AB-801
Budget & Economy

Financial institutions: California Community Reinvestment Act.

Engrossed
CA
2025-2026 Regular Session
0
0
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 Rules
Next Step
Senate Committee
Referred to the Senate Standing Committee on Rules
Hearing has not been scheduled yet
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
Shannon GroveR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Brian JonesR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Mike McGuireD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Eloise ReyesD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Shannon GroveR
Senator
Committee Member
Profile
Brian JonesR
Senator
Committee Member
Profile
Mike GipsonD
Assemblymember
Bill Author
Profile
Mike McGuireD
Senator
Committee Member
Profile
Eloise ReyesD
Senator
Committee Member
Profile
John LairdD
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
Bill Author
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

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 Rules
Next Step
Senate Committee
Referred to the Senate Standing Committee on Rules
Hearing has not been scheduled yet
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

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

Contacts

Profile
Shannon GroveR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Brian JonesR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Mike GipsonD
Assemblymember
Bill Author
Not Contacted
Not Contacted
Profile
Mike McGuireD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Eloise ReyesD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 16 row(s) selected.
Page 1 of 4
Select All Legislators
Profile
Shannon GroveR
Senator
Committee Member
Profile
Brian JonesR
Senator
Committee Member
Profile
Mike GipsonD
Assemblymember
Bill Author
Profile
Mike McGuireD
Senator
Committee Member
Profile
Eloise ReyesD
Senator
Committee Member
Profile
John LairdD
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
Bill Author
Profile
Sade ElhawaryD
Assemblymember
Bill Author