California’s Assembly Bill 857, now called the Public Banking Act, sponsored by the California Public Banking Alliance has made it through three committees, including the “notoriously difficult” Assembly Appropriations Committee, and is now up for a full vote on Assembly floor. Despite heavy opposition from Wall Street’s biggest banks, the bill advanced with “unprecedented” support from over 100 major cities, unions, and grassroots organizations. The Chair of the Assembly Appropriations Committee, Assemblywoman Lorena Gonzalez, became the latest co-author to sign onto the bill, saying:

“This measure is long overdue. We need to take the profit out of banking in order to invest in our communities that have been left behind by Wall Street. This approach to public banking allows our local governments to explore forming their own local or regional public banks.”

Joint author Assemblymember Miguel Santiago tweeted, “No one works harder to fight Wall Street and pass the Public Banking Act than this incredible coalition. #AB857 #PublicBanksNow.”

The tireless efforts of advocates has made it possible for public banking to enter the mainstream and it’s fast becoming common knowledge. Assemblymember Santiago said in his press release: “Californians know Wall Street is using our money to prop up corporations that run contrary to our values – like the NRA and fossil fuel companies – and we are fed up. Big banks shouldn’t underestimate the power of everyday people, hardworking families, and grassroots organizations to change the status quo.”

Trinity Tran, founding member of California Public Banking Alliance, added:

“AB 857’s advancement to the Assembly floor marks a pivotal shift in banking as a public utility rather than a private interest. It’s the solution we need for our cities to recapture the billions we pay to private Wall Street banks, so that we can invest in sustaining our communities.”

Continue reading on Public Banking Institute.

By Mark Anderson – Staff Writer, Sacramento Business Journal. California lawmakers have considered allowing public banks several times, starting in the depths of the financial crisis.

The city of Los Angeles and the city and county of San Francisco on Tuesday approved support for an assembly bill that would allow local governments to form their own public banks.

Having the two highest-profile cities in the state show support is a sign that a “coalition is coming together,” said Jonathan Underland, communications director for Assemblyman Miguel Santiago, D-Los Angeles, who, along with Assemblyman David Chiu, D-San Francisco, introduced Assembly Bill 857 in March.

“We want cities and counties to have the ability to create a public bank if that makes the most sense for their constituents,” Underland said. “Now, we don’t have the ability to even consider it. It is a local control bill. It would allow municipalities to experiment with this. It gives cities the opportunity to explore this.”

Continue reading on Sacramento Business Journal.

The public banking revolution has arrived! In Ellen Brown’s latest article, she discusses the I-Bank bill #SB528, our cities and regional public banking bill #AB857, and the momentum gaining around the country as policymakers race to form the first public bank in the United States since the Bank of North Dakota, founded in 1919.

Read the article on Truthdig.

On Tuesday morning, the Los Angeles City Council passed a resolution introduced by LA City Council President Herb J. Wesson in support of AB 857 – a bill to give California cities and municipalities the option to start their own public bank. Arguing for the measure, City Council President Wesson had this to say:

“This morning’s vote is for the people that too long have been underbanked and overcharged. The reality is our financial system is not working for a large majority of people, in particular communities of color. A public banking system in our state is a much-needed first step to bring economic justice to California’s most disadvantaged communities.”

Assemblymember Miguel Santiago (D-Los Angeles), who is a joint-author of the Public Banking Act, responded, saying: “Californians from the grassroots to the halls of power are weary of a corporate banking system that doesn’t work for them. Wall Street needs people-powered competition, and a public bank for public good is the right place to start. Council President Herb Wesson has been a bold champion of public banks for many years, and I couldn’t be more grateful for his leadership and the support we’ve seen from so many others across the state.”

The City of San Francisco – home district of AB 857 joint author Assemblymember David Chiu (D-San Francisco) – will consider a substantively identical resolution in support of the bill this afternoon.

“The public’s money should serve a public purpose, not line the pockets of Wall Street investors,” said Assemblymember Chiu. “Time and time again, we have seen big banks invest billions of dollars of our money in institutions most Californians are opposed to. I am grateful to see such broad support for our efforts to reinvest the public’s money in our local communities.”

Trinity Tran, founding member of the California Public Banking Alliance said, “This is an unprecedented multi-city coordination among the biggest local governments, representing over 6 million people in the state of California. Wall Street Banks have proven that their interests are not aligned with California’s communities. Local governments have essentially been a captive market for mega-banks and now with this legislation, we have the opportunity to build a new alternative banking system through locally-controlled, socially and environmentally responsible public banks, enabling cities and counties to recapture public dollars and have a say over the financing of our own localities.”

Continue reading on Los Angeles Sentinel.

