Assembly BillPassed both housesFinancial
AB 801: Nondiscrimination.
What AB 801 does, verified September 15, 2026
The bill establishes the California Community Reinvestment Act, which requires covered financial institutions to meet the financial services needs of low- and moderate-income communities and communities of color in which they conduct substantial business. The commissioner will assess the institution's record of performance every three years and assign a rating, which will be used to evaluate the institution's compliance with the act. The commissioner may prohibit institutions with certain ratings from receiving state funds or awards. The bill also authorizes the commissioner to investigate and examine institutions for compliance with state and federal laws, and establishes a community reinvestment fund to administer the provisions of the act. The commissioner may issue an administrative penalty of up to $100,000 to institutions that regularly fail to meet their obligations.
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Last action: Enrolled and presented to the Governor at 4 p.m. (2026-09-03)Alert me
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| Sep. 03, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 26, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 11. Page 6564.). |
| Aug. 25, 2026 | In Assembly. Concurrence in Senate amendments pending. |
| Aug. 25, 2026 | Read third time. Passed. Ordered to the Assembly. (Ayes 30. Noes 7.). |
| Aug. 19, 2026 | Read second time. Ordered to third reading. |
Latest bill textEnrolled version, August 30, 2026 · 2,903 words
| Enrolled August 30, 2026 |
| Passed IN Senate August 25, 2026 |
| Passed IN Assembly August 26, 2026 |
| Amended IN Senate August 18, 2026 |
| Amended IN Senate August 13, 2026 |
| Amended IN Senate July 02, 2026 |
| Amended IN Senate June 04, 2026 |
| Amended IN Assembly May 23, 2025 |
| Amended IN Assembly May 06, 2025 |
| Amended IN Assembly April 21, 2025 |
| Amended IN Assembly March 28, 2025 |
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
Assembly Bill
No. 801
| Introduced by Assembly Member Bonta (Principal coauthors: Assembly Members Bryan, Elhawary, Gipson, Jackson, McKinnor, Sharp-Collins, and Wilson) (Principal coauthors: Senators Richardson, Smallwood-Cuevas, and Weber Pierson) |
February 18, 2025 |
An act to amend Section 50302 of, to add Chapter 22 (commencing with Section 1915) to Division 1.1 of, and to add Chapter 13 (commencing with Section 16910) to Division 5 of, the Financial Code, relating to financial institutions.
LEGISLATIVE COUNSEL'S DIGEST
AB 801, Bonta. Nondiscrimination.
Existing law establishes the Department of Financial Protection and Innovation under the direction of the Commissioner of Financial Protection and Innovation. Existing law makes the department responsible for administering various laws relating to financial institutions, including the Banking Law, the California Credit Union Law (CCUL), and the California Residential Mortgage Lending Act (CRMLA), a willful violation of which is punishable as a misdemeanor. The CRMLA requires, as often as the commissioner deems necessary and appropriate, but at least once every 48 months, the commissioner to examine the affairs of each residential mortgage lender and servicer licensee for compliance with the CRMLA. The CRMLA authorizes the commissioner to examine the licensee’s officers, directors, employees, or agents under oath regarding the licensee’s operations. The CRMLA requires the commissioner to provide a written statement, the disclosure of which is subject to certain restrictions, of the findings of the examination, issue a copy of that statement to each licensee’s principals, officers, or directors, and take appropriate steps to ensure correction of any violations of the CRMLA.
This bill, the California Fair Lending Examination Act, would require, under the Banking Law and the CCUL, the commissioner to, at least once every 4 years, examine, as prescribed, the books and records of certain entities subject to the commissioner’s examination authority under those laws for compliance with any nondiscrimination law applicable to mortgage lending, as specified, and would require the commissioner to provide a written statement of the findings of that examination, issue a copy of that statement to the subject’s principals, officers, or directors, and take appropriate steps to ensure correction of any violations of applicable nondiscrimination laws. The bill would prohibit disclosure of that statement to anyone other than the subject entity, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement.
This bill would, as part of the above-described examination required by the CRMLA, require the commissioner to additionally examine the licensee for compliance with any nondiscrimination law applicable to mortgage lending, as prescribed.
This bill would make a violation of an applicable nondiscrimination law a violation of the Banking Law, the CCUL, or the CRMLA, as applicable, and would authorize, under the Banking Law and the CCUL, the commissioner to examine the applicable entity’s officers, directors, employees, or agents under oath regarding the entity’s operations.
By expanding the scope of the crimes of perjury and of violating the CRMLA, this bill would impose a state-mandated local program.
Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.
This bill would make legislative findings to that effect.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known as the California Fair Lending Examination Act.SEC. 2.
Chapter 22 (commencing with Section 1915) is added to Division 1.1 of the Financial Code, to read:CHAPTER 22. Nondiscrimination
1915.
