Assembly Bill - AB 857 is now in the California State Assembly. Please join in getting this bill through the three Assembly committees (see below), into the State Senate and signed by Governor Newsom. Already, the California Banking Association and others are lobbying against this bill!

 

That's why we are mobilizing you, our California WILPFers, to call on your state representatives, in both the Assembly and the Senate, to sign on to support this bill. AB 857 adds language to current state banking regulations to permit cities, counties and the state to apply for a public banking license in California.

 

This bill is very important to our cities, counties and the state as explained here
by Sylvia Chi, a member of Public Bank East Bay and legislative chair of the California Public Banking Alliance. 

 

Make a difference right now for Public Banking in the United States! A win in California can set the example for all those working in other states to pass Public Banking bills.

  https://publicbankinginstitute1.app.box.com/s/q0zznonrrcpgiaa0hfvniwbwjoi4wn67    

 

The California Public Banking Alliance has been working on this bill for some years. The Santa Cruz WILPF branch has a website where you can learn what a public bank is, how much good it can do for our communities, a map of the many states and cities considering public banking, and a wealth of related information.

 

Here's what we ask you to do to first get AB 857 through the three Assembly Committees

1. Please call your Assembly Member

and ask her or his support for AB 857. Find out when your Member will be in the District Office and go with some friends to ask for support. This personal connection is essential. You can also fax or email a short request for support using the information below.  

 

If you don't know who your assembly member or senator is, enter your address here to find out. 

What to Say: "My name is _______, I'm a constituent, and a member of the Women's International League for Peace and Freedom. If you are in a branch, name that branch. Ask your Assembly Member to commit to co-authoring and supporting AB 857. State that you support public banking as a way to strengthen both local and  state economies. We need to pass AB 857 (for my city, county and the state) to provide low-interest loans to underserved small businesses, affordable housing developers, for building needed public infrastructure, and to make our cities climate resilient. Please co-author and support AB 857. Thank you."

 

2. Click each committee below for the list of Assembly Committee Members . If your Assembly Member is listed, please call that office and use the above script. Please also consider calling, or sending an email or fax to the chair and each committee member.

We will send updates as AB 857 gets through these committees and into the Senate.

 

Let's seize this opportunity to get AB 857 passed.

Take Action Today!

 

Legislative Background:

Assembly Members David Chiu (D-17 San Francisco) and Miguel Santiago (D-53 Los Angeles) authored AB 857 and submitted it on Feb. 20, 2019. Assembly Member Mark Stone from Santa Cruz County, member of the Banking and Finance Committee, has signed on as one co-author; so have Assembly Members Phil Ting (D-19 San Francisco/northern San Mateo County, Ash Kalra (D-27 eastern San Jose), and State Senator Scott Wiener (D-11 San Francisco/San Mateo County).  

 

Background on Public Banking:

Assembly Member Stone (D-29, portions of Santa Cruz/Monterey Counties) reported to the Santa Cruz Public Banking group that the California Banking Association not only vigorously lobbying, but incorrectly stating that public banks are detrimental to credit unions and local banks.

 

The opposite is true. For example, in North Dakota that has had a state public bank for the past hundred years, "the result of having a public bank has been profound (as of Sept. 2015): With 89 small and mid-sized community banks, and 38 credit unions, North Dakota has six times as many locally owned financial institutions per person as the rest of the nation. And these local banks and credit unions control a resounding 83 percent of the deposits of the state - more than twice the 30 percent market share that small and mid-sized financial institutions have nationally" from the Public Banking website.  

 

Public banks are the opposite of Wall Street banks. Public banks work for the public good -- instead of giving our money to the corporate banks that put oodles of money into the pockets of their CEOs and investors; charge our cities, counties and states high interest for loans; and take hard-earned revenues out of our communities.  

 

Public Banks get the capital they loan out from public money such as taxes or reserve funds. They are run by elected Boards, and by operating as not-for-profit banks can channel the tremendous amount of money spent on fees, interest, and high salaries into needed public projects. We can direct these "public monies" to affordable housing, lower charges on student loans, climate resiliency measures for our cities and counties, and environmental needs.  

 

Public banks are governed by strict adherence to standards of racial, economic and community justice. Their very low-interest loan policies can be tailored to suit any community's ideals of benefits, desirable investments and outcomes.

 

We consumers generally bank at consumer banks. Public Banks generally do not provide a range of consumer services, so the credit unions and small local banks that we beneficially use would be supported and strengthened by public banks. People wanting their cities to divest from fossil fuels, found that small local banks and credit unions don't have the capacity cities and states need for banking services. So these activists proposed public banks as a place where cities, counties and states can put their money in good conscience.

 

Presently over 20 states are at some stage of instituting public banking. Many countries already have public banks: in Germany they helped the country reduce dependence on fossil fuels; and in Japan they helped reduce the national debt.

 

The reason is clear, there is just too much money being handed over by local and state governments to the Wall Street corporate banking establishment! We need to democratize money and credit. We need money to fund education, transportation, housing, cleaning up the environment, and responding to global warming for the public good.

 

Here are examples of statements of support. The Santa Cruz County Board of Supervisors passed a Resolution that states their reasons for supporting AB 857. Here's the summary:

 

(We vote to) Adopt the resolution supporting the establishment of a California municipal public banking license and supporting the concept of a state, regional, or network of public banks to provide cost-saving services to public entities and to serve local needs including affordable housing, transportation and education investment adhering to principles of economic, racial and environmental justice, and direct the Clerk of the Board to distribute the resolution as indicated, as recommended by Supervisor Coonerty.

 

On April 4, the Los Angeles City Council threw its support behind state-level municipal bank bill AB 857 

 

Take Action Today!

 

Many thanks!

 

Randa Solick and Nancy Price for WILPF

People for Public Banking and the California Public Banking Alliance