Today on Flashpoints: The push for a public bank in California. Trinity Tran and Sushil Jacob with the California Public Banking Alliance talks to KPFA’s Dennis J. Bernstein about the groundbreaking California State Assembly Bill AB 857, the growing public banking movement and why this is a pivotal moment for Californians. Interview starts at 21 minutes on the dial.

KPFA 94.1 – The Push for Public Banks

Two California Democratic lawmakers have introduced a bill that would develop a state-owned banking system, modeling it on a program run by one of the smallest states in the union.

California Assemblymen Miguel Santiago, D-Los Angeles, and David Chiu, D-San Francisco, have introduced Assembly Bill 857, which would enable local governments to charter their own public banks.

North Dakota, with a population of fewer than 1 million people, has America’s only state-owned bank. The Bank of North Dakota this year is celebrating its centennial anniversary.

Santiago and Chiu would bring a similar system to California’s 39 million residents, arguing that a public institution might better serve the interest of low- and moderate-income households.

Continue reading on the Sacramento Bee.

Legislation introduced Monday could lay down the foundations for the creation of public banks in California and provide an alternative to San Francisco’s use of profit-driven commercial banks.

Currently there are no public banks in California, and no legal avenues to create one. But Assemblymembers David Chiu, D-San Francisco, and Miguel Santiago, D-Los Angeles, hope to change that with the introduction of Assembly Bill 857, which would allow jurisdictions to create public banks through a charter process.

The idea of a publicly-owned bank has gained traction in recent years as advocates and elected officials have called upon The City to divest its $11 billion budget out of commercial banks and into community centered projects that would better reflect San Francisco values.

“Wall Street banks have invested in oil pipelines, gun manufacturers, private prisons and companies with unfair labor practices,” Chiu said at a news conference Monday. “The opposite of what our state stands for.”

Continue reading on SF Examiner.

FOR IMMEDIATE RELEASE

Los Angeles, CA/San Francisco, March 11, 2019 – Asm. Miguel Santiago (D-Los Angeles) and Asm. David Chiu (D-San Francisco) held press conferences in their respective districts on Monday to introduce a new bill that will make it easier to establish regional and municipal public banks throughout the state of California.

The California Public Banking Alliance (CPBA) is sponsoring the legislation. CPBA designed the bill to provide localities a flexible framework for establishing public banks with appropriate terms, exceptions, and constraints.

“Public banking is one way we can start restoring economic power to our communities,” said Sushil Jacob, Senior Staff Attorney for Economic Justice with the Lawyers’ Committee for Civil Rights of the San Francisco Bay Area, one of CPBA’s founding members. “Wall Street banks routinely deny small business owners of color access to the credit they need to grow their businesses. When business owners of color do manage to get these loans, the fees and interest rates are often higher. These discriminatory patterns must end and the City can lead the way in providing an alternative.”

AB 857 will mobilize capital to take on the affordable housing goals that Assemblymembers Santiago and Chiu have already come together to champion.

“The public’s money should be used for public good.  Time and time again, we have seen big banks invest our money in institutions most Californians are opposed to–oil pipelines, gun manufacturers, private prisons, and companies with unfair labor practices.  This legislation allows us to take a first step towards ensuring the public’s money is reinvested in our local communities,” said Asm. David Chiu in a statement released this week.

Asm. Miguel Santiago released the following statement, “It’s pretty obvious that the Wall Street system of wealth distribution has created an income inequality crisis and nowhere is that more visible than right here in my district, where luxury condos loom over Skid Row. Instead of making rich men even richer, our resources should be invested in community development: parks and green spaces, free community college, new schools, smooth roads, and cleaner air. With AB 857 we’re laying the groundwork for a financial system that will give Californians access to capital they can afford, and empower communities to invest in projects that improve everyone’s quality of life.”

Around the country, as political discourse escalates on how to fund ambitious proposals for social equity and environmental justice, AB 857 may be one of the most important bills to watch.  This legislation will pave the way for reducing the cost of living in California.

“Wall Street Bank are financing climate destruction and they are doing it with our tax dollars,” said Doug Norlen, Director of the Economic and Policy Program at Friends of the Earth. “Public banks can invest our money into sustainable community projects right here in California instead of lining the pockets of Wall Street and Big Oil.”

CPBA is a coalition of grassroots public banking advocacy groups pushing for regional and municipally-owned public banks across California. Member groups include the San Francisco Public Bank Coalition, Public Bank Los Angeles, Public Bank East Bay, South Bay Progressive Alliance, Public Bank Santa Barbara, Public Bank San Diego, People for Public Banking Santa Cruz, Orange County Public Banking Coalition, and Friends of Public Banking Santa Rosa. Beneficial State Foundation, Friends of the Earth, and Lawyers’ Committee for Civil Rights of the San Francisco Bay Area are also members of CPBA.

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