California 2023-2024 Regular Session Status: Enacted 3 D cosponsors

AB 39 — Digital financial asset businesses: regulatory oversight.

Last action — Chaptered by Secretary of State - Chapter 792, Statutes of 2023.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Assembly
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced December 05, 2022. Enacted.

Signed by Governor Gavin Newsom (Democratic) on October 13, 2023.

Prognosis

Likely to advance 78% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    1 primary, 3 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (3 D).

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing law, the Money Transmission Act, generally prohibits a person from engaging in the business of money transmission, as defined, without a license from the Commissioner of Financial Protection and Innovation. This bill, the Digital Financial Assets Law, would, on and after July 1, 2025, prohibit a person from engaging in digital financial asset business activity, or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of certain criteria are met, including the person is licensed with the Department of Financial Protection and Innovation, as prescribed. The bill would define "digital financial asset" to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, except as specified. The bill would exempt activity by specified entities, and would authorize the commissioner, by regulation or order, to further exempt any person or transaction, if the commissioner finds the exemption to be in the public interest, as provided. This bill would, among other things, authorize the department to conduct examinations of a licensee, as prescribed, and would require a licensee to maintain, for all digital financial asset business activity with, or on behalf of, a resident for 5 years after the date of the activity, certain records, including a general ledger maintained at least monthly that lists all assets, liabilities, capital, income, and expenses of the licensee. This bill would authorize the department to take an enforcement measure against a licensee or person that is not a licensee but has engaged, is engaging, or is about to engage in digital financial asset business activity with, or on behalf of, a resident in any of certain instances, including the licensee or person materially violates the provisions of the bill, a rule adopted or order issued under the bill, or a law of this state other than the bill that applies to digital financial asset business activity of the violator with, or on behalf of, a resident. The bill would prescribe certain civil penalties for violations of its provisions. This bill would require a covered person, before engaging in digital financial asset business activity with a resident, to make certain disclosures to the resident, including a schedule of fees and charges the covered person may assess, the manner by which fees and charges will be calculated if they are not set in advance and disclosed, and the timing of the fees and charges. The bill would define "covered person" to mean a person required to obtain a license under the Digital Financial Assets Law. This bill would require an applicant, before submitting an application, to create and, during licensure, maintain in a record policies and procedures for, among other things, an information security program and an operational security program. This bill would become operative only if SB 401 of the 2023–24 Regular Session is enacted and takes effect on or before January 1, 2024.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 792, Statutes of 2023.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3:30 p.m.

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 75. Noes 0. Page 3528.).

  5. In Assembly. Concurrence in Senate amendments pending.

  6. Read third time. Passed. Ordered to the Assembly. (Ayes 33. Noes 2. Page 2650.).

  7. Read second time. Ordered to third reading.

  8. Read third time and amended. Ordered to second reading.

  9. Read second time. Ordered to third reading.

  10. Read second time and amended. Ordered returned to second reading.

  11. From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (September 1).

  12. In committee: Referred to APPR suspense file.

  13. Read second time and amended. Re-referred to Com. on APPR.

  14. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (July 11).

  15. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.

  16. From committee: Do pass and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (July 5). Re-referred to Com. on JUD.

  17. In committee: Set, first hearing. Hearing canceled at the request of author.

  18. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F.I.

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

  20. In Senate. Read first time. To Com. on RLS. for assignment.

  21. Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 1. Page 1789.)

  22. Read second time. Ordered to third reading.

  23. Read second time and amended. Ordered returned to second reading.

  24. From committee: Amend, and do pass as amended. (Ayes 11. Noes 0.) (May 18).

  25. In committee: Set, first hearing. Referred to APPR. suspense file.

  26. Re-referred to Com. on APPR.

  27. Read second time and amended.

  28. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (April 24).

  29. Re-referred to Com. on B. & F.

  30. From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

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

  32. From printer. May be heard in committee January 5.

  33. Read first time. To print.

Sponsors

Sponsorship breakdown

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1 sponsors · 3 co-sponsors · 118 not signed on · 2 voted No

Sponsors (1)

Co-sponsors (3)

Not signed on (118)

118 members have not signed on to this bill.

Show all 118 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 39 Grayson Concurrence in Senate Amendments

Passed 75 Yea · 0 Nay · 5 Other
Party YeaNayPresentNot Voting
Democratic 47000
Republican 10003
Unaffiliated 18002
Total 75005
% of votes cast 94%0%0%6%
How each member voted (80)
Member Party Vote
Holden — Yea
Mathis — Yea
Maienschein — Yea
Rodriguez — Yea
Villapudua — Yea
Ting — Yea
Jones-Sawyer — Yea
McCarty — Yea
Rendon — Yea
Friedman — Yea
Low — Yea
Wood — Yea
Waldron — Yea
Santiago — Yea
Essayli — Not Voting
Eduardo Garcia — Yea
Jim Patterson — Yea
Luz Rivas — Yea
Vince Fong — Not Voting
Wendy Carrillo — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Connolly, Damon Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Haney, Matt Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Soria, Esmeralda Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Yea
Chen, Phillip Republican Yea
Dahle, Megan Republican Yea
Davies, Laurie Republican Yea
Dixon, Diane Republican Yea
Flora, Heath Republican Yea
Gallagher, James Republican Yea
Hoover, Josh Republican Not Voting
Lackey, Tom Republican Yea
Patterson, Joe Republican Not Voting
Sanchez, Kate Republican Yea
Ta, Tri Republican Not Voting
Wallis, Greg Republican Yea

