Petition for CA State Bank



Californians are about to get their own bank — as long as the Assembly Banking and Finance Committee does not give in to Wall Street banking interests and passes AB 2500. This bill will establish the California Investment Trust, which will increase access to capital for businesses and provide stability to our state economy and local financial sectors. The California Investment Trust is modeled after the Bank of North Dakota, the country’s only public bank. Let’s catch up to the rest of the world, where public banking is common in Germany and other countries. Let’s pass AB 2500 in California.


That’s why I signed a petition to The California State House, which says:


“The California Investment Trust will strengthen economic and community development. By providing loans to individuals and businesses, the California Investment Trust will eliminate fees currently paid by state government for banking services, and will combine these savings with additional revenue generated through various operating activities. For these and other reasons, I support AB 2500 (Hueso) and respectfully request your “AYE†vote when it comes before your consideration.”


Will you sign this petition? Click here:




Wilson Riles


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(from the San Francisco Chronicle, 12/21/11):

Oakland council adds debit-card ability to city ID

Matthai Kuruvila, Chronicle Staff Writer

San Francisco Chronicle December 21, 2011 04:00 AM


The Oakland City Council authorized drafting a contract Tuesday to put a debit-card function on the city’s proposed municipal identification card.

The debit-card function had proved to be a major hurdle to issuing the cards, which are designed primarily to give undocumented immigrants a way to prove their identity.

City staffers declared that they didn’t have the expertise to analyze the legal and banking aspects of administering a debit card, something only one city in the nation, much smaller than Oakland, is believed to have done.

In addition, the staff had questions about whether the bank chosen to oversee the card had sufficient financial resources to cover “fraud, theft, market downturns and other problems that could jeopardize cardholder funds.”

Tuesday night, the council members overwhelmingly declared that they were satisfied. The only member who didn’t vote for it was Councilwoman Desley Brooks, who abstained.

“I’m very excited,” said Mayor Jean Quan, who helped draft the original proposal more than 2 1/2 years ago with Councilman Ignacio De La Fuente when she was a member of the council. “I don’t think people realize how complex it is.”

The debit-card function is critical to covering the city’s costs. But there are broader reasons, such as giving those who don’t have bank accounts a secure way to store their money.

“This is an issue of human rights,” said Manuel De Paz, a coordinator with the East Bay Sanctuary Covenant, one of dozens of speakers who advocated for passage of the card.

De Paz said that it would encourage residents to report crimes, work more closely with police and protect immigrants from being robbed because they’re carrying too much cash.

“It’s a very big issue,” he said.

De La Fuente said the community had been done a disservice by the delays.

“People have been desperately waiting for years,” he said. “It’s imperative that we pass this tonight.”

It will take the city at least three months to write the contract with University National Bank of St. Paul, Minn., and SF Global Group of Venice (Los Angeles County), which would be responsible for the card’s operations.

University National Bank has $258 million in assets. Roughly 7 percent of its assets are leveraged, high enough to merit concern from city staff and an outside consultant. De La Fuente has proposed triggers that would go into effect if the bank’s debt becomes too high.

The bank has had experience handling 3.5 million debit cards as of this year.

The cards are estimated to cost holders $15 each, and the vendor estimates that the city will issue 30,000 cards in the first year.

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[Here is another alternative currency event in Oakland for next Monday.  And dont forget Wilson Riles’ event tomorrow, Saturday 10 am  to 2 pm, see article below.]


Probably the world’s foremost authority on alternative and local currencies, Bernard Lietaer, is here in town this week and has made time to make himself available to meet with local alternative currency advocates to share his wealth of knowledge.
This Monday, November 7 at 7:30 pm we have a meeting room booked to meet with Bernard, listen to him give a short presentation and then have a Q&A. This is a great opportunity for anyone working in this field and I would like to invite you to attend.
Monday, November 7, 7:30 pm
Laurel Jijitsu Community Space
4148 MacArthur Blvd.
Oakland, CA 94619
(Very close to 580 freeway in Laurel district)
Please forward this invitation anyone interested and actively working on alternative economies and currency systems. Let’s get a good turnout but primarily focus on people already working on currency/economic issues, not the general public. Could someone forward this to Bernal Bucks guys? I don’t have their email.
Please RSVP to me, Charlie Rebich, or let me know if you have any questions. We have room for 20 to 30 people. This is not an opportunity to be missed.
Charlie Rebich

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Alternative Currency for Oakland Residents and Neighbors 

My Friends and fellow lovers of Oakland,

You are going to want to come and learn about this win-win-win currency for Oakland.

