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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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Teen dies after losing control of electric motorcycle in Garden Grove

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Teen dies after losing control of electric motorcycle in Garden Grove


A 13-year-old boy riding an electric motorcycle in Garden Grove died after veering into the center median, flying into the air and then slamming onto the roadway, authorities said.

The crash took place shortly before 10 p.m. Thursday in the area of Magnolia Street and Larson Avenue, according to the Garden Grove Police Department. The Police Department received word of the incident via a call from Life360, a family safety and location-sharing app with emergency assistance features.

The Santa Ana teen was critically wounded in the crash, police said. He was loaded into an ambulance and taken to a hospital, where he was later pronounced dead.

The boy was traveling at around 35 mph on a black E Ride Pro electric motorcycle when he struck the median and lost control of the vehicle, according to authorities. Electric motorcycles are primarily designed for off-road riding and are not legal to use on California roadways.

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The teen’s death is the latest in a spate of serious collisions involving electric motorcycles and dirt bikes — some of which have led to serious injuries, death or charges for parents who allegedly allowed their minors to illegally ride the speedy devices.

An Orange County mother was charged with involuntary manslaughter last week after authorities said an 81-year-old Vietnam veteran died from injuries he suffered when her 14-year-old son slammed into him while riding an e-motorcycle, then fled the scene.

In April, a Yorba Linda father was charged with felony child endangerment after authorities alleged his son ran a red light and was hit by a car while riding a modified e-motorcycle capable of reaching up to 60 mph.

Last week, a 19-year-old riding an e-motorcycle was arrested on suspicion of felony evading police and felony reckless driving. He was accused of leading sheriff’s deputies on a speedy chase through a residential area of Oceanside, blowing past multiple red lights and knocking a deputy off a motorcycle.

Electric bikes, motorcycles and dirt bikes have surged in popularity in recent years and are especially popular among teens. However, while e-bikes generally top out at 28 mph and are legal to ride on the street, many e-motorcycles can go twice as fast and are generally not street legal.

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Anyone who witnessed Thursday’s crash in Garden Grove or has a video of the incident is asked to contact Investigator Lang via phone at (714) 741-5823 or email at mlang@ggcity.org.



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California to give newborns free diapers. What it means for families

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California to give newborns free diapers. What it means for families


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Gov. Gavin Newsom announced that newborn babies in California will start receiving free diapers as part of a new “first-in-the-nation” initiative to support families across the state with the rising cost of living.

Newsom, along with state leaders, met in San Francisco on Friday, May 8 to unveil California’s new partnership with Baby2Baby, a national nonprofit that provides diapers to children in need, and to explain how this new program will provide families with 400 “high-quality” diapers before they leave the hospital.

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Over the last six years, families have seen the average cost of diapers increase by 45% or “thousands plus dollars a year,” which has made raising a family unattainable for some, Newsom said during the press conference.

“Every baby born in California deserves a healthy start in life — and that means making sure parents have the basics they need from day one,” Newsom said. “One out of four families skip meals in order to pay for diapers.”

“The biggest problem defined universally, in our cities, our state and our nation, is the issue of affordability. This is what affordability looks like; it’s not a slogan, it’s a box. A box of diapers,” Newsom added.

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This new effort will be known as Golden State Start, as California uses its bulk purchasing power to obtain 40 million high-quality diapers in hopes of easing financial strain for families and supporting infant health by helping parents maintain an adequate supply of clean diapers.

“The first days at home with a newborn should be focused on the love, connection, and joy of an expanded family, not stress about affording diapers,” said Kim Johnson, secretary of the California Health and Human Services Agency. “This program helps ensure families can begin that journey with greater stability and peace of mind.”

The program is expected to start at the beginning of this summer in participating California hospitals. The list of participating hospitals was not released at the time of publication, but Newsom noted that the state was in talks with at least 60 hospitals across California.

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During the first year of the program, CalRx and Baby2Baby noted that they would prioritize hospitals that serve large numbers of Medi-Cal patients to ensure low-income families benefit early from the program. The state plans to scale the program to additional hospitals and birthing centers over time.

Newsom noted that this program is expected to grow: In 2027, the state is set to purchase 80 million diapers from manufacturers, with the goal of eventually purchasing up to 160 million.

“California families deserve to feel supported during one of life’s more exciting, yet vulnerable transitions,” Jennifer Siebel Newsom, the first partner, said in a press release. “Golden State Start will deliver immediate relief, allowing parents to focus on what matters most — caring for their newborn. Together with Baby2Baby, we can ease the financial burden on California parents while supporting healthier outcomes for babies and their mothers.”

Noe Padilla is a Northern California Reporter for USA Today. Contact him at npadilla@usatodayco.com, follow him on X @1NoePadilla or on Bluesky @noepadilla.bsky.socialSign up for the TODAY Californian newsletter or follow us on Facebook at TODAY Californian.



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Nordstrom Rack expands in Southern California with new stores

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Nordstrom Rack expands in Southern California with new stores


Nordstrom Rack will open two new Southern California stores next year.

The discount outlet said on Wednesday that it will open new stores in Marina del Rey in the spring of next year and in Torrance later that summer. The locations join 69 Nordstrom Rack locations already operating in the state.

“We’re excited to grow our footprint in the Los Angeles market and introduce new customers to the Nordstrom experience,” Gemma Lionello, president of Nordstrom Rack, said in a news release.

Nordstrom Rack is an outlet version of the upscale retailer Nordstrom, offering merchandise from top brands at a discount.

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Bargain retailers have expanded in California recently, benefiting from increasingly cost-conscious customers, who are motivated to spend less by economic anxiety and inflation.

Discount outlets such as Ross, T.J. Maxx and Dollar General have capitalized on the tough economic times and experienced accelerated growth. Ross reported record sales in 2025, up 8% from the year prior.

Bargain retail stores have acquired a larger supply of discounted products by buying unsold merchandise from struggling high-end stores. Customers who feel destabilized financially by tariffs and global conflict have used the stores to try to find lower prices.

The new Nordstrom Rack storefronts will be in Marina Marketplace in Marina del Rey and Rolling Hills Plaza in Torrance.

“The Los Angeles retail market continues to see growth from retailers like Nordstrom looking for anchor space in vibrant areas,” Scott Burns, senior managing director for the company that manages Marina Marketplace, said in a news release.

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The bargain outlet boom comes as department stores and malls struggle. Nordstrom, the upscale retailer, closed a Santa Monica location in July. Macy’s shuttered two California locations this year and will reduce its footprint by 30% in 2027.

Shopping malls across Southern California have also struggled to bring sales back as immigration raids continue to scare customers away.



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