CalAccount Program.

Assembly Member Garcia's CalAccount Program legislation establishes a state-administered banking system providing Californians with voluntary, zero-fee transaction accounts and related payment services. The program aims to serve approximately one-fifth of California households currently lacking full access to traditional banking services.

The bill creates the CalAccount Commission to oversee program implementation and administration. The commission will contract with financial institutions to provide federally-insured accounts with no minimum balance requirements, overdraft fees, or penalties. Account features include debit cards, direct deposit capabilities, and access to ATM networks at no cost to accountholders.

Employers with more than 10 employees must facilitate program participation by maintaining payroll direct deposit arrangements for workers who choose to open CalAccounts. The Labor Commissioner will investigate complaints of employer non-compliance, with civil penalties starting at $250 per worker for initial violations and increasing to $1,000 for subsequent infractions. Collected penalties will fund program operations through the newly established CalAccount Fund.

The legislation also requires landlords to accept rent and security deposit payments via CalAccount electronic transfers, while maintaining at least one non-electronic payment option. For in-home supportive services providers, participation is contingent on certification that it meets legal requirements and poses no financial liability for the state or employers of record.

The commission must submit annual reports detailing program metrics including account activity, demographic data, and risk management practices. Marketing and outreach efforts will incorporate financial literacy education and resources when funding permits. Implementation will occur in phases, with requests for proposals from potential financial services administrators due by January 2027.