Bill Text: CA AB2425 | 2025-2026 | Regular Session | Amended

California Assembly Bill 2425

Bill Title: Department of Financial Protection and Innovation: budget reports.

Sponsorship: Partisan Bill (Republican 1)

Status: (Engrossed) 2026-06-10 - Referred to Com. on B. & F.I. [AB2425 Detail]

Download: California-2025-AB2425-Amended.html

Amended IN Assembly April 16, 2026

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2425

Introduced by Assembly Member Chen

February 20, 2026

An act to ~~amend Section 17208 of~~ add Division 27 (commencing with Section 110005) to the Financial Code, relating to ~~escrow agents.~~ financial institutions.

LEGISLATIVE COUNSEL'S DIGEST

AB 2425, as amended, Chen. Department of Financial Protection and Innovation: ~~escrow agents:~~ budget reports.

~~The Escrow Law~~ Existing law provides for the licensure and regulation of ~~escrow agents~~ various financial institutions by the Commissioner of Financial Protection and ~~Innovation. The law requires~~ Innovation. Some of those laws require the commissioner to charge and collect specified fees and assessments. The law makes any person who violates any of its provisions liable for a specified civil penalty. The law requires the commissioner to pay all moneys they receive under the law into the State Treasury to the credit of the State Corporations Fund.

This bill would require the commissioner ~~to annually submit a report to the Legislature that provides a detailed budget and accounting of the commissioner’s oversight, implementation, and enforcement of the Escrow Law.~~ to, on or before March 1, 2027, and annually thereafter, report to the Joint Legislative Budget Committee, the Senate Banking and Financial Institutions Committee, and the Assembly Banking and Finance Committee the projected and actual revenues and expenditures, including the difference between revenues and expenditures, for the immediately preceding fiscal year for various laws enforced by the commissioner, as specified.

This bill would require, for each of those laws that authorizes the Department of Financial Protection and Innovation to issue and collect assessments and charges on a pro rata basis to recover the actual costs of administering that law, the department to include in any report pursuant to the bill the method of determining those assessments and charges.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Division 27 (commencing with Section 110005) is added to the Financial Code, to read:

DIVISION 27. Budget Reports
110005.
(a) Except as provided in subdivision (b), on or before March 1, 2027, and annually thereafter, the commissioner shall report to the Joint Legislative Budget Committee, the Senate Banking and Financial Institutions Committee, and the Assembly Banking and Finance Committee the projected and actual revenues and expenditures, including the difference between revenues and expenditures, for the immediately preceding fiscal year for all of the following laws administered by the department:
(1) Part 3 (commencing with Section 25200) of Division 1 of Title 4 of the Corporations Code.
(2) Division 5 (commencing with 31000) of Title 4 of the Corporations Code.
(3) Division 20 (commencing with Section 50000).
(4) Division 9 (commencing with Section 22000).
(5) Division 6 (commencing with Section 17000).
(6) Division 10 (commencing with Section 23000).
(7) Division 1.1 (commencing with Section 1000).
(8) Division 1.2 (commencing with Section 2000).
(9) Division 24 (commencing with Section 90000).
(10) Division 25 (commencing with Section 100000).
(11) Division 1.25 (commencing with Section 3101).
(b) The first report required under paragraph (11) of subdivision (a) shall be submitted on or before February 1, 2027, and subsequent annual reports shall be provided by March 1 of each year.
(c) The projected and actual revenues reported pursuant to this section shall be categorized and reported as exam or nonexam revenues. Any nonexam revenues shall be reported in subcategories containing totals for annual assessment revenue, application and licensing fees, renewal fees, fingerprinting fees, penalties and settlement revenue, income from the Surplus Money Investment Fund (SMIF), investigation fees, delinquent fees, and cost recovery.
(d) For each division listed in subdivision (a) that authorizes the Department of Financial Protection and Innovation to issue and collect assessments and charges on a pro rata basis to recover the actual costs of administering that division, the department shall include in any report pursuant to this section the method of determining those assessments and charges.

SECTION 1.Section 17208 of the Financial Code is amended to read:
17208.
(a)All money received by the commissioner shall be paid by the commissioner into the State Treasury to the credit of the State Corporations Fund for the sole purpose of administering and enforcing this division.
(b)The commissioner shall annually submit a report to the Legislature pursuant to Section 9795 of the Government Code that provides a detailed budget and accounting of the commissioner’s oversight, implementation, and enforcement of this division.