Date:     Saturday, November 5, 2011

Time:     10am to 2pm (with food)

Place:    First Congregational Church

2501 Harrison Street
Oakland, California 94612

Sponsored by Oakland C.A.N., the Black Alliance for Just Immigration, and the Oakland City Identification Card Coalition.


That day – November 5 – also is bankTRANSFERday ( and Guy Fawkes Day.


“Neighborhoods are taking their economic destiny into their own hands…a group in Oakland is working on a currency known as Alternative Currency for Oakland Residents and Neighbors, or ACORN.” Wall Street Journal, Thursday Oct. 6, 2011.


For More Information Call: Oakland CAN at 510-530-2448 or email

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OaklandNorth Article About July 26 Council Meeting

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Oakland Council to Address ID Card and ACORNS, Mon Nov 9th, 7 pm at City Hall – Y’all come! Que vengan todos!

Friends of the ACORN,

After the 4-0 vote of the City Council Finance Committee to move the Oakland ID card to the full City Council with the probability of a local currency function intact, Council Member Jean Quan said that if she becomes Mayor of Oakland, she will enjoy negotiating with the City unions. I presume that that means negotiating their acceptance of local currency as partial compensation for their labor; thus ‘saving’ the City upwards of $30 million, potentially. Council Member Quan’s statement was the clearest statement that I have heard in the more than two years of struggle of the Coalition that we are being clearly heard in regards to the benefits of this program!

The full Council will hear the matter at its meeting on November 9 at City Hall; the meeting starts at 7 p.m. THIS WILL TRULY BE A HISTORIC DAY FOR OAKLAND! Five votes of the full Council will be needed to pass this and the Coalition has a commitment of support from Council Member Rebecca Kaplan and more than hope that Council President Jane Bruner and/or Council Member Desley Brooks will also support the proposal.

However, before we celebrate, you are needed to put the Cherry on Top! It is absolutely necessary that this local currency have a governance body that will yoke the program to the mission and the broad distribution of benefits that are possible. Without such a governance body the project will very likely go astray and visit more problems on some in the City than they already have. That is why it is critically important that YOU turn out and that you inform all your networks that care about Oakland to turn out. We will be calling for the Council’s explicit direction to staff to create this governance body that will make its decisions on the basis of a modified consensus process. Modified consensus is needed because it fully empowers the minority participants in the process as a posed to a manipulable voting process.

There are many details and a implementation schedule that must be worked out with the chosen vendor. The vendor’s motivation is its profit bottom-line; the Council and City staff are – understandably – not sufficiently knowledgeable of the subject matter or the industry to properly monitor and govern this project. Representatives of cardholders, merchants, privacy rights attorneys, the Coalition, other civil society organizations, non-directly-involved card industry persons, and business and economics’s academicians must be on this governance body. Please come and help us secure this necessary feature for the Oakland ACORN.

Please, please, please! Mark your calendars NOW! I have attached a new document [Ed: see below] – from Oakland C.A.N., a member orgainization of the Coalition – that explains some of the questions that have come it.  Please come and feel free to testify about any aspect of the program that you think is important. I realize that many of us are heavily involved in the election and in the response to the Mehserle sentencing but do NOT take a break after those events. I welcome emails and telephone calls to help coordinate our efforts.

Looking forward to seeing you on November 9.

Wilson Riles, 510-530-2448


OCCIC Follow-Up with Answers

  1. Considering the level of City government involvement in this program, how can private citizens, City staff, or local merchants trust this project to do what is intended?

Answer – No one should trust the City given its history with a much less than ideal performance in the delivery of equality and justice to all residents and participants in Oakland’s community. The local currency or ACORN concept did not originate from the City; that is one of the reasons that it has been more than two years of frustration on the part of the Coalition in bringing it about. The City’s authorization of a public municipal identification card, however, is critical to including and protecting our undocumented neighbors at a very oppressive moment in history.

The Coalition recognized early on that the accomplishment of that aim does require a much broader rate of participation than exists in New Haven, Conn., with their Elm City Card or the rate of participation in San Francisco with their identification card. Those cards have become ‘badges’ of stigmatization. The Coalition’s system design includes benefits for all members of the community in Oakland.

