California Passes Bill to Study Public Banking Option (1)

California lawmakers passed a bill to study the feasibility of creating no-fee, no-penalty bank accounts in the state, an effort at broadening access to affordable banking particularly for low-income consumers and immigrants.

The bill (A.B. 1177) is a watered-down version of an earlier measure that proposed creating a state program to run such bank accounts. But the bill now heading to Gov. Gavin Newsom‘s (D) desk for his signature could still set the groundwork for the first state-mandated program to provide universal access to banking.

About one in four Californians don’t have access to traditional banking services, ...