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    AB-801
    Budget & Economy

    Financial institutions: California Community Reinvestment Act.

    Engrossed
    CA
    ∙
    2025-2026 Regular Session
    0
    0
    Track
    Track

    Key Takeaways

    • Establishes the California Community Reinvestment Act requiring banks to serve low-income communities.
    • Requires financial institutions to undergo community service assessments every three years.
    • Creates a rating system from Outstanding to Substantial Noncompliance for bank performance.
    • Prohibits poorly-rated institutions from receiving state funds or contracts.

    Summary

    Assembly Member Bonta's California Community Reinvestment Act establishes new obligations for banks, large credit unions, and certain mortgage lenders to meet the financial services needs of their local communities, with particular focus on low- and moderate-income areas and communities of color.

    The legislation requires covered financial institutions to undergo regular assessments of their community service performance every three years. The Department of Financial Protection and Innovation will evaluate institutions based on multiple factors, including branch distribution, mortgage lending patterns, small business loan origination, participation in community development programs, and responses to customer delinquencies. Based on these evaluations, institutions receive one of five ratings ranging from "outstanding" to "substantial noncompliance."

    Institutions rated as "needs to improve" or "substantial noncompliance" must submit improvement plans and face restrictions on receiving state deposits or contracts. The department can levy administrative penalties up to $100,000 for institutions that consistently fail to meet their obligations. These penalties fund a new Community Reinvestment Fund to support the program's administration.

    The bill mandates a statewide financial services disparity study by 2027, followed by implementation rules in 2028. Covered institutions must complete initial community needs assessments by 2029, incorporating public input and making results publicly available. The legislation also requires institutions to post notices about the evaluation process and accept public comments on their community service performance.

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Hearing scheduled for , State Capitol, Room 112
    Next Step
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Hearing scheduled for , 1021 O Street, Room 2100
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 801 Bonta Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Banking And Finance Hearing
    Assembly Committee
    Assembly Banking And Finance Hearing
    Do pass as amended and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Contacts

    Profile
    Roger NielloR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Monique LimonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Sabrina CervantesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 16 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Monique LimonD
    Senator
    Committee Member
    Profile
    Sabrina CervantesD
    Senator
    Committee Member
    Profile
    Melissa HurtadoD
    Senator
    Committee Member
    Profile
    Akilah Weber PiersonD
    Senator
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Bill Author
    Profile
    Mia BontaD
    Assemblymember
    Bill Author
    Profile
    Lori WilsonD
    Assemblymember
    Bill Author
    Profile
    Tina McKinnorD
    Assemblymember
    Bill Author
    Profile
    Corey JacksonD
    Assemblymember
    Bill Author
    Profile
    Lola Smallwood-CuevasD
    Senator
    Bill Author
    Profile
    LaShae Sharp-CollinsD
    Assemblymember
    Bill Author
    Profile
    Laura RichardsonD
    Senator
    Committee Member
    Profile
    Sade ElhawaryD
    Assemblymember
    Bill Author

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Lori Wilson
    Lori WilsonD
    California State Assembly Member
    LaShae Sharp-Collins
    LaShae Sharp-CollinsD
    California State Assembly Member
    Tina McKinnor
    Tina McKinnorD
    California State Assembly Member
    Corey Jackson
    Corey JacksonD
    California State Assembly Member
    Mike Gipson
    Mike GipsonD
    California State Assembly Member
    Sade Elhawary
    Sade ElhawaryD
    California State Assembly Member
    Isaac Bryan
    Isaac BryanD
    California State Assembly Member
    Mia Bonta
    Mia BontaD
    California State Assembly Member
    Co-Authors
    Akilah Weber Pierson
    Akilah Weber PiersonD
    California State Senator
    Lola Smallwood-Cuevas
    Lola Smallwood-CuevasD
    California State Senator
    Laura Richardson
    Laura RichardsonD
    California State Senator
    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

    Latest Voting History

    View History
    June 3, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    45151979PASS

    Key Takeaways

    • Establishes the California Community Reinvestment Act requiring banks to serve low-income communities.
    • Requires financial institutions to undergo community service assessments every three years.
    • Creates a rating system from Outstanding to Substantial Noncompliance for bank performance.
    • Prohibits poorly-rated institutions from receiving state funds or contracts.

    Get Involved

    Act Now!

    Email the authors or create an email template to send to all relevant legislators.

