HOME Investment Partnerships Reauthorization and Improvement Act would fund new units throughout state

WASHINGTON, DC – Today, Wednesday, Jan. 24, 2024, U.S. Representatives John Garamendi (D-CA08) and Joyce Beatty (D-OH03) reintroduced updated legislation to help address the affordable housing crisis. Their HOME Investment Partnerships Reauthorization and Improvement Act would significantly increase the amount of federal funds available for affordable housing across the country. Companion legislation is being introduced in the U.S. Senate by Senator Catherine Cortez Masto (D-NV).  

“Hardworking Californians face a drastic shortage of affordable housing options,” said Congressman Garamendi. “Minimum wage workers have to work an 88-hour week on average to afford a modest one-bedroom rental at a fair market rate. This legislation reauthorizes the HOME Investment Partnership Program for the first time since 1994 to bring this crucial program into the 21st century and provide states and local governments with the funding to construct and rehabilitate affordable rental housing as well as provide homeownership opportunities for working families. I’m thankful to Senator Cortez Masto for introducing the companion legislation in the Senate, and we will work tirelessly until this legislation becomes law.” 

“Families across Ohio and the United States are facing a daunting affordable housing crisis that demands creative, collaborative solutions,” said Rep. Beatty. “For more than three decades, the HOME program has provided essential gap funding for states and communities across the nation to address their most pressing housing challenges. I am proud to join Senator Cortez Masto and Congressman Garamendi in leading this legislation to authorize ample funding for HOME for the next five years and to make critical improvements to the program that will ensure more American families have access to safe, affordable housing.” 

“We have to do more to address our affordable housing crisis and increase the supply of affordable homes for Nevada families,” said Senator Masto. “The HOME program delivers critical funding to help communities build new housing units, support rental assistance, and support new homebuyers – but it needs to be updated to meet today’s needs. My legislation reauthorizing, improving and expanding this vital program will ensure more Nevadans have a quality, affordable place to call home.” 

The HOME Investment Partnerships Program (HOME) is the largest federal affordable housing block grant and is HUD’s flagship affordable housing production program. Since 1990, HOME has helped state and local housing agencies support a wide variety of housing needs, from financing new construction and home repairs to funding down payment and rental assistance. It also provides additional funding to housing developments financed by the Low-Income Housing Tax Credit, helping the program serve more extremely low-income people including seniors, veterans, those experiencing homelessness, and people with disabilities. Since 1992, the HOME program in California has: 

• Invested $5.27 billion into housing across the state;
• Built or preserved 121,727 homes;
• Given rental assistance to 43,840 families;
• Supported 277,318 jobs; and
• Generated $19.2 billion in local income.

The program was last re-authorized in 1994 and needs critical updates to better address today’s housing crisis. Garamendi’s HOME Investment Partnerships Reauthorization and Improvement Act would reauthorize the HOME program and make several much-needed improvements. Specifically, it would: 

• Authorize $5 billion in HOME funding for fiscal year 2024 and boost the funding for the program by five percent annually through 2028. Garamendi’s legislation would address chronic underfunding of the affordable housing investment program, which received only $1.5 billion in 2023;
• Improve HOME’s ability to provide downpayment assistance to homebuyers and home repair assistance to homeowners; 
• Enable HOME funds to support Community Land Trusts and other shared equity homeownership programs; and
• Increase access to HOME funds for nonprofits and provide state and local governments loan guarantee options that would allow them to leverage their future HOME funds for investments today. 

