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Bill Summary · AB 2607

Overview

AB 2607 (2025-2026, California) adds and modifies provisions related to the California Americans with Disabilities Act Small Business Capital Access Loan Program (ADA Small Business Capital Access Loan Program) and makes related changes to retirement savings programs administered under CalSavers. The bill aims to expand loan program funding and scope, adjust fund mechanics, and align retirement savings provisions with broader participation, including household employers. It also introduces changes that would constitute an appropriation due to fund transfers and expanded uses of continuously appropriated funds.

Main purpose and intent

  • Increase capital access for small businesses to make ADA-related alterations to facilities, enabling compliance with the Americans with Disabilities Act.
  • Expand the loan cap and broaden eligible uses and funding sources for the ADA small business loan program.
  • Align and integrate related retirement savings provisions (CalSavers) with expanded employer eligibility and benefits administration, including new account types and vendor requirements.
  • Improve program administration and oversight through regulatory updates, term extensions, and recapture provisions.

Key provisions and changes

  • ADA Small Business Capital Access Loan Program

    • Qualified loan cap increased from $50,000 to $250,000.
    • Funds to be transferred from the California Seismic Safety Capital Access Loan Program Fund to the ADA Small Business Capital Access Loan Program Fund, effective on the operative date.
    • Expanded permissible uses: moneys in the ADA fund may be used for financial assistance to eligible projects beyond the prior limitations.
    • Administrative expenditures cap revised to 5% of the initial appropriation plus 5% of all interest earned and moneys recaptured (updating the prior limit).
    • Regulations must extend the loan loss reserve term and recapture period from 5 years to 15 years.
    • Transfer and fund-shaping changes potentially constitute an appropriation by increasing continuously appropriated funds and allowable uses.

  • CalSavers Retirement Savings Program (expanded scope)

    • Eligible employer definition expanded to include household employers (those who hire workers in the home and provide a W-2). This expands participation and implications for program funding and administration.
    • Board elimination of certain features (e.g., elimination of authority to invest in myRAs) and addition of new accounts and emergency savings considerations.
    • New program components with board approval:
    • Establishment of an IRA on behalf of participants eligible for federal/state retirement benefits.
    • Establishment of a payroll deposit emergency savings account (capped at $1,000 per account; adjustable contribution rates from 0.5% to 3%; potential employer contributions allowed within tax rules).
    • 30-day notice requirements for account creation and opt-out mechanics.
    • Revisions to governance, vendor requirements, and penalties:
    • Streamlined vendor information requirements for contracting (no longer a separate retirement investments clearinghouse/open vendor registry process as previously structured; vendors must provide specified information to the board).
    • Open enrollment provisions and ongoing employer/employee participation rules, with penalties for noncompliance (increased to $500 per eligible employee after initial penalties, not to be imposed more than once every 180 days).
    • Administrative and fiduciary provisions emphasize prudent management, with investment oversight, reporting, and potential multi-state regional administration possibilities.

Who is affected

  • Small businesses seeking ADA-related improvements can access larger loans (up to $250,000) and related financial support.
  • Lenders participating in the ADA program may be subject to revised loss reserve and term regulations.
  • CalSavers-eligible employers, including household employers, and their employees, with new enrollment and opt-out processes.
  • Vendors offering retirement investment products will be subject to updated disclosures and information requirements.

Procedural and timeline notes

  • Operative date tied to bill enactment for transfer of funds between the seismic and ADA loan programs.
  • ADA loan program term and recapture adjustments extend to 15 years.
  • CalSavers program updates include ongoing enforcement and annual or periodic open enrollment opportunities; penalties apply for noncompliance with staggered timing (not more than 180 days apart).
  • The bill is structured to amend multiple Health and Safety Codes and Government Code provisions and to repeal certain sections related to the older framework of retirement investments clearinghouses.

Note: This summary focuses on the substantive changes and their likely practical effects based on the bill text.

Compiled from official sources — confirm details with the bill’s official record.

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