BILL NUMBER: AB 1677	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 15, 2007
	AMENDED IN ASSEMBLY  MAY 2, 2007
	AMENDED IN ASSEMBLY  APRIL 10, 2007

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 23, 2007

   An act to add Section 1798.825 to the Civil Code, relating to
Internet transactions.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1677, as amended, Charles Calderon. 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, and would
 require that these policies and procedures be consistent with
current best industry practices. It would  allow penalties to be
imposed on businesses that fail to meet this requirement, as
specified.
   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.  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 policies and procedures that a business implements
pursuant to subdivision (a) shall, at a minimum, be consistent with
current best industry practices, including, but not limited to, those
recommended by the Federal Financial Institutions Examination
Council or the relevant Recommended Practices of the California
Office of Privacy Protection.  
   (b) 
    (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).

   (c) 
    (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. 
   (d) 
   (e)  The rights and remedies under this section are
cumulative with each other and with any other rights and remedies
under law.