Bill Commons

CA AB 2116

enacted

Commercial financing.

California · 2025-2026 Regular Session · lower

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Quick answers

Did CA AB 2116 pass?

Yes. CA AB 2116 has been enacted into law. Latest recorded action (2026-09-30): Chaptered by Secretary of State - Chapter 823, Statutes of 2026.

What is CA AB 2116 about?

The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation, including by regulating the provision of commercial loans, as defined. A willful violation of the CFL is a crime, except as specified. This bill would, beginning January 1, 2028, generally provide for the regulation under the CFL of commercial financing, which the bill would define to mean an accounts receivable purchase transaction, including factoring, asset-based lending transaction, commercial loan, commercial open-end credit plan, or lease financing, intended by the recipient for use primarily for a purpose other than a personal, family, or household purpose, as specified. Beginning July 1, 2028, the bill would prohibit a person from engaging in the business of a commercial financing provider, as defined, or a commercial financing broker, as defined, without obtaining a license from the commissioner, except as specified. The bill would impose various duties on commercial financing providers and commercial financing brokers, including, among other things, prohibiting the taking of a confession of judgment or power of attorney at any time before a default, as specified. The bill would make various conforming changes to the CFL. Existing law requires a provider of commercial financing to disclose certain information, as specified. Existing law deems certain violations of these provisions to be a violation of the CFL, as specified. The CFL authorizes the commissioner to require that rates of charge, if stated by a licensee, be stated fully and clearly in the manner that the commissioner deems necessary to prevent misunderstanding by prospective borrowers or property owners. This bill would authorize the commissioner to require that rates of charge be stated fully and clearly in the manner that the commissioner deems necessary to prevent misunderstanding by prospective borrowers or recipients. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Who sponsors CA AB 2116?

Schiavo is the primary sponsor of CA AB 2116.

Description

The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation, including by regulating the provision of commercial loans, as defined. A willful violation of the CFL is a crime, except as specified. This bill would, beginning January 1, 2028, generally provide for the regulation under the CFL of commercial financing, which the bill would define to mean an accounts receivable purchase transaction, including factoring, asset-based lending transaction, commercial loan, commercial open-end credit plan, or lease financing, intended by the recipient for use primarily for a purpose other than a personal, family, or household purpose, as specified. Beginning July 1, 2028, the bill would prohibit a person from engaging in the business of a commercial financing provider, as defined, or a commercial financing broker, as defined, without obtaining a license from the commissioner, except as specified. The bill would impose various duties on commercial financing providers and commercial financing brokers, including, among other things, prohibiting the taking of a confession of judgment or power of attorney at any time before a default, as specified. The bill would make various conforming changes to the CFL. Existing law requires a provider of commercial financing to disclose certain information, as specified. Existing law deems certain violations of these provisions to be a violation of the CFL, as specified. The CFL authorizes the commissioner to require that rates of charge, if stated by a licensee, be stated fully and clearly in the manner that the commissioner deems necessary to prevent misunderstanding by prospective borrowers or property owners. This bill would authorize the commissioner to require that rates of charge be stated fully and clearly in the manner that the commissioner deems necessary to prevent misunderstanding by prospective borrowers or recipients. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.

Introduced
2026-04-16
Latest action
2026-09-30 — Chaptered by Secretary of State - Chapter 823, Statutes of 2026.
Bill type
bill
Last updated
—

Subjects

Sponsors

  • Schiavoauthor

Committees

Not provided by source.

Action timeline

Newest first

  1. 2026-09-30

    Chaptered by Secretary of State - Chapter 823, Statutes of 2026.

    became-law

  2. 2026-09-30

    Approved by the Governor.

    executive-signature

  3. 2026-08-27

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

    executive-receipt

  4. 2026-08-20

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.).

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

  5. 2026-08-20

    Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 6323.).

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

  6. 2026-08-19

    In Assembly. Concurrence in Senate amendments pending.

  7. 2026-08-19

    Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.).

    passage,reading-1,reading-3

  8. 2026-08-19

    Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 5560.).

  9. 2026-08-17

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  10. 2026-08-13

    From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).

    amendment-introduction,amendment-passage,committee-passage

  11. 2026-08-13

    Read second time and amended. Ordered returned to second reading.

    amendment-passage,reading-1,reading-2

  12. 2026-08-03

    In committee: Referred to APPR. suspense file.

    referral-committee

  13. 2026-07-02

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

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

  14. 2026-07-01

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 30).

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

  15. 2026-06-22

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

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

  16. 2026-06-18

    From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 6. Noes 0.) (June 17).

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

  17. 2026-06-04

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

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

  18. 2026-06-03

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

    referral-committee

  19. 2026-05-22

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

    reading-1,referral-committee

  20. 2026-05-22

    Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 5263.)

    passage,reading-1,reading-3

  21. 2026-05-18

    Read second time. Ordered to third reading.

    reading-1,reading-2,reading-3

  22. 2026-05-14

    From committee: Do pass. (Ayes 15. Noes 0.) (May 14).

    committee-passage,committee-passage-favorable

  23. 2026-05-06

    In committee: Set, first hearing. Referred to APPR. suspense file.

    referral-committee

  24. 2026-04-23

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 23). Re-referred to Com. on APPR.

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

  25. 2026-04-20

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

    referral-committee

  26. 2026-04-16

    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

  27. 2026-03-09

    Referred to Com. on B. & F.

    referral-committee

  28. 2026-02-19

    From printer. May be heard in committee March 21.

  29. 2026-02-18

    Read first time. To print.

    reading-1

Versions

  • 02/18/26 - Introduced — 2026-02-18Compare
  • 04/16/26 - Amended Assembly — 2026-04-16Compare
  • 06/04/26 - Amended Senate — 2026-06-04Compare
  • 06/22/26 - Amended Senate — 2026-06-22Compare
  • 07/02/26 - Amended Senate — 2026-07-02Compare
  • 08/13/26 - Amended Senate — 2026-08-13Compare
  • 08/24/26 - Enrolled — 2026-08-24Compare
  • 09/30/26 - Chaptered — 2026-09-30Compare
  • (document, no version)Compare
  • AB2116Compare

Documents

Votes

  • Do pass and be re-referred to the Committee on [Appropriations]

    2026-04-23 · pass · 9-0

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

  • Do pass.

    2026-05-14 · pass · 15-0

    Member-level votes (15)
    • Dixon: yes
    • Krell: yes
    • Sharp-Collins: yes
    • Tangipa: yes
    • Wicks: yes
    • Pacheco: yes
    • Caloza: yes
    • Ta: yes
    • Fong: yes
    • Calderon: yes
    • Hoover: yes
    • Pellerin: yes
    • Solache: yes
    • Aguiar-Curry: yes
    • Mark González: yes

  • AB 2116 Schiavo Assembly Third Reading

    2026-05-22 · pass · 73-0

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

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

    2026-06-17 · pass · 6-0

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

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

    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=202520260AB2116

Attribution

Data from openstates_api_sync, retrieved 2026-10-03T02:22:50.104344Z

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