This design includes the necessity of a independent governing body to oversee and audit the system to maintain the mission and benefits of the program to all stakeholders. We have designed it to include the participation of cardholders, merchant representatives, privacy rights attorneys, business and economics academicians, and community civil society representatives. It is critical that this body makes its decisions on the basis of a modified consensus process so that the concerns and needs of the smallest minorities or sectors are heard, responded to, and protected. It is this body in which the Coalition is putting its trust.

  1. What is the difference between a merchant’s benefit program and local currency?


.           Answer – The merchant benefit program focuses on “units of value” such as discounts, points, promotions, etc to encourage and motivate consumers to shop at or do business with a particular merchant or merchants.  The “units of value” may be applied by the consumer to get merchandise and services at a lower price, up to and including no cost in $US dollars although the consumers’ “units of value” are expended. These units of value typically do not have any public currency value and are not defined as “legal tender for any and all debts.”


.           Local currency is a more generally usable “value unit” that functions similar to a currency in that the recipients/merchants and others who accept the units can then ‘turn around’ and themselves use the units to pay for labor and services within a limited jurisdiction. Merchandise and services are priced individually – and separately from $US dollar pricing – in local currency units and would have to be discounted as a separate action from the use of the currency itself. With the ACORN, Alternative Currency for Oakland Residents and Neighbors, by a participation agreement merchants, the City, and other goods and service providers would agree to discount purchases in ACORNs below the $US dollar exchange value.


  1. Is there a difference between a program like SF’s where the benefit comes from flashing a card and where the benefit is programmed on the card?

Answer – The difference with programming is that the benefit can be more easily and consistently managed across a large population. Program rules and guidelines can be electronically monitored by the host financial institution and changes can be quickly implemented in order to keep the program relevant and fresh. Program performance and merchant/cardholder data is easily collected with a high degree of accuracy and with the security protections provided by the Banking Privacy Act. With flashing a card, the program is dependent on the merchant or that merchants’ clerk to give the benefits as defined.  Monitoring is very difficult. The Program’s performance and merchant/cardholder satisfaction data is more difficult to collect.

  1. The Coalition believes that some functions/benefits will have to be phased in but that all wanted functions must be designed for in the beginning. Is this accurate?

.           Answer – This is important because it allows the program to deliver benefits immediately based on the complexity of implementing the benefit. For example, the design and implementation of the ID card with basic financial functionality would be much quicker than waiting until the more complex economic and local currency benefits are structured and agreed to by the other necessary participants.

  1. How important is the broad marketing of the ID card to the success of the program for everyone?

.           Answer – The vendor must be not only committed to marketing and promoting the local currency (community benefits) components, but must also view these as being critical to the success of the program. Every stakeholder, especially the vendor and the City, must have their benefit (return) and participation yoked to the maximum accomplishment of the mission for the Oakland ACORN project. In order to achieve some of the key program goals of self-funding and not stigmatizing the undocumented, the program needs to sign up a very broad base of people. In addition, the local currency/economic components bring value to the City’s budget and stabilize Oakland’s microeconomics. Participating merchants gain increasing consumer traffic and by stimulating more economic activity within the city boundaries more local residents will be hired. It is to every bodies benefit to market this program to all sectors of the community.

  1. Is there any detriment to functions initiated early when the local currency function is ‘brought on-line’ in a latter phase?

.           Answer – The key is to establish the infrastructure for the local currency as part of the system implementation. That way only the local currency definition and rules will need to be added when ready. The analogy is laying the foundation of a building.  If you want a building to ultimately be 5 stories tall, you lay a foundation for all 5 stories. You can build 3 stories first and add two more later. Not only will only no functions be lost, but you gain the benefit of having the infrastructure in place and working smoothly with some number of cardholders already in place and ready to use the local currency. 

  1. OCCIC feels that being able to issue cards to residents who have no documentation at all is important. Can you suggest some ways that the City might consider doing this?

.           AnswerOne idea might be to require two pieces of mail (bills, medical, etc.) with the applicant‘s name on it for the address they are using, and, accept the verification by a second person that knows them and we verify the second person’s ID (name, address, SSN/DL, place of employment). The system should keep a record of the second person that verified the applicant. This was the initial problem to be addressed by this project but this will require the City to change its verification ordinance.

