Department of Financial Protection and Innovation: budget reports.

Enrolled bill header (with Assembly/Senate passage dates and Governor receipt line) replaced with standard 'STATE OF CALIFORNIA AUTHENTICATED ELECTRONIC LEGAL MATERIAL' header.

Chapter number 141 and governor approval date of August 27, 2026 were inserted, confirming the bill became law.

Line breaks and indentation were reformatted throughout the statutory text and legislative counsel's digest; no words or provisions were added, removed, or altered.

The amendment to Section 17208 of the Financial Code was removed. That section would have required the commissioner to annually submit a report to the Legislature under Government Code Section 9795 providing a detailed budget and accounting of oversight, implementation, and enforcement of the Escrow Law (Division 6). This is likely redundant because Division 27 already requires reporting on Division 6 among other laws.

The bill's stated subject changed from 'relating to escrow agents' to 'relating to financial institutions,' reflecting that the reporting requirement covers all DFPI-regulated financial institutions (11 different code divisions) rather than just escrow agents.

A new Division 27 (Budget Reports, Section 110005) is added to the Financial Code, replacing the original narrow amendment to just Section 17208 (Escrow Law). The bill now covers 11 different laws/divisions administered by DFPI, including insurance, escrow, and other financial regulations.

The original Section 17208 amendment (requiring annual budget reports for the Escrow Law specifically) is retained but is now one component of a much broader reporting framework covering the entire DFPI regulatory portfolio.

The commissioner must report projected and actual revenues and expenditures (including the difference) for the immediately preceding fiscal year to the Joint Legislative Budget Committee, Senate Banking and Financial Institutions Committee, and Assembly Banking and Finance Committee.

Revenues must be categorized as exam or nonexam revenues. Nonexam revenues must be broken into subcategories: annual assessment revenue, application and licensing fees, renewal fees, fingerprinting fees, penalties and settlement revenue, SMIF income, investigation fees, delinquent fees, and cost recovery.

For each division that authorizes pro rata assessments to recover actual administrative costs, the department must disclose the method used to determine those assessments and charges.

First report is due by March 1, 2027 (with one exception for Division 1.25 due February 1, 2027), and annually thereafter by March 1.