The legislation is cosponsored by Representatives Suzanne Bonamici (D-OR), Shontel Brown (D-OH), André Carson (D-IN), Emanuel Cleaver (D-MO), Bonnie Watson Coleman (D-NJ), Dwight Evans (D-PA), Sylvia Garcia (D-TX), Glenn Ivey (D-MD), Dan Kildee (D-MI), Annie Kuster (D-NH), Barbara Lee (D-CA), Eleanor Holmes Norton (D-DC), Ilhan Omar (D-MN), Andrea Salinas (D-OR), Emilia Sykes (D-OH), Brad Sherman (D-CA), Dina Titus (D-NV), Rashida Tlaib (D-MI), Nikema Williams (D-GA), and Juan Vargas (D-CA) and Senators Tina Smith (D-MN), John Fetterman (D-PA), and Jacky Rosen (D-NV). It is also supported by the National Council of State Housing Agencies, Council of State Community Development Agencies, Enterprise Community Partners, Institute of Real Estate Management (IREM), Grounded Solutions Network, National Multifamily Housing Council, Local Initiatives Support Corporation, National Association of Local Housing Finance Agencies, National Community Development Association, National Association of Hispanic Real Estate Professionals (NAHREP), National Association of Realtors (NAR), National CAPACD, Habitat for Humanity, National Apartment Association and National Association for Community Economic Development Associations. 

Representative Garamendi has spent his entire career advocating for affordable housing, robust homeowner protections, and rental assistance programs. As California’s first-ever elected Insurance Commissioner, Garamendi successfully implemented Proposition 103, which reformed the homeowner insurance industry and lowered homeownership insurance rates. Last year, Garamendi and Rep. Zoe Lofgren (D-CA) led members of California’s congressional delegation in sending a letter to California Insurance Commissioner Ricardo Lara urging him to use his power under state law to protect homeowners in the face of an insurance crisis. During his congressional tenure, Garamendi worked with Habitat for Humanity to establish a financing mechanism that utilized existing funding to build new veteran housing units. Garamendi originally introduced the HOME Investment Partnership Reauthorization Act in 2020 and has continued to champion the legislation in Congress. He is also a cosponsor of the Affordable Housing Credit Improvement Act, which would support the financing of more affordable housing by expanding and strengthening the Low-Income Housing Tax Credit.  

Wants Congress to approve caps on deferred compensation

SACRAMENTO — State Controller Malia M. Cohen released the following statement following last month’s announcement that the L.A. Dodgers signed a 10-year, $700 million contract with pitcher Shohei Ohtani. The contract is structured so that Ohtani will receive $2 million per year and defer the balance approximately 10 years, when he could potentially return to Japan and escape payment of California state income taxes on the deferred amount:

“The current tax system allows for unlimited deferrals for those fortunate enough to be in the highest tax brackets, creating a significant imbalance in the tax structure.” said Cohen. “The absence of reasonable caps on deferral for the wealthiest individuals exacerbates income inequality and hinders the fair distribution of taxes. I would urge Congress to take immediate and decisive action to rectify this imbalance.”

“Introducing limits on deductions and exemptions for high-income earners promotes social responsibility and contributes to a tax system that is just and beneficial for all. This action would not only create a more equitable tax system, but also generate additional revenue that can be directed towards addressing pressing important social issues and fostering economic stability,” Cohen stated.

About Controller Cohen

As the chief fiscal officer of California, Controller Cohen is responsible for accountability and disbursement of the state’s financial resources. The Controller has independent auditing authority over government agencies that spend state funds. She is a member of numerous financing authorities, and fiscal and financial oversight entities including the Franchise Tax Board. She also serves on the boards for the nation’s two largest public pension funds. Follow the Controller on X at @CAController and on Facebook.

Two-step process redacts identifying information as required by new state law

OAKLAND – California Attorney General Rob Bonta released Race-Blind Charging Guidelines that address the specific statutory requirements listed in Assembly Bill 2778 (D-McCarty) and Penal Code Section 741, as well as provide prosecutors practical guidance as to how to implement the requirements. The guidelines outline a new two-step process for evaluating charging, including how to redact identifying information, how to document charging decisions, when a crime is excluded from this process, and the requirements to collect and make available for research anonymous data. The guidelines are intended to help reduce the potential for unconscious bias to influence the initial charging decision in legal cases, in accordance with the spirit, law, and goals of PC 741.

“Unconscious bias has no place in the criminal justice system and should not play a role in charging,” Bonta said. “Unfortunately, we know the criminal justice system is not infallible and charging decisions are vulnerable to unconscious bias. This is a reality we cannot ignore and must work to correct. These guidelines will help prosecutors perform their duties in accordance with California law and most importantly, help promote a more fair and equitable charging process for all individuals.”

