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AB-1247 Consumer savings accounts.(2023-2024)

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Date Published: 03/23/2023 09:00 PM
AB1247:v98#DOCUMENT

Amended  IN  Assembly  March 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1247

Introduced by Assembly Member Alvarez

February 16, 2023

An act to add and repeal Title 21.2 (commencing with Section 100200) of the Government Code, relating to savings accounts.


LEGISLATIVE COUNSEL'S DIGEST


AB 1247, as amended, Alvarez. Consumer savings accounts.
Existing law establishes various agencies and programs for the purpose of protecting consumers. safeguarding consumer financial protections. Existing law establishes the Department of Financial Protection and Innovation within the Business, Consumer Services, and Housing Agency and places the department under the direction of the Commissioner of Financial Protection and Innovation. Under existing law, the department has charge of the execution of specified laws relating to various financial institutions and financial products and services. Existing law, the California Public Banking Option Act, requires the Treasurer to convene the CalAccount Blue Ribbon Commission, as specified, and requires the commission to conduct, by contracting with one or more entities with appropriate expertise, and deliver, as prescribed, a market analysis to determine if it is feasible to implement a “CalAccount Program,” which, if implemented, would have certain characteristics, including that it would be a program established by the state for the purpose of protecting consumers who lack access to traditional banking services from predatory, discriminatory, and costly alternatives.

This bill would state the intent of the Legislature to enact legislation that would establish the Emergency Savings Account Commission for the purpose of conducting, by contracting with one or more entities with appropriate expertise, and delivering an analysis on the extent of the problem of Californians who do not have access to sufficient funds when faced with financial emergencies, causes of the problem, solutions for fixing it, and the state’s role in those solutions.

This bill would enact The California Emergency Savings Account Option Act. The bill would require the Treasurer to convene, on or before September 1, 2024, the Emergency Savings Account Commission to be composed of certain members, including the Commissioner of Financial Protection and Innovation and the Treasurer or their respective designees. The bill would require the commission to conduct, on or before July 1, 2026, by contracting with one or more entities with appropriate expertise, and deliver, an analysis on the extent of the problem of Californians who do not have access to sufficient funds when faced with financial emergencies, as specified. The bill would condition the implementation of these provisions on an appropriation by the Legislature for this express purpose and would repeal the bill’s provisions on January 1, 2032.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Title 21.2 (commencing with Section 100200) is added to the Government Code, to read:

TITLE 21.2. The California Emergency Savings Account Option Act

100200.
 This title shall be known, and may be cited, as the California Emergency Savings Account Option Act.

100201.
 On or before September 1, 2024, the Treasurer shall convene the Emergency Savings Account Commission. The commission shall be composed of all of the following members:
(a) The Treasurer or Treasurer’s designee.
(b) The Commissioner of Financial Protection and Innovation or that person’s designee.
(c) An individual with expertise in emergency savings accounts, appointed by the Senate Committee on Rules.
(d) An advocate for emergency savings accounts, appointed by the Senate Committee on Rules.
(e) An individual with expertise in the widespread state of unpreparedness for a financial emergency that the vast majority of Californians find themselves in, appointed by the Speaker of the Assembly.
(f) A consumer representative or advocate with expertise in banking access and financial empowerment, appointed by the Speaker of the Assembly.
(g) An employer representative appointed by the Governor.
(h) An individual with expertise in financial insurance or consumer financial services affiliated with an academic institution appointed by the Governor.
(i) An individual, appointed by the Governor, with banking expertise.

100202.
 On or before July 1, 2026, the Emergency Savings Account Commission shall conduct, by contracting with one or more entities with appropriate expertise, and deliver an analysis on the extent of the problem of Californians who do not have access to sufficient funds when faced with financial emergencies, causes of the problem, solutions for fixing it, including whether requiring an emergency savings account is a viable solution, and the state’s role in those solutions.

100203.
 This title shall become operative only upon an appropriation by the Legislature in the Budget Act or another statute for the express purpose of implementing this title.

100204.
 This title shall remain in effect until January 1, 2032, and as of that date is repealed.

SECTION 1.

It is the intent of the Legislature to enact legislation to establish the Emergency Savings Account Commission for the purpose of conducting, by contracting with one or more entities with appropriate expertise, and delivering an analysis on the extent of the problem of Californians who do not have access to sufficient funds when faced with financial emergencies, causes of the problem, solutions for fixing it, and the state’s role in those solutions.