Tim Grayson
- Democratic
- Assemblymember
- District 15
Author
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 January 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. 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 posted 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 is engaging 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 licensee, 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 licensee 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. 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. Existing law, the California Financial Information Privacy Act (CFIPA) , generally regulates the disclosure by a financial institution, as defined, of a consumer's nonpublic personal information. This bill would include a person licensed under its provisions in the definition of "financial institution" and would include digital financial asset business activity in the definition of "financial product or service" for the purposes of the CFIPA.
Vetoed by Governor.
Enrolled and presented to the Governor at 4 p.m.
From committee: That the Senate amendments be concurred in. (Ayes 10. Noes 0.) (August 30).
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 71. Noes 0.).
Read third time. Passed. Ordered to the Assembly. (Ayes 31. Noes 6. Page 5182.).
Joint Rule 62(a), file notice suspended.
Re-referred to Com. on B. & F. pursuant to Assembly Rule 77.2.
In Assembly. Concurrence in Senate amendments pending.
Read second time. Ordered to third reading.
Read third time and amended. Ordered to second reading.
Read second time. Ordered to third reading.
Read second time and amended. Ordered returned to second reading.
From committee: Amend, and do pass as amended. (Ayes 5. Noes 1.) (August 11).
Read second time and amended. Re-referred to Com. on APPR.
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 1.) (June 28).
Read second time and amended. Re-referred to Com. on JUD.
From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (June 22).
Withdrawn from committee.
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.
Read third time. Passed. Ordered to the Senate. (Ayes 65. Noes 0. Page 4659.)
In Senate. Read first time. To Com. on RLS. for assignment.
Read second time. Ordered to Consent Calendar.
From committee: Do pass. To Consent Calendar. (Ayes 14. Noes 0.) (May 4).
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (April 18). Re-referred to Com. on APPR.
In committee: Set, first hearing. Further hearing to be set.
From printer. May be heard in committee March 19.
Read first time. To print.
| Bill Text Versions | Format |
|---|---|
| AB2269 | HTML |
| 02/16/22 - Introduced | |
| 06/06/22 - Amended Senate | |
| 06/27/22 - Amended Senate | |
| 06/30/22 - Amended Senate | |
| 08/11/22 - Amended Senate | |
| 08/22/22 - Amended Senate | |
| 09/01/22 - Enrolled |
| Document | Format |
|---|---|
| 04/14/22- Assembly Banking and Finance | |
| 05/02/22- Assembly Appropriations | |
| 06/20/22- Senate Banking and Financial Institutions | |
| 06/27/22- Senate Judiciary | |
| 07/29/22- Senate Appropriations | |
| 08/11/22- Senate Appropriations | |
| 08/23/22- Sen. Floor Analyses | |
| 08/29/22- Assembly Banking and Finance | |
| 08/30/22- ASSEMBLY FLOOR ANALYSIS | |
| 09/26/22- ASSEMBLY FLOOR ANALYSIS |
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