All Roll Calls
Yes: 153 • No: 49
CaliforniaAB 1372025-2026 Regular SessionHouseWALLET
Budget Act of 2025.
Sponsored By: Jesse Gabriel (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
17 provisions identified: 7 benefits, 5 costs, 5 mixed.
Grants and free help for small businesses
Small business owners can get free or low‑cost one‑on‑one help and training through local centers funded by the state. The Dream Fund provides microgrants up to $10,000 for startup clients in intensive training, subject to funding. Programs do not ask for unnecessary sensitive data, including immigration status, and records are not public. For grants in 2025–26 through 2027–28, centers whose federal contract was canceled in 2024–25 can use their 2023–24 contract to qualify, unless the cancellation was for noncompliance. Temporary flexibilities end June 30, 2029.
Higher fines for privacy violations
Businesses that break state privacy law face steep fines. The privacy agency can charge up to $2,500 for each violation. If a violation is intentional or involves a child under 16, the fine can be up to $7,500 each. These are civil administrative penalties collected by the California Privacy Protection Agency.
State climate risk study every five years
The state must complete a California Climate Change Assessment at least every five years. The work is done with key state partners and may use universities and experts. Parts of the assessment can be released as they are ready.
Indian Gaming fund supports addiction and oversight
Money in the Indian Gaming Special Distribution Fund can pay for gambling addiction grants and related administration. It can pay state agencies and the Department of Justice for compact work. Covering shortfalls in the Indian Gaming Revenue Sharing Trust Fund is the top priority.
Surplus prison land for housing, stronger reports
The state can sell, lease, or transfer unneeded prison property, with approvals, and consider it for affordable housing. The land cannot be reused for jails or detention. The Department of General Services can set below‑market terms if it serves the state’s interest, and some sales skip certain environmental reviews until title changes. Cities and counties must file a detailed housing report each year by April 1. Reports track progress, permits, approvals, unit counts by income, and must use state forms and be discussed at a public meeting.
Financing support for clean energy transmission
The law creates a Clean Energy Transmission category for high‑voltage lines (200 kV or higher). Projects must connect within a California balancing area, deliver mainly to CAISO, and have sponsors with prior California transmission experience. Priority goes to lines not already approved or recently studied and rejected. The bank keeps a separate Clean Energy Transmission Financing Account and deposits repayments into it.
Low-cost state loans for climate projects
The state bank provides low‑interest, low‑cost financing for approved climate projects. It can lend directly to sponsors or through other lenders. Eligible categories include forest biomass uses (not combustion), climate‑smart agriculture (on‑farm renewables, efficiency, storage, some methane cuts), projects that use federal financing, and those tapping EPA greenhouse gas funds. Federally recognized tribes and tribal enterprises can participate. The program can prioritize disadvantaged participants, as defined in the law.
Higher state fees on lenders and banks
Residential mortgage lenders and servicers pay an annual assessment: at least $3,000 and no more than $15,000, based on their pro rata share. Out‑of‑state and international credit unions pay set application fees and yearly per‑location fees, plus exam costs; foreign banks pay $1,000 per California branch (minimum $3,000, cap $50,000) and other fixed fees. The Commissioner can bill extra examination and travel costs to banks, credit unions, and trust‑capable banks. Certain license actions carry fixed fees, like $5,000 to apply for a license, $3,500 to acquire control, and $2,500 per year to maintain a license, plus per‑branch charges. Depository transactions like sales or mergers cost $2,500, and conversions cost $5,000.
Higher licensing costs for escrow agents
Applying for an escrow license costs $625 for the first office and $425 for each extra office. A duplicate license costs $2 and there is a $100 investigation fee per application. Annual fees per office are capped at $7,215. Special enforcement assessments can be charged up to $1,000 per office. Not paying can bring penalties or license suspension.
More HOPE help for foster and COVID‑orphaned kids
The law expands HOPE Trust eligibility. Children who lost a parent to COVID‑19 during the federal emergency qualify if the family’s income before the death was at or below Medi‑Cal levels. Foster youth qualify if a court made them a dependent or ward and reunification services ended after 18 months in care, or they entered care after age 16 with reunification ended. The State Treasurer accepts a death certificate listing COVID‑19 (or long‑COVID effects), or a death certificate plus proof of diagnosis, and can verify identity and income with government documents or a sworn statement. The Treasurer must keep a process to challenge sworn statements. If a child later reunifies, is adopted, or enters guardianship, they keep the account, but yearly contributions stop 12 months later or when they turn 18, whichever comes first.
