Assembly Member Pacheco's proposal to combat elder financial abuse would require companies regulated by California's Department of Financial Protection and Innovation (DFPI) to develop and submit formal prevention plans to the department.

The measure adds Division 27 to the Financial Code, establishing new requirements for financial institutions and service providers under DFPI oversight. While the department currently supervises various financial entities and products, this addition creates a specific mandate for companies to document their strategies for preventing elder abuse. The bill builds upon DFPI's existing regulatory framework without requiring new appropriations or creating additional agencies.

The legislation leaves several implementation details to be determined, including the specific components required in prevention plans, submission deadlines, and enforcement mechanisms. Companies regulated by DFPI would need to allocate resources to develop these plans, while the department would assume responsibility for reviewing submissions and monitoring compliance within its current operational structure.