California 2009-2010 Regular Session Status: Enacted

AB 2789 — Money transmission.

Last action — Chaptered by Secretary of State - Chapter 612, Statutes of 2010.

  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 March 09, 2010. Enacted.

Prognosis

Likely to advance 70% · 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.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 6 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 provides for the regulation and licensure by the Commissioner of Financial Institutions of money transmitters, issuers of travelers checks, and sellers of payment instruments. This bill would repeal those provisions and enact the Money Transmission Act, which would provide for the regulation and licensure by the commissioner of persons in the business of money transmission, defined to mean the selling or issuing of payment instruments or stored value and the receiving of money for transmission. The bill would prohibit a person from engaging in the business of money transmission in California or advertising, soliciting, or holding itself out as providing money transmission unless licensed by the commissioner or exempt from licensure. The bill would provide that only a corporation or limited liability company may be licensed to engage in the business of money transmission. The bill would require specified information to be included in an application for a license. The bill would authorize the commissioner to conduct an examination of an applicant, at the applicant's expense, and would require the commissioner to approve an application for a license if the commissioner makes specified findings, including that the applicant has adequate tangible shareholders' equity, as defined, and is competent to engage in the business of money transmission. The bill would require licensees to file with the commissioner audit reports within 90 days after the end of each fiscal year and other specified reports each calendar quarter. The bill would impose various fees and would require the commissioner to levy assessments on licensees for the purposes of administering these provisions regulating money transmission. The bill would establish requirements in order for a licensee to appoint an agent to conduct money transmission on behalf of the licensee. The bill would require a licensee to maintain eligible securities, as defined, meeting specified requirements. The bill would authorize the commissioner to issue an order requiring the licensee to maintain and obtain specified securities if the commissioner finds that the financial condition of a licensee is unstable, as specified. The bill would require a licensee to provide specified notices and disclosures to customers, including a notice relative to a customer's right to a refund, disclosures relating to rates of exchange, a notice indicating that payment instruments are not insured, and a notice providing information on making complaints to the commissioner against a licensee. The bill would require licensees to maintain certain financial records for a 3-year period. The bill would authorize the commissioner to examine the business and office of a licensee and to suspend or revoke a license if the commissioner finds that a licensee or agent of a licensee has, among other things, violated the provisions of the act or engaged in fraud or unsound practices and would authorize the commissioner to assess specified civil penalties against a person that violates these provisions. The bill would also make it a crime for a person to engage in the business of money transmission without a license or an exemption from licensure or for a person to intentionally make a false statement, misrepresentation, or false certification in a record filed or required to be maintained under these provisions. By establishing new crimes, 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.

Bill Text

Action History

  1. Chaptered by Secretary of State - Chapter 612, Statutes of 2010.

  2. Approved by the Governor.

  3. Enrolled and to the Governor at 12:15 p.m.

  4. Senate amendments concurred in. To enrollment. (Ayes 71. Noes 4. Page 6422.)

  5. Assembly Rule 77 suspended. (Page 6373.)

  6. In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 20 pursuant to Assembly Rule 77.

  7. Read third time, passed, and to Assembly. (Ayes 33. Noes 1. Page 4584.)

  8. Read second time. To third reading.

  9. From committee: Be placed on second reading file pursuant to Senate Rule 28.8.

  10. (Corrected July 15.)

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

  12. From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (June 30).

  13. 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.

  14. Referred to Com. on B., F. & I.

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

  16. Read third time, passed, and to Senate. (Ayes 68. Noes 5. Page 5030.)

  17. Read second time. To third reading.

  18. From committee: Do pass. (Ayes 14. Noes 1.) (April 28).

  19. From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 11. Noes 1.) (April 19).

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

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

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

  23. From printer. May be heard in committee April 9.

  24. Read first time. To print.

Sponsors

  • Committee on Banking and Finance · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 1 voted No

Sponsors (1)

  • Committee on Banking and Finance

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"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 2789 B.& F. Concurrence in Senate Amendments By ENG

