House Study Bill 617 - Introduced SENATE/HOUSE FILE _____ BY (PROPOSED DEPARTMENT OF COMMERCE BILL) A BILL FOR An Act establishing the office of financial wellness within the 1 department of commerce. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5297XD (10) 89 es/rn

S.F. _____ H.F. _____ Section 1. NEW SECTION . 533B.1 Office of financial 1 wellness. 2 The office of financial wellness is created under the 3 department of commerce as an independent office to promote the 4 financial well-being and education of Iowans. 5 Sec. 2. NEW SECTION . 533B.2 Duties. 6 1. The office of financial wellness shall: 7 a. Coordinate the state’s efforts and convene interested 8 parties to increase the financial literacy and well-being of 9 Iowans. 10 b. Serve as a liaison for the state with public entities, 11 government agencies, private entities, and not-for-profit 12 organizations. 13 c. Utilize the convening power of the state to encourage 14 Iowa education systems, businesses, community organizations, 15 and governmental agencies to increase financial literacy and 16 well-being efforts. 17 d. Coordinate and promote financial literacy and well-being 18 resources to Iowans. 19 e. Facilitate cooperation and strategic planning between 20 members of the Iowa interagency financial literacy group. 21 f. Provide an annual report of the office’s activities to 22 the governor. 23 2. The office shall adopt rules pursuant to chapter 17A to 24 accept and administer grants and implement this chapter. 25 Sec. 3. NEW SECTION . 533B.3 Administration. 26 1. The office shall be headed by the administrator of the 27 office of financial wellness, who shall be the director of the 28 department of commerce or a department of commerce division 29 director as designated by the director of the department of 30 commerce. 31 2. The administrator may establish committees and hire 32 staff as deemed necessary in furtherance of the objectives of 33 the office. The administrator shall have all powers necessary 34 to carry out and effectuate the purposes, objectives, and 35 -1- LSB 5297XD (10) 89 es/rn 1/ 5

S.F. _____ H.F. _____ provisions pertaining to the office. 1 Sec. 4. NEW SECTION . 533B.4 Funding. 2 1. Funding for the office shall consist of an annual 3 assessment remitted by the banking division, credit union 4 division, utilities division, insurance division, and alcoholic 5 beverages division of the department of commerce from accounts 6 established for each division with the department of commerce 7 revolving fund established in section 546.12. The assessment 8 shall be divided equally among the divisions listed herein and 9 transferred by each division annually to the administrator of 10 the office by September 1 of the current fiscal year. 11 2. Funds obtained through grants shall not offset 12 administration costs of the office, unless approved for such 13 use in the grant. 14 Sec. 5. Section 546.2, subsection 3, Code 2022, is amended 15 to read as follows: 16 3. The department is administratively organized into the 17 following divisions and offices : 18 a. Banking. 19 b. Credit union. 20 c. Utilities. 21 d. Insurance. 22 e. Alcoholic beverages. 23 f. Office of financial wellness. 24 Sec. 6. Section 546.2, subsection 4, Code 2022, is amended 25 by adding the following new paragraph: 26 NEW PARAGRAPH . g. To serve as the administrator for 27 the office of financial wellness or appoint a director of a 28 division of the department to serve in such capacity. 29 Sec. 7. NEW SECTION . 546.5 Office of financial wellness. 30 The office of financial wellness shall promote activities 31 that facilitate financial literacy and well-being in the state. 32 The office is headed by an administrator who shall be appointed 33 by the director. The office shall implement the provisions of 34 chapter 533B. 35 -2- LSB 5297XD (10) 89 es/rn 2/ 5

S.F. _____ H.F. _____ Sec. 8. Section 546.12, subsections 1 and 2, Code 2022, are 1 amended to read as follows: 2 1. A department of commerce revolving fund is created in 3 the state treasury. The fund shall consist of moneys collected 4 by the banking division; credit union division; utilities 5 division, including moneys collected on behalf of the office 6 of consumer advocate established in section 475A.3 ; and the 7 insurance division of the department; and deposited into an 8 account for that division or office within the fund on a 9 monthly basis. Except as otherwise provided by statute, all 10 costs for operating the office of consumer advocate and the 11 banking division, the credit union division, the utilities 12 division, the office of financial wellness, and the insurance 13 division of the department shall be paid from the division’s 14 accounts within the fund, subject to appropriation by the 15 general assembly. The insurance division shall administer the 16 fund and all other divisions shall work with the insurance 17 division to make sure the fund is properly accounted and 18 reported to the department of management and the department 19 of administrative services. The divisions shall provide 20 quarterly reports to the department of management and the 21 legislative services agency on revenues billed and collected 22 and expenditures from the fund in a format as determined by the 23 department of management in consultation with the legislative 24 services agency. 25 2. To meet cash flow needs for the office of consumer 26 advocate and the banking division, credit union division, 27 office of financial wellness, utilities division, or the 28 insurance division of the department, the administrative head 29 of that division or office may temporarily use funds from the 30 general fund of the state to pay expenses in excess of moneys 31 available in the revolving fund for that division or office if 32 those additional expenditures are fully reimbursable and the 33 division or office reimburses the general fund of the state 34 and ensures all moneys are repaid in full by the close of the 35 -3- LSB 5297XD (10) 89 es/rn 3/ 5

S.F. _____ H.F. _____ fiscal year. Notwithstanding any provision to the contrary, 1 the divisions shall, to the fullest extent possible, make 2 an estimate of billings and make such billings as early as 3 possible in each fiscal year, so that the need for the use of 4 general fund moneys is minimized to the lowest extent possible. 5 Periodic billings shall be deemed sufficient to satisfy this 6 requirement. Because any general fund moneys used shall be 7 fully reimbursed, such temporary use of funds from the general 8 fund of the state shall not constitute an appropriation for 9 purposes of calculating the state general fund expenditure 10 limitation pursuant to section 8.54 . 11 EXPLANATION 12 The inclusion of this explanation does not constitute agreement with 13 the explanation’s substance by the members of the general assembly. 14 This bill establishes an office of financial wellness within 15 the department of commerce. 16 The primary purpose of the office shall be to focus on 17 strategic action to maximize the financial wellness efforts 18 of the state. The office shall serve as a liaison to other 19 government agencies, public organizations, private entities, 20 and not-for-profit organizations. The office shall adopt rules 21 to implement its responsibilities. 22 The administrator of the office shall be the director of 23 the department of commerce or the director’s designee. The 24 director may establish committees and hire staff as necessary 25 in furtherance of the objectives of the office. 26 The primary objective of the office shall be to increase 27 the financial literacy and well-being of Iowans by supporting 28 education efforts, businesses, community organizations, 29 and governmental agencies. The office shall collect and 30 communicate financial wellness resources for Iowans and 31 coordinate other efforts to promote financial wellness. The 32 office shall provide an annual report regarding the office’s 33 efforts to the governor. 34 The bill provides that the office shall be funded from an 35 -4- LSB 5297XD (10) 89 es/rn 4/ 5

S.F. _____ H.F. _____ annual assessment remitted by the banking division, credit 1 union division, utilities division, insurance division, and 2 alcoholic beverages division of the department of commerce from 3 the department of commerce revolving fund. 4 -5- LSB 5297XD (10) 89 es/rn 5/ 5