California State Assemblyman Miguel Santiago (D-Los Angeles), Assemblyman David Chiu (D-San Francisco), joint-authors of Assembly Bill 857, and local leaders applauded Gov. Gavin Newsom for signing AB 857 into law on Oct. 2.
“California is starting a national conversation by embracing a public banking option,” Santiago said. “People are sick and tired of going broke over the corporate ways of doing things. This new law prioritizes communities and neighborhoods by empowering localities to use public dollars for their own public good: from investing in affordable housing projects and building new schools and parks to accessible loans for students and businesses. I applaud the governor for breaking the toxic cycle of Wall Street’s predatory practices.”
“The public’s money should be used for the public good,” Chiu said. “[The] signing sends a strong message that California is putting people before Wall Street profits. We finally have the option of reinvesting our public tax dollars in our local communities instead of rewarding Wall Street’s bad behavior.”
“With a public banking system, California cities will be able to more effectively and affordably take on projects on the scale that the issues of the day call us to do – from building more affordable housing, to constructing more resilient infrastructure to ensuring the cities that our children and grandchildren will inherit are prepared for a changing climate,” added Los Angeles City Council President Herb Wesson, 10th District. “Today, California is challenging the notion that we’re stuck with the big bank status quo that has exacerbated the rising inequality throughout our state and country.”
“Property and sales tax form the foundation for local governments to provide necessary public services. Small cities often struggle to find the banking services that meet the complex challenges of a modern municipality. I am pleased to see efforts exploring how to provide this, while balancing the needs for accountability and equality,” said Jeffrey Prang, Los Angeles County assessor and former West Hollywood City Council member.
AB 857 will take effect on Jan. 1, 2020.
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