    Introduced By

    Lori Wilson
    Lori WilsonD
    California State Assembly Member
    LaShae Sharp-Collins
    LaShae Sharp-CollinsD
    California State Assembly Member
    Tina McKinnor
    Tina McKinnorD
    California State Assembly Member
    Corey Jackson
    Corey JacksonD
    California State Assembly Member
    Mike Gipson
    Mike GipsonD
    California State Assembly Member
    Sade Elhawary
    Sade ElhawaryD
    California State Assembly Member
    Isaac Bryan
    Isaac BryanD
    California State Assembly Member
    Mia Bonta
    Mia BontaD
    California State Assembly Member
    Co-Authors
    Akilah Weber Pierson
    Akilah Weber PiersonD
    California State Senator
    Lola Smallwood-Cuevas
    Lola Smallwood-CuevasD
    California State Senator
    Laura Richardson
    Laura RichardsonD
    California State Senator

    Summary

    Assembly Member Bonta's California Community Reinvestment Act establishes new obligations for banks, large credit unions, and certain mortgage lenders to meet the financial services needs of their local communities, with particular focus on low- and moderate-income areas and communities of color.

    The legislation requires covered financial institutions to undergo regular assessments of their community service performance every three years. The Department of Financial Protection and Innovation will evaluate institutions based on multiple factors, including branch distribution, mortgage lending patterns, small business loan origination, participation in community development programs, and responses to customer delinquencies. Based on these evaluations, institutions receive one of five ratings ranging from "outstanding" to "substantial noncompliance."

    Institutions rated as "needs to improve" or "substantial noncompliance" must submit improvement plans and face restrictions on receiving state deposits or contracts. The department can levy administrative penalties up to $100,000 for institutions that consistently fail to meet their obligations. These penalties fund a new Community Reinvestment Fund to support the program's administration.

    The bill mandates a statewide financial services disparity study by 2027, followed by implementation rules in 2028. Covered institutions must complete initial community needs assessments by 2029, incorporating public input and making results publicly available. The legislation also requires institutions to post notices about the evaluation process and accept public comments on their community service performance.

    40% progression
    Bill has passed all readings in its first house and is ready to move to the other house (6/3/2025)

    Key Dates

    Next Step
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Hearing scheduled for , State Capitol, Room 112
    Next Step
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Next Step
    Senate Committee
    Referred to the Senate Standing Committee on Banking and Financial Institutions
    Hearing scheduled for , 1021 O Street, Room 2100
    Vote on Assembly Floor
    Assembly Floor
    Vote on Assembly Floor
    AB 801 Bonta Assembly Third Reading
    Assembly Appropriations Hearing
    Assembly Committee
    Assembly Appropriations Hearing
    Do pass as amended
    Assembly Banking And Finance Hearing
    Assembly Committee
    Assembly Banking And Finance Hearing
    Do pass as amended and be re-referred to the Committee on [Appropriations]
    Introduced
    Assembly Floor
    Introduced
    Read first time. To print.

    Latest Voting History

    View History
    June 3, 2025
    PASS
    Assembly Floor
    Vote on Assembly Floor
    AyesNoesNVRTotalResult
    45151979PASS

    Contacts

    Profile
    Roger NielloR
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Not Contacted
    Not Contacted
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Monique LimonD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    Profile
    Sabrina CervantesD
    Senator
    Committee Member
    Not Contacted
    Not Contacted
    0 of 16 row(s) selected.
    Page 1 of 4
    Select All Legislators
    Profile
    Roger NielloR
    Senator
    Committee Member
    Profile
    Mike GipsonD
    Assemblymember
    Bill Author
    Profile
    Tim GraysonD
    Senator
    Committee Member
    Profile
    Monique LimonD
    Senator
    Committee Member
    Profile
    Sabrina CervantesD
    Senator
    Committee Member
    Profile
    Melissa HurtadoD
    Senator
    Committee Member
    Profile
    Akilah Weber PiersonD
    Senator
    Bill Author
    Profile
    Isaac BryanD
    Assemblymember
    Bill Author
    Profile
    Mia BontaD
    Assemblymember
    Bill Author
    Profile
    Lori WilsonD
    Assemblymember
    Bill Author
    Profile
    Tina McKinnorD
    Assemblymember
    Bill Author
    Profile
    Corey JacksonD
    Assemblymember
    Bill Author
    Profile
    Lola Smallwood-CuevasD
    Senator
    Bill Author
    Profile
    LaShae Sharp-CollinsD
    Assemblymember
    Bill Author
    Profile
    Laura RichardsonD
    Senator
    Committee Member
    Profile
    Sade ElhawaryD
    Assemblymember
    Bill Author