AB 1177: California Public Banking Option Act.

Existing law, the CalSavers Retirement Savings Trust Act, creates in state government the CalSavers Retirement Savings Board and requires the board to, among other things, design and implement the CalSavers Retirement Savings Program.

This bill, the California Public Banking Option Act, until January 1, 2032, would require the Treasurer to convene, on or before September 1, 2022, the CalAccount Blue Ribbon Commission to be composed of certain members, including the Treasurer or the Treasurers designee. The act would require the commission to, on or before July 1, 2024, conduct, by contracting with one or more entities with appropriate expertise, and deliver, as prescribed, a market analysis to determine if it is feasible to implement a CalAccount Program, which, if implemented, would have certain characteristics, including that it would be a program established by the state for the purpose of protecting consumers who lack access to traditional banking services from predatory, discriminatory, and costly alternatives, which offers Californians access to a voluntary, zero-fee, zero-penalty, federally insured transaction account, known as a CalAccount, and related payment services at no cost to accountholders, including robust and geographically diverse mechanisms for accessing account funds and account management tools that facilitate the automation of basic financial transactions designed to serve the needs of individuals with low or fluctuating income. The bill would require the commission to hold a public hearing to review the market analysis and, after holding that hearing, would authorize the commission to issue a report to accompany the market analysis, as prescribed. The bill would make the operation of the act contingent upon an appropriation by the Legislature in the Budget Act or another statute for its purposes.