CaliforniaMoney Transmission Act: authentication.
What it does
The Money Transmission Act (MTA) prohibits a person from engaging in the business of money transmission in the state, or from advertising, soliciting, or holding itself out as providing money transmission in the state, unless the person is licensed by the Department of Financial Protection and Innovation under the act. The MTA defines "money transmission" to mean, among other things, selling or issuing stored value to a person located in the state and defines "stored value" to mean monetary value representing a claim against the issuer that is stored on an electronic or digital medium and evidenced by an electronic or digital record and that is intended and accepted for use as a means of redemption for money or monetary value or payment for goods or services. The MTA punishes noncompliance with, among other things, a civil penalty, license revocation, and, for certain violations, as a felony, as prescribed.
More detail
This bill would prohibit a licensee under the MTA from allowing a user login unless the licensee has implemented specified processes, including 2-factor authentication, multifactor authentication, or other reasonably equivalent or more secure access control, as specified. The bill would provide that its provisions become operative January 1, 2028. By expanding the scope of a crime, this bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 27Chaptered by Secretary of State. Chapter 648, Statutes of 2026.Latest
- Sep 27Approved by the Governor Gavin Newsom.Became Law
- Sep 2Enrolled and presented to the Governor at 3 p.m.To Governor
- Aug 27Assembly amendments concurred in. (Ayes 40. Noes 0. Page 5982.) Ordered to engrossing and enrolling.Major
- Vote recorded Special Consent. Result: pass.Upper
- Aug 25Ordered to special consent calendar.
- Aug 18In Senate. Concurrence in Assembly amendments pending.
- Aug 17Read third time. Passed. (Ayes 75. Noes 0. Page 6206.) Ordered to the Senate.Passed Assembly
- Vote recorded SB 505 Richardson Senate Third Reading By Krell. Result: pass.Lower
- Aug 6Read second time. Ordered to third reading.Minor
- Aug 5From committee: Do pass. (Ayes 15. Noes 0.) (August 5).Minor
- Vote recorded Do pass. Result: pass.Lower
- Jun 23From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (June 22). Re-referred to Com. on APPR.Minor
- Jun 22From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.Major
- Vote recorded Do pass and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- May 26From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.Major
- May 4Referred to Com. on B. & F.Minor
- Jan 27In Assembly. Read first time. Held at Desk.Minor
- Vote recorded 3rd Reading. Result: pass.Upper
- Jan 27Read third time. Passed. (Ayes 40. Noes 0. Page 3296.) Ordered to the Assembly.Passed Senate
- Jan 21Read second time. Ordered to third reading.Minor
- Jan 20From committee: Be ordered to second reading pursuant to Senate Rule 28.8.Minor
- Jan 9Set for hearing January 20.
- Jan 8Re-referred to Com. on APPR.Minor
- Jan 8Withdrawn from committee.Major
- Jan 7Re-referred to Com. on JUD.Minor
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Jan 7Withdrawn from committee.Major
- Jan 7From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 3187.) (January 7). Re-referred to Com. on APPR.Minor
- Jan 5From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.Major
- 2025
- Dec 18Set for hearing January 7.
- Mar 26April 2 set for first hearing canceled at the request of author.
- Mar 24From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.Major
- Mar 18Set for hearing April 2.
- Feb 26Referred to Coms. on B. & F.I. and JUD.Minor
- Feb 20From printer. May be acted upon on or after March 22.
- Feb 19Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced