SB 505 California 20252026 session
Money Transmission Act: authentication.
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.
Status
- Introduced
- Committee
- Floor vote
- Passed
- Enacted
Failed — last recorded action August 6, 2026
Read second time. Ordered to third reading.
Recorded votes
Do pass and be re-referred to the Committee on [Appropriations]
8 yes · 0 no · pass June 22, 2026
Do pass, but first be re-referred to the Committee on [Appropriations]
5 yes · 0 no · pass January 7, 2026
Decided by five votes or fewer.
Passage likelihood
Not enough recorded signal to estimate this bill's chances.
State-level impact
State-level impact data is not available for this bill. The source text does not contain a per-state funding formula or scored breakdown, so no figures are shown.
Official actions
- Read second time. Ordered to third reading.
- From committee: Do pass. (Ayes 15. Noes 0.) (August 5).
- From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (June 22). Re-referred to Com. on APPR.
- From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.
- From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.
- Referred to Com. on B. & F.
- In Assembly. Read first time. Held at Desk.
- Read third time. Passed. (Ayes 40. Noes 0. Page 3296.) Ordered to the Assembly.
- Read second time. Ordered to third reading.
- From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
- Set for hearing January 20.
- Re-referred to Com. on APPR.
- Withdrawn from committee.
- Re-referred to Com. on JUD.
- Withdrawn from committee.
- 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.
- From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
- Set for hearing January 7.
- April 2 set for first hearing canceled at the request of author.
- From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
- Set for hearing April 2.
- Referred to Coms. on B. & F.I. and JUD.
- From printer. May be acted upon on or after March 22.
- Introduced. Read first time. To Com. on RLS. for assignment. To print.