| 1 | A bill to be entitled |
| 2 | An act relating to the Financial Literacy Council; |
| 3 | creating the council; providing purposes; providing for |
| 4 | membership; providing for reimbursement for per diem and |
| 5 | travel expenses; providing for meetings, procedures, and |
| 6 | records; providing powers and duties of the council; |
| 7 | providing for resources of the council; requiring that any |
| 8 | funds received by the council be deposited in the |
| 9 | Department of Financial Services Administrative Trust |
| 10 | Fund; providing for expiration of the council; requiring |
| 11 | annual reports to the Governor and Legislature; providing |
| 12 | a contingent appropriation; providing for construction; |
| 13 | providing a limitation on expenditures of certain grant |
| 14 | funds; providing an effective date. |
| 15 |
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| 16 | Be It Enacted by the Legislature of the State of Florida: |
| 17 |
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| 18 | Section 1. Financial Literacy Council.-- |
| 19 | (1) CREATION.--A council, as defined in s. 20.03, Florida |
| 20 | Statutes, named the Financial Literacy Council, is created as an |
| 21 | adjunct to the Department of Financial Services. The council |
| 22 | shall be subject to the provisions of s. 20.052, Florida |
| 23 | Statutes. |
| 24 | (2) PURPOSE.--The purpose of the council is to study |
| 25 | financial problems that affect consumers, particularly small |
| 26 | businesses, young people, working adults, and seniors that arise |
| 27 | from a lack of basic knowledge of financial issues and to |
| 28 | provide recommendations to the Department of Financial Services |
| 29 | which will assist the department in developing financial |
| 30 | literacy programs and resources and providing a single state |
| 31 | resource for financial literacy for the general public in order |
| 32 | to empower individuals and businesses to manage their financial |
| 33 | matters in order to reduce debt, increase savings, and avoid |
| 34 | bankruptcy. All recommendations are subject to approval by the |
| 35 | Chief Financial Officer. |
| 36 | (3) COMPOSITION.-- |
| 37 | (a) The council shall consist of nine members who shall be |
| 38 | appointed by and serve at the pleasure of the Chief Financial |
| 39 | Officer. Six members must be persons having experience in |
| 40 | various areas of the financial industry, such as financial |
| 41 | institutions as defined in s. 655.005, Florida Statutes, |
| 42 | finance, insurance, real estate, and securities. One member must |
| 43 | be a person who is not employed by and is not a representative |
| 44 | of the financial industry. One member must be chosen from a list |
| 45 | of three persons submitted to the Chief Financial Officer by a |
| 46 | senior advocacy group. One member must be chosen from a list of |
| 47 | three persons submitted to the Chief Financial Officer by the |
| 48 | Florida Council on Economic Education. Members shall include |
| 49 | persons who represent rural and urban interests and the ethnic |
| 50 | and cultural diversity of the state's population. |
| 51 | (b) The council shall meet at the call of the chair, who |
| 52 | shall be elected by vote of a majority of the council at its |
| 53 | first meeting, which shall be called by the Chief Financial |
| 54 | Officer. Five of the initial members appointed to the council |
| 55 | shall serve terms of 3 years each. All other members shall be |
| 56 | appointed for terms of 4 years. Members shall serve until their |
| 57 | successors are appointed. Vacancies shall be filled for the |
| 58 | remainder of the unexpired term in the same manner as the |
| 59 | original appointment. |
| 60 | (c) Council members shall serve without compensation; |
| 61 | however, each council member is entitled to reimbursement for |
| 62 | per diem and travel expenses pursuant to s. 112.061, Florida |
| 63 | Statutes. |
| 64 | (d) The Department of Financial Services shall provide |
| 65 | administrative and staff support to the council. |
| 66 | (4) MEETINGS; PROCEDURES; RECORDS.-- |
| 67 | (a) The business of the council shall be presented to the |
| 68 | council in the form of an agenda. The agenda shall be set by the |
| 69 | Chief Financial Officer and shall include items of business |
| 70 | requested by the council members. |
| 71 | (b) A majority of the members constitutes a quorum, and |
| 72 | action by a majority of a quorum shall be official. |
| 73 | (c) The minutes for each meeting shall be submitted to the |
| 74 | Chief Financial Officer within 14 days after each meeting. |
| 75 | (5) POWERS AND DUTIES.--The council shall: |
| 76 | (a) Study financial problems that affect consumers, |
