Bill Would Let California Create Public Banks

SACRAMENTO, Calif. (AP) — A bill on its way to Gov. Gavin Newsom would let California cities create their own public banks.

Assemblyman David Chiu of San Francisco, the bill's author, says public banks are better able to focus on local needs rather than shareholder interests. His bill passed the Assembly on Friday by a single vote.

The California Bankers Association says the proposal will harm commercial, community banks.

North Dakota is the only state with a public bank.

California's legislation would require voters to approve the creation of public banks and only allow up to 10 to exist statewide. The law, if passed, would only stay in effect for seven years.