SB 728: California Consumer Financial Protection Law: commercial financing.

Official summary

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

Existing law, the California Consumer Financial Protection Law (CCFPL), establishes certain consumer protections relating to consumer financial products, practices, and services, including, among others, making it unlawful for covered persons or service providers, as defined, to, among other acts, engage in unlawful, unfair, deceptive, or abusive acts or practices with respect to consumer financial products or services. Existing law establishes that the purpose of the CCFPL is to promote consumer welfare, fair competition, and wealth creation in this state by promoting, among other things, nondiscriminatory access to consumer financial products and services that are understandable and not unfair, deceptive, or abusive. Existing law authorizes the Department of Financial Protection and Innovation, under the direction of the Commissioner of Financial Protection and Innovation, to prescribe rules regarding registration requirements applicable to a covered person in the business of offering or providing a consumer financial product or service, as defined, and rules requiring the payment of registration fees.

This bill would expand the purposes of the CCFPL to include the protection of small businesses from abusive financial practices, as specified. The bill would require the department to prescribe rules regarding registration requirements applicable to covered persons seeking to offer or provide commercial financing products, as defined and specified. The bill would, commencing January 1, 2027, prohibit a person from engaging in the business of offering to provide or providing commercial financing products without first registering with the commissioner, as specified. The bill would impose various duties on commercial financing providers and brokers, including, among other things, prohibiting the taking of a confession of judgment or power of attorney at any time before a default, as specified. The bill would make various conforming changes.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“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. February 2, 2026Returned to Secretary of Senate pursuant to Joint Rule 56.
2. May 23, 2025May 23 hearing: Held in committee and under submission.
3. May 16, 2025Set for hearing May 23.
4. May 5, 2025May 5 hearing: Placed on APPR. suspense file.
5. April 29, 2025Set for hearing May 5.
6. April 24, 2025Read second time and amended. Re-referred to Com. on APPR.
7. April 23, 2025From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 0. Page 837.) (April 22).
8. April 9, 2025Set for hearing April 22.
9. April 8, 2025From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 0. Page 679.) (April 7). Re-referred to Com. on JUD.
10. April 2, 2025Re-referred to Coms. on B. & F.I. and JUD.
11. March 28, 2025Set for hearing April 7 in B. & F.I. pending receipt.
12. March 25, 2025From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.