August 2026 Sacramento Update
July has been relatively quiet in Sacramento with the Legislature on summer recess. Before departing the Capitol last month, all bills were required to pass out of their second-house policy committees by July 3.
When lawmakers return on August 3, attention will shift immediately to the fiscal committees. AB 801 (Bonta), which would establish the California Fair Lending Examination Act, is scheduled for hearing in the Senate Appropriations Committee that day. The bill would require DFPI to examine banks, credit unions, and residential mortgage lenders at least once every four years for compliance with state and federal fair lending laws.
AB 801 previously proposed creating a statewide Community Reinvestment Act but was substantially amended in response to opposition from CCBN and other industry stakeholders. CCBN remains opposed to the bill but is continuing discussions with the author’s office regarding amendments that could address our concerns. We are requesting a HMDA reporting threshold that would exempt community banks from collecting data they are not already required to report under federal law. Those conversations will continue in August.
AB 1847 (Harabedian), relating to mortgage forbearance, is also pending in the Senate Appropriations Committee. CCBN remains opposed to the measure, which would significantly expand mortgage forbearance requirements for homeowners affected by the Los Angeles wildfires. While the bill has been amended to reduce the maximum forbearance period from 36 months to 24 months, CCBN continues to have concerns regarding the scope and impact of the expanded requirements.
Beyond legislation, artificial intelligence continues to receive significant attention from both the Legislature and the Newsom Administration. Governor Newsom has emphasized the need to protect California from the potential financial and economic implications of the AI revolution, while lawmakers are considering a broad range of proposals affecting financial services, healthcare, law enforcement, and other sectors. Some political observers are already referring to the 2028 campaign cycle as the “AI election.”
August will be a fast-paced month at the Capitol, with fiscal committee hearings, floor votes, and final negotiations compressed into the final weeks before the Legislature adjourns on August 31.