Bill Text: CA AB230 | 2009-2010 | Regular Session | Amended
Bill Title: Internet transactions: verification: banking and
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2010-08-05 - Re-referred to Com. on JUD. [AB230 Detail]
Download: California-2009-AB230-Amended.html
BILL NUMBER: AB 230 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 30, 2010
AMENDED IN ASSEMBLY JANUARY 4, 2010
INTRODUCED BY Assembly Member Charles Calderon
FEBRUARY 5, 2009
An act to amend Sections 63.1 and 69.5 of the Revenue and
Taxation add Section 1798.825 to the Civil
Code, relating to taxation Internet
transactions, and declaring the urgency thereof, to take effect
immediately .
LEGISLATIVE COUNSEL'S DIGEST
AB 230, as amended, Charles Calderon. Property tax:
trusts: change of ownership: base year value transfer: exclusion:
parent-child. Internet transactions: verification:
banking and financial services.
Existing law sets forth comprehensive provisions governing funds
transfers, as defined, including provisions related to the issuance
and acceptance of payment orders, requirements for verification, the
effect of errors, the effect of acceptance of a payment order, and
related provisions.
This bill would require a business that provides banking or other
financial services over the Internet to implement and maintain
reasonable policies and procedures for authenticating and verifying
the legitimacy of a consumer transaction over the Internet, as
specified. The bill would authorize the imposition of a civil
penalty, as specified, and a civil action for a violation of this
provision, as specified.
This bill would declare that it is to take effect immediately as
an urgency statute.
(1) The California Constitution generally limits ad valorem taxes
on real property to 1% of the full cash value of that property. For
purposes of this limitation, "full cash value" is defined as the
assessor's valuation of real property as shown on the 1975-76 tax
bill under "full cash value" or, thereafter, the appraised value of
that real property when purchased, newly constructed, or a change in
ownership has occurred. The California Constitution excludes from a
"change in ownership" specified property transfers of a principal
residence and the first $1,000,000 of the value of other real
property between parents and their children, as defined by the
Legislature. Existing law includes as a transfer, the transfer of a
present beneficial ownership of property through the medium of a
trust. Existing law requires those seeking this exclusion to file a
claim with the county assessor. The claim is not a public document,
but may be inspected by the transferee and the transferor or their
respective spouse transferor's or the transferee's legal
representative, and the executor or administrator of the transferee's
or transferor's estate.
This bill would authorize the trustee of the transferee's trust to
file a claim with the assessor and to furnish a written
certification, as provided, and would further authorize the trustee
of the transferee's or transferor's trust to inspect the claim.
(2) The California Constitution and existing property tax law
authorize taxpayers to transfer the base year value, as defined, of
property to replacement property, if the claimant, who is a person
claiming the property tax relief, meets certain conditions. Existing
law also authorizes the coowner of the original property, as a joint
tenant, a tenant in common, or a community property owner, to claim
the property tax relief, as provided. Existing law generally defines
a person to be an individual.
This bill would clarify that the term, person, includes an
individual who is the present beneficiary of a trust and that a
coowner includes a present beneficiary of a trust.
Vote: majority 2/3 . Appropriation:
no. Fiscal committee: no. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1798.825 is added to the
Civil Code , to read:
1798.825. (a) A business that provides banking or other financial
services over the Internet shall implement and maintain reasonable
policies and procedures for authenticating and verifying the
legitimacy of a consumer transaction made over the Internet.
(b) The business providing banking or other financial services
over the Internet shall utilize an out-of-band, two-factor
authentication solution to ensure strong authentication and identity
management of users performing transactions and accessing financial
account information over the Internet.
(c) A civil penalty in the amount of three thousand dollars
($3,000) may be imposed on a business that fails to conduct an
Internet transaction with a consumer in compliance with the policies
and procedures required pursuant to subdivision (a).
(d) Any customer injured by a fraudulent transaction in violation
of the requirement specified in subdivision (a) may institute a civil
action to recover damages.
(e) The rights and remedies under this section are cumulative with
each other and with any other rights and remedies under law.
SEC. 2. This act is an urgency statute necessary
for the immediate preservation of the public peace, health, or safety
within the meaning of Article IV of the Constitution and shall go
into immediate effect. The facts constituting the necessity are:
In order to ensure the safety of consumers' financial account
information from fraudulent activity, it is necessary that this act
take effect immediately. All matter omitted in this version of
the bill appears in the bill as amended in the Assembly, January 4,
2010. (JR11)
