CA AB2789

Repeals and replaces existing money transmission regulations with the Money Transmission Act, establishing unified licensing and oversight by the Commissioner of Financial Institutions for money transmitters, payment instrument issuers, and stored value sellers.

Restricts money transmission licensing to corporations and limited liability companies; prohibits unlicensed operation; requires applicants to provide detailed financial, organizational, and criminal history information and maintain minimum tangible shareholders' equity of $500,000.

Mandates licensees maintain eligible securities (cash, bonds, deposits) equal to outstanding payment instrument and stored value obligations; deposit cash or surety bonds ($250,000-$7,000,000 depending on business type); and file quarterly financial reports and annual audited statements.

Requires licensees to provide customers with refund rights notices, exchange rate disclosures, warnings that payment instruments are uninsured, and complaint procedures; establishes 10-day refund obligations and 10-day money transmission timelines.

Authorizes Commissioner to examine licensees, suspend or revoke licenses for violations or unsafe practices, assess civil penalties up to $1,000 per violation, and makes unlicensed money transmission and false statements in filings felonies.