SB-700 • 2026

Capital Programs and Climate Financing Authority Act: California Investment and Innovation Program.

Budget Labor Small Business

Passed Legislature

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

Sponsor: Grayson
Last action: 2026-06-04
Official status: From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.
Effective date: Not listed

Plain English Breakdown

The bill summary and digest do not provide specific details about the amount of money in the funds, who will pay fees or make deposits into these funds, or how the removal of the Bank on California Program may affect individuals trying to open bank accounts.

California Investment and Innovation Program

The Capital Programs and Climate Financing Authority Act establishes an authority to manage funds that provide financial assistance to small businesses and grants to community development financial institutions for economically disadvantaged communities.

What This Bill Does

Creates the Capital Programs and Climate Financing Authority with three members: the Director of Finance, Treasurer, and Controller.
Allows this authority to create one or more small business assistance funds to provide various forms of financial assistance including loans and grants to eligible businesses.
Requires any returned money from these loans or grants to go back into the original fund.
Establishes a program called California Investment and Innovation Program to provide grants to community development financial institutions for technical assistance and capital access in economically disadvantaged communities.

Who It Names or Affects

Small businesses in California
Community development financial institutions
Economically disadvantaged communities

Terms To Know

Capital Programs and Climate Financing Authority: A group made up of three state officials who will manage funds to help small businesses and economically disadvantaged communities.
California Investment and Innovation Program: A program that provides grants to financial institutions to support technical assistance and capital access for disadvantaged communities.

Limits and Unknowns

The bill does not specify how much money will be in the funds.
It is unclear who exactly will pay fees or make deposits into these funds.

Bill History

2026-06-04 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on B. & F.
2026-05-04 California Legislative Information
Referred to Com. on B. & F.
2026-01-26 California Legislative Information
In Assembly. Read first time. Held at Desk.
2026-01-26 California Legislative Information
Read third time. Passed. (Ayes 39. Noes 0. Page 3286.) Ordered to the Assembly.
2026-01-21 California Legislative Information
Read second time. Ordered to consent calendar.
2026-01-20 California Legislative Information
From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar.
2026-01-09 California Legislative Information
Set for hearing January 20.
2026-01-07 California Legislative Information
From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 5. Noes 0. Page 3187.) (January 7). Re-referred to Com. on APPR.
2026-01-05 California Legislative Information
Re-referred to Com. on B. & F.I.
2026-01-05 California Legislative Information
Re-referred to Com. on RLS.
2026-01-05 California Legislative Information
Withdrawn from committee.
2026-01-05 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. GOV.
2025-12-18 California Legislative Information
Set for hearing January 7 in B. & F.I. pending receipt.
2025-04-02 California Legislative Information
Re-referred to Coms. on L. GOV. and L., P.E. & R.
2025-03-24 California Legislative Information
From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.
2025-03-12 California Legislative Information
Referred to Com. on RLS.
2025-02-24 California Legislative Information
Read first time.
2025-02-24 California Legislative Information
From printer. May be acted upon on or after March 24.
2025-02-21 California Legislative Information
Introduced. To Com. on RLS. for assignment. To print.

Official Summary Text

SB 700, as amended, Grayson.
Bank on California Program.
Capital Programs and Climate Financing Authority Act: California Investment and Innovation Program.
The Capital Programs and Climate Financing Authority Act establishes the Capital Programs and Climate Financing Authority, consisting of the Director of Finance, the Treasurer, and the Controller. Among other things, the act authorizes the authority to establish one or more small business assistance funds to do various things, including fund a capital access program for small businesses pursuant to specified law, provide various forms of financial assistance, and make or acquire loans or guarantee commercial loans to participating parties eligible for assistance from those funds. The act requires any moneys repaid or returned to the authority in connection with or as a result of any loan or financial assistance made pursuant to these provisions to be deposited in the small business assistance fund from
which the loan or assistance was originally provided. For the purpose of establishing and maintaining small business assistance funds, the act authorizes the authority to levy fees or other charges on, or require deposits from, participating parties receiving financing for a project under the act, as specified.
The act requires the authority to establish the California Investment and Innovation Program for the purpose of providing grants to enhance the capacity of community development financial institutions to provide technical assistance and capital access to economically disadvantaged communities in the state, as specified. Existing law defines various terms for these purposes.
This bill would authorize the authority to establish one or more small business assistance funds to fund a grant program for community development financial assistance pursuant to the California Investment and Innovation Program. The bill would
include in the list of allowed financial assistance that the authority may provide under the act grants made to community development financial institutions in furtherance of that program. By expanding the purposes for which moneys in a continuously appropriated fund may be used, this bill would make an appropriation.
Existing law establishes the Bank on California Program, which is a voluntary collaborative initiative that assists Californians in opening a bank or credit union account and saving for the future.
This bill would repeal those provisions.

Current Bill Text

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