Public Banking Option Act – AB 1177

2021

The California Public Banking Option Act – AB 1177 (Santiago, Carrillo, Chiu, Garcia, Gonzalez, Kalra, Lee, Ting, Wicks, Gipson), or BankCal, closes the financial services gap, bolsters the economy, and ensures an equitable economic recovery by providing a stable, accessible platform for underserved communities especially hit hard by the pandemic. LCCRSF is a proud co-sponsor of AB 1177, which creates a new retail banking option provided by the state that would offer every Californian:  

  • a zero-fee, zero-penalty debit account and debit card 
  • direct deposit from employers and public benefits 
  • automatic bill pay to registered payees 
  • recurring payments and donations to account holders’ organizations or charities of choice 
  • an infrastructure to support account holders in building credit 
  • tools for financial literacy 

This builds on LCCRSF’s long standing work on public banking as a founding member of the California Public Bank Alliance, the San Francisco Public Bank Coalition, and the passage of AB 857 in 2019 to legalize public banking in California.

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