Climate financing with worker rules and privacy limits
The state bank can help disadvantaged sponsors with outreach, technical help, lower application fees, and interest or fee subsidies. The commission can direct up to $25 million from clean‑energy programs to eligible projects and move funds to the Climate Catalyst Revolving Fund. Transmission projects financed by the bank must have a project labor agreement with prevailing wages, targeted local and disadvantaged hiring, and above‑minimum apprenticeship use, including hires from a specific preapprenticeship. Certain finance records given to the bank from August 1, 2022 through December 31, 2031 are not public.
Rules and guardrails for climate fund
The state creates the Climate Catalyst Revolving Fund and organizes it as a public enterprise fund. Money in the fund is continuously appropriated, but federal deposits and administrative costs need legislative approval. No more than 5% of any bond’s proceeds can pay issuance costs. The bank must adopt board‑approved financing plans, post them online 30 days before meetings, and approve projects by December 31, 2031; help must match the active plan. The bank can pledge fund money, invest earnings back into the fund, and make interagency agreements; bond‑proceeds money cannot be moved to other funds except to run the program. The bank must consult annually on plan updates and publish an annual public report.
New consumer privacy fund and grants
The law creates a Consumer Privacy Fund with three parts: an agency fund, an Attorney General fund, and a grant fund. When the privacy agency collects fines, 95% goes to its fund and 5% to grants. When the Attorney General wins penalties, 95% goes to its fund and 5% to grants, with limited reimbursements for joint cases. The grant fund supports privacy education, kids’ online privacy, and data‑breach fraud work. Grants start once the grant fund tops $300,000, and any leftover money in 2025–26 is split 45%/45%/10% among the subfunds.
Set fees for securities filings
If you file securities paperwork with the state, you pay set fees. A negotiating permit costs $50. Qualification by notification or permit costs $200 plus 0.2% of the offer value, capped at $2,500. Other filing notices run from $25 to $300.
Set filing fees for franchise paperwork
Franchise filers must pay fixed fees. Registration costs $1,865 and renewal costs $1,245. Amendments and material modifications cost $50. An initial notice of exemption costs $1,245 and later notices cost $415. Other listed franchise broker and related fees also apply.
AG must approve agencies’ outside lawyers
State agencies must get written consent from the Attorney General before in‑house lawyers represent them in court or before hiring outside counsel. Listed entities, like the Governor’s office and UC Regents, are exceptions. The Attorney General’s representation is matter‑specific and does not take control of another agency’s files.
AG can take over privacy cases
The California Privacy Protection Agency must pause its action if the Attorney General asks to lead the case. The agency cannot continue while the Attorney General proceeds. The Attorney General keeps full enforcement authority.
Sponsors & Cosponsors
Sponsor
Jesse Gabriel
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
Senate vote • 6/27/2025
Item 92 — Senate SFLOOR
Yes: 29 • No: 9
House vote • 6/27/2025
Item 1000 — Assembly AFLOOR
Yes: 58 • No: 18
legislature vote • 6/25/2025
Vote in CS62
Yes: 13 • No: 5
House vote • 3/20/2025
Item 67 — Assembly AFLOOR
Yes: 53 • No: 17
Actions Timeline
Chaptered by Secretary of State - Chapter 20, Statutes of 2025.
6/30/2025SenateApproved by the Governor.
6/30/2025legislatureEnrolled and presented to the Governor at 3:15 p.m.
6/27/2025legislatureSenate amendments concurred in. To Engrossing and Enrolling. (Ayes 58. Noes 18. Page 2338.).
6/27/2025HouseAssembly Rule 63 suspended. (Ayes 54. Noes 19. Page 2329.)
6/27/2025HouseIn Assembly. Concurrence in Senate amendments pending.
6/27/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 9. Page 1807.).
6/27/2025SenateRead second time. Ordered to third reading.
6/26/2025SenateFrom committee: Do pass. (Ayes 13. Noes 5.) (June 25).
6/25/2025SenateFrom committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on B. & F. R.
6/24/2025SenateReferred to Com. on B. & F. R.
4/2/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
3/20/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 53. Noes 17. Page 731.)
3/20/2025HouseRead second time. Ordered to third reading.
3/18/2025House(Ayes 53. Noes 17. Page 643.)
3/17/2025HouseOrdered to second reading.
3/17/2025HouseWithdrawn from committee.
3/17/2025HouseReferred to Com. on BUDGET.
2/3/2025HouseFrom printer. May be heard in committee February 8.
1/9/2025HouseRead first time. To print.
1/8/2025House
Bill Text
Chaptered
6/30/2025
Enrolled
6/27/2025
Amended Senate
6/24/2025
Introduced
1/8/2025