Assembly Member Santiago’s Public Banking Option Act Passes Assembly Appropriations Committee

(Sacramento, CA) – Following the California Public Banking Option Act’s passage through the Assembly Appropriations Committee, which creates a public banking option by allowing any Californian to have a no-fee, no-penalty debit card account, Assembly Member Miguel Santiago (D-Los Angeles) released the following statement:

“During the height of the pandemic when families were struggling the most, big banks like Wells Fargo gouged needy people with nearly $4 billion in overdraft fees and penalties. That’s why we need BankCal to give all Californians a no-fee, no-penalty banking option,” said Assembly Member Miguel Santiago. “One in four California households either don’t have a bank account or use high-cost financial services like payday lenders and check cashers to access their hard-earned money. The percentage is even higher among people of color. We need to fight the racial wealth gap, help low-income folks build wealth, and AB 1177 is a major step in the fight against income inequality.”

AB 1177, the California Public Banking Option Act, passed the Assembly Appropriations Committee on Thursday. The bill would create the BankCal program, providing all Californians who want access with a no-fee, no-penalty debit card, direct deposit, and automatic bill pay. AB 1177 requires a market analysis to be ratified by the Legislature before the program can begin.

AB 1177 will be heard on the Assembly Floor in the next couple of weeks.

Assembly Member Miguel Santiago is the Chair of the Assembly Committee on Communications and Conveyance Committee and the Assembly Select Committee on Los Angeles County Homelessness. He also sits on the Assembly Committee on Health, Public Safety, Higher Education and Utilities and Energy. He represents the 53rd District composed of the cities of Los Angeles, Huntington Park, and Vernon.