Studies have shown that unconscious bias may infect decisions within the criminal justice system, despite the best intentions of the parties involved. The guidelines will assist all California prosecution agencies in implementing this new process by January 1, 2025. It includes nine critical components to reduce unconscious bias:

1. Redaction of Cases Received from Law Enforcement Agencies and Suspects Criminal History Documentation: Prosecution agencies are required to review initial charging decisions based on information, including police reports and suspect criminal history documentation, from which all direct means of identifying the race of suspect(s), victim(s), and witness(es) race is removed.
2. Race-Blind Initial Charging: Prosecution agencies are required to follow a two-step process for charging cases: a “race-blind initial charging evaluation” based on redacted reports and then an “ordinary charging evaluation” based on the unredacted reports and all available evidence. The initial charge evaluation is intended to perform a gate-keeping and recording function prior to the actual charging process. It contemplates an initial evaluation on whether to file any charges, without specifying what charges might be filed. The more thorough second review will be used to determine individual charges or decide charges with certainty. 
3. Redaction Process for Initial Charging Evaluation: Each prosecution agency must create a redaction process for the materials used in the initial charging evaluation. It must be performed by personnel not association with evaluating or charging the case and may either be done manually or through automation as long as the process ensures correct redaction.
4. Use of Artificial Intelligence (AI) Tools for Redaction: If an AI system is used, it must be validated before implementation that appropriate safeguards are in place to prevent unauthorized access to sensitive information.
5. Second Review for Charging: After completion of the race-blind initial charging evaluations, the case shall proceed to a second, complete review for charging. This would include a review of unredacted reports and all available evidence, which may include additional materials, such as video footage, photographs, and complete witness statements, that reveals race but must be reviewed to assess whether the requisite elements have been met to warrant the filing of criminal charges. This is the “ordinary charging evaluation” and must be performed by the same prosecutors who performed the initial charging review.
6. Documentation of Charging Decision: Prosecution agencies are required to follow a two-step process for charging cases: a “race-blind initial charging evaluation” based on redacted reports and then an “ordinary charging evaluation” based on the unredacted reports and all available evidence. The initial charge evaluation is intended to perform a gate-keeping and recording function prior to the actual charging process. It contemplates an initial evaluation on whether to file any charges, without specifying what charges might be filled. The more thorough second review will be used to determine individual charges or decide charges with certainty. 
7. Inability to Conduct Race-Blind Initial Charging Evaluation: If a prosecution agency was unable to put a case through a race-blind initial charging evaluation, the reason for that inability must be documented and retained by the agency.
8. Collection of Data and Availability for Research Purposes: Each county in which a prosecution agency resides must, on a usual basis, collect the data resulting from the race-blind initial charging evaluation process, except as such information is protected by privilege including, but not limited to, that found in Penal Code section 1054.6. Each county must ensure that the data is collected, stored, and transmitted in a way appropriate to protect sensitive information.
9. Exception to the Race-Blind Process: The prosecution agency may exclude the crimes listed at the Penal Code section 741, subdivision (c) from the race-blind charging process. Each prosecution agency may further remove or exclude certain classes of crimes or factual circumstances from a race-blind initial charging evaluation and shall keep a list of the exclusion and their reason for review.

Attorney General Bonta, is committed to fighting for racial justice. In May of 2021 he established the Racial Justice Bureau which, among other things, supports the California Department of Justice’s broader mandate to advance the civil rights of all Californians by assisting with new and ongoing efforts to combat hate and bias. This year, the Attorney General has also engaged with local leaders through roundtables through hate crime roundtables in Bakersfield, Fresno, Anaheim and Irvine.  

More broadly, the Attorney General is deeply committed to responding to the needs of historically marginalized and underrepresented communities and, last year, also launched the Office of Community Awareness, Response, and Engagement to work directly with community organizations and members of the public as part of the effort to advance justice for all Californians.

A copy of the Guidelines can be found here.

