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Will California's gun law place a target on card networks?

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Will California's gun law place a target on card networks?


The California law would enable tracking of gun purchases.

George Frey/Bloomberg

The large U.S. card networks may be building a merchant code for firearm and ammunition purchases in California — a move which could draw fire from other states where conservative lawmakers have worked to block such a creation.

Visa, Mastercard and American Express are moving ahead with the transaction codes, according to CBS News, adding that these payment codes would enable the card companies to comply with a California law that would enable banks to flag suspicious gun purchases and share that information with authorities. The law goes into effect in 2025.

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The payment companies had considered this approach in the past, but halted work on the codes in March 2023 following resistance from lawmakers in conservative states. More recently, Republican state representatives in Wisconsin have introduced a bill that would ban gun-specific payment codes. Visa, Mastercard, and American Express did not provide comments by deadline. Discover, which was not named in the CBS story, also did not provide comment.  

California’s law would likely require the card networks to have different compliance policies in different states. That’s not unusual, but it does place the companies in the middle of a political fight during an election year, given California’s size and its ability to influence federal policy and laws in other states. 

“Our increasingly fraught and fractious politics are playing out at state level with hard blue states like California and red states imposing their policy preferences on our payment system,” said Eric Grover, a principal at Intrepid Ventures. “National payment systems are going to have to navigate a patchwork of conflicting state-level requirements.”

Payment networks and processors will be able to manage the differences, but it will increase the cost and complexity of running their businesses, Grover said, predicting that policymakers in liberal states such as California and New York will increase tracking and the burden on payments for firearms. “Many pro-Second Amendment red states will ban or limit such tracking,” Grover said. 

California’s law could influence policy elsewhere. 

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There has been a link between California’s early actions on consumer protection regulations and subsequent actions by other states and the Consumer Financial Protection Bureau (CFPB), according to said Stewart Watterson, a strategic advisor at Datos Insights. 

California’s Consumer Privacy Act, passed in 2018, is designed to give consumers more control over the way businesses use their data. Similar laws went into effect in Virginia, Utah and Connecticut in 2023, and in Colorado in 2021.

These laws have pressured payment processors to update policies that manage how consumer data is shared and stored, as well as improve opt-in provisions for consumers to enable data sharing. 

“Overall, California’s early actions in consumer protection have set a precedent and spurred other states and federal agencies to follow suit in enhancing consumer privacy and financial regulations,” Watterson said. 

California is also considering a bill that would affect earned wage access products, which provide early access to payroll. The bill would regulate EWA payments in a manner similar to  traditional loans. 

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California also reached an agreement with earned wage access providers in 2021 under which the companies would share data with regulators, allow examinations and set limits on pricing, sparking several other states to follow suit.

California has had an impact on both conservative and liberal issues, according to Robert Hockett, a law professor at Cornell University, noting tax reforms in California have spread to other states as well as minimum wage hikes. 

“At least as interesting as the effects upon other states in this case, as it happens, might be reactions from Congress, whose Republican members are probably already primed due to the moves in the insurance industry on guns,” Hockett said. In 2023, several jurisdictions — including San Jose — passed laws requiring gun-related insurance. 

There is the potential that California’s market size could affect other states, but on certain issues, especially hot-button issues like gun sales, California’s outsized influence may not be enough to sway other states to follow suit, said James Wester, director of cryptocurrency and cohead of payments at Javelin Strategy & Research. 

“Regulations will simply follow political fault lines,” Wester said, adding that in terms of financial and payment regulation more generally, New York tends to be more influential given its role as a banking capital. 

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Large red states have also passed laws that either aimed for a national influence or indirectly created cross-state pressure. aiming for broader influence. Texas, for example, in the past three years has passed laws that require banks to prove they do not ban gun or ammunition sellers in order to do business with the state. Texas also requires state agencies to not do business with banks that restrict the oil and gas business. 

“Regardless of which state leads on any particular issue, however, this move by California on this [gun] issue demonstrates the complexity of compliance that payment and financial services providers must deal with,” Wester said.



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Rain continues in parts of California reeling from flooding and high tides – WTOP News

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Rain continues in parts of California reeling from flooding and high tides – WTOP News


CORTE MADERA, Calif. (AP) — Crews cleared mud from key California highways as forecasters warned Sunday that more thunderstorms were…

CORTE MADERA, Calif. (AP) — Crews cleared mud from key California highways as forecasters warned Sunday that more thunderstorms were on the way after downpours and high tides caused flooding, road closures and rescues of people trapped in cars.

Five northern counties remained under a flood watch, with up to three inches (7.6 cm) of rain possible through Monday night in areas that have been drenched off and on since around Christmas, said the National Weather Service office in Eureka. At least a foot (.3 meters) of snow was likely in the mountains.

To the south near the San Francisco Bay Area, waters were slowly receding after roadways from Sausalito to San Rafael were flooded during heavy rain that coincided with record-breaking “ King Tides.” Such tides occur when the moon is in its closest position to the Earth, creating a stronger gravitational pull.

