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AB-2425 • 2026

Department of Financial Protection and Innovation: budget reports.

Department of Financial Protection and Innovation: budget reports.

Budget
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Chen
Last action
2026-04-23
Official status
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 23). Re-referred to Com. on APPR.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide details about the exact format of the reports or how this new requirement will impact existing processes.

Department of Financial Protection and Innovation Budget Reports

This bill requires the Commissioner of Financial Protection and Innovation to submit annual budget reports detailing revenues, expenditures, and cost recovery methods for laws they enforce.

What This Bill Does

  • Requires 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.
  • Specifies that these reports must include projected and actual revenues and expenditures for the previous fiscal year.
  • Includes details about how assessments and charges are determined when they help cover administrative costs of certain laws.

Who It Names or Affects

  • The Commissioner of Financial Protection and Innovation
  • Joint Legislative Budget Committee, Senate Banking and Financial Institutions Committee, and Assembly Banking and Finance Committee

Terms To Know

Escrow Law
A law that regulates escrow agents and financial institutions.
Pro rata basis
A method of distributing costs or benefits based on a proportional share.

Limits and Unknowns

  • The bill does not specify the exact format for these reports.
  • It is unclear how this new reporting requirement will impact existing budget processes.

Bill History

  1. 2026-04-23 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 23). Re-referred to Com. on APPR.

  2. 2026-04-20 California Legislative Information

    Re-referred to Com. on B. & F.

  3. 2026-04-16 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

  4. 2026-03-09 California Legislative Information

    Referred to Com. on B. & F.

  5. 2026-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  6. 2026-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

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.

Current Bill Text

Read the full stored bill text 
Download Bill PDF