BILL NUMBER: AB 1677	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 23, 2007

   An act relating to Internet transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1677, as introduced, Charles Calderon. Internet transactions:
verification.
   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 declare the intent of the Legislature to enact
legislation requiring a service provider to contact the person by
recorded telephone call in order to confirm a high value transaction
over the Internet, and to impose penalties on service providers who
fail to meet this requirement and on persons who confirm fraudulent
transactions.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of the Legislature to enact
legislation requiring that, when a person initiates a high value
transaction over the Internet, the service provider contact the
person by recorded telephone call, in real-time, in order to confirm
that the transaction is legitimate. It is the intent of the
Legislature that the legislation would impose penalties on service
providers that fail to meet this requirement with regard to
transactions that are claimed to be fraudulent, and would impose
strict penalties on persons who use these telephone calls to confirm
a fraudulent transaction.