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Updated:   2026-02-04

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Measure
Authors Michelle Rodriguez  
Coauthors: Nguyen  
Subject California Financing Law: lawsuit financiers.
Relating To relating to financial institutions.
Title An act to amend Sections 22007, 22101, 22101.5, 22102, 22103, 22104, 22106, 22107, 22109, 22112, 22151, 22152, 22153, 22156, 22157, 22159, 22162, 22502, 22753, and 22780 of, and to add Sections 22021, 22022, 22100.6, and 22780.2 to, the Financial Code, relating to financial institutions.
Last Action Dt 2025-05-05
State Amended Assembly
Status In Committee Process
Flags
Vote Req Approp Fiscal Cmte Local Prog Subs Chgs Urgency Tax Levy Active?
Majority No Yes No None No No Y
i
Leginfo Link  
Bill Actions
2025-07-01     In committee: Set, first hearing. Hearing canceled at the request of author.
2025-06-11     Referred to Coms. on B. & F.I. and JUD.
2025-06-03     In Senate. Read first time. To Com. on RLS. for assignment.
2025-06-02     Read third time. Passed. Ordered to the Senate. (Ayes 79. Noes 0. Page 1850.)
2025-05-27     Read second time. Ordered to third reading.
2025-05-23     From committee: Do pass. (Ayes 14. Noes 0.) (May 23).
2025-05-14     In committee: Set, first hearing. Referred to APPR. suspense file.
2025-05-06     Re-referred to Com. on APPR.
2025-05-05     Read second time and amended.
2025-05-01     From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 9. Noes 0.) (April 28).
2025-04-28     Joint Rule 62(a) suspended. (Page 1307.)
2025-03-25     Re-referred to Com. on B.&F.
2025-03-24     Referred to Com. on B.&F.
2025-03-24     From committee chair, with author's amendments: Amend, and re-refer to Com. on B.&F. Read second time and amended.
2025-02-19     From printer. May be heard in committee March 21.
2025-02-18     Read first time. To print.
Versions
Amended Assembly     2025-05-05
Amended Assembly     2025-03-24
Introduced     2025-02-18
Analyses TBD
Latest Text Bill Full Text
Latest Text Digest

The California Financing Law generally regulates the business of finance lenders and brokers and prohibits any person from engaging in those businesses without obtaining a license from the Commissioner of Financial Protection and Innovation. The law also imposes various requirements on licensees who offer or sell commercial loans, as defined.

This bill would prohibit a person from engaging in the business of lawsuit financing, as defined, without obtaining a license from the commissioner, and would generally regulate the business of lawsuit financiers, as specified. The bill would require a licensee who is a lawsuit financier, as defined, to maintain a surety bond, as prescribed. The bill would include lawsuit financing in the definition of “commercial loan.” The bill would make willful violations of the California Financing Law by a licensee who is a lawsuit financier subject to a civil penalty, as specified.