On Sept. 24, Governor Gavin Newsom signed a package of bills that will strengthen protections for consumers, addressing issues that have put financial strain on Californians while setting new standards for transparency and accountability across industries. Highlighted bills include:

AB 2017 by Assemblymember Tim Grayson (D-Concord) prohibits certain banks and credit unions from charging nonsufficient funds fees when a transaction is declined due to the consumer having insufficient funds. The bill takes effect on January 1, 2026.

SB 1075 by Senator Steven Bradford (D-Gardena) sets limits on the amount credit unions can charge for overdraft fees. These bills aim to protect lower-income Californians that are disproportionately impacted by financial fees that can push them deeper into financial hardship.

SB 1286 by Senator Dave Min (D-Irvine) extends California’s Rosenthal Fair Debt Collection Practices Act to apply to certain commercial financial products. The bill adds specified commercial debts to the scope of the Rosenthal Act, which would grant the same protections to persons owing these commercial debts as are provided by existing law to persons owing consumer debt. The bill takes effect on July 1, 2025.

SB 919 by Senator Umberg (D- Santa Ana) requires franchise brokers, or third-party franchise sellers, who do business in California to register with the DFPI beginning July 1, 2026, or the first anniversary of the date by which the program is funded. The new law will help prospective franchisees be better able to evaluate franchise opportunities and make investment choices.