California local governments may soon have power to create 'public banks,' as Legislature passes bill
A California bill that would allow local jurisdictions to charter their own “public banks” to address local needs passed the state Assembly on Friday and now heads to Gov. Gavin Newsom’s desk for his signature.
Newsom will have until Oct. 13 to sign the bill, Assembly Bill 857.
Authored by Assemblymembers David Chiu, D-San Francisco, and Miguel Santiago, D-Los Angeles, the bill passed the Assembly on a concurrence vote and “would open a pathway towards creating public banks in California and ensure the public’s money benefits local communities rather than the largest financial institutions,” according to a statement from Chiu’s office.