California bills · 2025-2026 Regular Session
California AB 1278
Mortgages: hazard insurance proceeds: interest.
- Introduced
- In committee
- Passed House
- Passed Senate
- To Governor
- Became law
Sponsors
- Harabedian (Democratic)
Summary
Official abstract published by the California legislature· summary
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.
Text versions
- 09/30/26 - Chaptered· Sep 30, 2026
- 08/17/26 - Enrolled· Aug 17, 2026
- 06/22/26 - Amended Senate· Jun 22, 2026
- 01/14/26 - Amended Assembly· Jan 14, 2026
- 01/05/26 - Amended Assembly· Jan 5, 2026
- 02/21/25 - Introduced· Feb 21, 2025
- AB1278
Roll-call votes
State vote data last updated Oct 14, 2026, 12:15 PM.
| Date | Vote | Result | Your legislators |
|---|---|---|---|
| Aug 13, 2026 House | AB 1278 Harabedian Concurrence in Senate Amendments | pass | Set your home in California to see |
| Aug 10, 2026 Senate | Consent Calendar 2nd | pass | Set your home in California to see |
| Jun 30, 2026 Senate | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | pass | Set your home in California to see |
| Jun 17, 2026 Senate | Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary] | pass | Set your home in California to see |
| Jan 29, 2026 House | AB 1278 Harabedian Consent Calendar Second Day | pass | Set your home in California to see |
| Jan 22, 2026 House | Do pass. To Consent Calendar. | pass | Set your home in California to see |
| Jan 12, 2026 House | Do pass as amended, and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | pass | Set your home in California to see |
Actions
- Sep 30, 2026 · Legislature
Chaptered by Secretary of State - Chapter 877, Statutes of 2026. - Sep 30, 2026 · Legislature
Approved by the Governor. - Aug 20, 2026 · Legislature
Enrolled and presented to the Governor at 4 p.m. - Aug 13, 2026 · House
Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 74. Noes 0. Page 6137.). - Aug 11, 2026 · House
In Assembly. Concurrence in Senate amendments pending. - Aug 10, 2026 · Senate
Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0. Page 5321.). - Aug 4, 2026 · Senate
Read second time. Ordered to Consent Calendar. - Aug 3, 2026 · Senate
From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar. - Jul 1, 2026 · Senate
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. - Jun 22, 2026 · Senate
Read second time and amended. Re-referred to Com. on JUD. - Jun 18, 2026 · Senate
From committee: Amend, and do pass as amended and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 17). - May 6, 2026 · Senate
Referred to Coms. on B. & F.I. and JUD. - Jan 29, 2026 · Senate
In Senate. Read first time. To Com. on RLS. for assignment. - Jan 29, 2026 · House
Read third time. Passed. Ordered to the Senate. (Ayes 70. Noes 0. Page 3885.) - Jan 26, 2026 · House
Read second time. Ordered to Consent Calendar. - Jan 22, 2026 · House
From committee: Do pass. To Consent Calendar. (Ayes 15. Noes 0.) (January 22). - Jan 15, 2026 · House
Re-referred to Com. on APPR. - Jan 14, 2026 · House
Read second time and amended. - Jan 13, 2026 · House
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). - Jan 6, 2026 · House
Re-referred to Com. on B. & F. - Jan 5, 2026 · House
From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended. - Jan 5, 2026 · House
Referred to Com. on B. & F. - Feb 24, 2025 · House
Read first time. - Feb 22, 2025 · House
From printer. May be heard in committee March 24. - Feb 21, 2025 · House
Introduced. To print.