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California 20252026

SB 505

Money Transmission Act: authentication.

Open original source Back to bills
Source: Open States / PluralUpdated 2026-09-12 13:12:55 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
upper
Classification
bill
Subjects
MoneyTransmissionAct, authentication
Introduced / first action
2025-02-19 00:00:00

Alternate titles

  • Digital wallets: security.
  • Money Transmission Act: stored value platforms: fraudulently induced transfers.

Source-supplied abstracts

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. 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.

Sponsors

Source-supplied history

Actions

  1. Enrolled and presented to the Governor at 3 p.m.

    executive-receipt

  2. Assembly amendments concurred in. (Ayes 39. Noes 0.) Ordered to engrossing and enrolling.

    amendment-passage, committee-passage, committee-passage-favorable

  3. Ordered to special consent calendar.

  4. In Senate. Concurrence in Assembly amendments pending.

  5. Read third time. Passed. (Ayes 75. Noes 0. Page 6206.) Ordered to the Senate.

    passage, reading-1, reading-3

  6. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  7. From committee: Do pass. (Ayes 15. Noes 0.) (August 5).

    committee-passage, committee-passage-favorable

  8. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (June 22). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  9. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.

    amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  10. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.

    amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  11. Referred to Com. on B. & F.

    referral-committee

  12. In Assembly. Read first time. Held at Desk.

    reading-1

  13. Read third time. Passed. (Ayes 40. Noes 0. Page 3296.) Ordered to the Assembly.

    passage, reading-1, reading-3

  14. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

  15. From committee: Be ordered to second reading pursuant to Senate Rule 28.8.

    committee-passage, reading-1, reading-2

  16. Set for hearing January 20.

  17. Re-referred to Com. on APPR.

    referral-committee

  18. Withdrawn from committee.

    withdrawal

  19. Re-referred to Com. on JUD.

    referral-committee

  20. Withdrawn from committee.

    withdrawal

  21. From committee: Do pass and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 3187.) (January 7). Re-referred to Com. on APPR.

    committee-passage, committee-passage-favorable, referral-committee

  22. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.

    amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  23. Set for hearing January 7.

  24. April 2 set for first hearing canceled at the request of author.

  25. From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.

    amendment-passage, committee-passage, reading-1, reading-2, referral-committee

  26. Set for hearing April 2.

  27. Referred to Coms. on B. & F.I. and JUD.

    referral-committee

  28. From printer. May be acted upon on or after March 22.

  29. Introduced. Read first time. To Com. on RLS. for assignment. To print.

    introduction, reading-1, referral-committee

When supplied by the API

Related measures

No resolvable related measure is supplied.