Building Relationships, Navigating California and Preparing for 2027
As the 2026 state legislative season winds down, attention is shifting from state capitols to the November midterm elections. For ELFA, however, adjournment does not mean the end of advocacy. This period provides an important opportunity to strengthen relationships, identify emerging policy trends and prepare for the next legislative cycle.
Our state government relations strategy is built around a simple principle: effective advocacy begins long before a bill is introduced. That means proactively monitoring developments across all 50 states, engaging policymakers between sessions and ensuring lawmakers understand the role equipment finance plays in supporting businesses and communities.
Advocacy on the Road
Recent travel has provided several opportunities to put that strategy into practice.
This summer, ELFA participated in the National Conference of State Legislatures (NCSL) Legislative Summit in Chicago, where legislators and legislative staff from across the country gathered to discuss emerging state policy issues. Our engagement continued at the State Legislative Leaders Foundation (SLLF) Fall Leadership Summit in San Francisco, providing an opportunity to connect with legislative leaders outside the fast-paced environment of state capitols. Most recently, ELFA attended the Congressional Black Caucus Foundation's 55th Annual Legislative Conference (ALC55) in Washington, D.C., where policymakers, business leaders and stakeholders gathered for discussions on economic opportunity and public policy.
Each event offered something valuable: an opportunity to build relationships before they are needed, listen to policymakers' priorities and make sure the equipment finance industry's voice is part of broader policy conversations.
California Takes Center Stage
Those relationships are especially important as ELFA continues its engagement on California AB 2116 (Schiavo), a broad commercial financing measure awaiting action by Governor Gavin Newsom.
ELFA has formally requested a veto and shared our letter directly with the Governor's legislative staff and Chief of Staff. Our concerns focus on provisions that could affect contract enforceability, financing sources' ability to protect their interests in financed equipment, and the treatment of ordinary equipment-dealer referrals under commercial financing broker requirements.
AB 2116 extends beyond equipment finance and reaches multiple forms of commercial financing. It also advanced through the Legislature without a recorded "no" vote, reflecting substantial legislative support for the measure. ELFA's advocacy therefore remains focused on educating the Administration about the practical implications for equipment finance.
Advocacy and Preparation
While ELFA continues making the industry's case, members should also begin evaluating potential compliance implications should AB 2116 become law.
The implementation timeline provides legal and compliance teams time to assess licensing obligations, business structures and existing practices. If enacted, attention would also shift to implementation by the California Department of Financial Protection and Innovation (DFPI), where regulatory engagement could provide another opportunity to address definitions, exemptions, licensing requirements and other issues important to equipment finance.
Advocacy and preparation can—and should—happen simultaneously.
Election Season and What's Next
The November elections will shape the state policymaking landscape heading into 2027, with thousands of legislative seats on the ballot nationwide. For ELFA, the focus will quickly turn to building relationships with new lawmakers, reconnecting with returning legislators and preparing for emerging policy priorities.
The statehouses may be quieter, but the work continues. Preparing for 2027 starts now.
