The Assembly Committee on Economic Development, Growth, and Household Impact advanced AB 2243 on Tuesday after hearing competing arguments over whether California should spend money to study a publicly owned bank.
The bill would create a commission to explore what supporters described as a possible "greed-free" public bank, rather than establish one immediately, according to testimony in the committee hearing. Sylvia Chi of the California Public Banking Alliance said the bill would create a commission of appointed experts to answer questions about capitalization, timelines, return on investment and costs. Kate Gordon, CEO of California Forward, also backed the measure, saying it fits her organization’s work on a more sustainable, resilient and inclusive economy.
Opponents argued the proposal could produce expensive state obligations. One witness pointed to the Cal account blue ribbon commission as a cautionary example, saying that study cost $4 million and led to another $1 million appropriation to revise it. The same witness warned the earlier study concluded the state could face hundreds of millions of dollars in subsidy costs.
The committee moved AB 2243 on a do-pass and re-refer motion. The transcript indicates the measure was sent to the committee on making and finance, though the vote tally was not fully clear in the excerpt. The hearing also included discussion of affordability and transparency, with one committee member saying the bill could help lawmakers better understand the cost of living and government regulation.
The hearing record did not make the final roll-call breakdown fully clear, and editors should note that the transcript excerpt is partially garbled in places. Still, the committee action itself was distinct and attributable, making the hearing a timely step in the bill’s progress.