The "what and the why" are missing from both the page linked to, and the first link in the page. I define "missing" as "not easily found while skimming".

it looks like its basically an anti-competitive law that requires a $500,000 license to be any sort of payment processor in California. The law was pushed through by a lobby group of existing big name financials companies.

some recent developments http://www.aarongreenspan.com/writing/essay.html?id=86

Sorry, but why?

Because entrepreneurs shouldn't have to worry about federal prison just for thinking about starting a payments company (see proposed section 2155 of AB 786).

More reasons:

http://news.ycombinator.com/item?id=5308013

So your plan is basically to take in a bunch of money from the public, and then steal it, and you object to the government trying to make that difficult for you to accomplish?

Actually, my plan was http://www.facecash.com.