Bill Commons

CA AB 1278

enacted

Mortgages: hazard insurance proceeds: interest.

California · 2025-2026 Regular Session · lower

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Quick answers

Did CA AB 1278 pass?

Yes. CA AB 1278 has been enacted into law. Latest recorded action (2026-09-30): Chaptered by Secretary of State - Chapter 877, Statutes of 2026.

What is CA AB 1278 about?

Existing law establishes the Department of Financial Protection and Innovation, which is under the direction of the Commissioner of Financial Protection and Innovation, and makes the department responsible for administering various laws relating to financial institutions and products, including mortgages. Existing law defines and regulates mortgages. Existing law requires a financial institution that makes loans upon the security of real property containing only a one- to 4-family residence in this state or purchases obligations secured by the property and that holds hazard insurance proceeds in a loss draft account pending property rebuilding or repair to pay interest on those funds at a rate of at least 2% simple interest per annum, as specified. Existing law requires that interest to be credited to the above-described loss draft account annually or upon termination of the account, whichever is earlier. This bill would, instead, require that interest to be credited to the above-described loss draft account, or paid directly to the borrower, annually or upon termination of the account, whichever is earlier, as specified. The bill would require payments made directly to the borrower as described above to be made by check, electronic funds transfer, or another payment method agreed to by the borrower, as specified. The bill would make a check issued pursuant to the above-described provision that is uncashed 90 calendar days after delivery canceled, as specified.

Who sponsors CA AB 1278?

Harabedian is the primary sponsor of CA AB 1278.

Description

Existing law establishes the Department of Financial Protection and Innovation, which is under the direction of the Commissioner of Financial Protection and Innovation, and makes the department responsible for administering various laws relating to financial institutions and products, including mortgages. Existing law defines and regulates mortgages. Existing law requires a financial institution that makes loans upon the security of real property containing only a one- to 4-family residence in this state or purchases obligations secured by the property and that holds hazard insurance proceeds in a loss draft account pending property rebuilding or repair to pay interest on those funds at a rate of at least 2% simple interest per annum, as specified. Existing law requires that interest to be credited to the above-described loss draft account annually or upon termination of the account, whichever is earlier. This bill would, instead, require that interest to be credited to the above-described loss draft account, or paid directly to the borrower, annually or upon termination of the account, whichever is earlier, as specified. The bill would require payments made directly to the borrower as described above to be made by check, electronic funds transfer, or another payment method agreed to by the borrower, as specified. The bill would make a check issued pursuant to the above-described provision that is uncashed 90 calendar days after delivery canceled, as specified.

Introduced
2025-02-21
Latest action
2026-09-30 — Chaptered by Secretary of State - Chapter 877, Statutes of 2026.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • Harabedianauthor

Committees

Not provided by source.

Action timeline

Newest first

  1. 2026-09-30

    Chaptered by Secretary of State - Chapter 877, Statutes of 2026.

    became-law

  2. 2026-09-30

    Approved by the Governor.

    executive-signature

  3. 2026-08-20

    Enrolled and presented to the Governor at 4 p.m.

    executive-receipt

  4. 2026-08-13

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 0.).

    amendment-passage,committee-passage,committee-passage-favorable

  5. 2026-08-13

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 0. Page 6137.).

    amendment-passage,committee-passage,committee-passage-favorable

  6. 2026-08-11

    In Assembly. Concurrence in Senate amendments pending.

  7. 2026-08-10

    Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).

    passage,reading-1,reading-3

  8. 2026-08-10

    Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5321.).

    passage,reading-1,reading-3

  9. 2026-08-04

    Read second time. Ordered to Consent Calendar.

    reading-1,reading-2

  10. 2026-08-03

    From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

    committee-passage,reading-1,reading-2

  11. 2026-07-01

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 13. Noes 0.) (June 30). Re-referred to Com. on APPR.

    committee-passage,committee-passage-favorable,referral-committee

  12. 2026-06-22

    Read second time and amended. Re-referred to Com. on JUD.

    amendment-passage,reading-1,reading-2,referral-committee

  13. 2026-06-18

    From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 17).

    amendment-introduction,amendment-passage,committee-passage,referral-committee

  14. 2026-05-06

    Referred to Coms. on B. & F.I. and JUD.

    referral-committee

  15. 2026-01-29

    In Senate. Read first time. To Com. on RLS. for assignment.

    reading-1,referral-committee

  16. 2026-01-29

    Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 3885.)

    passage,reading-1,reading-3

  17. 2026-01-26

    Read second time. Ordered to Consent Calendar.

    reading-1,reading-2

  18. 2026-01-22

    From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (January 22).

    committee-passage,committee-passage-favorable

  19. 2026-01-15

    Re-referred to Com. on APPR.

    referral-committee

  20. 2026-01-14

    Read second time and amended.

    amendment-passage,reading-1,reading-2

  21. 2026-01-13

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 8. Noes 0.) (January 12).

    amendment-introduction,amendment-passage,committee-passage,referral-committee

  22. 2026-01-06

    Re-referred to Com. on B. & F.

    referral-committee

  23. 2026-01-05

    From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

    amendment-introduction,amendment-passage,committee-passage,reading-1,reading-2,referral-committee

  24. 2026-01-05

    Referred to Com. on B. & F.

    referral-committee

  25. 2025-02-24

    Read first time.

    reading-1

  26. 2025-02-22

    From printer. May be heard in committee March 24.

