BILL NUMBER: AB 1080	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JANUARY 4, 2012
	AMENDED IN ASSEMBLY  MAY 4, 2011
	AMENDED IN ASSEMBLY  APRIL 25, 2011

INTRODUCED BY   Assembly Member Charles Calderon

                        FEBRUARY 18, 2011

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1080, 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 and that allows for the movement of specified
funds over the Internet to collect  and   ,
 report,  and update,  on  an annual 
 a quarterly basis, information relating to unauthorized
transfers of funds over the Internet  , and   .
This bill would also require these banks or financial institutions
 to post this report  at each of their locations within the
state, or  on its Internet Web site, 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 and other
financial services and  that allows for the movement of funds
under the ownership and control of a person or business over the
Internet   provides electronic fund transfer services to
its customers  shall collect  and   ,
 report,  and update  on  an annual 
 a quarterly  basis, the following information:
   (1) The number of instances  in which an unauthorized
transfer of funds occurred over the Internet   a client
claimed to have had funds stolen through the unauthorized use of the
electronic fund transfer service  .
   (2) The  total sum of unauthorized funds transferred over
the Internet   number of instances a bank or financial
institution reimbursed funds a client claimed to have had stolen
through the   unauthorized use of the electronic fund
transfer service  . 
   (3) The number of instances a bank or financial institution
determined that funds had been stolen through the unauthorized use of
the electronic fund transfer service.  
   (4) The aggregate dollar amount of funds that clients claimed to
have had stolen through the unauthorized use of the electronic fund
transfer service.  
   (5) The aggregate dollar amount of funds that a bank or financial
institution determined to have been stolen through the unauthorized
use of the electronic fund transfer service.  
   (6) The average and median amount of funds stolen through the
unauthorized use of the electronic fund transfer service, as
determined by both the banking or financial institution and claimed
by a client. 
   (b) The collection of these statistics shall be limited to
customers affected in California  , as determined by the customer'
s home address or principal place of business. The statistics
required in this section shall be summarized and made available to
the public at every location of the bank or   financial
institution within the state, or on the bank's or financial
institution's Internet Web site. A bank or financial institution may
not disclose any personal information affecting a customer, nor
disclose the methods used to access the electronic fund transfer
service  . 
   (c) The report shall be conspicuously posted on the Internet Web
site of the bank or financial institution.