June 2026 Sacramento Update
The Legislature has officially passed the House of Origin deadline, meaning all bills that remain alive have now moved to the opposite house for consideration. As the Senate and Assembly begin hearing each other's bills, CCBN continues to engage on several key issues affecting California's banking industry.
Legislative Update
CCBN was pleased to see the defeat of AB 2243 (Haney), which would have created a California State Bank Act. The bill was held on the Assembly Appropriations Suspense File and will not move forward this year. CCBN advocated in opposition to the bill.
Another positive development was the defeat of SB 1041 (Arreguín), which would have expanded Property Assessed Clean Energy (PACE) financing to cover a broader range of wildfire home hardening projects. The PACE industry has advocated for this expansion for several years, arguing that reforms enacted in 2018 were too narrow. However, concerns remained regarding consumer protections and the potential impacts of a broader expansion.
Several bills of concern continue to move through the Legislature. AB 2674 (Schiavo) remains active and raises significant concerns regarding financial institution liability related to consumer fraud. We will continue working with members of the Senate Banking and Financial Institutions Committee to address these issues as the bill moves forward.
Mortgage forbearance proposals AB 1842 (Harabedian) and AB 1847 (Harabedian) also remain active and will be heard in Senate committees in the coming weeks. CCBN continues to monitor these measures closely and advocate for workable solutions that protect both consumers and lenders.
Budget and Politics
Governor Gavin Newsom released his revised budget proposal last month. While state revenues came in higher than anticipated—largely driven by strong performance in California's technology sector and continued enthusiasm around artificial intelligence—the Administration continues to warn that these revenues may not be sustainable long-term. As a result, the Governor's proposal still includes spending reductions and other efforts aimed at addressing future budget shortfalls.
California voters head to the polls on June 2 for the statewide primary election. Current polling suggests that Xavier Becerra (D) and Steve Hilton (R) are the most likely candidates to advance to the November general election, setting up a closely watched contest for Governor.
Meanwhile, discussions continue regarding a proposed billionaire tax ballot measure and competing countermeasures that would limit future wealth taxes. If these proposals qualify for the ballot, they could become one of the state's most significant tax policy debates in the coming election cycle.
As always, CCBN will continue advocating on behalf of California's community banks and keeping members informed as the legislative session progresses.