BREAKING NEWS: Gov. Newsom Signs AB 1177, the California Public Banking Option Act!
HISTORIC! Today Governor Gavin Newsom signed AB 1177, the California Public Banking Option Act, a historic step which sets into motion the creation of the nation’s first public banking option. AB 1177 creates the opportunity to transform our financial services system and to center it on the needs of our local communities and build a more inclusive economy.
In the months ahead, the CalAccount Blue Ribbon Commission will convene to conduct a market analysis and to determine the best way to implement the CalAccount program. There will be opportunities for advocates to take part in shaping the CalAccount program and co-hosting public outreach forums.
It’s up to the people to make sure that the CalAccount program reflects our values of equity and inclusion, and that it succeeds in bridging the financial access gap that’s left 1 in 4 Californians, and nearly half of Black and Latino California households unbanked and underbanked. Stay tuned for more updates and opportunities to ensure the success of CalAccount, the nation’s first public banking option program.
We’re proud to stand with 250 racial and economic justice groups, climate justice organizations, labor unions and elected officials who worked tirelessly to make AB 1177 possible. We thank the authors of AB 1177 for their vision and courage to end the discriminatory, predatory high-cost financial services that target low-income communities and communities of color.
AB 1177 was championed by lead author Assemblymember Miguel Santiago, and authors Assemblymembers David Chiu, Ash Kalra, Buffy Wicks, Mike Gipson, Lorena Gonzalez, Wendy Carrillo, Eduardo Garcia, Alex Lee, Phil Ting, and Adrin Nazarian. Co-authors include Assemblymembers Laura Friedman, Reggie Jones-Sawyer, Luz Rivas and Senators Ben Hueso, Maria Elena Durazo, Lena Gonzalez, Scott Wiener, and Josh Newman. We thank the Governor and California State Legislature for their leadership in rebuilding an economy that reflects our California values of equity and inclusion.
Thank you to our fellow co-sponsors of AB 1177, SEIU California and California Reinvestment Coalition and to the Californians who spoke truth to power about the realities of being un/underbanked.
This is the second public bank law the California Public Banking Alliance has won, following the passage of AB 857, the California Public Banking Act, signed by Governor Newsom at the end of 2019. Since the passage of AB 857, legislation to create local and regional public banks is moving forward in city halls across the state.
Thank you for making history with us.