BILL REQ. #:  Z-0932.2 

Read first time 01/14/08.   Referred to Committee on Financial Institutions & Insurance.

     AN ACT Relating to expanding financial literacy through education and counseling to promote greater homeownership security; adding new sections to chapter 43.320 RCW; making appropriations; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 43.320 RCW to read as follows:
     The director of financial institutions or the director's designee shall:
     (1) Disseminate information to the public concerning the laws regulating financial institutions of this state; and
     (2) Provide assistance to members of the public in obtaining information about financial products.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.320 RCW to read as follows:
     The director of financial institutions or the director's designee may establish, administer, and implement financial literacy and education programs, including but not limited to:
     (1) Education and outreach programs that assist Washington citizens of all ages in understanding saving, investing, and budgeting, and other skills necessary to obtain individual financial independence, fiscal responsibility, and financial management skills.
     (2) Counseling, marketing, and outreach programs regarding residential mortgage transactions, nontraditional or subprime mortgages, predatory lending practices, or other financial products or practices in the marketplace relating to homeownership.
     The department may deliver the programs in subsections (1) and (2) of this section using grants, contracts, or interagency agreements with state and local governments and other nongovernmental organizations as necessary. The department may coordinate these programs with ongoing efforts by other public and private sector entities to maximize the programs' effectiveness.

NEW SECTION.  Sec. 3   A new section is added to chapter 43.320 RCW to read as follows:
     The director or his or her designee shall convene an interagency work group to identify current state funded efforts to support financial literacy, assess whether there are opportunities to create a centralized location of information regarding these existing state efforts, and to identify whether there are opportunities for expanding partnerships with other community entities also providing financial literacy services. A report of the findings and recommendations of this interagency work group shall be due to the governor and the appropriate committees of the legislature by December 1, 2008.

NEW SECTION.  Sec. 4   (1) The sum of seven hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2008, from the general fund to the department of financial institutions for homeownership prepurchase outreach and education and postpurchase counseling and support.
     (2) The sum of eight hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2009, from the general fund to the department of financial institutions for homeownership prepurchase outreach and education and postpurchase counseling and support.

NEW SECTION.  Sec. 5   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.