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CaliforniaAB 4932025-2026 Regular SessionHouseWALLET

Property insurance: notice of cancellation.

Sponsored By: John Harabedian (Democratic)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 0 costs, 1 mixed.

Homeowners earn 2% on held insurance funds

For 1- to 4-unit homes in California, lenders must pay at least 2% simple interest on hazard insurance money they hold in a loss draft account. Interest starts on the law’s effective date for money already held, and is credited each year or when the account closes. Banks cannot charge fees that make your net return fall below 2% per year. This rule does not apply when a regulator requires the funds to be in a non-interest-bearing demand trust account of a bank.

New rules for mortgage escrow and trust funds

Most mortgage escrow and trust funds must be kept in non-interest-bearing accounts at insured institutions. At the owner’s request, a lender may move trust funds to an interest-bearing account. The account must be in the lender’s name in trust for you, fully federally insured, kept separate, with clear disclosures; all interest goes to you. Borrowers also receive at least 2% simple interest per year on covered mortgage impound (escrow) payments.

Sponsors & Cosponsors

Sponsor

  • John Harabedian

    Democratic • House

Cosponsors

  • Sasha Renée Pérez

    Democratic • Senate

Roll Call Votes

All Roll Calls

Yes: 231 • No: 0

House vote • 8/18/2025

Item 19 — Assembly AFLOOR

Yes: 77 • No: 0

Senate vote • 7/17/2025

Item 213 — Senate SFLOOR

Yes: 35 • No: 0

legislature vote • 6/24/2025

Vote in CS53

Yes: 12 • No: 0

legislature vote • 6/18/2025

Vote in CS69

Yes: 7 • No: 0

House vote • 4/1/2025

Item 13 — Assembly AFLOOR

Yes: 77 • No: 0

legislature vote • 3/19/2025

Vote in CX25

Yes: 15 • No: 0

legislature vote • 3/18/2025

Vote in CX27

Yes: 8 • No: 0

Actions Timeline

  1. Chaptered by Secretary of State - Chapter 103, Statutes of 2025.

    8/29/2025Senate

  2. Approved by the Governor.

    8/29/2025legislature

  3. Enrolled and presented to the Governor at 11 a.m.

    8/25/2025legislature

  4. Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 77. Noes 0. Page 2652.).

    8/18/2025House

  5. In Assembly. Concurrence in Senate amendments pending.

    7/17/2025House

  6. Read third time. Urgency clause adopted. Passed. Ordered to the Assembly. (Ayes 35. Noes 0. Page 2137.).

    7/17/2025Senate

  7. Read second time. Ordered to Consent Calendar.

    7/15/2025Senate

  8. From committee: Be ordered to second reading file pursuant to Senate Rule 28.8 and ordered to Consent Calendar.

    7/14/2025Senate

  9. Read second time and amended. Re-referred to Com. on APPR.

    6/26/2025Senate

  10. From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 12. Noes 0.) (June 24).

    6/25/2025Senate

  11. From committee: Do pass and re-refer to Com. on JUD. (Ayes 7. Noes 0.) (June 18). Re-referred to Com. on JUD.

    6/18/2025Senate

  12. Referred to Coms. on B. & F.I. and JUD.

    5/7/2025Senate

  13. In Senate. Read first time. To Com. on RLS. for assignment.

    4/2/2025Senate

  14. Read third time. Urgency clause adopted. Passed. Ordered to the Senate. (Ayes 77. Noes 0.).

    4/1/2025House

  15. Read second time. Ordered to third reading.

    3/24/2025House

  16. Read second time and amended. Ordered returned to second reading.

    3/20/2025House

  17. From committee: Amend, and do pass as amended. (Ayes 15. Noes 0.) (March 19).

    3/19/2025House

  18. From committee: Do pass and re-refer to Com. on APPR. (Ayes 8. Noes 0.) (March 18). Re-referred to Com. on APPR.

    3/18/2025House

  19. (Pending re-refer to Com. on APPR.)

    3/13/2025House

  20. Assembly Rule 56 suspended. (Page 616.)

    3/13/2025House

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

    3/11/2025House

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

    3/10/2025House

  23. Referred to Com. on B.&F.

    3/10/2025House

  24. From printer. May be heard in committee March 13.

    2/11/2025House

  25. Read first time. To print.

    2/10/2025House

Bill Text

  • Chaptered

    8/29/2025

    HTML

  • Enrolled

    8/25/2025

    HTML

  • Amended Senate

    6/26/2025

    HTML

  • Amended Assembly

    3/20/2025

    HTML

  • Amended Assembly

    3/10/2025

    HTML

  • Introduced

    2/10/2025

    HTML

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