Official roll call →

3rd Reading AB39 Grayson et al. By Limón

Passed 33 Yea · 2 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 11000
Democratic 20002
Republican 2203
Total 33205
% of votes cast 83%5%0%13%
How each member voted (40)
Member Party Vote
Roth — Yea
Atkins — Yea
Portantino — Yea
Newman — Yea
Min — Yea
Wilk — Yea
Eggman — Yea
Glazer — Yea
Dodd — Yea
Bradford — Yea
Skinner — Yea
Allen, Benjamin Democratic Yea
Archuleta, Bob Democratic Yea
Ashby, Angelique V. Democratic Yea
Becker, Josh Democratic Not Voting
Blakespear, Catherine S. Democratic Yea
Caballero, Anna M. Democratic Not Voting
Cortese, Dave Democratic Yea
Durazo, Maria Elena Democratic Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Laird, John Democratic Yea
Limón, Monique Democratic Yea
McGuire, Mike Democratic Yea
Menjivar, Caroline Democratic Yea
Nguyen, Stephanie Democratic Yea
Padilla, Stephen C. Democratic Yea
Rubio, Susan Democratic Yea
Smallwood-Cuevas, Lola Democratic Yea
Stern, Henry I. Democratic Yea
Umberg, Thomas J. Democratic Yea
Wahab, Aisha Democratic Yea
Wiener, Scott D. Democratic Yea
Alvarado-Gil, Marie Republican Yea
Dahle, Megan Republican Not Voting
Grove, Shannon Republican Not Voting
Jones, Brian W. Republican Nay
Niello, Roger W. Republican Not Voting
Ochoa Bogh, Rosilicie Republican Yea
Seyarto, Kelly Republican Nay

Official roll call →

Subjects

finance technology
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does AB 39 do?
Existing law, the Money Transmission Act, generally prohibits a person from engaging in the business of money transmission, as defined, without a license from the Commissioner of Financial Protection and Innovation. This bill, the Digital Financial Assets Law, would, on and after July 1, 2025, prohibit a person from engaging in digital financial asset business activity, or holding itself out as being able to engage in digital financial asset business activity, with or on behalf of a resident unless any of certain criteria are met, including the person is licensed with the Department of Financial Protection and Innovation, as prescribed. The bill would define "digital financial asset" to mean a digital representation of value that is used as a medium of exchange, unit of account, or store of value, and that is not legal tender, whether or not denominated in legal tender, except as specified. The bill would exempt activity by specified entities, and would authorize the commissioner, by regulation or order, to further exempt any person or transaction, if the commissioner finds the exemption to be in the public interest, as provided. This bill would, among other things, authorize the department to conduct examinations of a licensee, as prescribed, and would require a licensee to maintain, for all digital financial asset business activity with, or on behalf of, a resident for 5 years after the date of the activity, certain records, including a general ledger maintained at least monthly that lists all assets, liabilities, capital, income, and expenses of the licensee. This bill would authorize the department to take an enforcement measure against a licensee or person that is not a licensee but has engaged, is engaging, or is about to engage in digital financial asset business activity with, or on behalf of, a resident in any of certain instances, including the licensee or person materially violates the provisions of the bill, a rule adopted or order issued under the bill, or a law of this state other than the bill that applies to digital financial asset business activity of the violator with, or on behalf of, a resident. The bill would prescribe certain civil penalties for violations of its provisions. This bill would require a covered person, before engaging in digital financial asset business activity with a resident, to make certain disclosures to the resident, including a schedule of fees and charges the covered person may assess, the manner by which fees and charges will be calculated if they are not set in advance and disclosed, and the timing of the fees and charges. The bill would define "covered person" to mean a person required to obtain a license under the Digital Financial Assets Law. This bill would require an applicant, before submitting an application, to create and, during licensure, maintain in a record policies and procedures for, among other things, an information security program and an operational security program. This bill would become operative only if SB 401 of the 2023–24 Regular Session is enacted and takes effect on or before January 1, 2024.
Who sponsors AB 39?
AB 39 is sponsored by Grayson, Timothy S. (Democratic), Petrie-Norris, Cottie (Democratic), Limón, Monique (Democratic), and Atkins.
What is the current status of AB 39?
This bill has been enacted into law. Introduced December 05, 2022. Enacted.
Where can I track AB 39?
Track AB 39 free on One Click Politics — get push/email alerts when it moves.

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