(1) The State Assistance Fund for Enterprise Act of 1989 authorizes the creation of a nonprofit corporation called the State Assistance Fund for Enterprise, Business and Industrial Development Corporation for the general purpose of enhancing the availability of financial assistance for small businesses in California. The act requires the State Controller to establish a separate account in the General Fund entitled the State Enterprise Loan Fund, which is continuously appropriated for purposes of the act.
This bill would repeal that act.
(2) Existing law specifies the types of securities that are eligible for the investment of surplus state funds, which include, among other things, bonds, notes, or other obligations of a local government of this state. Existing law requires those local bonds, notes, or other obligations to be within the top 3 ratings of a nationally recognized statistical rating organization.
Existing law also provides that an eligible security for the investment of surplus state funds includes bonds, debentures, and notes issued by corporations organized and operating with the United States and requires that those securities be within the top 3 ratings of a nationally recognized statistical rating organization.
This bill would instead require those local bonds, notes, or other obligations and corporate bonds, debentures, and notes to be rated in a rating category of "A" or its equivalent or better by such an organization to be eligible for investment.
Existing law provides that an eligible security for the investment of surplus state funds includes commercial paper of "prime" quality, as defined by a nationally recognized statistical rating organization that rates these securities, that also meets certain conditions. Under existing law, those conditions include, among other things, that the paper not exceed 270 days maturity and, at the request of the Pooled Money Investment Board, is secured by the issuer by depositing with the Treasurer certain authorized securities of a market value at least 10% in excess of the amount of the state's investment (authorized securities condition) .
This bill would instead require that the paper be of "prime" quality of the highest ranking or of the highest letter and number rating, as defined by a statistical rating organization, and not exceed 397 days maturity. The bill would also remove the authorized securities condition. The bill would also make nonsubstantive changes.
(3) Existing law establishes the Department of Financial Protection and Innovation to generally oversee and regulate financial institutions and related businesses. Existing law requires the department and the Commissioner of Financial Protection and Innovation to provide various notices and information by mail. Existing law requires the department and commissioner to process and issue licenses to various types of financial institutions and to levy fees or assessments in connection therewith.
This bill would remove the requirement that various notices and information be provided by mail and would instead authorize the commissioner to fulfill any notice requirement under any law or regulation related to the levy of a fee or assessment against any licensee or registrant by sending the notice of fee or assessment to an electronic service address, as specified. For any person licensed or registered through the Nationwide Multistate Licensing System and Registry (NMLS) , the bill would also authorize the commissioner to fulfill these notice requirements by electronic communication through that system. When a statute or regulation requires licensure or registration through NMLS, this bill would require the commissioner to require the use of NMLS forms and instructions.
(4) This bill would incorporate additional changes to Section 23016 of the Financial Code proposed by AB 2028 to be operative only if this bill and AB 2028 are enacted and this bill is enacted last.

Statutes affected:
AB2795: 31210 CORP, 31526 CORP, 16430 GOV
03/19/26 - Introduced: 31210 CORP, 31526 CORP, 16430 GOV
04/16/26 - Amended Assembly: 25608 CORP, 25608 CORP, 31210 CORP, 31526 CORP, 331.5 FIN, 331.5 FIN, 2042 FIN, 2042 FIN, 8032 FIN, 8032 FIN, 12214 FIN, 12214 FIN, 17207 FIN, 17207 FIN, 18351 FIN, 18351 FIN, 23016 FIN, 23016 FIN, 50401 FIN, 50401 FIN, 16430 GOV, 53667 GOV, 53667 GOV
06/09/26 - Amended Senate: 25608 CORP, 31210 CORP, 31526 CORP, 331.5 FIN, 2042 FIN, 8032 FIN, 12214 FIN, 17207 FIN, 18351 FIN, 23016 FIN, 50401 FIN, 16430 GOV, 53667 GOV
08/12/26 - Amended Senate: 25608 CORP, 31210 CORP, 31526 CORP, 331.5 FIN, 2042 FIN, 8032 FIN, 12214 FIN, 17207 FIN, 18351 FIN, 23016 FIN, 50401 FIN, 16430 GOV, 53667 GOV
08/20/26 - Amended Senate: 25608 CORP, 31526 CORP, 331.5 FIN, 2042 FIN, 8032 FIN, 12214 FIN, 17207 FIN, 18351 FIN, 23016 FIN, 23016 FIN, 23016 FIN, 50401 FIN, 16430 GOV, 53667 GOV
09/01/26 - Enrolled: 25608 CORP, 31526 CORP, 331.5 FIN, 2042 FIN, 8032 FIN, 12214 FIN, 17207 FIN, 18351 FIN, 23016 FIN, 23016 FIN, 50401 FIN, 16430 GOV, 53667 GOV
09/20/26 - Chaptered: 25608 CORP, 31526 CORP, 331.5 FIN, 2042 FIN, 8032 FIN, 12214 FIN, 17207 FIN, 18351 FIN, 23016 FIN, 23016 FIN, 50401 FIN, 16430 GOV, 53667 GOV
AB 2795: 31210 CORP, 31526 CORP, 16430 GOV