Passed 82 Yea · 4 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 77404
Democratic 3000
Republican 2001
Total 82405
% of votes cast 90%4%0%5%
How each member voted (91)
Member Party Vote
Hall — Yea
Carter — Yea
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
Davis — Yea
Bill — Yea
Tom — Yea
Feuer — Yea
Fuentes — Yea
Charles — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Ammiano — Yea
Beall — Yea
Blakeslee — Yea
Yamada — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
John — Yea
A. — Yea
Perez — Yea
Audra — Not Voting
Fuller — Yea
Galgiani — Yea
Garrick — Yea
Gilmore — Yea
Hagman — Yea
Anderson — Nay
Harkey — Yea
Hayashi — Yea
Hernandez — Yea
Hill — Yea
Huffman — Yea
Jeffries — Yea
Lieu — Yea
Logue — Yea
Mendoza — Yea
Monning — Yea
Nava — Yea
Nestande — Yea
Norby — Nay
Silva — Not Voting
Smyth — Not Voting
Swanson — Yea
Torres — Yea
Tran — Yea
Villines — Yea
Adams — Yea
Bass — Yea
Block — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Huber — Yea
Knight — Not Voting
Ma — Yea
Miller — Yea
Nielsen — Yea
Ruskin — Yea
Skinner — Yea
Solorio — Yea
Torlakson — Yea
Torrico — Yea
Eng — Yea
Evans — Yea
DeVore — Nay
Furutani — Yea
Gatto — Yea
Beth Gaines — Nay
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Not Voting

Official roll call →

Assembly 3rd Reading AB2789 Committee on B. & F. (Eng) By Calderon

Passed 34 Yea · 1 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 31104
Democratic 2000
Republican 1000
Total 34104
% of votes cast 87%3%0%10%
How each member voted (39)
Member Party Vote
Yee — Yea
Cedillo — Yea
Cogdill — Yea
Correa — Yea
Ducheny — Yea
Hancock — Yea
Hollingsworth — Yea
Huff — Yea
Kehoe — Yea
Lowenthal — Yea
Negrete — Yea
Runner — Yea
Ashburn — Yea
Wyland — Yea
Corbett — Not Voting
Oropeza — Not Voting
Wiggins — Not Voting
Dutton — Yea
Liu — Yea
McLeod — Yea
Pavley — Yea
Price — Yea
Steinberg — Yea
Wolk — Yea
Aanestad — Yea
Alquist — Yea
Harman — Yea
Leno — Yea
Romero — Yea
Simitian — Yea
Walters — Not Voting
Wright — Yea
Emmerson — Yea
DeSaulnier — Yea
Denham — Nay
Florez — Yea
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Yea

Official roll call →

AB 2789 B.& F. Assembly Third Reading By ENG

Passed 80 Yea · 5 Nay · 6 Other
Party YeaNayPresentNot Voting
Unaffiliated 74506
Republican 3000
Democratic 3000
Total 80506
% of votes cast 88%5%0%7%
How each member voted (91)
Member Party Vote
Ammiano — Yea
Carter — Yea
Chesbro — Yea
Conway — Yea
Cook — Yea
Coto — Yea
Davis — Yea
Eng — Yea
Evans — Yea
Fuentes — Yea
Fuller — Yea
Galgiani — Yea
Hagman — Yea
Hall — Yea
Hayashi — Yea
Hernandez — Yea
Huber — Yea
Jeffries — Yea
Lieu — Yea
Logue — Yea
Miller — Yea
Monning — Yea
Nestande — Yea
Bill — Yea
Tom — Yea
Charles — Yea
De — Yea
La — Yea
Torre — Yea
De — Yea
Leon — Yea
Fletcher — Yea
Fong — Yea
Bonnie — Yea
Lowenthal — Yea
V. — Yea
Manuel — Yea
Perez — Yea
Portantino — Yea
Salas — Yea
Saldana — Yea
Audra — Yea
John — Yea
A. — Yea
Perez — Yea
Yamada — Yea
Garrick — Nay
Bass — Not Voting
DeVore — Not Voting
Knight — Nay
Silva — Nay
Skinner — Yea
Smyth — Yea
Solorio — Yea
Swanson — Yea
Torlakson — Yea
Torres — Yea
Tran — Yea
Villines — Yea
Adams — Yea
Anderson — Nay
Beall — Yea
Blakeslee — Yea
Block — Not Voting
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Yea
Harkey — Yea
Hill — Yea
Huffman — Yea
Ma — Yea
Mendoza — Not Voting
Nava — Yea
Nielsen — Yea
Norby — Not Voting
Ruskin — Yea
Torrico — Yea
Emmerson — Yea
Feuer — Yea
Furutani — Yea
Gilmore — Not Voting
Beth Gaines — Nay
Bill Berryhill — Yea
Bill Berryhill — Yea
Arambula, Joaquin Democratic Yea
Caballero, Anna M. Democratic Yea
Calderon, Lisa Democratic Yea
Jones, Brian W. Republican Yea
Niello, Roger W. Republican Yea
Strickland, Tony Republican Yea

