September 2026 Advocacy Update
The Legislature is in the final days of the 2026 session, with lawmakers scheduled to work Sunday, August 30, before adjourning for the year on Monday, August 31. The Governor will have until September 30 to act on bills that reach his desk.
AB 801 (Bonta) – Significant Win for CCBN
CCBN has moved to neutral on AB 801 following amendments that significantly narrowed the bill. Originally, AB 801 would have created a state-level Community Reinvestment Act. The bill is now limited to mortgage lending and includes a HMDA reporting threshold, addressing key concerns raised by CCBN and the banking industry. Given where the proposal began, this represents a significant win. However, we expect proponents may return with another California CRA proposal in 2027.
AB 1018 – Automated Decision Systems
AB 1018, which regulates “automated decision systems” used to make or facilitate consequential decisions, is moving again after being placed on the inactive file last year amid significant industry opposition. Recent amendments narrow the bill by adding exemptions, eliminating risk assessment and audit requirements, and limiting certain consumer rights to “adverse outcomes.”
CCBN opposed the bill last year and is reviewing the amendments to determine our position. We remain concerned about duplicative requirements for financial institutions, particularly because ECOA and FCRA already provide consumers with notice and dispute rights when credit is denied. AB 1018 would still impose additional correction and appeal requirements.
SB 1288 (Laird) – Beneficiary Notification
SB 1288 seeks to ensure beneficiaries are notified of assets left to them after an accountholder’s death and can access those assets promptly. Although Senator Laird initially considered applying the bill broadly to accounts with designated beneficiaries, the current bill is limited to securities accounts. CCBN advised the Senator that we would oppose an expansion to bank accounts, and he elected to leave the bill as-is. An expanded proposal could return in 2027.
State Bank Proposal Resurfaces
We have learned that Assembly leaders are attempting to revive provisions similar to AB 2243 (Haney), the state bank proposal CCBN opposed that died earlier this year, through a budget trailer bill. The proposal would create a California Public Financial Infrastructure Commission, backed by a $4 million General Fund appropriation, to develop a state-owned financial institution capable of holding state revenues and providing financing for housing, infrastructure, climate projects, small businesses, disaster recovery, and local governments.
CCBN will oppose this effort alongside the California Bankers Association and California Credit Union League, particularly given the attempt to advance a major policy proposal through the budget process after the underlying bill failed.
Final Days
With only days remaining in session, proposals are changing quickly and new language can emerge with little notice. CCBN will continue monitoring developments and advocating through adjournment.