July 2026 Sacramento Update
The Legislature is closing out one of the busiest weeks of the legislative session as lawmakers work to meet the Second House Policy Committee Deadline on July 2. The Legislature will adjourn for summer recess on July 3 and return on August 3 for the final month of session, when attention shifts to fiscal committee hearings and floor votes before the August 31 adjournment.
State Budget
The Legislature passed the 2026-27 State Budget on June 15, meeting its constitutional deadline, and Governor Newsom signed it on June 30. Thanks to stronger-than-expected revenues, the budget outlook improved significantly from earlier projections. Lawmakers largely avoided new taxes and fees while maintaining funding for key climate, transportation, and infrastructure priorities. Budget pressures remain, however—particularly in Medi-Cal—and will continue to shape policy discussions throughout the year.
Election Update
California's June 3 primary election produced few surprises, with most legislative incumbents advancing comfortably. The biggest statewide development remains the Governor's race, where former U.S. Health and Human Services Secretary Xavier Becerra continues to emerge as the clear frontrunner.
Bills of Interest
AB 801 (Bonta) – California Fair Lending Examination Act: This bill previously would have created a statewide Community Reinvestment Act but, due to our opposition and opposition from others, it was amended to establish the California Fair Lending Examination Act, requiring the DFPI to examine banks, credit unions, and residential mortgage lenders at least once every four years to assess compliance with state and federal fair lending laws. CCBN testified in lead opposition before the Senate Banking and Financial Institutions Committee in June. During the hearing, the author agreed to narrow the bill to mortgage lending only. We remain opposed but continue working with the author's office on a HMDA reporting threshold that would exempt community banks from collecting data they do not already report under federal law. If adopted, CCBN expects to move to a neutral position.
AB 1842 & AB 1847 (Harabedian) – Mortgage Forbearance: CCBN has gone neutral on AB 1842 following amendments addressing many of our legal concerns. It would permit a borrower of a loan secured by residential real property of four or fewer residential units to request and extend mortgage forbearance for up to 12 months of total forbearance, when the borrower’s real property has become uninhabitable as a direct result of a federally-declared disaster.
However, we remain opposed to AB 1847, which would significantly expand mortgage forbearance requirements for homeowners impacted by the Los Angeles wildfires. The bill has advanced to the Senate Appropriations Committee.
AB 2285 (Valencia) – Digital Financial Assets: CCBN took an Oppose Unless Amended position on the bill due to concerns regarding its treatment of digital asset services and staking rewards. Following concerns raised by CCBN and members of the Senate Banking Committee, the author pulled the bill, making it dead for the 2026 legislative session.
CCBN will continue advocating on the industry's highest-priority legislation throughout the final weeks of session and will keep members informed as negotiations continue after the Legislature returns from summer recess.