Safe Landings Act garners support of “Sully” Sullenberger, Coalition of Airline Pilots Associations

Washington, D.C.– Today, Congressman Mark DeSaulnier (D, CA-10) announced the introduction of the Safe Landings Act (H.R. 6850) to increase aviation safety and avoid near-miss aircraft incidents, like the one that occurred at San Francisco International Airport (SFO) on July 7, 2017, in which over 1,000 passengers were in danger of losing their lives. By creating a new federal task force to research and identify safety risks, expanding training, and addressing new technology needs, this bill would help reduce human error in aviation and save lives. DeSaulnier first introduced this legislation in August 2019, but with runway incursions this year up 25% from a decade ago and expectations of the busiest ever holiday season for air travel, he has updated the bill based on new information and industry needs. 

“As we approach an exceptionally busy air travel season following a year of unprecedented levels of aircraft near-misses, I am doing all I can in Congress to pass aviation safety reforms to help ensure the protection of and convenience for the flying public,” said DeSaulnier. “By taking a proactive approach to identifying flaws and risks in flying before they cause harm, this bill would help ensure the safety of millions of Americans, especially during periods of heavy air travel, and that the United States remains a global leader in aviation.”

“My mission is making all of us safer when we fly,” said Ambassador “Sully” Sullenberger, U.S. Representative to the International Civil Aviation Organization. “There is still much work to be done. This bill closes many of the gaps in safety that still pose a threat.”

“We applaud Representative DeSaulnier’s proactive efforts to improve aviation safety with the Safe Landings Act,” stated Coalition of Airline Pilots Associations (CAPA) President Captain Larry Rooney. “Aviation safety is a direct result of the continued collaborative efforts of all stakeholders to ensure that the safety of the traveling public remains paramount. This legislation provides the latest opportunity to further refine and improve on known and newly discovered safety deficiencies. Additionally, it recognizes that any attempt to reduce pilot flight deck staffing diminishes the tremendous safety strides made through the robust and proven life-saving application of Crew resource management skills (CRM). CAPA looks forward to providing the subject matter expertise necessary to ensure that this important safety legislation becomes enacted into law.”

Following the near-miss incident at SFO when an arriving Air Canada flight came dangerously close to landing on a taxiway occupied by four aircraft loaded with more than 1,000 passengers, Congressman DeSaulnier, a senior member of the House Committee on Transportation and Infrastructure and former chair of both the California Assembly and California Senate transportation committees, spent two years researching aviation and near-miss incidents. In consultation with experts in the field, including Captain Sullenberger, pilot unions, air traffic controllers, mechanics, ground safety crews, and federal agencies (NTSB and the Federal Aviation Administration (FAA) he developed this legislation to ensure that fatal or near-miss incidents—like what occurred at SFO—are prevented in the future.

In addition to this legislation, the FAA announced in September 2023 that it is promoting the use of cockpit-alerting technologies, which is a positive step in the direction toward Congressman DeSaulnier’s provision mandating this technology and the National Transportation Safety Board’s (NTSB) recommendations following the 2017 incident.

Specifically, the Safe Landings Act would:

• Require the Federal Aviation Administration (FAA) to implement systems that would alert both pilots and air traffic controllers if a plane is not properly aligned to land on a runway;

• Require FAA to gather data and issue guidance on the most effective techniques for pilots to electronically verify they are landing on the correct runway;

• Require the “notices to air mission” (NOTAM) system to be evaluated for improvements;

• Direct the Government Accountability Office (GAO) to conduct a study on the concerns some pilots have with cockpit voice recorders (CVRs)—like inappropriate foreign government use—and provide recommendations to improve CVRs while also protecting pilots;

• Create a Task Force on Human Factors in Aviation Safety to review and provide recommendations on crew responses to abnormal events, pilot performance during unexpected events, current flight crew rest and fatigue standards, and other safety related issues;

• Require that international rules, regulations, or standards regarding flight crew and maintenance personnel rest and fatigue be studied to ensure worker safety;

• Direct the Department of Transportation Office of Inspector General to audit current FAA standards and programs for whistleblowers to strengthen protections for aviation workers; 

