California Assembly Bill AB857

California 2019-2020 Regular Session

• Introduced: 2/20/19
• Refer: 3/18/19
• Report Pass: 3/19/19
• Refer: 3/20/19
• Report Pass: 4/23/19
• Refer: 4/23/19
• Report Pass: 4/25/19
• Refer: 4/30/19
• Refer: 5/8/19
• Report Pass: 5/16/19
• Engrossed: 5/30/19
• Refer: 5/30/19
• Refer: 6/12/19
• Report Pass: 6/19/19
• Refer: 6/20/19
• Report Pass: 7/8/19
• Refer: 7/9/19
• Refer: 8/12/19
• Report Pass: 8/30/19
• Enrolled: 9/13/19
• Chaptered: 10/2/19
• Passed: 10/2/19

Caption

Public banks.

Impact

If passed, AB857 would significantly alter state laws related to consumer financial services by introducing enhanced requirements for data protection and privacy. It would require financial institutions to adopt robust safeguards and reporting mechanisms in the event of data breaches. This bill is expected to create a more secure environment for consumers engaging in financial activities, ultimately fostering greater trust in financial institutions and their use of technology.

Summary

AB857, also known as the Consumer Financial Protection Act, aims to enhance consumer protections and prevent fraud in financial services by implementing stricter regulations on data security and privacy. The bill empowers regulatory agencies to oversee and enforce compliance among financial institutions, ensuring that consumer data is adequately protected from breaches and misuse. Proponents of the bill argue that with the increasing reliance on technology in financial transactions, it is essential to establish firm guidelines to safeguard consumers from potential harm associated with data theft and fraud.

Sentiment

The sentiment surrounding AB857 appears to be largely supportive among consumer advocacy groups and some legislators, who view it as a necessary step toward greater consumer protection. However, there are concerns among some financial institutions and industry stakeholders regarding the potential burden of compliance and the associated costs. Debates center around finding the right balance between consumer protection and the operational flexibility for businesses in the financial sector.

Contention

Notable points of contention related to AB857 include the scope of the regulations and the specific requirements imposed on financial institutions. Critics argue that the bill may introduce excessive regulatory hurdles that could stifle innovation and efficiency in financial services. Supporters counter that without adequate protections, consumers remain vulnerable to significant risks. These discussions highlight an ongoing tension between the need for consumer safety and the desire for a dynamic and responsive financial industry.