HF 2377 (LSB 5297HV (5) 89)

HOUSE FILE 2377

BY  COMMITTEE ON COMMERCE

(SUCCESSOR TO HSB 617)

A BILL FOR

An Act establishing the office of financial wellness within the department of commerce.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  533B.1  Office of financial wellness.
   The office of financial wellness is created under the department of commerce as an independent office to promote the financial well-being and education of Iowans.
    Sec. 2.  NEW SECTION.  533B.2  Duties.
   1.  The office of financial wellness shall:
   a.  Coordinate the state’s efforts and convene interested parties to increase the financial literacy and well-being of Iowans.
   b.  Serve as a liaison for the state with public entities, government agencies, private entities, and not-for-profit organizations.
   c.  Utilize the convening power of the state to encourage Iowa education systems, businesses, community organizations, and governmental agencies to increase financial literacy and well-being efforts.
   d.  Coordinate and promote financial literacy and well-being resources to Iowans.
   e.  Facilitate cooperation and strategic planning between members of the Iowa interagency financial literacy group.
   f.  Provide an annual report of the office’s activities, including statistical measures, engagement, grant funding and the use thereof, initiatives sponsored by the office, and key accomplishments to the governor and the general assembly.
   2.  The office shall adopt rules pursuant to chapter 17A to accept and administer grants and implement this chapter.
   3.  The office shall comply with the requirements of chapter 8E.
    Sec. 3.  NEW SECTION.  533B.3  Administration.
   1.  The office shall be headed by the administrator of the office of financial wellness, who shall be the director of the department of commerce or a department of commerce division director as designated by the director of the department of commerce.
   2.  The administrator may establish committees and hire staff as deemed necessary in furtherance of the objectives of the office. The administrator shall have all powers necessary to carry out and effectuate the purposes, objectives, and provisions pertaining to the office.
    Sec. 4.  NEW SECTION.  533B.4  Funding.
   1.  Funding for the office shall consist of an annual assessment remitted by the banking division, credit union division, utilities division, insurance division, and alcoholic beverages division of the department of commerce. The assessment shall be divided equally among the divisions listed herein and transferred by each division annually to the administrator of the office by September 1 of the current fiscal year.
   2.  Funds obtained through grants shall not offset administration costs of the office, unless approved for such use in the grant.
    Sec. 5.  Section 546.2, subsection 3, Code 2022, is amended to read as follows:
   3.  The department is administratively organized into the following divisions and offices:
   a.  Banking.
   b.  Credit union.
   c.  Utilities.
   d.  Insurance.
   e.  Alcoholic beverages.
   f.  Office of financial wellness.
    Sec. 6.  Section 546.2, subsection 4, Code 2022, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  g.  To serve as the administrator for the office of financial wellness or appoint a director of a division of the department to serve in such capacity.
    Sec. 7.  NEW SECTION.  546.5  Office of financial wellness.
   The office of financial wellness shall promote activities that facilitate financial literacy and well-being in the state. The office is headed by an administrator who shall be appointed by the director. The office shall implement the provisions of chapter 533B.
    Sec. 8.  Section 546.12, subsections 1 and 2, Code 2022, are amended to read as follows:
   1.  A department of commerce revolving fund is created in the state treasury. The fund shall consist of moneys collected by the banking division; credit union division; utilities division, including moneys collected on behalf of the office of consumer advocate established in section 475A.3; and the insurance division of the department; and deposited into an account for that division or office within the fund on a monthly basis. Except as otherwise provided by statute, all costs for operating the office of consumer advocate and the banking division, the credit union division, the utilities division, the office of financial wellness, and the insurance division of the department shall be paid from the division’s accounts within the fund, subject to appropriation by the general assembly. The insurance division shall administer the fund and all other divisions shall work with the insurance division to make sure the fund is properly accounted and reported to the department of management and the department of administrative services. The divisions shall provide quarterly reports to the department of management and the legislative services agency on revenues billed and collected and expenditures from the fund in a format as determined by the department of management in consultation with the legislative services agency.
   2.  To meet cash flow needs for the office of consumer advocate and the banking division, credit union division, office of financial wellness, utilities division, or the insurance division of the department, the administrative head of that division or office may temporarily use funds from the general fund of the state to pay expenses in excess of moneys available in the revolving fund for that division or office if those additional expenditures are fully reimbursable and the division or office reimburses the general fund of the state and ensures all moneys are repaid in full by the close of the fiscal year. Notwithstanding any provision to the contrary, the divisions shall, to the fullest extent possible, make an estimate of billings and make such billings as early as possible in each fiscal year, so that the need for the use of general fund moneys is minimized to the lowest extent possible. Periodic billings shall be deemed sufficient to satisfy this requirement. Because any general fund moneys used shall be fully reimbursed, such temporary use of funds from the general fund of the state shall not constitute an appropriation for purposes of calculating the state general fund expenditure limitation pursuant to section 8.54.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill establishes an office of financial wellness within the department of commerce. 
   The primary purpose of the office shall be to focus on strategic action to maximize the financial wellness efforts of the state. The office shall serve as a liaison to other government agencies, public organizations, private entities, and not-for-profit organizations.
   The administrator of the office shall be the director of the department of commerce or the director’s designee. The director may establish committees and hire staff as necessary in furtherance of the objectives of the office. 
   The primary objective of the office shall be to increase the financial literacy and well-being of Iowans by supporting education efforts, businesses, community organizations, and governmental agencies. The office shall collect and communicate financial wellness resources for Iowans and coordinate other efforts to promote financial wellness. The office shall provide an annual report regarding the office’s activities, including statistical measures, engagement, grant funding and the use thereof, initiatives sponsored by the office, and key accomplishments to the governor and the general assembly. The office shall adopt rules to implement its responsibilities and comply with the state government accountability requirements of Code chapter 8E.
   The bill provides that the office shall be funded from an annual assessment remitted by the banking division, credit union division, utilities division, insurance division, and alcoholic beverages division of the department of commerce.