On Wednesday, July 3rd eBay Inc. Senior Director of US Government Relations, David London, traveled to Sacramento to deliver testimony in support of legislation by Assemblymember Roger Dickinson in the Senate Banking and Financial Institutions Committee. The bill, AB 786, seeks to modernize the California Money Transmission Act and would allow modern payment service providers like PayPal to operate within in California in way that neither compromises innovation nor consumer protection. One provision in particular in the legislation would allow PayPal to change how it meets one of its current regulatory requirements and in the process could obtain pass-through FDIC insurance on PayPal accounts for our customers.
Last Wednesday’s hearing and vote marks the final policy hearing on the bill before being voted on by the entire California State Senate. While passage is not guaranteed, the bill has seen very little opposition within the legislature. Should the bill become law not only would PayPal and our peers be able to operate in a regulatory environment more mindful of the innovation occurring in the payments industry, but our customers could once more enjoy the additional peace-of-mind that comes with FDCI insurance.