Politics.AIAssembly BillPassed both housesFinancial
AB 2116: Commercial financing.
What AB 2116 does, verified August 25, 2026
<p>The California Consumer Financial Protection Law (CCFPL) is being amended to include protections for small businesses from abusive financial practices. The Department of Financial Protection and Innovation will establish rules for registration requirements applicable to covered persons offering commercial financing products, effective January 1, 2028. These regulations prohibit certain actions such as taking a confession of judgment or power of attorney before default. Additionally, the bill imposes various duties on commercial financing providers and brokers.</p>
Bill journey
✓IntroducedComplete
✓In CommitteeComplete
✓First Chamber FloorComplete
✓Second ChamberComplete
5GovernorCurrent
6ChapteredPending
Last action: Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.). (2026-08-20)Alert me
Author and sponsors
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| Aug. 20, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.). |
| Aug. 19, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug. 19, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 37. Noes 0.). |
| Aug. 17, 2026 | Read second time. Ordered to third reading. |
| Aug. 13, 2026 | Read second time and amended. Ordered returned to second reading. |