BILL NUMBER: AB 448	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Torres

                        FEBRUARY 24, 2009

   An act to amend Sections 310 and 313 of the Business and
Professions Code, and to add Section 11818 to the Government Code,
relating to consumer affairs.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 448, as introduced, Torres. Consumer affairs: financial
education.
   Existing law creates the Department of Consumer Affairs and
establishes the duties of its director, which include the duty to
propose and assist in the creation and development of consumer
education programs. Existing federal law establishes the Financial
Literacy and Education Commission and this commission has promulgated
the National Strategy for Financial Literacy.
   This bill would include in the duties of the Director of Consumer
Affairs proposing and assisting in the creation of programs for
improving financial literacy. The bill would specifically require
that the director participate with the Financial Literacy and
Education Commission to implement in California the National Strategy
for Financial Literacy, using existing resources. The bill would
also make legislative findings and declarations and would state the
intent of the Legislature that the State Board of Education, county
offices of education, and school districts find ways, within existing
resources, to incorporate financial education and literacy into
their curriculum offerings and to work with the Director of Consumer
Affairs in this regard.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 310 of the Business and Professions Code is
amended to read:
   310.  The director shall have the following powers and it shall be
his duty to:
   (a) Recommend and propose the enactment of such legislation as
necessary to protect and promote the interests of consumers.
   (b) Represent the consumer's interests before federal and state
legislative hearings and executive commissions.
   (c) Assist, advise, and cooperate with federal, state, and local
agencies and officials to protect and promote the interests of
consumers.
   (d) Study, investigate, research, and analyze matters affecting
the interests of consumers.
   (e) Hold public hearings, subpoena witnesses, take testimony,
compel the production of books, papers, documents, and other
evidence, and call upon other state agencies for information.
   (f) Propose and assist in the creation and development of consumer
education programs  , including programs for improving financial
literacy  .
   (g) Promote ethical standards of conduct for business and
consumers and undertake activities to encourage public responsibility
in the production, promotion, sale and lease of consumer goods and
services.
   (h) Advise the Governor and Legislature on all matters affecting
the interests of consumers.
   (i) Exercise and perform such other functions, powers and duties
as may be deemed appropriate to protect and promote the interests of
consumers as directed by the Governor or the Legislature.
   (j) Maintain contact and liaison with consumer groups in
California and nationally.
  SEC. 2.  Section 313 of the Business and Professions Code is
amended to read:
   313.  (a)    The director shall provide for the
establishment of a comprehensive library of books, documents,
studies, and other materials relating to consumers and consumer
problems. 
   (b) Utilizing existing resources, the director shall participate
with the Financial Literacy and Education Commission established by
the federal Financial Literacy and Education Improvement Act, Title V
of the Fair and Accurate Credit Transactions Act of 2003 (Public Law
108-159) to implement in California "Take Ownership of the Future:
the National Strategy for Financial Literacy." 
  SEC. 3.  Section 11818 is added to the Government Code, to read:
   11818.  (a) The Legislature finds and declares the following:
   (1) Today's increasingly complex financial services market offers
consumers a vast array of products, services, and providers to choose
from to meet their financial needs.
   (2) This degree of choice requires that consumers be equipped with
the information, knowledge, and skills to evaluate their options and
identify those that best suit their needs and circumstances,
particularly for populations that have traditionally been underserved
by our financial system.
   (3) Financial education also is essential to help consumers
understand how to prevent becoming involved in transactions that are
financially destructive, how to avoid becoming victims of fraud, and
how to exercise their consumer protection rights.
   (4) Financial literacy can empower consumers to be better
shoppers, allowing them to obtain goods and services at lower cost,
to provide individuals with the financial knowledge necessary to
create household budgets, initiate savings plans, manage debt, and
make strategic investment decisions for their retirement or their
children's education. Having these basic financial planning skills
can help families to meet their near-term obligations and to maximize
their longer term financial well-being.
   (5) Financial literacy is particularly important in view of the
combined effects of current recession and financial and mortgage
crisis on Americans and Californians.
   (6) In 2003, Congress established the Financial Literacy and
Education Commission through passage of the Financial Literacy and
Education Improvement Act, Title V of the Fair and Accurate Credit
Transactions Act of 2003 (Public Law 108-159).
   (7) Congress charged the commission to "improve the financial
literacy and education of persons in the United States through
development of a national strategy to promote financial literacy and
education."
   (8) The National Strategy for Financial Literacy involves
coordinated efforts by numerous federal agencies to address four
crucial areas:
   (A) Building public awareness of available information and
resources.
   (B) Developing tailored, targeted approaches for dissemination of
financial literacy information.
   (C) Tapping into public-private and private-private partnerships.
   (D) Research and evaluation of financial education programs.
   (9) California does not have a clearly articulated state policy or
coordinated approach to promoting financial literacy and education,
the lack of which harms Californians.
   (10) It is in the public interest for California public agencies,
private entities, and individuals to participate in the work of the
federal Financial Literacy and Education Commission and to
participate in adapting the National Strategy for Financial Literacy
to California conditions and implementing it as appropriate, using
interagency collaboration and partnerships with private entities,
nonprofits, and individuals.
   (11) The National Strategy for Financial Literacy has determined
that "[t]he starting point for giving people a basic understanding of
personal finance is youth financial education, and the best starting
place to reach large numbers of young people with financial
education is in schools".
   (b) (1) It is the intent of the Legislature, consistent with the
recommendations of the National Strategy for Financial Literacy, that
the State Board of Education, county offices of education, and
school districts find ways within existing resources to incorporate
financial education and literacy into their curriculum offerings by
integrating it with the elements of the adopted course of study, by
providing teachers with appropriate training and support, supplying
teachers with effective financial literacy materials, curricula and
resources, and by reaching students in nontraditional venues.
   (2) It is the intent of the Legislature that the State Board of
Education, county offices of education, and school districts consider
programs of financial education and literacy in consultation with
the Director of Consumer Affairs.