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F I S C A L I M P A C T R E P O R T

SPONSOR King, R

ORIGINAL DATE

LAST UPDATED

1/24/08

HB 420

SHORT TITLE

Financial Literacy Education

SB

ANALYST C. Sanchez

APPROPRIATION (dollars in thousands)

Appropriation

Recurring

or Non-Rec

Fund

Affected

FY08

FY09

$100

Recurring

General Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

Responses Received From

Regulation and Licensing Department (RLD)

SUMMARY

Synopsis of Bill

House Bill 420 would appropriate $124,000 to the Securities Division of the Regulation and

Licensing Department for the financial literacy program (investor education).

FISCAL IMPLICATIONS

The bill would provide an appropriation of $124,000 for fiscal year 09. Any unexpended

balance would revert to the general fund

.

SIGNIFICANT ISSUES

By enhancing the financial literacy program and increasing the number and variety of education

programs, RLD will embark on a long-term strategy of decreasing victimization and thereby

conserve the investment capital available in the state to better support legitimate business

ventures.

The Securities Division will expand the publication and distribution of written brochures and

other materials on securities and financial literacy topics. Investment materials will be distributed

through the Division’s Savvy Investor seminar programs, participation in conferences and other

House Bill 420 – Page

2

public meetings, and by making the brochures available through financial institutions such as

banks and credit unions.

The Division will continue to support financial literacy programs in public schools such as the

“Focus on the Future" program, and the “Stock Market Game" that teach students about

investment and market issues.

PERFORMANCE IMPLICATIONS

The bill would enable the Securities Division to expand its financial literacy program which

could be significant in light of recent problems that consumers have experienced with sub-prime

loans and with investments that are tied to such loans.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

Status Quo.

CS/mt