The big question looming out there for vendors and people who receive money from the state, and for the record way too many people do, is who will accept IOU’s?
Banks haven’t made up there minds. They may be waiting to see what the interest rate will be. Golden State Credit Union will take the warrants; they after all cater to government employees.
I have co-authored AB 1506 that would allow the recipients of IOUs from the state to use the warrants as payment for state services.
Today, I attended a press conference organized by Assembly Bill 1506 Author Assemblyman Joel Anderson.
If IOU’s are going to be issued by the state, the state should take them as payments. The DMV should take them, California State universities should take them, the Board of Equalization should take them etc…
If California wants banks to take them, shouldn’t California government do the same?
Think of the all the interest California will save and besides they are safe bet, right?