AB 38 Banking Development District Bill was approved in the Assembly Floor and has been transmitted to the Senate.
SACRAMENTO, CA – Assemblymember Steven Bradford's (D-Gardena) AB 38 establishing a Banking Development District (BDD), passed the Assembly Floor on Wednesday, June 01, 2011 with a 55-18 vote. AB 38 sponsored by the New America Foundation, would create a Banking Development District program in the state designed to identify communities that lack financial institutions and declared them Banking Development Districts by the Department of Financial Institutions.
Based on the successful New York State program launched in the late 1990s, the BDD program would coordinate state and local incentives to encourage banks and credit unions to open in areas of California that lack mainstream financial institutions and offer low-cost products and services tailored to the needs of low-income consumers.
"AB 38 continues the effort from last year, to encourage the permanent establishment of new bank branches in underserved areas and strengthens our efforts aimed at providing financial services to un-banked communities in the State," said Assemblymember Bradford. I am very thankful to all of my colleagues in the Assembly for voting in support of this measure and I look forward working with my Senate counterparts."
Approximately 1.5 million Californians are "unbanked"- meaning they lack a basic checking or savings account. Without a bank account, consumers must pay more to cash paychecks and pay bills. They also lack a safe place to store money and have a more difficult time building credit. This successful New York program, helps bank branches remain in communities, and encourages financial institution to establish branches in areas of the state that remain unbanked. The Banking Development District program has now been replicated in New Jersey and other states such as Texas, Illinois, and Louisiana are seeking similar measures. AB 38 has been transmitted to Senate Rules Committee and is waiting assignment to a policy 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
