AB 310 paves the path for a California State Public Bank. Authored by Assemblymembers Miguel Santiago and David Chiu, this 2020 session bill expands the lending capacity of the State’s Infrastructure Bank (IBank) by moving 10% of CA’s Pooled Money Investment Account (PMIA) into the IBank’s loan fund. The bill will also convert the IBank into a depository bank able to leverage its capital up to ten times and direct its lending toward a just and equitable economic recovery.
In 2019, we passed AB 857, the Public Banking Act, empowering cities and regions to create our own banks. In 2020, economic fallout from the COVID-19 pandemic is forcing local governments across the state to cut staff, services, and vital programs at a time when they are most needed. We urgently need the means to bring desperately needed funds into urban and rural communities ignored by Wall Street banks.
AB 310 proposes emergency COVID-19 relief by transferring 10% of California’s Pooled Money Investment Account (PMIA) into the existing California Infrastructure Bank (IBank). It then requires the IBank to convert into a state depository institution which can leverage funds and lend directly to cash-strapped local governments and small businesses. A California State Public Bank can offer emergency lending and credit to community banks and credit unions, rescue small businesses, and help historically marginalized communities.
The Pandemic has revealed the inadequacy of our current financial system to meet the credit needs of our local agencies or to serve our most disenfranchised populations. Currently, most federal relief funds are going to big corporations on Wall Street, not to working-class and middle-class households or small businesses on Main Street.
The California State Public Bank will strengthen the financial positions of local governments and local financial institutions to facilitate a just and speedy economic recovery for the people of California.
AB 310 is co-sponsored by the California Public Banking Alliance, California Reinvestment Coalition, and United Food and Commercial Workers (UFCW) Western States Council.
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AB 310 Organizational Endorsement Form