  1. OCCIC also believes that all use fees should be at or below industry standards. Can you comment on this?

.           Answer – The vendor should be willing to accept a low margin. This will motivate the vendor to market the card to make money on volume, not high fees.  This is also important to make sure people that need an ID card are not taken advantage of from a pricing standpoint. It will also be another incentive to attract merchant participation.

  1. Please, clarify the vendor’s use of non-profits, community organizations, and commercial property for intake sites. How can such facilities add to the success of the program?

.           Answer – The vendor should partner with and utilize participating non-profits’ communications networks to promote the program not only to their constituents but to the community as a whole. Intake points should be located at these organization’s sites as appropriate and needed, on a temporary/roaming or permanent basis, and fully compensated. Also, most importantly, the local currency function can generate significant contributions to all Oakland non-profits. Contributions made in local currency will be treated by the IRS and the State Board of Equalization in the same manner as contributions in $US dollars; income and transactions in local currency are also taxable in the same way as the $US dollar at the exchange rate. The vendor may also utilize commercial locations as appropriate and needed.

  1. We understand that the vendor may have a relationship with a merchant processor company. What is the advantage to the program for working with this merchant processor and their technology (load points, etc.)?

.           Answer – The advantage is the merchant processor can provide custom POS and/or card swipe at little or no cost. The merchant processor will provide all of the programming needed to customize the POS and card swipe terminals. These POS mechanisms can be substituted in a matter of literally minutes with no down time for the merchant or loss of present capabilities. One vendor’s partner merchant processor has also agreed to make a charitable donation to non-profits in Oakland or to the project of 25% of the net revenue they receive. 

  1. Will Visa/MasterCard allow local currency on their network in Oakland?

.           Answer – The local currency function can be programmed on a Closed Loop network.  Visa allows a split transaction. That is, you can pay for something partially with dollars (this would be on the Open Loop Visa/Star network) and pay the balance using a different method such as cash or local currency.

  1. There is often confusion about closed loop and open loop. Can a closed loop system be achieved with digital programming or do closed loop systems require special POS mechanisms?


.           Answer – The programming way is to recognize participating merchants in the program in software by their merchant code, and apply program features and benefits based on their code. The code is registered in the system each time a merchant signs up.  All cardholders will automatically be a part of the program. This is the lowest cost method. Requiring a merchant to change a POS terminal as required by a ‘mechanical’ Closed Loop system can be very challenging. For merchants such as restaurants, many POS terminals are also the restaurant’s management system. The cost of changing would be high if they swapped it out, or had to reprogram their in-store system.


  1. Can card holders exchange $US dollars to ACORNs automatically by phone and computer? Does not Visa allow foreign currencies already on their systems?

.           Answer – The issue here is not Visa, but the host financial institution. Visa offers foreign exchange service for transactions on their network. However, the ‘purchase’ of ACORNS could probably be treated the same as the purchase of points in a Rewards program. This would make it a purchase versus a currency conversion and Visa would not be involved.  For it to be treated as a currency conversion, the host banking system would have to recognize it as a currency. This may not be an issue for the program, especially if – with the help of the City – the vendor was able to gain the involvement of local Community Development banks and/or local credit unions. Credit unions are encouraged to reach out to the undocumented and the Bank on Oakland program’s mission is to facilitate the un-banked into the use of financial accounts.

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City Council to Review ID Card program on Nov 9th

Friends, please plan to attend the Oakland City Council meeting on Tuesday, November 9th at 7 pm at City Hall, to speak or nod in favor of adopting the alternative currency ACORN for Oakland.  We need a public show of support to help the Council make the right decision, which will make our City ID Card a powerful and useful document for all Oaklanders, and will draw the attention of city officials around the USA!

The following are some responses Wilson has made to questions about ACORNs.


Wilson Riles,  October 10, 2010

Question A: I just found out about the Acorn. I don’t understand, why would I want to join, if I spend money locally anyway, what benefit do I get by paying $35, to spend money locally, that I’m already doing?

