The Assembly Banking and Finance Committee advanced AB 2243 on April 23, sending the Haney bill to the Assembly Appropriations Committee after a split vote.
Haney said the measure would create a state bank commission to evaluate whether California should pursue a state bank or other public financing tools. In committee, he argued the state, which he described as the world’s fourth-largest economy, pays about $4 billion a year in interest to private lenders and could use its balance sheet more strategically for housing, infrastructure and other public priorities.
Supporters from labor, climate, anti-poverty and public-banking groups said the bill would open a structured review of new financing options. Jennifer Finger, a retired banker speaking for the California Public Banking Alliance, said the proposal would create a disciplined process to examine whether a state bank could reduce financing costs and better align public dollars with public priorities. Tristan Brown of the California Federation of Teachers also backed the bill, saying public banking could support longer-term public investment.
Opponents from the banking and credit union sectors warned the proposal could raise taxpayer exposure, technical-assistance costs and questions about deposit guarantees. Chris Schultz of the California Bankers Association said the state already pays about $8 billion a year in debt service and argued the bill could invite new risks. Rob Wilson of California’s Credit Unions said the measure was a step toward revisiting the FDIC-insurance requirement tied to earlier public-banking legislation.
The committee’s vote was split, with Chen and Dixon voting no and several other members voting yes before the bill was declared out. The hearing transcript does not show a full final roll call for every member at the moment of passage.
