Bill Full Text
Home
-
Bills
-
Bill
-
Authors
-
Dates
-
Locations
-
Analyses
-
Organizations
<?xml version="1.0" ?>
<ns0:MeasureDoc xmlns:html="http://www.w3.org/1999/xhtml" xmlns:ns0="http://lc.ca.gov/legalservices/schemas/caml.1#" xmlns:ns3="http://www.w3.org/1999/xlink" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" version="1.0" xsi:schemaLocation="http://lc.ca.gov/legalservices/schemas/caml.1# xca.1.xsd">
<ns0:Description>
<ns0:Id>20250AB__224398AMD</ns0:Id>
<ns0:VersionNum>98</ns0:VersionNum>
<ns0:History>
<ns0:Action>
<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-19</ns0:ActionDate>
</ns0:Action>
<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
</ns0:Action>
</ns0:History>
<ns0:LegislativeInfo>
<ns0:SessionYear>2025</ns0:SessionYear>
<ns0:SessionNum>0</ns0:SessionNum>
<ns0:MeasureType>AB</ns0:MeasureType>
<ns0:MeasureNum>2243</ns0:MeasureNum>
<ns0:MeasureState>AMD</ns0:MeasureState>
</ns0:LegislativeInfo>
<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Members Haney and Kalra</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Haney</ns0:Name>
</ns0:Legislator>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Kalra</ns0:Name>
</ns0:Legislator>
</ns0:Authors>
<ns0:Title> An act to amend Section 57607 of, and to add Title 6.6 (commencing with Section 62700) to, the Government Code, relating to economic development.</ns0:Title>
<ns0:RelatingClause>economic development</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>State bank commission.</ns0:Subject>
</ns0:GeneralSubject>
<ns0:DigestText>
<html:p>The Bergeson-Peace Infrastructure and Economic Development Bank Act creates within the Governor’s Office of Business and Economic Development the Infrastructure and Economic Development Bank and requires it to administer the act, which, among other things, provides for the financing of certain economic development projects. Existing law authorizes the Commissioner of Financial Protection and Innovation to license up to two public banks in the state per year, as prescribed, upon an application by a local agency. Existing law prohibits the commissioner from issuing a public bank license after the expiration of a period of 7 years from the date upon which the commissioner first promulgated certain regulations related to public banks.</html:p>
<html:p>This
bill would delete that public bank licensing prohibition and would create in state government the State Bank Commission and provide for its membership, as prescribed.</html:p>
<html:p>This bill would require, on or before June 1, 2028, the commission to develop a state bank plan that addresses various items with respect to creating a state bank, including a state guarantee of public deposits, including those held by public banks. The bill would require, on or before January 1, 2028, the commission to hold at least 2 public hearings to solicit input on the state bank plan from members of the public and, by July 1, 2028, vote whether
to adopt the state bank plan. The bill would require, if the commission adopts by a majority vote the state bank plan, the commission to publish the state bank plan and the fact of its adoption on its internet website.</html:p>
</ns0:DigestText>
<ns0:DigestKey>
<ns0:VoteRequired>MAJORITY</ns0:VoteRequired>
<ns0:Appropriation>NO</ns0:Appropriation>
<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
<ns0:LocalProgram>NO</ns0:LocalProgram>
</ns0:DigestKey>
<ns0:MeasureIndicators>
<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
<ns0:ImmediateEffectFlags>
<ns0:Urgency>NO</ns0:Urgency>
<ns0:TaxLevy>NO</ns0:TaxLevy>
<ns0:Election>NO</ns0:Election>
<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
<ns0:BudgetBill>NO</ns0:BudgetBill>
<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
</ns0:ImmediateEffectFlags>
</ns0:MeasureIndicators>
</ns0:Description>
<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_98D5E1E0-4C54-4490-BCF6-E36A2B45FA6F">
<ns0:Num>SECTION 1.</ns0:Num>