• Require a report that studies the role of human factors in high-risk professions, including the aviation industry, and recommend best practices to reduce the risk;

• Require updating of guidelines for air carrier maintenance programs to improve transparency;

• Ensure that safety data that is voluntarily provided to the Aviation Safety Action Program is protected;

• Require a review of the International Civil Aviation Organization’s (ICAO) best available technologies and standards and a timeline for adoption in the U.S.;

• Require a minimum of 2 pilots in all part 121 air carriers providing transportation to passengers and cargo;

• Require knowledge safety experts on any FAA advisory committee that provides recommendations on topics that impact aviation safety; and

• Require the FAA Administrator to ensure that air carriers are prohibited from hiding information that is important for any investigations of aircraft incidents.

This legislation is endorsed by the Coalition of Airline Pilots Associations (CAPA) and original cosponsors of the bill include Representative Dina Titus (NV-01) and Delegate Eleanor Holmes Norton (DC-AL)

Would create $10 million Dep’t. of Justice pilot program

Washington, D.C. – On December 12, 2023, Representatives Mark DeSaulnier (CA-10), Zoe Lofgren (CA-18), and Don Beyer (VA-08) announced the introduction of the Advancing Gun Safety Technology Act (H.R. 6697), a bill that would help bring life-saving gun safety technology to the market. Specifically, the bill would create a $10 million pilot program at the Department of Justice’s National Institute of Justice to support private-sector commercialization of gun safety technology. This legislation is supported by Brady’s United Against Gun Violence, Everytown for Gun Safety and Gifford’s Law Center to Prevent Gun Violence.

Gun safety technology—like smart guns, user-authorized handguns, childproof guns, personalized guns, and safes and locking devices that include personalized technology—are designed to reduce the likelihood of an accidental or unauthorized use of a gun. According to the Educational Fund to Stop Gun Violence, each year nearly 500 people die from unintentional firearm injuries, and unintentional firearm injuries account for 37% of nonfatal firearm injuries.

“With gun violence taking such a devastating toll on our communities, and as the son of someone who took his life by gun suicide, I strongly believe that we need to use every tool in the toolbox to address the gun violence epidemic,” said DeSaulnier (CA-10). “Gun safety technology will help reduce accidental shootings and gun suicides while protecting responsible gun owners, and this bill will help make that technology available to more people. I am grateful to join with my colleagues in introducing this important legislation.”

“We have a gun violence crisis in this country, and Congress should act on all fronts to help keep our communities safe. That includes by passing our Advancing Gun Safety Technology Act to boost innovators’ ability to market technology that can save Americans’ lives,” said Lofgren (CA-18). “My district was devastated by the Gilroy Garlic Festival and Santa Clara Valley Transportation Authority yard mass shootings, and I always value collaborating with colleagues committed to doing more to end the scourge of gun violence in America. This legislation is focused on safety and progress, and non-gun owners and gun owners alike should support this sensible bill.”

“Gun safety technology has the potential to save some of the tens of thousands of American lives lost to gun violence each year,” said Beyer (VA-08). “Many of those deaths are suicides and accidental shootings, which smart gun tech is designed to help prevent. Our legislation would help spur innovation to develop these technologies and bring products incorporating them to market, preventing gun violence and saving lives. I appreciate my colleagues Rep. DeSaulnier and Rep. Lofgren for their leadership on this legislation and look forward to building a coalition to advance it.”

“Innovators continue to advance gun safety technology, striving to minimize unauthorized access to firearms. However, additional funding is essential to bring these life-saving innovations to the market. An analysis of unintentional gun deaths suggests that 37% of fatal shootings could have been prevented by smart gun technology. Gun owners and non-gun owners alike stand to benefit significantly when firearms are manufactured, stored, and utilized with the utmost safety in mind,” said Gifford’s Federal Affairs Director Adzi Vokhiwa. “We applaud Representatives DeSaulnier, Lofgren, and Beyer for leading the charge for innovation in gun safety technology, and we strongly urge Congress to swiftly pass this bill.”