(a) (1) At least once every four years, the commissioner shall examine, pursuant to paragraph (2), the books and records of any bank subject to the commissioner’s examination authority that meets at least one of the criteria listed in Section 1003.2(g)(1)(v) of Title 12 of the Code of Federal Regulations for compliance with any nondiscrimination law applicable to mortgage lending, including the federal Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.), the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), the Holden Act (Part 6 (commencing with Section 35800) of Division 24 of the Health and Safety Code), and the Unruh Civil Rights Act (Section 51 of the Civil Code). (2) (A) The commissioner may examine the books, records, and documents of the bank and may examine the bank’s officers, directors, employees, or agents under oath regarding the bank’s operations.
(B) The commissioner may cooperate with any agency of the state or federal government, other states, agencies, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation, and the commissioner may accept an examination conducted by any of those entities in place of an examination by the commissioner under this chapter, unless the commissioner determines that the examination does not provide information necessary to enable the commissioner to fulfill the commissioner’s responsibilities under this chapter.
(C) (i) The commissioner shall align the schedule of examinations required by this subdivision with scheduled examinations under other law administered by the commissioner.
(ii) This subparagraph does not limit the authority of the commissioner to conduct a targeted or off-schedule examination for due cause, including receiving complaints or other evidence related to potential discrimination by a bank.
(D) The commissioner may exempt from examination, or examine less frequently than otherwise required by paragraph (1), a bank that demonstrates full compliance with applicable nondiscrimination law in the most recent examination, pursuant to this chapter, of the bank.
(E) In implementing and administering the scope of examination described in this subdivision, the commissioner shall seek to enhance the efficiency and effectiveness of required examinations to reduce the total exam costs billed to banks.
(b) (1) The commissioner shall provide a written statement of the findings of any examination conducted under this chapter, issue a copy of that statement to the subject bank’s principals, officers, or directors, and take appropriate steps to ensure correction of any violation of applicable nondiscrimination law, including a discriminatory effect under the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), that is not attributable to a legitimate business interest of the bank.
(2) Notwithstanding any other law, a statement required by this subdivision of the findings of an examination shall not be disclosed to anyone other than the bank, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement. An examination report prepared by the commissioner’s duly designated representatives pursuant to this chapter shall not be a public record.
(c) An affiliate of a bank is subject to examination by the commissioner on the same terms as the bank, if a report from, or examination of, a bank provides documented evidence of unlawful activity between a bank and an affiliate benefiting, affecting, or arising from the activities regulated by this chapter.
(d) The commissioner shall assess to the bank a fee for the purpose of covering the costs of the examination that does not exceed the reasonable expenses of the examination under this chapter.
(e) A violation of an applicable nondiscrimination law is a violation of this division, and the commissioner may use the authority provided by this division or Division 24 (commencing with Section 90000) to bring an appropriate enforcement action based on the nature of the violation.
SEC. 3.
Chapter 13 (commencing with Section 16910) is added to Division 5 of the Financial Code, to read:CHAPTER 13. Nondiscrimination
16910.
(a) (1) At least once every four years, the commissioner shall examine, pursuant to paragraph (2), the books and records of any credit union subject to the commissioner’s examination authority that meets at least one of the criteria listed in Section 1003.2(g)(1)(v) of Title 12 of the Code of Federal Regulations for compliance with any nondiscrimination law applicable to mortgage lending, including the federal Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.), the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), the Holden Act (Part 6 (commencing with Section 35800) of Division 24 of the Health and Safety Code), and the Unruh Civil Rights Act (Section 51 of the Civil Code).(2) (A) The commissioner may examine the books, records, and documents of the credit union and may examine the credit union’s officers, directors, employees, or agents under oath regarding the credit union’s operations.
(B) The commissioner may cooperate with any agency of the state or federal government, other states, agencies, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation, and the commissioner may accept an examination conducted by any of those entities in place of an examination by the commissioner under this chapter, unless the commissioner determines that the examination does not provide information necessary to enable the commissioner to fulfill the commissioner’s responsibilities under this chapter.
(C) (i) The commissioner shall align the schedule of examinations required by this subdivision with scheduled examinations under other law administered by the commissioner.
(ii) This subparagraph does not limit the authority of the commissioner to conduct a targeted or off-schedule examination for due cause, including receiving complaints or other evidence related to potential discrimination by a credit union.
(D) The commissioner may exempt from examination, or examine less frequently than otherwise required by paragraph (1), a credit union that demonstrates full compliance with applicable nondiscrimination law in the most recent examination, pursuant to this chapter, of the credit union.
(E) In implementing and administering the scope of examination described in this subdivision, the commissioner shall seek to enhance the efficiency and effectiveness of required examinations to reduce the total exam costs billed to credit unions.
(b) (1) The commissioner shall provide a written statement of the findings of any examination conducted under this chapter, issue a copy of that statement to the subject credit union’s principals, officers, or directors, and take appropriate steps to ensure correction of any violation of applicable nondiscrimination law, including a discriminatory effect under the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), that is not attributable to a legitimate business interest of the credit union.