<ns0:ActionLine action="IS_AMENDED" ns3:href="urn:caml:codes:GOV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawHeading%5B%40type%3D'DIVISION'%20and%20caml%3ANum%3D'5.'%5D%2Fcaml%3ALawSection%5Bcaml%3ANum%3D'57607.'%5D)" ns3:label="fractionType: LAW_SECTION" ns3:type="locator">
Section 57607 of the
<ns0:DocName>Government Code</ns0:DocName>
is amended to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawSection id="id_8DF97761-1C78-49AA-8D5A-2D6BA1330706">
<ns0:Num>57607.</ns0:Num>
<ns0:LawSectionVersion id="id_296EEBB0-0A97-48F0-A1B9-C797A844EAAD">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
The Commissioner of Financial Protection and Innovation shall not issue more than two public bank licenses in a calendar year.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The Commissioner of Financial Protection and Innovation shall not issue a public bank license if issuing that public bank license would cause there to be more than 10 public banks authorized to transact business pursuant to Division 1.1 (commencing with Section 1000) of the Financial Code.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
The Commissioner of Financial Protection and Innovation shall conduct a study of public banking in California within two years after the date upon which the commissioner issues the 10th public bank license.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:Fragment>
</ns0:BillSection>
<ns0:BillSection id="id_F70B269A-CEB4-4D4E-A95A-BE782B919A8B">
<ns0:Num>SEC. 2.</ns0:Num>
<ns0:ActionLine action="IS_ADDED" ns3:href="urn:caml:codes:GOV:caml#xpointer(%2Fcaml%3ALawDoc%2Fcaml%3ACode%2Fcaml%3ALawHeading%5B%40type%3D'TITLE'%20and%20caml%3ANum%3D'6.6.'%5D)" ns3:label="fractionType: LAW_SPREAD||commencingWith: 62700" ns3:type="locator">
Title 6.6 (commencing with Section 62700) is added to the
<ns0:DocName>Government Code</ns0:DocName>
, to read:
</ns0:ActionLine>
<ns0:Fragment>
<ns0:LawHeading id="id_E0CD6CC3-DD59-42AF-8279-87584AC53242" type="TITLE">
<ns0:Num>6.6.</ns0:Num>
<ns0:LawHeadingVersion id="id_CAC8B0B2-56FB-47E8-9BCE-B5407E52257E">
<ns0:LawHeadingText>State Bank</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawHeading id="id_4E644CC7-48FA-44E9-B51D-0963317AFDD3" type="CHAPTER">
<ns0:Num>1.</ns0:Num>
<ns0:LawHeadingVersion id="id_2343B86A-C4C8-4FBD-B8C3-8FEF1235901D">
<ns0:LawHeadingText>General Provisions</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_00F496FC-B7C0-48C3-827C-4FEB6E4D0148">
<ns0:Num>62700.</ns0:Num>
<ns0:LawSectionVersion id="id_B13B13AC-7256-434D-A58D-324AD7003C9F">
<ns0:Content>
<html:p>As used in this title:</html:p>
<html:p>
(a)
<html:span class="EnSpace"/>
“IBank” means the Infrastructure and Economic Development Bank created pursuant to Section 63021.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
“Commission” means the State Bank Commission.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
“Local agency” means a county, city, or city and county.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
“Local financial institution” has the meaning defined in Section 57600.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
“Public bank” has the meaning defined in Section 57600.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
“Public development facilities” has the meaning defined in Section
63010.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
“Public purpose financing” means the provision of financial assistance, including, but not limited to, direct loans, loan guarantees, credit enhancements, and bond purchases, for public development facilities, and other projects, programs, or activities that provide a demonstrable public benefit, including, but not limited to, the promotion of affordable housing, public infrastructure, environmental resilience, economic development, and social equity within the state.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
“Social housing” has the meaning defined in Section 50612 of the Health and Safety Code.