Answer to Question A:
If we are able to structure this as we (the Coalition) has designed it, (1) you will pay $35 but there will be (approx.) $50 of equivalent value on the card, (2) each time you use the card you will get your purchase at a discounted price, (3) the technology of the card will be at an advanced level whereabouts you will be able to manage your account by cell phone, computer, and i-phone – you will be able to put money into your relatives accounts, your friends accounts, and/or merchants who do not have a POS device by phone, (4) you will be able to up-load money into your account and convert $US into ACORNs at store counters, (5) finally you will be able to do remittances (to Haiti, Africa, Latin America, and/or to other Bay Area cities that adopt a local currency) at less cost than Western Union or any other funds transfer service. Lastly, let me say that you will have an alternative currency that you might choose to use to encourage the great environmental good of import replacement in your community, encourage local hiring, and buffer the $US currency value reduction and inflation that will devastate the communities that do not have this option.

Question B: Will the ACORNS be useful everywhere in Oakland? What make ACORN work when obviously not ALL money will go to ACORNS and people can still use their own dollars anywhere, even send it out of the country whenever they want. Why would a merchant join? What’s in it for a merchant? Is there a marketing campaign to promote the ACORN as like a local gift card? A local gift card isn’t a bad idea to keep money local. Why don’t you just sign up some merchants and start selling cards like other fundraisers have done? Will this be used as a fundraiser for schools or charities? I can see it as a competitive marketing system for the few merchants that want to join, why don’t you enroll some merchants and start some gift cards? Where are you in terms of developing a marketing plan for local businesses?

Answer to Question B:
The ACORN will function when and where the merchant, card holder, and city agree to accept it and use it. That is why incentives need to be built into the program to make it attractive and beneficial to all participants. This is not a mandate; the system functions on the basis of the choice of the users. It will function everywhere in Oakland where folks make that choice. I think that the incentives that we (the Coalition) have detailed will be beneficial enough that almost all merchants and card holders will choose to use it. The City will also gain a huge economic boost in its budget if it successfully comes to an agreement with the City labor unions to particially compensate work with ACORNs. I have talked with SEIU 1021 and the Firefighters Local 55; both stand ready to bargain for this to happen; I think other unions will follow. The best way to start a local currency is to spend it into existence. If the City were to pay its employees just 10% of their salaries in ACORNs, that would be equivalent to more than $30 million. That would be $30 million that the City could spend then on other needs. This is the initial start up boost benefit for the City by doing this with local currency. After the initial spend-out, if the City also accepts ACORNs for the payment of City parking, fines, and fees – also at a discount – the City would take ACORNs in to continue paying employees in ACORNs without causing inflation. This can only be done with the creation of a local currency; it cannot be done with just a debit card or a gift card function.

It is the discounts, standard or below processing and transaction fees, and the symbolization of all Oakland residents and businesses working together with the City government to make our micro-economy work better for every resident of the City that will draw folks to use the ACORN. There are other future potential uses for the card that will enhance this. A version of the card could be created as a student identification card in OUSD that would mean that parents need not give their children cash and the parents (owners of the accounts) could track their children’s use of the card. Peralta Colleges could also have a version of the card as a student identification card. The card could be adapted for discounted use with AC Transit and AC Transit could also pay bus drivers partial with ACORNs and kept those resources circulating in Oakland’s economy. The County’s EBT card could be changed to convert Federal and State dollars into ACORNs and make available these discounts, currency flow benefits, and account control benefits to Food Stamp and other recipients. That is just for starters.

Merchants – particularly small business merchants – will build customer loyalty with City workers and City residents. That is why merchants give discount coupons and all the other things they do; however, with the local currency they would be able to pay their employees and some business services in the now monetized discount. They would also be able to pay City fines and fees at a discount by using local currency. They will also be able to contribute any “excess” to Oakland non-profits and thereby get a reduction on State and Federal taxes. The circulation would stabilize their businesses. Lastly, the $US that the participating financial institution would collect in exchange for ACORNs should be lent to participating merchants at a processing cost – which should be low because this is all computerized – only for a no-interest merchant loan. Where now, small business is not able to get loans – certainly not at affordable rates – the local currency would open up a loan fund – stimulated by the discounts – that would make our businesses more competitive and successful.

Because this is a City program or is attached to a City program, the marketing for the card and Oakland businesses would be done together. Few people actually want a gift card. Few people need a City Identification card. A few people need a bank account rather than having to use Pay-Day-Loan and expensive check chasing places. There is a synergy here that is huge. There is no gift card system that could mean a boost to the City budget, a benefit to Oakland merchants, and a huge benefit to Oakland’s micro-economy, not to mention the emotional community-building aspect of having a card that says “I am proud to be an Oakland resident and contribute to the well being of my community without losing anything!”

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