This measure removes the vehicle asset test, which prohibits recipients and applicants from owning a car worth more than $4,650, from CalWORKS eligibility rules. Less than a tenth of a percent of cases ever are found to exceed the vehicle limit, and removing the requirement saves the state millions in administrative time. California, however, continues to employ an overly restrictive vehicle asset test – one that undermines a workers ability to gain and maintain employment, thereby encouraging continued reliance on public assistance. 

This measure creates a California Banking Development District program, a proven way to connect lower-income unbanked Californians with the financial products and services they need to enter the financial mainstream and begin to build savings and assets. It identifies specific “Banking Development Districts” where financial institutions will receive incentives such as state deposits to develop enhanced and expanded products and services for lower-income consumers.

This measure will incentivize banks to locate in underserved communities and develop more robust products for low-income consumers by creating banking development districts. This bill would create a Banking Development District Program within the Treasurer’s office, which would encourage the establishment of banking branches in specially designated geographic locations where there is a demonstrated need for banking services.

This measure removes the vehicle asset test, which prohibits recipients and applicants from owning a car worth more than $4,650, from CalWORKS eligibility rules. Less than a tenth of a percent of cases ever are found to exceed the vehicle limit, and removing the requirement saves the state millions in administrative time. Even more importantly, removing the vehicle asset test increases recipients’ ability to own a reliable car that will help them find a job, keep it, and get off of welfare.