  27. 2025-02-21

    Introduced. To print.

    introduction

Versions

  • 02/21/25 - Introduced — 2025-02-21Compare
  • 01/05/26 - Amended Assembly — 2026-01-05Compare
  • 01/14/26 - Amended Assembly — 2026-01-14Compare
  • 06/22/26 - Amended Senate — 2026-06-22Compare
  • 08/17/26 - Enrolled — 2026-08-17Compare
  • 09/30/26 - Chaptered — 2026-09-30Compare
  • (document, no version)Compare
  • AB1278Compare

Documents

Votes

  • Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar

    2026-01-12 · pass · 8-0

    Member-level votes (9)
    • Soria: yes
    • Schiavo: yes
    • Michelle Rodriguez: yes
    • Blanca Rubio: yes
    • Dixon: yes
    • Fong: yes
    • Krell: yes
    • Valencia: yes
    • Chen: other

  • Do pass. To Consent Calendar.

    2026-01-22 · pass · 15-0

    Member-level votes (15)
    • Hoover: yes
    • Tangipa: yes
    • Bauer-Kahan: yes
    • Wicks: yes
    • Krell: yes
    • Pacheco: yes
    • Stefani: yes
    • Solache: yes
    • Pellerin: yes
    • Caloza: yes
    • Calderon: yes
    • Fong: yes
    • Mark González: yes
    • Ta: yes
    • Dixon: yes

  • AB 1278 Harabedian Consent Calendar Second Day

    2026-01-29 · pass · 70-0

    Member-level votes (80)
    • Sharp-Collins: yes
    • Ramos: yes
    • Schultz: yes
    • Ahrens: yes
    • Calderon: yes
    • Harabedian: yes
    • Carrillo: yes
    • Mark González: yes
    • Pacheco: yes
    • Michelle Rodriguez: yes
    • Alvarez: yes
    • Bains: yes
    • Haney: yes
    • Patterson: yes
    • Sanchez: yes
    • Aguiar-Curry: yes
    • Berman: yes
    • Ta: yes
    • Solache: yes
    • Elhawary: yes
    • Muratsuchi: yes
    • Macedo: yes
    • Papan: yes
    • Gallagher: yes
    • Nguyen: yes
    • Bryan: yes
    • Boerner: yes
    • Bennett: yes
    • Tangipa: yes
    • Rivas: yes
    • Fong: yes
    • Rogers: yes
    • Hadwick: yes
    • Jeff Gonzalez: yes
    • Ávila Farías: yes
    • Petrie-Norris: yes
    • Caloza: yes
    • Irwin: yes
    • Kalra: yes
    • Patel: yes
    • Pellerin: yes
    • Soria: yes
    • Bonta: yes
    • Blanca Rubio: yes
    • DeMaio: yes
    • McKinnor: yes
    • Lackey: yes
    • Hoover: yes
    • Ortega: yes
    • Wallis: yes
    • Johnson: yes
    • Gabriel: yes
    • Schiavo: yes
    • Castillo: yes
    • Krell: yes
    • Stefani: yes
    • Zbur: yes
    • Davies: yes
    • Wilson: yes
    • Addis: yes
    • Ward: yes
    • Connolly: yes
    • Dixon: yes
    • Quirk-Silva: yes
    • Wicks: yes
    • Jackson: yes
    • Alanis: yes
    • Hart: yes
    • Garcia: yes
    • Lowenthal: yes
    • Arambula: other
    • Bauer-Kahan: other
    • Celeste Rodriguez: other
    • Chen: other
    • Ransom: other
    • Flora: other
    • Gipson: other
    • Lee: other
    • Ellis: other
    • Valencia: other

  • Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary]

    2026-06-17 · pass · 7-0

    Member-level votes (7)
    • Cervantes: yes
    • Strickland: yes
    • Grayson: yes
    • Reyes: yes
    • Niello: yes
    • Hurtado: yes
    • Richardson: yes

  • Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar

    2026-06-30 · pass · 13-0

    Member-level votes (13)
    • Wahab: yes
    • Niello: yes
    • Umberg: yes
    • Laird: yes
    • Stern: yes
    • Ashby: yes
    • Allen: yes
    • Valladares: yes
    • Weber Pierson: yes
    • Wiener: yes
    • Caballero: yes
    • Reyes: yes
    • Durazo: yes

Related bills

No related bills recorded for this bill.

Official source

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB1278

Attribution

Data from openstates_api_sync, retrieved 2026-10-01T16:19:33.726812Z

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