Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250SB__050597AMD</ns0:Id>
<ns0:VersionNum>97</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2025-02-19</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2025-03-24</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
<ns0:ActionDate>2026-01-05</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>SB</ns0:MeasureType>
<ns0:MeasureNum>505</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Richardson</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>SENATE</ns0:House>
<ns0:Name>Richardson</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title>An act to add Chapter 10 (commencing with Section 2180) to Division 1.2 of the Financial Code, relating to financial protection.</ns0:Title>
<ns0:RelatingClause>financial protection</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Money Transmission Act: authentication.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>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.</html:p>
<html:p>This bill would prohibit, beginning January 1, 2028, under the act, a digital
wallet provider or money transmitter operating in the state from allowing a user to log in without using two-factor authentication or multifactor authentication for any login by that user. By expanding the scope of a crime, this bill would impose a state-mandated local program.</html:p>
<html:p>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.</html:p>
<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>YES</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_5091B3F8-A9B5-43FE-978A-6352F5C75B30">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:FIN:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'1.2.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'CHAPTER'%20and%20caml%3ANum%3D'10.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 2180" ns3:type="locator">
Chapter 10 (commencing with Section 2180) is added to Division 1.2 of the
<ns0:DocName>Financial Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading id="id_B03CEE35-08FA-4DBA-8D3B-E20590D18733" type="CHAPTER">
<ns0:Num>10.</ns0:Num>
<ns0:LawHeadingVersion id="id_14051086-33C6-4B1B-8018-D56985F24A09">
<ns0:LawHeadingText>Authentication</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_52670564-8B8E-4FEA-A612-D9FA16136F08">
<ns0:Num>2180.</ns0:Num>
<ns0:LawSectionVersion id="id_B52B86DF-17B9-424D-98BE-0C454D5364E0">
<ns0:Content>
<html:p>For purposes of this chapter:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“Multifactor authentication” means an authentication process that requires more than two forms of verification.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Two-factor authentication” means a security process that requires two distinct forms of verification.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“User login” means an action by which a user accesses an account or platform for the purpose of initiating, receiving, or managing digital wallet or money transmission services.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_23E60CD3-2C98-4717-88C3-CA6D2F3CF824">
<ns0:Num>2181.</ns0:Num>
<ns0:LawSectionVersion id="id_4F629118-4A3A-499D-BB81-383C661D71B8">
<ns0:Content>
<html:p>A digital wallet provider or money transmitter operating in the state shall not allow a user to log in without using two-factor authentication or multifactor authentication for any login by that user.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_7B44962C-B9B6-4FB7-B72C-0BCFA00EC5F5">
<ns0:Num>2182.</ns0:Num>
<ns0:LawSectionVersion id="id_E64D18EF-678C-48D8-A28E-53A4C4EFEB66">
<ns0:Content>
<html:p>This chapter shall become operative January 1, 2028.</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_65EE0B63-BEFF-4AFF-ABF1-DD069D51193F">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:Content>
<html:p>
No reimbursement is required by this act pursuant to Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII
<html:span class="ThinSpace"/>
B of the California Constitution.
</html:p>
</ns0:Content>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>