January 2026 Sacramento Update
Lawmakers returned to Sacramento on January 5 for the second year of a two-year session, meaning policy work will resume quickly on bills carried over from 2025. Assm. Robert Rivas (D) remains Speaker of the Assembly, but Monique Limon (D) will take the reins from Mike McGuire (D) as Senate pro Tem. She recently announced new committee chairs, significantly reshuffling the composition of key committees and announcing a new leadership team. Senator Angelique Ashby (D) is now the Majority Leader and will work closely with Senator Limon. Despite the changes, Senator Tim Grayson (D) remains chair of the Banking and Financial Institutions Committee.
Dozens of bills that stalled last year will be eligible for action. Several directly affect community banks:
AB 801 (Bonta), which seeks to establish the California Community Reinvestment Act. It would require a covered financial institution to have a continuing and affirmative obligation to meet the financial services needs of the communities, including low- and moderate-income communities and communities of color, in which the covered financial institution conducts substantial business, as specified. The bill would also prohibit a covered financial institution with certain ratings from receiving state funds for deposit or being awarded a state contract to provide financial services.
AB 909 (Schiavo), which seeks to add “induced transactions” to the coerced debt statute and limit an account holder’s liability to $50 for a broad range of fraudulent transactions, including funds transfers, cash withdrawals, and credit extensions. CCBN, along with other affected stakeholders, met with the chair of the Assembly Banking and Finance Committee to outline serious concerns about the bill’s broad scope and unintended impacts on financial institutions. As a result, the chair chose not to set the bill for a hearing, but it is eligible to move in January. It must pass out of the Assembly by January 31 in order to remain alive.
AB 1018 (Bauer-Kahan), which seeks to regulate automated decision systems (ADSs). It could increase the cost of providing credit to California residents and compromise cybersecurity and anti-fraud efforts of financial institutions already abiding by robust federal and state laws, regulations, and supervisory guidance that are applicable to the use of all technologies, including ADSs. We will continue to advocate in opposition to the bill.
What’s Next
Committee hearings are beginning to populate, caucuses will ramp up their agendas, and two-year bills will start moving—quickly. In addition, Governor Newsom will release his proposed budget by January 10. With redistricting, the governor’s race, and major policy fights all activating at once, 2026 is shaping up to be a busy year for Sacramento politics and for the waste hauling industry.