BILL NUMBER: AB 550	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Lieu

                        FEBRUARY 25, 2009

   An act to add Division 22 (commencing with Section 70000) to the
Financial Code, relating to financial literacy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 550, as introduced, Lieu. California Financial Literacy
Initiative.
   The California Constitution requires the Legislature to encourage
the promotion of intellectual improvement. Existing law regulates
financial institutions and their interactions with the public.
Existing law recognizes the existence of specialized financial
institutions that provide services, including, but not limited to,
financial literacy training, to underserved communities.
   This bill would establish the California Financial Literacy
Initiative in the Controller's office for the purpose of providing
resources and instruction to Californians. The initiative would be
administered by the Controller. The bill would establish the
California Financial Literacy Fund in the State Treasury and would
authorize the Controller to deposit private donations into the fund
from entities with no direct financial interest in any financial
products. The bill would require those moneys to be made available
upon appropriation in the annual Budget Act. The bill would require
the Controller, beginning in 2011, to report to specified committees
of the Legislature annually on or before August 30 on the
implementation of the initiative, as specified.
   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.  Division 22 (commencing with Section 70000) is added to
the Financial Code, to read:

      DIVISION 22.  CALIFORNIA FINANCIAL LITERACY INITIATIVE


   70000.  For purposes of this division, "initiative" means the
California Financial Literacy Initiative.
   70001.  (a) The California Financial Literacy Initiative is hereby
established in the Controller's office as a program for improving
financial literacy by providing resources and instruction to
Californians.
   (b) The initiative shall be administered by the Controller.
   70002.  The California Financial Literacy Fund is hereby
established in the State Treasury. The purpose of the fund is to
implement measures defined by the initiative. The Controller may
accept private donations from entities with no direct financial
interest in any financial products and deposit those donations into
the fund, which shall be made available upon appropriation in the
annual Budget Act.
   70003.  Beginning in 2011, the Controller shall provide to the
respective chairpersons of the Assembly Committee on Banking and
Finance and the Senate Committee on Banking, Finance and Insurance an
annual report on the initiative. This report shall include, but not
be limited to, steps taken to partner with the financial services
community and governmental and nongovernmental stakeholders to
improve Californians' financial literacy, a description of the basic
financial skills information available on the Controller's Internet
Web site and plans to improve that clearinghouse of information, any
nonstate funding received for purposes of this initiative, and any
additional recommendations to enhance financial literacy in
California. This report shall be submitted no later than August 30 of
each year.