Public banks in California will manage municipal agency funds and will not have physical branches for retail banking, however, Public Bank Los Angeles and the California Public Banking Alliance are working towards options for the general public. In 2021, the state passed the California Public Banking Option Act (AB 1177), which will establish the CalAccount program providing zero-cost, zero-penalty bank accounts to all Californians. Local public banks may potentially become designated partners and hold CalAccounts, although they are generally prohibited from retail activity. However, they can provide certain retail services, such as accepting deposits and making loans to other public entities, if there are no local financial institutions offering the same services in their jurisdiction.