12 New Laws To Improve Affordability And Help Californians Save Money

SACRAMENTO— Californians will begin to see economic relief beginning in the new year thanks to a new set of laws going into effect on January 1.

These new laws will put more money in people’s wallets by easing financial pressures on families and improving consumer protections for residents across the state. Many passed with bipartisan support and deliver new solutions to Californians’ most pressing economic challenges.

12 New Laws To Improve Affordability And Help Californians Save Money

Protecting Californians from Excessive Banking Fees

AB 2017 by former Assemblymember Tim Grayson (D-Concord), and SB 1075, by former Senator Steven Bradford (D-Gardena), addresses unfair banking practices. AB 2017 prevents certain banks and credit unions from charging insufficient funds fees when transactions are declined due to a lack of funds. SB 1075 sets limits on overdraft fees charged by credit unions. Together, these bills aim to protect lower-income Californians from the financial burden of excessive fees and help prevent consumers from falling further into financial hardship.

Fair Limits on Security Deposits

AB 12 by Assemblymember Matt Haney (D-San Francisco) prohibits landlords from demanding a deposit greater than one month of rent, irrespective of whether the property is furnished or unfurnished. 

Protecting Paid Family Leave

AB 2123 by Assemblymember Diane Papan (D-San Mateo) ensures workers can take paid family leave before using-up their accrued vacation time, allowing Californians to better balance caregiving needs and their personal well-being.

Simplifying Subscription Cancellations

AB 2863 by Assemblymember Pilar Schiavo (D-Chatsworth) requires companies to offer a cancellation method that matches the way a customer signed up. For example, if someone subscribes online, they must be able to cancel online with a simple click-to-cancel option. 

Get Back Your Security Deposit

AB 2801 by former Assemblymember Laura Friedman (D-Burbank) ensures that, if you leave a rental home as clean as you found it, you should get your deposit back in-full. Security deposits are a big investment for many Californians, and this money should be protected. Landlords cannot illegally withhold deposits, and residential landlords cannot inappropriately use your security deposit on things such as contract jobs or carpet cleaning. If you kept your rental as clean as you found it, you should get your money back in-full. The law also will require landlords to take pictures. 

On-time rent = good credit!

AB 2747 by Assemblymember Haney (D-San Francisco) gives tenants the opportunity to build a healthy credit history by demonstrating responsible rent payments. Starting April 2025, if you are a renter and your landlord owns a residential property with more than 15 units, they will need to provide you with the opportunity to report positive, on-time, full payments to a nationwide credit bureau agency. This means renters can grow their credit score without buying a home.

Expanding Affordable Housing Opportunities

AB 2694 by Assemblymember Christopher M. Ward (D-San Diego) and SB 1123 by Senator Anna Caballero (D-Fresno) makes building affordable homes easier. AB 2694 facilitates the development of more affordable housing options for seniors under the Density Bonus Law. SB 1123 allows the development of up to 10 homes on vacant lots in single-family zones.

Streamlining ADU Development

AB 3057 by Senator Lori Wilson (D- Suisun City) and SB 1211 by Senator Nancy Skinner (D-Alameda) aim to make constructing Accessory Dwelling Units (ADUs) easier. AB 3057 allows junior ADUs to be developed with expedited environmental review. SB 1211 increases the amount of ADUs allowed on a multifamily property from 2 to 8. 

Protecting Consumers from Medical Debt

SB 1061 by Senator Monique Limón (D-Santa Barbara) addresses the devastating burden of medical debt on consumers. Under this new law, medical debt will no longer appear on credit reports, ensuring that people aren’t unfairly penalized for the cost of essential healthcare.  The law also prohibits lenders from using medical debt on credit reports as a negative factor when making credit decisions as well as giving individuals more room to handle their medical bills before debt collection and reporting can take place.

Just the Beginning

The grandson of farmworkers who immigrated to California in search of a better life, Speaker Rivas has urged the Assembly to prioritize affordability issues over the 2025-26 Legislative Session.

“We must chart a new path forward and renew the California Dream by focusing on affordability,” Speaker Rivas told a full Assembly Chamber on December 2. “But our ability to protect these essential California values of equality, diversity, and opportunity depends on delivering for constituents in practical concrete ways. Practical solutions like building more housing for lower- and middle-class families.”

The Legislature is scheduled to reconvene on Monday, January 6.