Official roll call →

Do pass.

Passed 15 Yea · 1 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 15102
Democratic 0001
Total 15103
% of votes cast 79%5%0%16%
How each member voted (19)
Member Party Vote
Bonnie — Yea
Lowenthal — Yea
Charles — Not Voting
Fuentes — Yea
Hall — Yea
Harkey — Yea
Conway — Yea
Hill — Yea
Miller — Yea
Ammiano — Yea
Solorio — Yea
Bradford — Not Voting
Nielsen — Yea
Norby — Nay
Skinner — Yea
Torlakson — Yea
Coto — Yea
Davis — Yea
Calderon, Lisa Democratic Not Voting

Official roll call →

Subjects

finance
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Frequently asked questions

What does AB 2789 do?
Existing law provides for the regulation and licensure by the Commissioner of Financial Institutions of money transmitters, issuers of travelers checks, and sellers of payment instruments. This bill would repeal those provisions and enact the Money Transmission Act, which would provide for the regulation and licensure by the commissioner of persons in the business of money transmission, defined to mean the selling or issuing of payment instruments or stored value and the receiving of money for transmission. The bill would prohibit a person from engaging in the business of money transmission in California or advertising, soliciting, or holding itself out as providing money transmission unless licensed by the commissioner or exempt from licensure. The bill would provide that only a corporation or limited liability company may be licensed to engage in the business of money transmission. The bill would require specified information to be included in an application for a license. The bill would authorize the commissioner to conduct an examination of an applicant, at the applicant's expense, and would require the commissioner to approve an application for a license if the commissioner makes specified findings, including that the applicant has adequate tangible shareholders' equity, as defined, and is competent to engage in the business of money transmission. The bill would require licensees to file with the commissioner audit reports within 90 days after the end of each fiscal year and other specified reports each calendar quarter. The bill would impose various fees and would require the commissioner to levy assessments on licensees for the purposes of administering these provisions regulating money transmission. The bill would establish requirements in order for a licensee to appoint an agent to conduct money transmission on behalf of the licensee. The bill would require a licensee to maintain eligible securities, as defined, meeting specified requirements. The bill would authorize the commissioner to issue an order requiring the licensee to maintain and obtain specified securities if the commissioner finds that the financial condition of a licensee is unstable, as specified. The bill would require a licensee to provide specified notices and disclosures to customers, including a notice relative to a customer's right to a refund, disclosures relating to rates of exchange, a notice indicating that payment instruments are not insured, and a notice providing information on making complaints to the commissioner against a licensee. The bill would require licensees to maintain certain financial records for a 3-year period. The bill would authorize the commissioner to examine the business and office of a licensee and to suspend or revoke a license if the commissioner finds that a licensee or agent of a licensee has, among other things, violated the provisions of the act or engaged in fraud or unsound practices and would authorize the commissioner to assess specified civil penalties against a person that violates these provisions. The bill would also make it a crime for a person to engage in the business of money transmission without a license or an exemption from licensure or for a person to intentionally make a false statement, misrepresentation, or false certification in a record filed or required to be maintained under these provisions. By establishing new crimes, 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.
Who sponsors AB 2789?
AB 2789 is sponsored by Committee on Banking and Finance.
What is the current status of AB 2789?
This bill has been enacted into law. Introduced March 09, 2010. Enacted.
Where can I track AB 2789?
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