BILL NUMBER: AB 597	CHAPTERED
	BILL TEXT

	CHAPTER  612
	FILED WITH SECRETARY OF STATE  OCTOBER 8, 2011
	APPROVED BY GOVERNOR  OCTOBER 8, 2011
	PASSED THE SENATE  AUGUST 30, 2011
	PASSED THE ASSEMBLY  SEPTEMBER 2, 2011
	AMENDED IN SENATE  JULY 12, 2011
	AMENDED IN SENATE  JUNE 27, 2011

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, 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.
The bill would require those moneys to be made available upon
appropriation in the annual Budget Act and would require donations to
be returned to contributors if not appropriated within 18 months.
The bill would authorize the Controller to convene an advisory
committee to provide additional oversight of the fund and develop
strategies to improve financial literacy. The bill would prohibit use
of donations to promote or market the financial products of any
contributor. 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.


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.
   (c) Funds not appropriated within 18 months of being contributed
to the fund shall be returned in full to the contributor.
   70002.  The Controller may accept private donations and deposit
those donations into the fund, which shall be made available upon
appropriation in the annual Budget Act. Donations shall not be used
to promote or market the financial products of any contributor.
   70003.  The Controller may convene a financial literacy advisory
committee to provide additional oversight of the fund and develop
strategies to improve financial literacy. If convened, the committee
shall comply with the Bagley-Keene Open Meeting Act (Article 9
(commencing with Section 11120) of Chapter 1 of Part 1 of Division 3
of Title 2 of the Government Code).
   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.
  SEC. 2.  The Legislature finds and declares that contributions to
the California Financial Literacy Fund established by this act are
made for a public purpose. It is the intent of the Legislature that
contributions should be eligible to be claimed as deductible
charitable contributions to the extent otherwise allowable under
federal income tax law and California income tax and franchise tax
law, subject to recapture if the contribution is subsequently
returned by the state.