California Assembly Bill AB1365

California 2025-2026 Regular Session

• Introduced: 2/21/25
• Refer: 3/17/25
• Report Pass: 4/22/25
• Refer: 4/22/25
• Report Pass: 4/24/25
• Refer: 4/29/25
• Refer: 5/14/25
• Failed: 2/2/26

Caption

CalAccount Program.

Impact

The CalAccount Program represents a substantial shift in how financial services are delivered within California, particularly targeting households that lack access to traditional banking. By allowing landlords to accept rent payments via electronic funds transfer from a CalAccount, the bill will create more flexible payment options for renters, which is especially beneficial for low-income tenants. Employers will be required to implement payroll direct deposit arrangements to support employee participation in the CalAccount, thereby further integrating the program into the financial fabric of the state.

Summary

Assembly Bill 1365, introduced by Assembly Member Garcia, establishes the CalAccount Program, designed to provide every Californian access to a voluntary, zero-fee, zero-penalty, federally insured transaction account. This initiative is aimed at addressing the significant number of Californians who are unbanked or underbanked. The bill anticipates ameliorating financial inequalities by facilitating access to essential banking services, including the ability to deposit income directly into these accounts. It will be overseen by a commission that includes provisions for partnerships with financial institutions, ensuring accessibility to transaction locations such as ATMs.

Sentiment

The sentiment surrounding AB 1365 appears largely positive, as it seeks to address pressing financial access issues that disproportionately affect marginalized communities. Advocates emphasize the importance of providing tools to build saving habits and improve residents' overall financial health. However, there may be concerns regarding the implementation and effective execution of the program, particularly the reliability of the partnerships with financial institutions and whether they will adequately cater to the neediest populations.

Contention

Notably, while the introduced bill has garnered support for its potential benefits, there will be challenges related to ensuring that the program effectively reaches vulnerable populations, such as those experiencing homelessness and immigrant communities. There may also be apprehensions about regulatory oversight and the capability of the state to enforce compliance among employers regarding payroll procedures connected to the CalAccount Program.