“Guns are now the number one cause of death for America’s children. If the same could be said for a type of medicine, toy, or anything else, action would be taken to save lives. To date, the gun industry has refused to invest in technology to make guns less dangerous, especially in the hands of children. The Advancing Gun Safety Technology Act will fill this gap and provide grants to entities looking to develop gun safety technologies. Stated simply, this investment will protect more Americans – particularly our children – from being irrevocably injured or killed by firearms. Brady is grateful to Reps. DeSaulnier, Lofgren, and Beyer for re-introducing this legislation,” said Kris Brown, President of Brady.

The Advancing Gun Safety Technology Act was previously introduced by former Representative Jackie Speier (D-CA).

OAKLAND, Calif.  – SEIU-United Healthcare Workers West President Dave Regan issued the following statement on California’s healthcare worker minimum wage law (SB 525):

“California’s healthcare worker minimum wage law (SB 525) addresses critical staffing shortages by helping to retain existing healthcare workers and attract new caregivers to the industry. The state needs to hold fast to its commitment to invest in its healthcare workers and solve the staffing crisis in our hospitals, clinics, and medical centers. 

Passed overwhelmingly by the state legislature and signed by the Governor, the bill had backing from across the healthcare industry, including the California Hospital Association and frontline healthcare workers.

The impact of the new healthcare minimum wage on the state budget has been severely overstated. As part of a compromise among healthcare stakeholders, the minimum wage will be gradually phased in over the next few years. In addition, a UC Berkeley Labor Center report states that the impact on the California budget will be partially or fully offset by low-paid workers no longer relying on Medi-Cal for their healthcare coverage.

With billions in profits, the healthcare industry has the financial resources to raise wages for their lowest-paid workers. Even before Governor Newsom signed the healthcare worker minimum wage into law, many healthcare employers had already implemented or incorporated a path to a $25/hr minimum wage for their workforce, including Stanford Healthcare, Fresenius Medical Care, Satellite Healthcare, and the biggest healthcare provider in the state, Kaiser Permanente in its largest labor contract. 

Frontline healthcare workers are counting on the state of California not to waver from its commitment to addressing the patient care crisis and supporting those who provide that care.”

Shares story of caring for her mother for National Family Caregivers Month in November

I’d like to begin by reminding all of you that November is National Family Caregivers Month. It’s a time to recognize the incredible dedication and sacrifices of those who care for their loved ones, particularly those grappling with dementia, in any of its forms. I come to you not just as a speaker but as someone who has experienced the profound impact of dementia firsthand, a journey that started when my mother asked for my help back in 2014.

My mom’s story is one that many of you might find familiar. She was a vibrant woman who, as she approached her 68th birthday, began exhibiting signs of something amiss. Her social withdrawal, erratic medication intake, and a fainting episode that led her to the hospital in Walnut Creek were all red flags. It wasn’t until 2019 that a diagnosis was finally confirmed – vascular dementia. A young, dismissive doctor delivered the news, but our suspicions had been growing for years. The truth was that my mom had been prescribed what I’ve come to call “the dementia cocktail” in 2012, when she was just 61. It consisted of Aricept and Memantine, but her decline was slow, leading to moments of despair. By 2019, she had reached a point where she couldn’t care for herself, yet medical professionals seemed hesitant to make the diagnosis, leaving me feeling isolated in my role as her advocate.

However, my journey took an unexpected turn on my 40th birthday. That day, my mom embarked on a 36-hour odyssey across the Bay Area, signifying her fading independence. She drove across the Bay Bridge twice and even crossed the Golden Gate Bridge once. She was found disoriented and alone, wandering along Alemany Boulevard in Daly City at 3 am, having left her car in front of someone’s house, a silent testament to her deteriorating condition.

My 40th birthday celebration was anything but joyful; it marked the beginning of a deeply personal battle to protect and care for the woman who had once cared for me. My mom’s story is a vivid reminder of the complex and urgent challenge that dementia presents. It’s a disease that not only affects individuals but also places tremendous emotional and physical strain on their caregivers.

