The California Financing Law (CFL) provides for the licensure and regulation of finance lenders and brokers by the Commissioner of Financial Protection and Innovation, including by regulating the provision of commercial loans, as defined. A willful violation of the CFL is a crime, except as specified.
This bill would, beginning January 1, 2026, generally provide for the regulation under the CFL of commercial financing, which the bill would define to mean an accounts receivable purchase transaction, including factoring, asset-based lending transaction, commercial loan, or lease financing, intended by the recipient for use primarily for a purpose other than a personal, family, or household purpose. The bill would prohibit a person from engaging in the business of a commercial financing provider, as defined, or commercial financing broker, as defined, without obtaining a license from the commissioner. The bill would prohibit a commercial financing provider or a commercial financing broker from, among other things, taking an instrument in which blanks are left to be filled in after execution. The bill would require a licensed commercial financing provider to do certain things, including permitting payment to be made in advance in any amount on any commercial financing transaction at any time. The bill would require a licensed commercial financing broker to do certain things, including delivering to the recipient at the time the final negotiation or arrangement is made a statement showing in clear and distinct terms the name, address, and license number of the commercial financing broker and the commercial financing provider, as prescribed. By expanding the scope of the crime of willfully violating the CFL, this bill would impose a state-mandated local program. The bill would make various conforming changes to the CFL.
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.

Statutes affected:
SB869: 22001 FIN, 22007 FIN, 22010 FIN, 22101 FIN, 22101.5 FIN, 22102 FIN, 22103 FIN, 22104 FIN, 22105 FIN, 22106 FIN, 22107 FIN, 22109 FIN, 22112 FIN, 22151 FIN, 22152 FIN, 22153 FIN, 22154 FIN, 22155 FIN, 22156 FIN, 22157 FIN, 22157.1 FIN, 22159 FIN, 22161 FIN, 22162 FIN, 22163 FIN, 22164 FIN, 22168 FIN, 22169 FIN, 22700 FIN, 22701 FIN, 22712 FIN, 22714 FIN, 22169 FIN, 22169 FIN, 22700 FIN, 22700 FIN, 22701 FIN, 22701 FIN, 22712 FIN, 22712 FIN, 22714 FIN, 22714 FIN
09/13/23 - Amended Senate: 22001 FIN, 22001 FIN, 22007 FIN, 22007 FIN, 22010 FIN, 22010 FIN, 22101 FIN, 22101 FIN, 22101.5 FIN, 22101.5 FIN, 22102 FIN, 22102 FIN, 22103 FIN, 22103 FIN, 22104 FIN, 22104 FIN, 22105 FIN, 22105 FIN, 22106 FIN, 22106 FIN, 22107 FIN, 22107 FIN, 22109 FIN, 22109 FIN, 22112 FIN, 22112 FIN, 22151 FIN, 22151 FIN, 22152 FIN, 22152 FIN, 22153 FIN, 22153 FIN, 22154 FIN, 22154 FIN, 22155 FIN, 22155 FIN, 22156 FIN, 22156 FIN, 22157 FIN, 22157 FIN, 22157.1 FIN, 22157.1 FIN, 22159 FIN, 22159 FIN, 22161 FIN, 22161 FIN, 22162 FIN, 22162 FIN, 22163 FIN, 22163 FIN, 22164 FIN, 22164 FIN, 22168 FIN, 22168 FIN, 22169 FIN, 22169 FIN, 22700 FIN, 22700 FIN, 22701 FIN, 22701 FIN, 22712 FIN, 22712 FIN, 22714 FIN, 22714 FIN
01/03/24 - Amended Senate: 22001 FIN, 22007 FIN, 22010 FIN, 22101 FIN, 22101.5 FIN, 22102 FIN, 22103 FIN, 22104 FIN, 22105 FIN, 22106 FIN, 22107 FIN, 22109 FIN, 22112 FIN, 22151 FIN, 22152 FIN, 22153 FIN, 22154 FIN, 22155 FIN, 22156 FIN, 22157 FIN, 22157.1 FIN, 22159 FIN, 22161 FIN, 22162 FIN, 22163 FIN, 22164 FIN, 22168 FIN, 22169 FIN, 22700 FIN, 22701 FIN, 22712 FIN, 22714 FIN, 22169 FIN, 22169 FIN, 22700 FIN, 22700 FIN, 22701 FIN, 22701 FIN, 22712 FIN, 22712 FIN, 22714 FIN, 22714 FIN