AB1180 - Department of Financial Protection and Innovation: state payments.

Enrolled August 30, 2026 Passed IN Senate August 24, 2026 Passed IN Assembly August 26, 2026 Amended IN Senate August 13, 2026 Amended IN Senate July 07, 2025 Amended IN Assembly April 23, 2025 Amended IN Assembly April 10, 2025 Amended IN Assembly March 27, 2025 Amended IN Assembly March 17, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1180 Introduced by Assembly Member Valencia February 21, 2025 An act to add and repeal Section 3802 of the Financial Code, relating to digital financial assets. LEGISLATIVE COUNSEL'S DIGEST AB 1180, Valencia. Department of Financial Protection and Innovation: state payments. The Digital Financial Assets Law (DFAL) generally regulates digital financial asset business activity, including by prohibiting a covered person from taking certain actions with digital financial assets if that asset is a stablecoin, as defined and prescribed. The DFAL requires, among other charges, an applicant for a license to include a nonrefundable fee with an application, as specified. This bill would authorize the Department of Financial Protection and Innovation to adopt regulations to allow specified payments required under the DFAL to be made with stablecoins, as specified. This bill would become operative on July 1, 2027, and sunset its provisions on January 1, 2032. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 3802 is added to the Financial Code, to read: 3802. (a) (1) The department may adopt regulations to allow a payment required under this division to be made with a stablecoin that is issued by a licensee of this division and that may be redeemed directly from the issuer. (2) If the department adopts regulations pursuant to paragraph (1), the regulations shall only allow payments made by an applicant or licensee to the department and shall not allow payments related to any enforcement measure taken pursuant to Chapter 4 (commencing with Section 3401). (3) If the department adopts regulations pursuant to paragraph (1), the regulations shall not allow a payment to be made with a stablecoin if the Controller, the Treasurer, or the department determines the payment would interfere or conflict with the requirements in any of the following: (A) Article 2 (commencing with Section 12320) of Chapter 4 of Part 2 of Division 3 of Title 2 of the Government Code. (B) Article 2 (commencing with Section 12410) of Chapter 5 of Part 2 of Division 3 of Title 2 of the Government Code. (C) Part 2 (commencing with Section 16300) of Division 4 of Title 2 of the Government Code. (4) The department may consult with the Treasurer and the Controller in adopting any regulations pursuant to paragraph (1). (b) The cost to the department of implementing and administering this section shall be recovered in accordance with subdivision (c) of Section 3211. (c) For purposes of this section, “stablecoin” has the same meaning as defined in Section 3601. (d) (1) This section shall become operative on July 1, 2027. (2) This section shall be operative only until January 1, 2032, and as of that date is repealed.