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California 20252026

AB 2116

Commercial financing.

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Source: Open States / PluralLatest available (refresh delayed). Last refreshed: 2026-10-19 09:12:31 UTC.

Official record

Measure details

Jurisdiction
California
Session
20252026
Chamber
lower
Classification
bill
Subjects
Commercialfinancing
Introduced / first action
2026-02-18 00:00:00

Alternate titles

  • California Consumer Financial Protection Law: commercial financing.

Source-supplied abstracts

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.

Sponsors

Source-supplied history

Actions

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

    became-law

  2. Approved by the Governor.

    executive-signature

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

    executive-receipt

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

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

  5. In Assembly. Concurrence in Senate amendments pending.

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

    passage, reading-1, reading-3

  7. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

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

    amendment-passage, reading-1, reading-2

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

    amendment-introduction, amendment-passage, committee-passage

  10. In committee: Referred to APPR. suspense file.

    referral-committee

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

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

  12. 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

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

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

  14. 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

  15. 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

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

    referral-committee

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

    reading-1, referral-committee

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

    passage, reading-1, reading-3

  19. Read second time. Ordered to third reading.

    reading-1, reading-2, reading-3

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

    committee-passage, committee-passage-favorable

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

    referral-committee

  22. 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

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

    referral-committee

  24. 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

  25. Referred to Com. on B. & F.

    referral-committee

  26. From printer. May be heard in committee March 21.

  27. Read first time. To print.

    reading-1

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Related measures

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