joint accountholders or designated emergency financial contacts if a covered transaction of $5,000 or more is reasonably suspected to result from financial abuse, unless the contact is suspected of participating in the abuse.

Requires covered persons or entities to delay covered transactions by at least 3 business days if financial abuse is reasonably suspected, and provides immunity from liability for good faith delays or refusals based on suspected abuse.

Establishes liability for actual and noneconomic damages against covered entities that violate notification or delay requirements on multiple occasions or with reckless disregard, with prevailing plaintiffs entitled to attorney's fees and costs.

Protects nonmanagerial employees and covered persons who are employees from personal liability for violations, though employers remain liable for their own acts and under respondeat superior doctrine.