BILL NUMBER: AB 597	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Eng

                        FEBRUARY 16, 2011

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


	LEGISLATIVE COUNSEL'S DIGEST


   AB 597, as introduced, Eng. California Financial Literacy Fund.
   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 Fund
in the State Treasury for the purpose of enabling partnerships with
the financial services community and governmental and nongovernmental
stakeholders to improve Californians' financial literacy. The bill
would require the fund to be administered by the Controller 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 authorize
the Controller to convene an advisory committee to provide oversight
of the fund and develop strategies to improve financial literacy.
The bill would require the Controller, beginning in 2013, to provide
an annual summary to specified committees of the Legislature on the
use of those moneys appropriated from the fund.
   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 FUND


   70000.  For purposes of this division, "fund" means the California
Financial Literacy Fund.
   70001.  (a) The California Financial Literacy Fund is hereby
established in the State Treasury. The fund shall be administered by
the Controller.
   (b) The purpose of the fund is to enable partnerships with the
financial services community and governmental and nongovernmental
stakeholders to improve Californians' financial literacy.
   70002.  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.  (a) The Controller may convene a financial literacy
advisory committee to provide oversight of the fund and develop
strategies to improve financial literacy.
   (b) If the committee is convened by the Controller, it shall be
chaired by the Controller and may include representatives of the
Superintendent of Public Instruction, the Treasurer, the California
State Library, the Department of Corporations, the Department of
Financial Institutions, the Department of Consumer Affairs, and the
Department of Finance. The committee may also include one or more
representatives from the financial services industry, the nonprofit
sector associated with improving financial literacy, and other
institutions committed to improving Californians' financial literacy.

   (c) State agencies in the executive branch, including boards,
commissions, and constitutional officers, shall use existing
resources to participate in the advisory committee, to the extent
they elect to participate.
   70004.  Beginning in 2013, the Controller shall provide to the
respective chairpersons of the Assembly Committee on Banking and
Finance and the Senate Committee on Banking and Financial
Institutions a brief annual summary on the use of the funds, when
appropriated. This summary shall be submitted no later than August 30
of each year.