In addition to November being National Caregiver Month, let us also acknowledge the importance of the National Alzheimer’s Plan. This initiative has played a vital role in advancing research and support for individuals and families dealing with Alzheimer’s and related dementias. However, we cannot afford to let this plan expire. We must ensure its continued existence and strength.

I call upon our new Senator Laphonza Butler and Senator Alex Padilla to take a stand in this critical moment. I urge them to cosponsor the bipartisan NAPA (National Alzheimer’s Project Act) Reauthorization Act (S. 133) to renew and bolster the National Alzheimer’s Plan, ensuring that the needs of those affected by dementia are met, and research into this disease continues to progress.

In closing, if you or someone you know needs information or assistance in caring for a loved one with dementia, please reach out to the Alzheimer’s Association at 800.272.3900. Together, we can provide the support and resources needed for those battling this heart-wrenching disease. Thank you for your attention and let us work collectively to make a difference.

Latrice Phillips Brown

Pittsburg, CA

Assembly Bill 39 will establish a licensing process for crypto exchanges and provide consumers with needed protections. Senate Bill 401 will establish safeguards for crypto kiosks. 

(SACRAMENTO, CA) – On Friday, Oct. 13, 2023, Assembly Bill 39, authored by Assembly Banking and Finance Chair Timothy Grayson (D-Concord) and co-authored by Senate President pro Tempore Toni G. Atkins (D-San Diego), Senate Banking and Financial Institutions Chair Monique Limón (D-Santa Barbara), and Assemblywoman Cottie Petrie-Norris (D-Irvine), was signed by Governor Gavin Newsom. AB 39 will establish a licensing program for crypto assets within the Department of Financial Protection and Innovation (DFPI) to protect Californians from bad actors and foster responsible innovation. The bill represents a major victory for responsible innovators and California consumers.

AB 39’s lead author, Assemblymember Grayson, released the following statement:

“Today California is taking the necessary step to regulate a market that is volatile, risky, and, in some cases, deliberately rigged against everyday consumers. Because of today’s action, Californians can be confident that crypto businesses, like any other company in financial services, must follow reasonable rules that will protect consumers and their money. Thank you to Governor Newsom for helping ensure that our state leads in fostering responsible innovation.”

Assembly Bill 39 is a companion bill to Senate Bill 401 (Limón and Atkins), which will set a regulatory framework for crypto kiosks, a part of the crypto industry rife with fraud and abuse. Crypto kiosks are ATM-like machines that allow consumers to purchase cryptocurrencies such as Bitcoin. However, these machines charge exorbitant fees and are hubs of criminal activity, scams, and consumer fraud.

“With the important frameworks established by AB 39 and SB 401, California will begin the challenging task ahead of us to regulate cryptocurrency and ensure that no Californian falls prey to scams, investment related fraud, or high-fee asset withdrawal schemes,” said California Senate President pro Tempore Toni G. Atkins. “Failures in crypto markets in recent years have emphasized the need for regulatory frameworks that have the backs of consumers, and Assemblymember Grayson and Senator Limón have led the way in doing just that.”

“California is taking a step in the right direction to protect California consumers from fraud, unnecessary risk, and potentially criminal activity with the signing of SB 401 and AB 39,” said Senator Monique Limón. “I am grateful that Governor Newsom sees the benefits to establishing a clear framework that allows for innovation without harming California consumers.”

Senate Bill 401 was signed into law, along with Assembly Bill 39. 

“The Consumer Federation of California thanks Governor Newsom for signing these two important bills protecting consumers in the crypto marketplace,” said Robert Herrell, Executive Director of Consumer Confederation of California. “California now retakes its rightful position near the top of states protecting consumers in the crypto market. We also profoundly thank Assemblymember Grayson and Senators Limón and Atkins for their perseverance on these issues. Consumers will be better protected in crypto thanks to these new laws.” 

With the Governor’s signature of these measures, crypto companies and crypto kiosk operators must obtain or apply for a license by July 1, 2025, to continue doing business in California. Additional information and the text of both bills can be found here.