California legislation · 2025-2026 Regular Session
California AB2116: Commercial financing.
Status: Chaptered, September 30, 2026
What the bill says
An act to amend Sections 22001, 22002, 22007, 22010, 22101, 22101.5, 22102, 22103, 22104, 22105, 22106, 22107, 22109, 22112, 22151, 22153, 22156, 22157, 22157.1, 22159, 22161, 22162, 22164, 22168, 22169, 22700, 22701, 22712, and 22714 of, to amend, renumber, and add Section 22807 of, to add Sections 22021, 22022, 22100.6, and 22167.1 to, and to add Chapter 3.1 (commencing with Section 22655) to Division 9 of, the Financial Code, relating to financial institutions. financial institutions Commercial financing…
From the chaptered text, September 30, 2026:
An act to amend Sections 22001, 22002, 22007, 22010, 22101, 22101.5, 22102, 22103, 22104, 22105, 22106, 22107, 22109, 22112, 22151, 22153, 22156, 22157, 22157.1, 22159, 22161, 22162, 22164, 22168, 22169, 22700, 22701, 22712, and 22714 of, to amend, renumber, and add Section 22807 of, to add Sections 22021, 22022, 22100.6, and 22167.1 to, and to add Chapter 3.1 (commencing with Section 22655) to Division 9 of, the Financial Code, relating to financial institutions. financial institutions Commercial financing. The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation, including by regulating the provision of commercial loans, as defined. A willful violation of the CFL is a crime, except as specified. This bill would, beginning January 1, 2028, generally provide for the regulation under the CFL of commercial financing, which the bill would define to mean an accounts receivable purchase transaction, including factoring, asset-based lending transaction, commercial loan, commercial open-end credit plan, or lease financing, intended by the recipient for use primarily for a purpose other than a personal, family, or household purpose, as specified. Beginning July 1, 2028, the bill would prohibit a person from engaging in the business of a commercial financing provider, as defined, or a commercial financing broker, as defined, without obtaining a license …
Sponsors
- Pilar Schiavo (D, AD40) · primary sponsor
Latest actions
- : Chaptered by Secretary of State - Chapter 823, Statutes of 2026.
- : Approved by the Governor.
- : Enrolled and presented to the Governor at 4 p.m.
- : Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.).
- : Senate amendments concurred in. To Engrossing and Enrolling.
- : Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 6323.).
- : Read third time. Passed. Ordered to the Assembly. (Ayes 38. Noes 0. Page 5560.).
- : In Assembly. Concurrence in Senate amendments pending.
- : Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.).
- : Read second time. Ordered to third reading.
Votes
- AB 2116 Schiavo Concurrence in Senate Amendments (August 20, 2026): 76 yea, 0 nay, passed
- Assembly 3rd Reading AB2116 Schiavo By Reyes (August 19, 2026): 38 yea, 0 nay, passed
- Do pass as amended (August 13, 2026): 7 yea, 0 nay, passed
- Placed on suspense file (August 3, 2026): 7 yea, 0 nay, passed
- Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] (June 30, 2026): 13 yea, 0 nay, passed
- Do pass as amended, but first amend, and re-refer to the Committee on [Judiciary] (June 17, 2026): 6 yea, 0 nay, passed
Common questions
- What is AB2116?
- AB2116 is a bill in the California Legislature (2025-2026 Regular Session): Commercial financing.
- What does AB2116 do?
- In its own words: An act to amend Sections 22001, 22002, 22007, 22010, 22101, 22101.5, 22102, 22103, 22104, 22105, 22106, 22107, 22109, 22112, 22151, 22153, 22156, 22157, 22157.1, 22159, 22161, 22162, 22164, 22168, 22169, 22700, 22701, 22712, and 22714 of, to amend, renumber, and add Section 22807 of, to add Sections 22021, 22022, 22100.6, and 22167.1 to, and to add Chapter 3.1 (commencing with Section 22655) to Division 9 of, the Financial Code, relating to financial institutions. financial institutions Commercial financing…
- What is the status of AB2116?
- Chaptered as of September 30, 2026. Latest action: Chaptered by Secretary of State - Chapter 823, Statutes of 2026. (September 30, 2026).
- Who sponsored AB2116?
- Pilar Schiavo (D, AD40).
- Where is the official record for AB2116?
- On the California Legislature website: https://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=202520260AB2116
Source: official California record. Tracked by Delilah, AI for legislation across all 50 states and Congress.