SB-362 • 2026

Commercial financing: disclosures.

Crime Education

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Grayson
Last action: 2025-10-06
Official status: Chaptered by Secretary of State. Chapter 352, Statutes of 2025.
Effective date: Not listed

Plain English Breakdown

The official source material does not provide specific details on enforcement mechanisms or the effective date of the bill.

Commercial Financing: Clearer Disclosures

The law requires commercial financing providers to use the term 'annual percentage rate' (APR) in certain situations and bans misleading uses of terms like 'interest' or 'rate'. It also changes how violations are enforced under different laws.

What This Bill Does

Requires commercial financing companies to use 'annual percentage rate' (APR) when describing costs in specified circumstances.
Bans the misuse of words like 'interest' or 'rate' that could confuse customers and lead to misleading disclosures.
Changes how violations are handled, making them a violation under either the California Financing Law (CFL) or the California Consumer Financial Protection Law depending on the transaction.

Who It Names or Affects

Commercial financing providers in California
People and businesses getting commercial loans or credit

Terms To Know

annual percentage rate (APR): The yearly cost of borrowing money, including interest and fees.
California Financing Law (CFL): A law that regulates commercial financing companies in California.

Limits and Unknowns

Does not specify who will enforce the new rules.
The bill does not say when it starts to take effect.

Bill History

2025-10-06 California Legislative Information
Chaptered by Secretary of State. Chapter 352, Statutes of 2025.
2025-10-06 California Legislative Information
Approved by the Governor.
2025-09-16 California Legislative Information
Enrolled and presented to the Governor at 3 p.m.
2025-09-08 California Legislative Information
Assembly amendments concurred in. (Ayes 39. Noes 0. Page 2605.) Ordered to engrossing and enrolling.
2025-09-03 California Legislative Information
In Senate. Concurrence in Assembly amendments pending.
2025-09-03 California Legislative Information
Read third time. Passed. (Ayes 79. Noes 0. Page 2866.) Ordered to the Senate.
2025-08-28 California Legislative Information
Ordered to third reading.
2025-08-28 California Legislative Information
Read third time and amended.
2025-08-21 California Legislative Information
Read second time. Ordered to third reading.
2025-08-20 California Legislative Information
From committee: Do pass. (Ayes 15. Noes 0.) (August 20).
2025-07-16 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 12. Noes 0.) (July 15). Re-referred to Com. on APPR.
2025-07-10 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD.
2025-07-08 California Legislative Information
From committee: Do pass and re-refer to Com. on JUD. (Ayes 9. Noes 0.) (July 7). Re-referred to Com. on JUD.
2025-06-17 California Legislative Information
June 23 hearing postponed by committee.
2025-06-09 California Legislative Information
Referred to Coms. on B. & F. and JUD.
2025-06-03 California Legislative Information
In Assembly. Read first time. Held at Desk.
2025-06-02 California Legislative Information
Read third time. Passed. (Ayes 38. Noes 0. Page 1400.) Ordered to the Assembly.
2025-05-27 California Legislative Information
Read second time. Ordered to third reading.
2025-05-23 California Legislative Information
Read second time and amended. Ordered to second reading.
2025-05-23 California Legislative Information
From committee: Do pass as amended. (Ayes 6. Noes 0. Page 1198.) (May 23).
2025-05-16 California Legislative Information
Set for hearing May 23.
2025-05-05 California Legislative Information
May 5 hearing: Placed on APPR. suspense file.
2025-04-25 California Legislative Information
Set for hearing May 5.
2025-04-23 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0. Page 834.) (April 22). Re-referred to Com. on APPR.
2025-04-10 California Legislative Information
Set for hearing April 22.
2025-04-09 California Legislative Information
Re-referred to Com. on JUD.
2025-04-03 California Legislative Information
From committee: Do pass and re-refer to Com. on RLS. (Ayes 7. Noes 0. Page 632.) (April 2). Re-referred to Com. on RLS.
2025-03-18 California Legislative Information
Set for hearing April 2.
2025-03-17 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.I.
2025-02-26 California Legislative Information
Referred to Com. on B. & F.I.
2025-02-14 California Legislative Information
From printer. May be acted upon on or after March 16.
2025-02-13 California Legislative Information
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 362, Grayson.
Commercial financing: disclosures.
Existing law requires a provider of commercial financing to disclose certain information, as specified. Existing law provides that a provider of commercial financing licensed under the California Financing Law (CFL) is subject to examination and enforcement by the Commissioner of Financial Protection and Innovation under the CFL for any violation of those disclosure provisions, as specified. Certain violations of the CFL are a crime.
This bill would prohibit a provider of commercial financing from using the term “interest” or “rate” in a deceptive way that could reasonably result in the recipient being misled and would require those
providers to use the term “annual percentage rate” or the acronym “APR” in specified circumstances. The bill would repeal the provision subjecting those providers to the CFL described above and would instead provide that a violation of the disclosure provisions described above and the provisions of the bill is a violation of the CFL if the violation relates to a commercial financing transaction subject to the CFL, or a violation of the California Consumer Financial Protection Law if the violation relates to a commercial financing transaction that is not subject to the CFL. By expanding the scope of a crime, this bill would impose a state-mandated local program.
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.

Current Bill Text

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