California Passes Public Banking Law

The Public Banking Act Passes the California State Legislature! California just one signature away from boldest economic policy since the New Deal Today the California State Legislature passed the Public Banking Act (AB 857) in a historic victory for economic democracy over Wall Street lobbyists. The bill now heads to Governor Newsom, who has previously expressed support for a California state bank, for his signature. The vote positions California to become the first state in the nation to empower city and regional-level public banks as a safe and accountable alternative to the predatory Wall Street megabanks that crashed the global economy in 2007-08. The bill launches a pilot program allowing 10 public bank charters to be issued over a seven-year trial period. It also guarantees four layers of regulatory oversight, including the Department of Business Oversight, FDIC, Federal Reserve, and local bank boards of directors. These banks would be empowered to invest in affordable housing, small businesses, clean energy, and other local projects, giving municipalities a voice in determining the future of economic development in our communities. Read our press release.

The only hurdle left is Governor Newsom’s signature. Everyone reading this message, please support public banks by retweeting this message @GavinNewsom: https://twitter.com/calpba/status/1172641829881184256 And share on Facebook. Every post, every tweet, every mention helps strengthens the movement and ensures that California will move forward with public banking! This could not have been done without the tireless work of dozens of organizers working with the California Public Banking Alliance: people power brought this bill to where it is. Our thank-you list is almost as long as our endorsers list: The volunteer organizers who kept the engine running for months The volunteer attorneys who wrote the bill and managed the amendments The lobby teams who visited legislators’ offices in person The activists who came to the California Democratic Party convention to get delegate endorsements (resulting in the state party endorsement, 11 Democratic Central Committees endorsements, and 550 individual delegate endorsements) The members of state and local organizations who helped bring their (over 180!) endorsing organizations to the table, including labor, environmental organizations, and more The folks at home who wrote emails and made phone calls to legislators, and who supported the bill online The advocates who encouraged their (17!) cities and counties to pass endorsement statements The journalists who wrote positive articles And, OF COURSE, our indomitable co-authors, Assemblymembers David Chiu and Miguel Santiago, and their excellent, responsive staff members, plus the 19 co-authors who helped see this bill through to the finish line. ONWARD TO LOCAL PUBLIC BANKS IN CALIFORNIA! #AB857 californiapublicbankingalliance.org