| 77 | particularly young persons, seniors, and working adults, and |
| 78 | small businesses which arise from a lack of basic knowledge of |
| 79 | financial issues. |
| 80 | (b) Study and make recommendations to the department |
| 81 | regarding the creation of a single state resource for consumers |
| 82 | and small businesses to contact for financial assistance. |
| 83 | (c) Study and make recommendations as to how the |
| 84 | department may help equip small businesses, young people, |
| 85 | working adults, and seniors with the tools and resources they |
| 86 | need to make informed financial decisions. |
| 87 | (d) Study and make recommendations as to how the |
| 88 | department may help residents of this state learn more about |
| 89 | personal finance issues, including, but not limited to, personal |
| 90 | savings, applying for loans, managing debt, making sound |
| 91 | investment choices, and saving for retirement. |
| 92 | (e) Study and make recommendations to the department |
| 93 | regarding the development of best practices for financial |
| 94 | management which are characteristic of highly successful small |
| 95 | businesses. |
| 96 | (f) Study and make recommendations as to how the |
| 97 | department can serve as an educational forum for resource |
| 98 | planning, financial planning, and management issues for small |
| 99 | businesses. |
| 100 | (g) Assist the department in developing written materials |
| 101 | that shall be available to educate consumers and small |
| 102 | businesses about basic financial issues. |
| 103 | (h) Study and make recommendations to the department |
| 104 | regarding the establishment of an outreach program to help |
| 105 | educate affected persons through public meetings or seminars or |
| 106 | through web-based media. |
| 107 | (6) RESOURCES.-- |
| 108 | (a) The council may apply for and accept funds, grants, |
| 109 | gifts, and services from the state, the government of the United |
| 110 | States or any of its agencies, or any other public or private |
| 111 | source for the purpose of defraying clerical and administrative |
| 112 | costs as necessary to carry out its duties under this section. |
| 113 | All sums received by the council shall be deposited into the |
| 114 | Department of Financial Services Administrative Trust Fund. The |
| 115 | moneys received and deposited into the trust fund are |
| 116 | appropriated for use by the council in carrying out its duties |
| 117 | as prescribed by this section. |
| 118 | (b) The council shall seek out and, wherever possible, use |
| 119 | the talents, expertise, and resources of citizens within the |
| 120 | state, and especially those of the public school, community |
| 121 | college, and state university systems, in furtherance of its |
| 122 | mission. |
| 123 | (c) The council may procure information and assistance |
| 124 | from any state agency, political subdivision, municipal |
| 125 | corporation, or public officer. |
| 126 | (d) The council may coordinate with any state agency, any |
| 127 | political subdivision, or any school district of the state in |
| 128 | the furtherance of its mission. |
| 129 | (7) EXPIRATION.--The council shall cease to exist on |
| 130 | December 31, 2011. Upon expiration, any funds remaining in the |
| 131 | Financial Literacy Council account of the Department of |
| 132 | Financial Services Administrative Trust Fund shall be |
| 133 | appropriated to the department to fund the activities that the |
| 134 | department has implemented pursuant to the recommendations of |
| 135 | the council. |
| 136 | (8) REPORTS.--Beginning January 1, 2008, the council shall |
| 137 | report annually on January 1 to the Governor, the President of |
| 138 | the Senate, and the Speaker of the House of Representatives on |
| 139 | the activities carried out under this section, including |
| 140 | expenditures and funding. |
| 141 | Section 2. For the 2006-2007 fiscal year, the sum of |
| 142 | $50,000 in nonrecurring funds is appropriated from the |
| 143 | Department of Financial Services Administrative Trust Fund in |
| 144 | the specific appropriation category "Financial Literacy Council" |
| 145 | to the Financial Literacy Council created by this act. The |
| 146 | appropriation is contingent upon prior receipt of grant funds or |
| 147 | private contributions by the council for the purposes of this |
| 148 | act. This section does not entitle the Financial Literacy |
| 149 | Council to expend funds from the Administrative Trust Fund in an |
| 150 | amount greater than the amount of grant funds or private |
| 151 | contributions received by the council and deposited into the |
| 152 | Administrative Trust Fund pursuant to this act. |
| 153 | Section 3. This act shall take effect July 1, 2006. |