California State Legislation
AB-857: The Public Banking Bill
In 2019, California State passed AB-857! This bill establishes a framework for government entities to create public banks. Each public bank must create its own business plan, governance structure and charter. AB-857 allows for the creation of ten banks in seven years, with at most two banks created in one year. AB-857 was endorsed by over 100 organizations representing over 3.3 million Californians (source: California Public Banking Alliance)
We need input from everyday citizens to create strong public banks! The bank charter is where guidelines for each public bank are determined and outlined. Public accountability and transparency, responsible and equitable governance structure, and ethical investing protocols must be written strongly into these charters.
It is likely that Los Angeles, San Francisco and the East Bay will host the first public banks to be created in California. We are working hard to join in with our Central Coast regional public bank.