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Some people kayaked along swamped streets, while others waded through water above their knees. Authorities were called to assist when cars got stuck in water as high as 3 and 4 feet (1.1 and 1.2 meters), Marin County Sheriff’s Sgt. Michael Dobbins said Saturday.

“I’ve been around here for the King Tides and I’ve never seen it this high. Never,” Jeremy Hager of San Rafael told KTVU-TV.

Flooding was reported across Marin, Sonoma, Alameda, San Mateo and San Francisco counties.

While the tides were waning, lingering thunderstorms on Sunday could cause additional problems throughout low-lying areas, forecasters said. “For anyone driving, slow down and allow extra time to reach your destination,” the Bay Area office of the weather service warned on social media.

Farther south in Santa Barbara County, a key highway was reopened Sunday after it was blocked for most of the weekend near Goleta due to a series of mudslides. A man died after he was swept into a creek during the storm, the sheriff’s office said Saturday.

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Parts of Santa Barbara County received more than four inches (10 cm) of rain over two days, the weather service said Sunday.

After a mostly dry autumn, California has been hit by a series of powerful winter storms that brought the wettest holiday season to the state in years.

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© 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.



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California’s gubernatorial race heats up as Newsom’s term nears end, with many contenders

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California’s gubernatorial race heats up as Newsom’s term nears end, with many contenders


In just over a year, Gavin Newsom’s term as California’s governor will come to an end, capping off nearly eight years in office.

Now the question is – who will take over once he steps down?

We spoke to political scientist Nathan Monroe about what could be one of Californias most unpredictable gubernatorial races yet.

With Governor Gavin Newsom’s term ending, the race to replace him begins.

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This race will determine who leads the worlds fifth largest economy at a time when California is facing issues such as housing and affordability.

Californias next gubernatorial election is shaping up to be crowded – and for the first time in years – there’s no incumbent on the ballot.

“You say, well, just which democrat is going to win, right? Like, sort of republicans don’t have a shot. But what we have to keep in mind, right, is that the rules of elections matter. And in California, we have the top two primary system,” said Nathan Monroe, a Political Science Professor at UC Merced.

More than a dozen candidates are vying for the spot.

On the democratic side, contenders include former U.S. Secretary of Health and Human Services Xavier barrera, former U.S. Representative Katie Porter, Representative Eric Swalwell, former Los Angeles Mayor Antonio Villaraigosa, and former State Controller Betty Yee.

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Political experts say the size of the field could make turnout and name recognition decisive and could lead to unexpected results in the primary.

“But if you divide that pie up by just two, and you divide the democratic pie up, which is admittedly a larger pie, by 7 or 8, the concern you get here is that democrats are going to lose out on even running to the general election. So even though there might be more democratic votes to be found in California for governor, they might not have a shot to cast those ballots for a democrat on the general election ballot,” said Monroe.

Monroe says party leaders may need to step in soon.

“I think the concern has to be among voters and I’m sure among the party leaders, so to speak, right, the party leaders sort of amorphously, is that they’ve got to figure out a way to delicately, you know, assure some candidates out of the race and figure out which candidates those should be and figure out how to manage those personalities and try to coordinate all the things that go in and around a gubernatorial election,” said Monroe.

On the Republican side, former Riverside County Sheriff Chad Bianco and Fox News contributor Steve Hilton.

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With just a few months from the midterm elections, Monroe says both parties need to organize.

“What’s happening behind the scenes for the parties to try to coordinate themselves to make sure that the field that they offer to voters in June is a field that gives them the best chance for their best candidate to go forward to the general election,” said Monroe.

The primary election is set for June, with the general election in December.



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Heavy rain, high tides cause flooding along stretch of Northern California

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Heavy rain, high tides cause flooding along stretch of Northern California


CORTE MADERA, Calif. (AP) — Heavy rain and high tides believed to be the most severe in two decades caused flooding in parts of Northern California on Saturday, prompting road closures and rescues of residents trapped in their cars.

Roadways through a 15-mile (24-kilometer) stretch from the Sausalito area to San Rafael were flooded after a downpour coincided with record-breaking “ King Tides,” Marin County Sheriff’s Sgt. Michael Dobbins said.

No injuries were reported but authorities were called to assist when cars got stuck in floodwater as high as three and four feet (1.1 and 1.2 meters), he said.

“There is a lot of water in the roadways,” Dobbins said, adding the tides were reportedly the highest in more than two decades. “Along with heavy rains, it just created the perfect storm for flooding on the streets.”

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Authorities in the communities near San Francisco asked residents to stay home wherever possible until waters recede. Some residents kayaked along what normally would be city streets. Others waded out in water that passed their knees.

A flood warning was in place for the San Francisco area until 2 p.m. Saturday and an advisory until 2 p.m. Sunday, according to the National Weather Service in San Francisco.

King Tides occur when the sun, moon and Earth are in alignment and the moon is in its closest position to the Earth, creating a stronger gravitational pull.





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