AB 2795: Financial regulation.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)The State Assistance Fund for Enterprise Act of 1989 authorizes the creation of a nonprofit corporation called the State Assistance Fund for Enterprise, Business and Industrial Development Corporation for the general purpose of enhancing the availability of financial assistance for small businesses in California. The act requires the State Controller to establish a separate account in the General Fund entitled the State Enterprise Loan Fund, which is continuously appropriated for purposes of the act.

This bill would repeal that act.

(2)Existing law specifies the types of securities that are eligible for the investment of surplus state funds, which include, among other things, bonds, notes, or other obligations of a local government of this state. Existing law requires those local bonds, notes, or other obligations to be within the top 3 ratings of a nationally recognized statistical rating organization.

Existing law also provides that an eligible security for the investment of surplus state funds includes bonds, debentures, and notes issued by corporations organized and operating with the United States and requires that those securities be within the top 3 ratings of a nationally recognized statistical rating organization.

This bill would instead require those local bonds, notes, or other obligations and corporate bonds, debentures, and notes to be rated in a rating category of “A” or its equivalent or better by such an organization to be eligible for investment.

Existing law provides that an eligible security for the investment of surplus state funds includes commercial paper of “prime” quality, as defined by a nationally recognized statistical rating organization that rates these securities, that also meets certain conditions. Under existing law, those conditions include, among other things, that the paper not exceed 270 days maturity and, at the request of the Pooled Money Investment Board, is secured by the issuer by depositing with the Treasurer certain authorized securities of a market value at least 10% in excess of the amount of the state’s investment (authorized securities condition).

Sponsors

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 20, 2026Chaptered by Secretary of State - Chapter 410, Statutes of 2026.
2. September 20, 2026Approved by the Governor.
3. September 4, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 27, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6693.).
5. August 27, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 26, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).
7. August 24, 2026Read second time. Ordered to third reading.
8. August 20, 2026Read third time and amended. Ordered to second reading.
9. August 13, 2026Read second time. Ordered to third reading.
10. August 12, 2026Read third time and amended. Ordered to second reading.
11. August 10, 2026Ordered to third reading.
12. August 10, 2026From Consent Calendar.