Senate Bill sb1120c1

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    Florida Senate - 2005                           CS for SB 1120

    By the Committee on Banking and Insurance; and Senator
    Haridopolos




    597-2087-05

  1                      A bill to be entitled

  2         An act relating to the Financial Literacy

  3         Council; creating the council; providing

  4         purposes; providing for membership; providing

  5         for meetings, procedures, records, and

  6         reimbursement for travel and per diem expenses;

  7         prohibiting compensation for council members;

  8         providing powers and duties of the council;

  9         providing for resources of the council;

10         requiring any funds received by the council to

11         be deposited in the Administrative Trust Fund;

12         requiring annual reports to the Governor and

13         Legislature; providing an appropriation;

14         providing an effective date.

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16  Be It Enacted by the Legislature of the State of Florida:

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18         Section 1.  Financial Literacy Council.--

19         (1)  CREATION.--The Financial Literacy Council is

20  created within the Department of Financial Services. The

21  council shall provide information and education about

22  financial issues to consumers and small businesses.

23         (2)  PURPOSES.--The purposes of the council are to:

24         (a)  Provide a single state resource for consumers and

25  small businesses to contact for financial assistance.

26         (b)  Equip small businesses, young people, working

27  adults, and seniors with the tools and resources they need to

28  make informed financial decisions.

29         (c)  Help residents of this state learn more about

30  personal finance issues, including, but not limited to,

31  

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    Florida Senate - 2005                           CS for SB 1120
    597-2087-05




 1  personal savings, applying for loans, managing debt, making

 2  sound investment choices, and saving for retirement.

 3         (d)  Facilitate the sharing of best practices for

 4  financial management which are characteristic of highly

 5  successful small businesses.

 6         (e)  Serve as an educational forum for resource

 7  planning, financial planning, and management issues for small

 8  businesses.

 9         (3)  COMPOSITION.--

10         (a)  Members of the council shall include the Chief

11  Financial Officer, or her or his designee, who shall serve as

12  chair, and not more than nine other members to be appointed by

13  the Chief Financial Officer. Six members must be persons with

14  experience in various areas of the financial industry, such as

15  banking, finance, insurance, real estate, and securities. At

16  least one member must be a person who is not employed by and

17  is not a representative of the financial industry. At least

18  one member must be chosen from a list of three persons

19  submitted to the Chief Financial Officer by a senior advocacy

20  group. At least one member must be chosen from a list of three

21  persons submitted to the Chief Financial Officer by the

22  Florida Council on Economic Education. Appointed members shall

23  include persons who represent rural and urban interests and

24  the ethnic and cultural diversity of the state's population.

25         (b)  Members of the council shall serve at the pleasure

26  of the Chief Financial Officer. The council shall meet at the

27  call of the chair. Five of the initial members appointed to

28  the council shall be appointed for terms of 3 years. All other

29  members shall be appointed for terms of 4 years. Members shall

30  serve until their successors are appointed. A vacancy shall be

31  filled for the remainder of the unexpired term.

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    Florida Senate - 2005                           CS for SB 1120
    597-2087-05




 1         (c)  The Department of Financial Services shall provide

 2  administrative and staff support to the council.

 3         (4)  MEETINGS; PROCEDURES; RECORDS; COMPENSATION.--

 4         (a)  The business of the council shall be presented to

 5  the council in the form of an agenda. The agenda shall be set

 6  by the Chief Financial Officer and shall include items of

 7  business requested by the council members.

 8         (b)  A majority of the members shall constitute a

 9  quorum, and action by a majority of a quorum shall be

10  official.

11         (c)  The council shall make a report of each meeting to

12  the Chief Financial Officer. The report shall show the names

13  of the members present and shall include a record of the

14  council's discussions, recommendations, and actions taken. The

15  Chief Financial Officer shall keep the records of the

16  proceedings of each meeting on file and shall make the records

17  available to any interested person or group.

18         (d)  Council members shall serve without compensation.

19  However, each council member shall be entitled to

20  reimbursement for per diem and travel expenses pursuant to s.

21  112.061, Florida Statutes.

22         (e)  Meetings and records of the council are subject to

23  chapters 119 and 286.

24         (5)  POWERS AND DUTIES.--

25         (a)  The council shall study financial problems that

26  affect consumers, particularly young persons, seniors, working

27  adults, and small businesses that arise from a lack of basic

28  knowledge of financial issues.

29         (b)  The council shall develop written materials which

30  shall be available to educate consumers and small businesses

31  about basic financial issues.

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    Florida Senate - 2005                           CS for SB 1120
    597-2087-05




 1         (c)  The council shall establish an outreach program to

 2  help educate affected persons through public meetings or

 3  seminars or through web-based media.

 4         (6)  RESOURCES.--

 5         (a)  The council may apply for and accept funds,

 6  grants, gifts, and services from the state, the government of

 7  the United States or any of its agencies, or any other public

 8  or private source for the purpose of defraying clerical and

 9  administrative costs as may be necessary in carrying out its

10  duties under this section. All sums received by the council

11  shall be deposited into the Administrative Trust Fund and used

12  solely to further the purposes of this section.

13         (b)  The council shall seek out and wherever possible

14  use the talents, expertise, and resources within the state,

15  and especially those of the public school, community college,

16  and state university systems, in furtherance of its mission.

17         (c)  The council may procure information and assistance

18  from any state agency, political subdivision, municipal

19  corporation, or public officer.

20         (d)  The council may coordinate with any state agency,

21  any political subdivision, or any school district of the state

22  in the furtherance of its mission.

23         (7)  REPORTS.--Beginning January 1, 2007, the council

24  shall report annually on January 1 to the Governor, the

25  President of the Senate, and the Speaker of the House of

26  Representatives on the activities carried out under the

27  provisions of this section.

28         Section 2.  For fiscal year 2005-2006, there is

29  appropriated $50,000 in nonrecurring funds from the

30  Administrative Trust Fund in specific appropriation category

31  "Financial Literacy Council" to the Financial Literacy Council

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    Florida Senate - 2005                           CS for SB 1120
    597-2087-05




 1  created by this act. This appropriation is contingent upon

 2  receipt of funds by the council for the purposes of this act.

 3         Section 3.  This act shall take effect July 1, 2005.

 4  

 5          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 6                         Senate Bill 1120

 7                                 

 8  The committee substitute provides the following changes:  

 9  1.   Specifies that the Financial Literacy Council (council)
         is created within the Department of Financial Services.
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    2.   Reduces the membership of the council from 15 to 10
11       members and revises the composition of the members.

12  3.   Requires any funds received by the council to be
         deposited into the Administrative Trust Fund of the
13       Department of Financial Services.

14  4.   Appropriates $50,000 in non-recurring funds from the
         Administrative Trust Fund to the council, contingent upon
15       receipt of funds by the council.

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