Is Zero-Fee, Zero Penalty Banking In California's Future?

Last month, Governor Newsom signed  AB 1177, the California Public Banking Act.  The law's title is more impressive than accurate, for it does not actually create a public bank.  Rather, the law requires the Treasurer to convene a "Blue Ribbon Commission" that would contract to conduct a market analysis to determine if it is feasible to implement a "CalAccount Program".  The program would be required to offer "Californians access to a voluntary, zero-fee, zero-penalty, federally insured transaction account, known as a CalAccount".   Of course, there are no free lunches and that begins with the Commission itself.  The State Treasurer's Office estimated that it would cost $3 million to $4 million just to convene the Commission and contract for the market study.