Money Transmission Act: authentication.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Passed
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Overview
This bill requires digital wallet providers and money transmitters operating in California to implement stronger security measures to protect user accounts. Specifically, it mandates the use of two-factor or multifactor authentication for logins, automatic logouts, and session timeouts. These requirements would take effect on January 1, 2028. The bill also clarifies definitions related to authentication and specifies that no state reimbursement is required for local agencies due to the creation of a new crime.
Key provisions
- Requires digital wallet providers and money transmitters to use two-factor or multifactor authentication for user logins.
- Mandates automatic logouts and session timeouts for user accounts.
- Requires reauthentication of users periodically.
- Defines ‘multifactor authentication’ and ‘two-factor authentication’ for clarity.
- Sets the effective date for these requirements at January 1, 2028.
- States that no state reimbursement is required for local agencies due to the creation of a new crime.
- Adds Chapter 10 to Division 1.2 of the Financial Code relating to authentication.
Who is affected
- Digital wallet providers
- Money transmitters
- Consumers using digital wallets and money transfer services
- The Department of Financial Protection and Innovation
Notable changes
Bill text
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Sponsors
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1 on record
Primary sponsor
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