ASSEMBLYMEMBER TED LIEU
53RD ASSEMBLY DISTRICT
For Immediate Release: February 20, 2008
Contact: David Ford
Phone: (916) 319-2053

Assemblymember Lieu Introduces Legislation on Financial Literacy

(Sacramento, CA) - Today, Assemblymember Ted Lieu (D-Torrance) introduced legislation aimed towards helping Californians become more financially knowledgeable. AB 2123 was introduced in response to the growing number of people making devastating financial decisions due to inadequate education, resulting in such financial catastrophes as the mortgage crisis and plummeting credit scores.

AB 2123 would create programs to assist low and middle income persons with such tasks as credit card applications, opening bank accounts and understanding credit scores. These programs will be administered through the Office of the State Controller and will be made available via the internet or phone. These financial literacy programs will provide the public with a team of professionals to assist them in making financially sound decision.
“Financial literacy information is out there, but it is not always easily accessible,” California State Controller John Chiang said. “This legislation will help empower California consumers by providing a one-stop shop for basic financial information on credit scores, credit card applications, bank accounts and interest rates, and how to avoid a financial crisis.”
“More than 85 percent of California credit unions offer or take an active role in developing education programs,” stated California Credit Union League CEO, Bill Cheney. “Providing financial literacy to all ages strengthens the community as a whole and therefore the future of California’s economy. We are laying the foundation for our children and we applaud Assemblyman Lieu’s efforts in this arena.”

AB 2123 would require the State Controller to establish the Office of Financial Literacy Advocate and to create the California Financial Literacy Initiative. This bill would allow the Controller to collect donations from non-profit organizations to help fund these programs.

“We need to ensure that our citizens are educated on the responsible use and basic concepts of personal finances,” said Assemblymember Lieu. “This bill would allow better access to programs designed to help people make better educated decisions before committing to these offers.”

This bill will be heard in policy committees in the upcoming months.