[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 807 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 807
To promote youth financial education.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 1, 2001
Mr. Corzine introduced the following bill; which was read twice and
referred to the Committee on Health, Education, Labor, and Pensions
_______________________________________________________________________
A BILL
To promote youth financial education.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. PROMOTING YOUTH FINANCIAL LITERACY.
Title X of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8001 et seq.) is amended by adding at the end the following new
part:
``PART L--PROMOTING YOUTH FINANCIAL LITERACY
``SEC. 10993. SHORT TITLE AND FINDINGS.
``(a) Short Title.--This part may be cited as the `Youth Financial
Education Act'.
``(b) Findings.--Congress finds the following:
``(1) In order to succeed in our dynamic American economy,
young people must obtain the skills, knowledge, and experience
necessary to manage their personal finances and obtain general
financial literacy. All young adults should have the
educational tools necessary to make informed financial
decisions.
``(2) Despite the critical importance of financial literacy
to young people, the average student who graduates from high
school lacks basic skills in the management of personal
financial affairs. A nationwide survey conducted in 1997 by the
Jump$tart Coalition for Personal Financial Literacy examined
the financial knowledge of 1,509 12th graders. On average,
survey respondents answered only 57 percent of the questions
correctly, and only 5 percent of the respondents received a `C'
grade or better.
``(3) An evaluation by the National Endowment for Financial
Education High School Financial Planning Program undertaken
jointly with the United States Department of Agriculture
Cooperative State Research, Education, and Extension Service
demonstrates that as little as 10 hours of classroom
instruction can impart substantial knowledge and affect
significant change in how teens handle their money.
``(4) State educational leaders have recognized the
importance of providing a basic financial education to students
in grades kindergarten through 12 by integrating financial
education into State educational standards, but by 1999 only 14
States required schools to implement personal finance standards
into the academic curriculum.
``(5) Teacher training and professional development are
critical to achieving youth financial literacy. Teachers
confirm the need for professional development in personal
finance education. In a survey by the National Institute for
Consumer Education, 77 percent of a State's economics teachers
revealed that they had never had a college course in personal
finance.
``(6) Personal financial education helps prepare students
for the workforce and for financial independence by developing
their sense of individual responsibility, improving their life
skills, and providing them with a thorough understanding of
consumer economics that will benefit them for their entire
lives.
``(7) Financial education integrates instruction in
valuable life skills with instruction in economics, including
income and taxes, money management, investment and spending,
and the importance of personal savings.
``(8) The consumers and investors of tomorrow are in our
schools today. The teaching of personal finance should be
encouraged at all levels of our Nation's educational system,
from kindergarten through grade 12.
``SEC. 10994. STATE GRANT PROGRAM.
``(a) Program Authorized.--The Secretary is authorized to provide
grants to State educational agencies to develop and integrate youth
financial education programs for students in elementary and secondary
schools.
``(b) State Plan.--
``(1) Approved state plan required.--To be eligible to
receive a grant under this section, a State shall submit an
application which includes a State plan, described in paragraph
(2), approved by the Secretary.
``(2) State plan contents.--The State plan referred to in
paragraph (1) shall include--
``(A) a description of how the State will use grant
funds;
``(B) a description of how the programs supported
by a grant will be coordinated with other relevant
Federal, State, regional, and local programs; and
``(C) a description of how the State will evaluate
program performance.
``(c) Allocation of Funds.--
``(1) Allocation factors.--Except as otherwise provided in
paragraph (2), the Secretary shall allocate the amounts made
available to carry out this section pursuant to subsection (a)
to each State according to the relative populations in all the
States of students in grades kindergarten through 12, as
determined by the Secretary based on the most recent
satisfactory data.
``(2) Minimum allocation.--Subject to the availability of
appropriations and notwithstanding paragraph (1), a State that
has submitted an approved plan under subsection (b) shall be
allocated an amount not less than $500,000 for a fiscal year.
``(3) Reallocation.--In any fiscal year an allocation under
this subsection--
``(A) for a State that has not submitted a plan
under subsection (b); or
``(B) for a State whose plan submitted under
subsection (b) has been disapproved by the Secretary;
shall be reallocated to States with approved plans under this
section in accordance with paragraph (1).
``(d) Use of Grant Funds.--
``(1) Required uses.--A grant made to a State under this
part shall be used--
``(A) to provide funds to local educational
agencies and public schools to carry out financial
education programs for students in grades kindergarten
through 12 based on the concept of achieving financial
literacy through the teaching of personal financial
management skills and the basic principles involved
with earning, spending, saving, and investing;
``(B) to carry out professional development
programs to prepare teachers and administrators for
financial education; and
``(C) to monitor and evaluate programs supported
under subparagraphs (A) and (B).
``(2) Limitation on administrative costs.--A State
receiving a grant under subsection (a) may use not more than 4
percent of the total amount of the grant in each fiscal year
for the administrative costs of carrying out this section.
