AB 2214 California Assembly · 2025-2026 Regular Session

Government finance: deposits.

Summary

Existing law requires the Treasurer to invest, or deposit into banks and other financial institutions, specified state moneys designated as surplus as a part of the Pooled Money Investment Account and determined to be available for that purpose by the Pooled Money Investment Board. Existing law generally requires banks and other financial institutions to deposit with the Treasurer securities in a value at least 10% in excess of the amount deposited with the institution to be eligible to receive deposits of state funds, except as specified. This bill would create within the Pooled Money Investment Account the Community Reinvestment Account from which deposits shall be made to institutions that meet specified performance standards including verified small business lending in underserved census tracts and first-time or first-generation home buyer lending. The bill would require the Treasurer to transfer $4 billion from the Pooled Money Investment Account to the Community Reinvestment Account. Because the moneys invested and reinvested as part of the Pooled Money Investment Account are continuously appropriated, this bill would make an appropriation. Notwithstanding the above-described securities requirement, this bill would instead require securities, for a deposit from the Community Reinvestment Account or under the Small Business Lending Time Deposit Program, to be in an amount in value of at least 90% of the amount deposited with the institution. The bill would require the Treasurer to deposit moneys from the Community Reinvestment Account with qualified institutions that have committed to specified lending activities, including, among other things, that at least 50% of the moneys from the account are used for affordable housing lending, as defined and specified. The bill would require institutions that receive deposits from the Community Reinvestment Account to submit quarterly, nonidentifying, performance reports to the Treasurer and the Treasurer to publish the data it receives in a publicly available report.

Issues: ✓ Budget & Taxes

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2026

Committee Review

Floor Vote

Governor

Introduced Feb 19, 2026 Last action Apr 14, 2026

Maddy AI version diff · 2 comparisons

What changed between versions

04/13/26 - Amended Assembly → AB2214 · 3 edits

MINOR

This diff reflects a republishing of AB 2214 in a clean web format rather than a substantive policy change. The old version included legislative line numbers, page headers and footers, and the traditional bill layout. The new version removes those formatting elements and adds website navigation components (search, links, share buttons). All policy provisions remain identical between the two versions.

TECHNICAL

Removed legislative line numbers (e.g., 'line 1', 'line 2') and page headers/footers (e.g., 'AB 2214 -2-', '98') that appeared throughout the old version.

Added website navigation and interface elements including quick search, bill number/keyword fields, links to bill information, votes, history, analysis, and share options.

Changed the document title from the traditional 'ASSEMBLY BILL No. 2214' format to a web-style header 'Bill Text - AB-2214 Government finance: deposits.'

02/19/26 - Introduced → 04/13/26 - Amended Assembly · 8 edits · Apr 13, 2026

MODERATE

AB 2214 was substantially expanded from a narrow Community Reinvestment Account proposal into a comprehensive framework that fixes the transfer amount at $4 billion, adds detailed lending category requirements (affordable housing, disaster recovery, and eight specific small business sectors), creates a new Small Business Lending Time Deposit Program with reduced collateral requirements, and requires a two-thirds legislative vote. The amendment also adds a new Government Code section (16481.5) and amends existing deposit security statutes (16521 and 16611).

FISCAL

The transfer amount to the Community Reinvestment Account was changed from a variable percentage (5-10% of LAIF determined by the Treasurer) to a fixed $4 billion transfer from the Pooled Money Investment Account.

SCOPE

New Section 16481.5 is added to the Government Code as a dedicated section for the Community Reinvestment Account, and existing Sections 16521 and 16611 are amended to create a Small Business Lending Time Deposit Program with reduced collateral requirements.

ELIGIBILITY

Institutions can now qualify by demonstrating verified status as (not just partnership with) a CDFI, SBDC, or state-approved nonprofit financial coach. Qualified institutions must commit to extending at least three lines of credit or loans, and those qualified via partnership must invest at least 25% of deposits with that partner.

REQUIREMENT

Specific lending allocation requirements were added: at least 50% of funds for affordable housing lending in underserved census tracts (with terms up to five years at Treasury yield plus 50 basis points), at least 10% for disaster recovery lending including silent second lien disaster mortgages, and the remainder for down payment assistance and small business lines of credit across eight detailed business categories.

DEFINITION

New definitions were added: 'affordable housing' (tied to Health and Safety Code Section 50093 low or moderate income) and 'underserved census tracts' (defined as qualified opportunity zones under federal tax code).

ENFORCEMENT

Collateral requirements for the Small Business Lending Time Deposit Program were set at 90% of the deposit amount (reduced from the standard 110%), and FHLB San Francisco letters of credit for CRA deposits must be at least 90% of the deposit amount.

The legislative vote requirement was changed from a simple majority to a two-thirds majority.

TECHNICAL

Reporting requirements were broadened to cover 'loans or lines of credit' rather than just loans, and the public dashboard was renamed from 'Local Agency Investment Fund Community Reinvestment Dashboard' to 'The Community Reinvestment Dashboard.'

Floor votes

How they voted

No floor votes recorded yet.

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 14, 2026

Committee

Re-referred to Com. on B. & F.

lower

Apr 13, 2026

Committee

(Pending re-refer to Com. on L. GOV.)

lower

Apr 13, 2026

Introduced

From committee chair, with author's amendments: Amend, and re-refer to Com. on B. & F. Read second time and amended.

lower

Mar 16, 2026

Committee

Referred to Coms. on B. & F. and L. GOV.

lower

Feb 20, 2026

Lower · Passed

From printer. May be heard in committee March 22.

lower

1 primary · 0 co-sponsors