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
“State bank plan” means a plan to create a state-owned depository bank that does all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Holds the state’s general fund moneys.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Conducts public-purpose financing.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Centralizes other state financial programs.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
<ns0:LawHeading id="id_E3EF7F8C-5F2E-47F8-8149-0A4F44E37046" type="CHAPTER">
<ns0:Num>2.</ns0:Num>
<ns0:LawHeadingVersion id="id_1D4E3479-9C5C-46C7-B247-7F42D91F50B8">
<ns0:LawHeadingText>State Bank Commission</ns0:LawHeadingText>
</ns0:LawHeadingVersion>
<ns0:LawSection id="id_81EB98F1-AFE0-43E2-B340-0160C9C4E1BC">
<ns0:Num>62705.</ns0:Num>
<ns0:LawSectionVersion id="id_383AD4FE-899B-412C-BBB3-62A7D01B7C82">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
There is hereby created in state government the State Bank Commission.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The commission shall consist of all of the following members or their designees:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The Governor.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The Treasurer.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The Controller.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
One member appointed by the Speaker of the Assembly with expertise in affordable housing finance.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
One member appointed by the Speaker of the Assembly with expertise in community lending, community
development finance institutions, or credit unions.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
One member appointed by the Senate Committee on Rules with expertise in public finance or public banking.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
One member appointed by the Senate Committee on Rules with expertise in climate or infrastructure finance.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
One member appointed by the Governor with expertise in small business lending or economic development finance.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
One member appointed by the Governor with expertise in banking operations.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
<ns0:LawSection id="id_71A382B2-EC3A-45B3-BF35-6A33134AC3FC">
<ns0:Num>62706.</ns0:Num>
<ns0:LawSectionVersion id="id_0C0512BB-181B-45F6-97D7-FB52399F9C9F">
<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
On or before July 1, 2027, the commission shall contract with one or more independent entities with appropriate expertise in public banking, public finance, and depository institutions to create a state bank plan.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
On or before June 1, 2028, the commission shall develop a state bank plan, which shall address all of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Capitalization options.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
State guarantee of public deposits, including those held by public banks.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Backstop mechanisms for loans, including the feasibility and proposed design of a multistate pooled
backstop fund that includes public banks.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
A five-year business plan that, depending on available capital and in partnership with local financial institutions and public banks, provides financial products or services prioritizing public-purpose financing needs not adequately served by private capital markets related to climate, housing, small business, and local government that evaluates the creation of all of the following financing programs or activities:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
Building decarbonization or neighborhood-based decarbonization activities, including those described in Article 5 (commencing with Section 25665) of Chapter 7.6 of Division 15 of the Public Resources Code and Article 11 (commencing with Section 660) of Chapter 3 of Part 1 of Division 1 of the Public Utilities Code.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
Home hardening and other measures to
address nature-related catastrophe risks that prioritize multifamily properties.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Social housing, community land trusts, or facilitating community or tenant opportunities to purchase affordable housing.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
Small businesses located in underbanked, rural, tribal, or disadvantaged communities, as identified pursuant to Section 39711 of the Health and Safety Code.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Technical assistance and financial services for public banks or for local agencies in the process of organizing or establishing a public bank.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Centralization of, and coordination with, the state’s other financing activities, including, but not limited to, those conducted by the IBank, State Air Resources Board, the Energy Commission, the Treasurer, and the California Housing Finance
Agency.
</html:p>
<html:p>
(6)
<html:span class="EnSpace"/>
Application of appropriate investment screens to exclude investments that are incompatible with the bank’s environmental, social, and governance standards adopted by the bank’s board.
</html:p>
<html:p>
(7)
<html:span class="EnSpace"/>
Holding the deposits or other money belonging to, or in the control or custody of, any state property insurance program and other roles the state bank may serve in holistically reducing wildfire and other nature-related catastrophe risks and aiding in the financial recovery from those risks.
</html:p>
<html:p>
(8)
<html:span class="EnSpace"/>
Alternatives to existing security requirements for public deposits held in a state-owned depository.
</html:p>
<html:p>
(9)
<html:span class="EnSpace"/>
Evaluation of whether a state-owned depository bank should be established via conversion of an existing state entity or creation of a new entity.
</html:p>
<html:p>
(10)
<html:span class="EnSpace"/>
Proposed governance structure for the state-owned depository bank that ensures democratic accountability to the public, including consideration of an appropriate balance of interests within the governing body, mechanisms for meaningful public participation, legislative oversight, appropriate transparency and disclosure provisions, and protections against conflicts of interest.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
On or before January 1, 2028, the commission shall hold at least two public hearings to solicit input on the state bank plan from members of the public.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
On or before July 1, 2028, the commission shall vote whether to adopt the state bank plan.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
If the commission adopts by a majority vote the state bank plan, the commission shall publish the state bank plan and the
fact of its adoption on its internet website.
</html:p>
</ns0:Content>
</ns0:LawSectionVersion>
</ns0:LawSection>
</ns0:LawHeading>
</ns0:LawHeading>
</ns0:Fragment>
</ns0:BillSection>
</ns0:Bill>
</ns0:MeasureDoc>