Supporting SEIU State Public Banking Legislation
1199 SEIU
HR&A partnered with the California Service Employees International Union (SEIU) to provide comprehensive research and advocacy support for CalAccount, a proposed zero-fee public banking program that will provide all Californians with access to essential financial services. Through groundbreaking economic analysis and implementation planning, HR&A helped SEIU and its partners secure passage of the landmark Public Banking Option Act (AB 1177) and informed a subsequent market feasibility study, which led to the enacting legislation now being considered in the California State Assembly.
California faces a critical challenge: millions of residents are unbanked or underbanked, trapped by high fees from predatory financial institutions that create barriers to fulfilling daily needs and accumulating wealth. HR&A assessed the importance of addressing this challenge through the first analysis of its kind by mapping financial exclusion across the state and quantifying its economic costs. Our approach combined detailed demographic analysis with financial modeling to demonstrate both the need for CalAccount and its viability as a solution. HR&A also conducted an impact analysis to quantify potential savings for Californians and statewide economic benefits from eliminating costly fees for check cashing, overdrafts, and payday loans. We also developed practical implementation strategies that examined how CalAccount could integrate with existing state programs and private financial services.
HR&A’s comprehensive reports—including the “Atlas of Banking Access” and “Creating Universal Access to Bank Accounts”—provided legislators, advocates, and the public with critical evidence that corrected common misperceptions about unbanked Californians while proving the program’s path to financial self-sustainability. Following HR&A’s legislative briefing and communications support, the California Assembly and Senate passed AB 1177 and the Governor signed this historic legislation into law in October 2021. We updated our study of CalAccount’s need and potential impact in 2024, providing SEIU with powerful updated evidence to advance the program’s launch, positioning California to lead the nation in public banking innovation while delivering measurable economic benefits.
