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California bills · 2025-2026 Regular Session

California SB 505

Money Transmission Act: authentication.

  1. Introduced
  2. In committee
  3. Passed Senate
  4. Passed House
  5. To Governor
  6. Became law

Sponsors

Summary

Official abstract published by the California legislature· summary

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.

Text versions

Roll-call votes

State vote data last updated Oct 15, 2026, 8:04 PM.

DateVoteResultYour legislators
Aug 27, 2026
Senate		Special ConsentpassSet your home in California to see
Aug 17, 2026
House		SB 505 Richardson Senate Third Reading By KrellpassSet your home in California to see
Aug 5, 2026
House		Do pass.passSet your home in California to see
Jun 22, 2026
House		Do pass and be re-referred to the Committee on [Appropriations]passSet your home in California to see
Jan 27, 2026
Senate		3rd ReadingpassSet your home in California to see
Jan 7, 2026
Senate		Do pass, but first be re-referred to the Committee on [Appropriations]passSet your home in California to see

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