AB 801: Nondiscrimination.

Session Year: 2025-2026
House: Assembly
Latest Version Date: 2026-06-04

Current Status:

In Progress

(2026-06-18: From committee: Do pass and re-refer to Com. on JUD. (Ayes 5. Noes 2.) (June 17). Re-referred to Com. on JUD.)

Introduced

In Committee

First Chamber

In Committee

Second Chamber

Enacted

Version:

Existing law establishes the Department of Financial Protection and Innovation, which is under the direction of the Commissioner of Financial Protection and Innovation. Existing law makes the department responsible for administering various laws relating to financial institutions, including banks and credit unions. Existing law, until January 1, 2030, establishes the Financial Empowerment Fund, and provides that moneys in the fund are continuously appropriated to the commissioner for allocation to fund financial education and financial empowerment programs and services for at-risk populations in California, as specified. the Banking Law, the California Credit Union Law (CCUL), and the California Residential Mortgage Lending Act (CRMLA), a willful violation of which is punishable as a misdemeanor.

This bill would establish the California Community Reinvestment Act, and would require a covered financial institution, as defined, to have a continuing and affirmative obligation to meet the financial services needs of the communities, including low- and moderate-income communities and communities of color, in which the covered financial institution conducts substantial business, as specified. The bill would require the commissioner to assess the record of each covered financial institution in satisfying this obligation no less than once every 3 years, as specified. After each assessment, the bill would require the commissioner to assign one of 5 possible ratings to describe how the covered financial institution is meeting its community financial services needs, and to prepare a specified written evaluation of the covered financial institutions record of performance. The bill would authorize the commissioner to consider this record of performance when considering an application for, among other things, the establishment of a branch or the relocation of a main office. The bill would also prohibit a covered financial institution with certain ratings from receiving state funds for deposit or being awarded a state contract to provide financial services.This bill would also authorize the commissioner to conduct specified investigations into covered financial institutions for compliance with the act. The bill would also authorize the commissioner to examine, in consultation with state and federal regulators, covered financial institutions for their compliance with specified state and federal laws.This bill would establish the Community Reinvestment Fund within the State Treasury, and would make moneys in the fund available, upon appropriation by the Legislature, to the commissioner for purposes of administering these provisions. The bill would authorize the commissioner to issue an administrative penalty of up to $100,000 to a covered financial institution that regularly fails to meet its obligations under the act, and would require those penalties to be deposited in the fund.

This bill, the California Fair Lending Examination Act, would require, under the Banking Law, the CCUL, and the CRMLA, the commissioner to, at least once every 4 years, examine, as prescribed, the books and records of any entity subject to the commissioners examination authority under those laws for compliance with any applicable nondiscrimination law, as specified, and would require the commissioner to provide a written statement of the findings of that examination, issue a copy of that statement to the subjects principals, officers, or directors, and take appropriate steps to ensure correction of any violations of applicable nondiscrimination laws. The bill would prohibit disclosure of that statement to anyone other than the bank, law enforcement officials, or other state or federal regulatory agencies for further investigation and enforcement.

This bill would make a violation of an applicable nondiscrimination law a violation of the Banking Law, the CCUL, or the CRMLA, as applicable, and would authorize the commissioner to examine the banks officers, directors, employees, or agents under oath regarding the banks operations.

By expanding the scope of the crimes of perjury and of violating the CRMLA, this bill would impose a state-mandated local program.

Existing constitutional provisions require that a statute that limits the right of access to the meetings of public bodies or the writings of public officials and agencies be adopted with findings demonstrating the interest protected by the limitation and the need for protecting that interest.

This bill would make legislative findings to that effect.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Discussed in Hearing