(2) Notwithstanding any other law, a statement required by this subdivision of the findings of an examination shall not be disclosed to anyone other than the credit union, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement. An examination report prepared by the commissioner’s duly designated representatives pursuant to this chapter shall not be a public record and shall be treated as an examination report subject to the provisions of Section 14257 and other applicable law.
(c) An affiliate of a credit union is subject to examination by the commissioner on the same terms as the credit union, if a report from, or examination of, a credit union provides documented evidence of unlawful activity between a credit union and an affiliate benefiting, affecting, or arising from the activities regulated by this chapter.
(d) The commissioner shall assess to the credit union a fee for the purpose of covering the costs of the examination that does not exceed the reasonable expenses of the examination under this chapter.
(e) A violation of an applicable nondiscrimination law is a violation of this division, and the commissioner may use the authority provided by this division or Division 24 (commencing with Section 90000) to bring an appropriate enforcement action based on the nature of the violation.
SEC. 4.
Section 50302 of the Financial Code is amended to read:50302.
(a) (1) As often as the commissioner deems necessary and appropriate, but at least once every 48 months, the commissioner shall examine the affairs of each residential mortgage lender and servicer licensee for compliance with this division. The commissioner shall appoint suitable persons to perform the examination. The commissioner and the commissioner’s appointees may examine the books, records, and documents of the licensee, and may examine the licensee’s officers, directors, employees, or agents under oath regarding the licensee’s operations. The commissioner may cooperate with any agency of the state or federal government, other states, agencies, the Federal National Mortgage Association, or the Federal Home Loan Mortgage Corporation. The commissioner may accept an examination conducted by one of these entities in place of an examination by the commissioner under this law unless the commissioner determines that the examination does not provide information necessary to enable the commissioner to fulfill the commissioner’s responsibilities under this division.(2) (A) As part of the examination required by this subdivision, the commissioner shall examine the licensee for compliance with any nondiscrimination law applicable to mortgage lending, including the federal Equal Credit Opportunity Act (15 U.S.C. Sec. 1691 et seq.), the federal Fair Housing Act (42 U.S.C. Sec. 3601 et seq.), the California Fair Employment and Housing Act (Part 2.8 (commencing with Section 12900) of Division 3 of Title 2 of the Government Code), the Holden Act (Part 6 (commencing with Section 35800) of Division 24 of the Health and Safety Code), and the Unruh Civil Rights Act (Section 51 of the Civil Code).
(B) A violation of an applicable nondiscrimination law is a violation of this division, and the commissioner may use the authority provided by this division or Division 24 (commencing with Section 90000) to bring an appropriate enforcement action based on the nature of the violation.
(3) In implementing and administering the scope of examination described in paragraph (2), commissioner shall seek to enhance the efficiency and effectiveness of required examinations to reduce the total exam costs billed to licensees.
(b) The commissioner shall provide a written statement of the findings of the examination, issue a copy of that statement to each licensee’s principals, officers, or directors, and take appropriate steps to ensure correction of any violations of this division.
(c) Affiliates of a licensee are subject to examination by the commissioner on the same terms as the licensee but only when reports from, or examination of, a licensee provides documented evidence of unlawful activity between a licensee and affiliate benefiting, affecting, or arising from the activities regulated by this division.
(d) The residential mortgage lender or servicer licensee shall pay, and the commissioner shall assess, the reasonable expenses of any examination of the licensee and affiliates, consistent with the requirements of subdivision (c) of Section 50314.
(e) The statement of the findings of an examination shall belong to the commissioner and shall not be disclosed to anyone other than the licensee, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement. Reports required of licensees by the commissioner under this division and results of examinations performed by the commissioner under this division are the property of the commissioner and, pursuant to Section 50314, are not public records.
SEC. 5.
The Legislature finds and declares that Sections 2, 3, and 4 of this act, which amend Section 50302 of, and add Chapter 22 (commencing with Section 1915) to Division 1.1 of, and Chapter 13 (commencing with Section 16910) to Division 5 of, the Financial Code, impose a limitation on the public’s right of access to the meetings of public bodies or the writings of public officials and agencies within the meaning of Section 3 of Article I of the California Constitution. Pursuant to that constitutional provision, the Legislature makes the following findings to demonstrate the interest protected by this limitation and the need for protecting that interest:In order to protect the privacy of a licensee who has complied with the Commissioner of Financial Protection and Innovation’s demands, or otherwise reached a mutually agreeable resolution of any issues, during an investigation, it is necessary to hold any examinations and correspondence related to that investigation confidential. Furthermore, in order to protect the safety and soundness of a depository institution, records related to an examination should remain confidential, as that information is similarly protected by federal regulators of depository institutions.
SEC. 6.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.Text of AB 801 as enrolled, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions