WHEREAS nearly 1 in 4 Californians are unbanked, meaning they lack a bank account altogether, or are underbanked, meaning they have a bank account but still largely rely on alternative financial services, such as payday lenders, prepaid debit cards, and pawn shops; and
WHEREAS unbanked or underbanked households pay proportionally more for their financial services, lack savings accounts, have fewer opportunities to build credit, and face increased rates of loan rejection; and
WHEREAS limited access to financial services is a problem that disproportionately impacts low-income communities and communities of color, with nearly half of Black and Latino California households unbanked and workers who make just under $15 an hour make up 80.7 percent of the unbanked in our state; and
WHEREAS BankCal builds on the success of California’s other financial programs, CalSavers and CalKids, and would allow all Californians, no matter how much money they make or where they live, to create a BankCal account, use a BankCal debit card, access a vast network of ATMs, deposit funds, automate bill pay, and set up direct deposit with no fees or penalties; and
NOW, THEREFORE BE IT RESOLVED that by the adoption of this Resolution, the San Diego County Democratic Party hereby includes in its 2021-2022 State Legislative Program SUPPORT for AB 1177 (Sponsors: Santiago, Carrillo, Chiu, Garcia, Gipson, Gonzalez, Kalra, Lee, Ting, Wicks; Co-authors: Asm Bonta, Friedman, Jones-Sawyer, L Rivas, Sen Durazo, Gonzalez, Hueso and Wiener) which will provide Californians with a zero-fee, zero-penalty public option for essential financial services.
Adopted by the San Diego County Democratic Central Committee on April 20, 2021