Resolutions in Support of AB 857
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02.05.2019 SF BOS Resolution in support of public bank charter
Santa Cruz County reso 2-26-19
SonomaCountyPublicBankMeasureFinal
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Santa Clara County resolution
A Resolution urging California State legislators to enact legislation amending the Government Code to enable local agencies to create public banks through an option for a public banking charter.
WHEREAS, âThe mission of the County of Santa Clara is to plan for the needs of a dynamic community, provide quality services, and promote a healthy, safe and prosperous community for allâ; and
WHEREAS, a “public bank” has a primary mandate of serving the public interest over those of private shareholders; and
WHEREAS, The 2017 Santa Clara County Homeless Census and Survey found a total of 7,394 individuals experiencing homelessness on the night January 24th and 25th. This represents an increase of 13% since 2015; and
WHEREAS, Santa Clara County government has been spending $520 million per year on homelessness. Much of the cost comes from un-housed residents accessing emergency rooms, hospitals, jails and other public systems not designed to meet their needs; and
WHEREAS, the unethical and fraudulent practices of Wall Street banks caused the housing and market crashes of the previous decade and made the financial stability of the world uncertain; and public banking institutions can resolve the dilemma for states, municipalities and counties about how to pay for stimulus and job programs without incurring new, long-term risky debt; and
WHEREAS, Executive compensation and employee incentive programs at traditional financial institutions have, to date, been dissociated from the external or public effects of their investment policies, in some cases affecting significant financial harm to customers and shareholders; and
WHEREAS, the interest and fees paid to Wall Street banks on the Counties total outstanding debt of more than $1,775,600,000 with a debt service cost of approximately $152 million (as of June 2017) could remain in within the county and help to finance public works projects, providing much needed housing and social services, and
WHEREAS, Santa Clara County taxpayer money currently is held in private commercial banks that engage in socially and environmentally destructive practices that are fundamentally against the values of Santa Clara County residents, from predatory lending practices for low-income communities of color, to funding fossil fuel extraction, firearms, prisons and detention centers, to charging the County high interest rates on loans for retrofitting our housing and hospitals; and
WHEREAS, the proposed Santa Clara County Public Bank will be the depository for all county revenues, (and if approved also the revenues of cities within the county) potentially saving big money because of lower fees and interest rates; and debt service on loans, being returned back to the County Bank instead of Wall Street Banks, will be reinvested with a mission of serving the public good in the form of low-interest loans for economic development, green energy, education, students, businesses, families, affordable housing, senior housing, and infrastructure; and
WHEREAS, On July 15, 2018, the California Democratic Party adopted a resolution supporting the creation of state-chartered public banks; and
WHEREAS, The two public banks currently operating in the continental USA, the Bank of North Dakota (founded in 1919 by the State of North Dakota) and Bank2 in Oklahoma (founded in 2002 by the Chickasaw Nation) have outstanding performance records for their entire histories; BND having had its highest surplus in 2009 and engendering unemployment rates less than 3% and the lowest foreclosure rate in the county; and Bank2 having had its total assets grow at an average annual 18.5% rate since founding, and being the #1 source of Native American home loans in the State of Oklahoma and one of the top lenderâs nationally; and
WHEREAS, Public banking is actively being explored in municipalities across the country, including Seattle, Oakland, Los Angeles, Santa Fe, St. Louis, Philadelphia, New York City, and the states of Maryland and New Hampshire; and
WHEREAS, The California Department of Business Oversight (DBO) oversees the operation of Californiaâs state-chartered banks, and the only licenses available for depository banks are commercial, industrial, and credit unions; and
WHEREAS, The State of California does not currently have a public banking charter option, whether at the municipal, regional or state level, providing a major obstacle in the efforts to establish a public bank and preventing public banks from obtaining a banking charter and becoming operational; and
WHEREAS, The California Public Banking Alliance is currently working to introduce a bill in the state legislature creating a uniform regulatory framework for municipal and regional public banks, which would allow for an option for a public banking charter, under the regulatory oversight of the California Department of Business Oversight; now, therefore, be it
RESOLVED, That the Santa Clara County Board of Supervisors supports the continued efforts in Santa Clara to create and operationalize a municipal public bank; and, be it
FURTHER RESOLVED, That the Board urges California State legislators to enact legislation amending the Government Code to enable municipal governments to create public banks through an option for a public banking charter.
Potential additional Whereas clauses:
Whereas the Bank of North Dakota, a state own bank insured by the State of North Dakota, has proven to be one of the most successful banks since its founding in 1919; has promoted economic stability in ND (achieving its highest surplus in 2009); enables the lowest foreclosure rate in the country (4 times lower than the next best State, Vermont); promotes job growth resulting in unemployment rates less than 3% in ND; and through public-private partnerships has engendered the general expansion of commercial and community banking businesses to the point where ND now has the highest per capita rates of both banks and commercial banks in the nation
Whereas Bank2, established in 2002 by the Chickasaw Nation in Oklahoma, and carrying FDIC insurance, has seen an expansion of its total assets at a rate of over 18% per year since founding; is consistently rated a 4-Star Bank by Bauer Financial; was rated in the top 15% of all banks in the nation for 2016 by Seifried & Brew LLC; rated #1 and #3 community bank in the nation in 2009 and 2010 respectively by the ABA Banking Journal; and rated as one of the Top Places to Work in Oklahoma for four consecutive years (2013-2016) by the Daily Oklahoman; and is the #1 source of Native American home loans in the State of Oklahoma and one of the top lenders nationally
Local Public Banking Bills
Sonoma Public Banking Bill Text
(to come)