SACRAMENTO, CA – Assemblymember Steven Bradford’s (D-Gardena) AB 38 establishing a Banking Development District program, passed the Assembly Banking and Finance Committee on Monday, April 11, 2011 with bipartisan support (10-0 vote). AB 38 which is sponsored by the New America Foundation, would create a statewide Banking Development District program designed to identify communities that lack financial institutions and declare them Banking Development Districts by the Department of Financial Institutions. The state would then agree to make state deposits available to banks that consent to expand services tailored to the needs of the communities and locate in designated undeserved communities.
"First of all, I would like to thank both Republican and Democratic committee members for continuing to support the efforts we initiated last year with AB 2581,” Assemblymember Bradford mentioned. “AB 38 will ensure that more Californians have access to affordable services such as establishing credit, obtaining loans for a home or vehicle, and more importantly ensure that these services are provided by financial institutions that are in their neighborhoods.” “This important legislation will also help reduce the need of services from expensive payday lenders and check cashing facilities,” Assemblymember Bradford added.
This measure, based on a similar New York State program, and has already been replicated in New Jersey, and other states have introduced similar legislation throughout the nation. AB 38 is supported by the Burbank Housing Development Corporation, City of Los Angeles, California Bankers Association, the California Credit Union League, Catholic Charities of the Diamond Community Investors Advisory Council, the County Welfare Directors Association East Bay, EARN, Greenlining Institute, and Opportunity Fund. Assemblymember Bradford added “by encouraging the passage of this legislation, governments can finally place a high priority on increasing financial access to underserved areas and financially empower people.” AB 38 will now move on to the Assembly Appropriations Committee.
Assemblymember Steven C. Bradford represents the 51st Assembly District, comprised of the communities of Athens, Hawthorne, Lawndale, Inglewood, Lennox, South Central LA, Westchester, Gardena, Willowbrook, Playa Vista, and parts of Ladera Heights and West Compton.
Contact: Crystal Quezada (916) 319-2051