``(e) Report to the Secretary.--Each State educational agency
receiving a grant under this section shall transmit a report to the
Secretary with respect to each fiscal year for which a grant is
received. The report shall describe the programs supported by the grant
and the results of the State's monitoring and evaluation of such
programs.
``SEC. 10995. CLEARINGHOUSE.
``(a) Authority.--Subject to the availability of appropriations,
the Secretary shall make a grant to or execute a contract with an
organization or institution with substantial experience in the field of
financial education, such as the Jump$tart Coalition for Personal
Financial Literacy, to establish, operate, and maintain a national
clearinghouse (in this part referred to as the Clearinghouse) for
instructional materials and information regarding model financial
education programs and best practices.
``(b) Application.--An organization or institution desiring to
establish, operate, and maintain the Clearinghouse shall submit an
application to the Secretary at such time, in such manner, and
accompanied by such information, as the Secretary may reasonably
require.
``(c) Basis and Term.--The Secretary shall make the grant or
contract authorized under subsection (a) on a competitive, merit basis
for a term of 5 years.
``(d) Use of Funds.--The Clearinghouse shall use the funds provided
under a grant or contract made under subsection (a)--
``(1) to maintain a repository of instructional materials
and related information regarding financial education programs
for elementary and secondary schools, including kindergartens,
for use by States, localities, and the general public;
``(2) to disseminate to States, localities, and the general
public, through electronic and other means, instructional
materials and related information regarding financial education
programs for elementary and secondary schools, including
kindergartens; and
``(3) to the extent that resources allow, to provide
technical assistance to States, localities, and the general
public on the design, establishment, and implementation of
financial education programs for elementary and secondary
schools, including kindergartens.
``(e) Consultation.--The chief executive officer of the
organization selected to establish and operate the Clearinghouse shall
consult with the Department of the Treasury and the Securities Exchange
Commission with respect to its activities under subsection (d).
``(f) Submission to Clearinghouse.--Each Federal agency or
department that develops financial education programs and instructional
materials for such programs shall submit to the Clearinghouse
information on the programs and copies of the materials.
``(g) Application of Copyright Laws.--In carrying out this section
the Clearinghouse shall comply with the provisions of title 17 of the
United States Code.
``SEC. 10996. EVALUATION AND REPORT.
``(a) Performance Measures.--The Secretary shall develop measures
to evaluate the performance of programs assisted under sections 10994
and 10995.
``(b) Evaluation According to Performance Measures.--Applying the
performance measures developed under subsection (a), the Secretary
shall evaluate programs assisted under sections 10994 and 10995--
``(1) to judge their performance and effectiveness;
``(2) to identify which of the programs represent the best
practices of entities developing financial education programs
for students in grades kindergarten through 12; and
``(3) to identify which of the programs may be replicated
and used to provide technical assistance to States, localities,
and the general public.
``(c) Report.--For each fiscal year for which there are
appropriations under section 10999(a), the Secretary shall transmit a
report to the Congress describing the status of the implementation of
this part. The report shall include the results of the evaluation
required under subsection (b) and a description of the programs
supported under section 10994.
``SEC. 10997. DEFINITIONS.
``In this part--
``(1) the term `financial education' means educational
activities and experiences, planned and supervised by qualified
teachers, that enable students to understand basic economic and
consumer principals, acquire the skills and knowledge necessary
to manage personal and household finances, and develop a range
of competencies that will enable them to become responsible
consumers in today's complex economy;
``(2) the terms `local educational agency', `State
educational agency', and `outlying area' have the meanings
given the terms in section 14101 of the Elementary and
Secondary Education Act of 1965;
``(3) the term `qualified teacher' means a teacher who
holds a valid teaching certification or is considered to be
qualified by the State educational agency in the State in which
the teacher works;
``(4) the term `Secretary' means the Secretary of
Education; and
``(5) the term `State' means each of the 50 States, the
District of Columbia, the Commonwealth of Puerto Rico, and each
outlying area.
``SEC. 10998. PROHIBITION.
``Nothing in this part shall be construed to authorize an officer
or employee of the Federal Government to mandate, direct, or control a
State, local educational agency, or school's specific instructional
content, curriculum, or program of instruction, as a condition of
eligibility to receive funds under this part.
``SEC. 10999. AUTHORIZATION OF APPROPRIATIONS.
``(a) Authorization.--For the purposes of carrying out this part,
there are authorized to be appropriated $100,000,000 for each of the
fiscal years 2001 through 2005.
``(b) Limitation on Funds for Clearinghouse.--The Secretary may use
not less than 2 percent and not more than 5 percent of amounts
appropriated under subsection (a) for each fiscal year to carry out
section 10995.
``(c) Limitation on Funds for Secretary Evaluation.--The Secretary
may use not more than $200,000 from the amounts appropriated under
subsection (a) for each fiscal year to carry out subsections (a) and
(b) of section 10996.
``(d) Limitation on Administrative Costs.--Except as necessary to
carry out subsections (a) and (b) of section 10996 using amounts
described in subsection (c) of this section, the Secretary shall not
use any portion of the amounts appropriated under subsection (a) for
the costs of administering this part.''.
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