Plain English Breakdown
The effective date is not provided in the source text, only the filing date of February 2026.
CalAccount Program
This law creates the CalAccount Program to give every Californian access to a voluntary, zero-fee, federally insured bank account and requires employers and landlords to allow payments through this system.
What This Bill Does
- Establishes the CalAccount Program providing voluntary, zero-fee, zero-penalty, federally insured transaction accounts for all Californians at no cost to accountholders.
- Requires the CalAccount Commission (formerly the Blue Ribbon Commission) to manage the program and contract with financial institutions for ATM access and deposit locations.
- Mandates that employers maintain payroll direct deposit arrangements allowing workers to voluntarily participate in the program.
- Creates a CalAccount Fund in the State Treasury, where money becomes available only after legislative appropriation.
- Requires landlords to allow tenants to pay rent and security deposits via electronic transfer from a CalAccount.
- Directs the Labor Commissioner to investigate complaints about employers failing to allow worker participation and imposes civil penalties for violations.
- Allows providers of in-home supportive services to participate in the program under specific requirements.
Who It Names or Affects
- All residents of California
- Employers and hiring entities in the state
- Landlords renting residential property
- Providers of in-home supportive services
Terms To Know
- CalAccount Commission
- The group that administers the CalAccount Program and works with banks to provide accounts.
- Direct deposit
- A method where paychecks or payments go straight into a bank account without using paper checks.
- Civil penalty
- A fine imposed on employers who fail to allow workers to participate in the CalAccount Program, which is deposited into the CalAccount Fund.
Limits and Unknowns
- The program can only spend money from the CalAccount Fund after the Legislature approves it.
- Marketing for the program will happen only if enough funds are available.
- The official date when this law starts is not listed in the provided text.