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California bills · 2025-2026 Regular Session

California AB 2116

Commercial financing.

  1. Introduced
  2. In committee
  3. Passed House
  4. Passed Senate
  5. To Governor
  6. Became law

Sponsors

Summary

Official abstract published by the California legislature· summary

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.

Text versions

Roll-call votes

State vote data last updated Oct 14, 2026, 12:15 PM.

DateVoteResultYour legislators
Aug 20, 2026
House		AB 2116 Schiavo Concurrence in Senate AmendmentspassSet your home in California to see
Aug 19, 2026
Senate		3rd Reading AB2116 Schiavo By ReyespassSet your home in California to see
Aug 13, 2026
Senate		Do pass as amendedpassSet your home in California to see
Aug 3, 2026
Senate		Placed on suspense filepassSet your home in California to see
Jun 30, 2026
Senate		Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations]passSet 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]passSet your home in California to see
May 22, 2026
House		AB 2116 Schiavo Assembly Third ReadingpassSet your home in California to see
May 14, 2026
House		Do pass.passSet your home in California to see
Apr 23, 2026
House		Do pass and be re-referred to the Committee on [Appropriations]passSet your home in California to see

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