[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3520 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 3520

   To reduce duplication in Federal financial literacy and financial 
programs, identify more effective ways to provide financial education, 
  and facilitate greater cooperation at the Federal, State and local 
levels and between government units and entities in the private sector 
  by requiring the establishment of a national strategy for assuring 
              financial education, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 19, 2003

  Mrs. Kelly introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
   To reduce duplication in Federal financial literacy and financial 
programs, identify more effective ways to provide financial education, 
  and facilitate greater cooperation at the Federal, State and local 
levels and between government units and entities in the private sector 
  by requiring the establishment of a national strategy for assuring 
              financial education, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Strategy for Assuring Financial 
Empowerment Act'' or the ``SAFE Act''.

SEC. 2. STRATEGY FOR ASSURING FINANCIAL EDUCATION.

    (a) Findings.--
            (1) In general.--The Congress finds it is imperative to--
                    (A) reduce overlap and duplication in Federal 
                financial literacy and financial education programs and 
                in public and private educational activities, in order 
                to increase effectiveness and coordination and to 
                better utilize resources;
                    (B) identify the most effective types of public 
                sector financial literacy programs and techniques as 
                measured by improved consumer decision-making;
                    (C) coordinate and promote financial literacy and 
                financial education efforts at the State and local 
                level, including partnerships between Federal, State 
                and local governments, non-profit organizations and 
                private enterprises;
                    (D) obtain recommendations for integrating economic 
                education and personal-finance education into primary, 
                secondary and post-secondary curricula; and
                    (E) provide multilingual materials and programs 
                under the strategy for assuring financial education 
                whenever appropriate in order to effectively reach the 
                broadest number of people.
            (2) Additional findings.--The Congress also finds that as 
        many as 1 in 10 American families, or about 10,000,000 
        households, do not have a relationship with a traditional 
        financial institution such as a bank, thrift institution, or 
        credit union, despite the significant advantages of such a 
        relationship, including the following:
                    (A) The establishment of a deposit account with a 
                financial institution leads to greater knowledge of 
                personal financial fundamentals.
                    (B) Account ownership provides an opportunity to 
                build assets, because a deposit account is a tool that 
                can be used to save for homeownership, educational 
                opportunities, or retirement.
                    (C) The unbanked typically pay higher costs in 
                transaction fees for financial services than do 
                individuals with banking relationships.
                    (D) Opening and maintaining an account with a 
                financial institution provides opportunities to obtain 
                other products and services--such as home loans, car 
                loans, education loans, or small business loans--from 
                the institution, and can help individuals establish a 
                credit history for their future borrowing needs.
                    (E) Owning an account provides a record of 
                financial transactions that can be drawn on in the case 
                of a dispute.
                    (F) Account ownership provides the opportunity for 
                safer, more secure types of financial transactions, 
                such as direct deposit and check-writing, reducing the 
                risk that paychecks could be stolen or lost and 
                reducing the risk of becoming the victim of a robbery 
                or burglary triggered by carrying large sums of cash.
    (b) Development and Transmittal to the Congress.--
            (1) Development.--The President, acting through the 
        Secretary of the Treasury, the Office of Financial Education 
        established by the Secretary in the Department of the Treasury, 
        and in consultation with the Secretary of Housing and Urban 
        Development and other officials of the administration, as 
        appropriate, shall develop a national strategy for financial 
        education, to be known as the Strategy for Assuring Financial 
        Empowerment (hereinafter in this section referred to as the 
        ``SAFE strategy'').
            (2) Transmittal to the congress.--By February 1 of 2005 and 
        by that date of each succeeding year, the President shall 
        transmit to the Congress a national strategy developed in 
        accordance with paragraph (1).
            (3) Appearance before the congress.--Before March 1, 2004, 
        and before March 1 of each subsequent year, the Secretary of 
        Treasury shall appear before the Committee on Financial 
        Services of the House of Representatives and the Committee on 
        Banking, Housing, and Urban Affairs of the Senate at hearings 
        regarding the development of a national strategy for assuring 
        financial education.
            (4) Working group.--The first national strategy transmitted 
        to the Congress in 2005 shall contain recommendations and a 
        proposal for forming a Financial Literacy and Education Working 
        Group to be chaired by the Secretary of the Treasury.
    (c) Issues To Be Addressed.--The SAFE strategy shall address any 
area the President considers appropriate, acting through the Secretary 
of the Treasury, the Office of Financial Education established by the 
Secretary in the Department of the Treasury, and in consultation with 
the Secretary of Housing and Urban Development, the Financial Literacy 
and Education Working Group established pursuant to the proposal under 
subsection (b)(4), and other officials of the administration, as 
appropriate, including the following:
            (1) Goals, objectives, and priorities.--
                    (A) In general.--Comprehensive, research-based 
                goals, objectives, and priorities for increasing the 
                financial literacy of all citizens, with particular 
                attention to those with low and moderate incomes, 
                Native Americans, immigrants, youths from ages 10-25 
                and those of pre-retirement age.
                    (B) Goals to be included.--Such goals shall include 
                helping individuals, especially those in the target 
                groups, learn to develop--
                            (i) access to and responsible use of 
                        accounts at financial institutions;
                            (ii) knowledge of the credit-granting 
                        process, including the importance and benefits 
                        of building credit;
                            (iii) homeownership;
                            (iv) planning for unexpected circumstances, 
                        further education, retirement and estate 
                        planning;
                            (v) budgets and long-range financial 
                        planning;
                            (vi) an appreciation of the value of 
                        charitable giving;
                            (vii) an understanding of the impact of 
                        taxes on earned income and intelligent planning 
                        to minimize the effects of taxes;
                            (viii) a strategy for and an appreciation 
                        of the value of broad-based, well-planned, 
                        long-term investments; and
                            (ix) patterns of responsible borrowing and 
                        consumer behavior.
            (2) Coordination.--Coordination of financial education 
        efforts and programs within the Executive Branch and with the 
        Board of Governors of the Federal Reserve System, the 
        Securities and Exchange Commission, other Federal banking 
        agencies, the National Credit Union Administration Board, and 
        such other Federal agencies as the Secretary of the Treasury 
        determines to be appropriate.
            (3) Coordination with and enhancement of the role of the 
        private financial sector in financial education.--The 
        enhancement of partnerships between the private government 
        agencies and both the financial sector and nongovernment 
        agencies with regard to financial education.
            (4) Enhancement of intergovernmental cooperation.--The 
        enhancement of--
                    (A) cooperative efforts between the Federal 
                Government and State and local officials, including 
                State and local regulators and educators; and
                    (B) cooperative efforts among the several States 
                and between State and local officials, including State 
                and local regulators and educators which could be 
                utilized or should be encouraged.
            (5) Project and budget priorities.--A 3-year projection for 
        program and budget priorities and achievable projects for 
        improving financial education.
            (6) Assessment of funding.--A complete assessment of how 
        the proposed budget is intended to implement the strategy, and 
        whether the funding levels contained in the proposed budget are 
        sufficient to implement the strategy.
            (7) Data regarding trends in financial education.--The need 
        for timely, accurate, and complete information necessary for 
        the purpose of developing and analyzing data in order to 
        ascertain trends in the need for financial education.
            (8) Improved communications.--A plan for enhancing the 
        communication between the Federal Government and State and 
        local governments regarding financial education.
    (d) Effectiveness Report.--At the time each national SAFE strategy 
for financial education is transmitted by the President to the Congress 
(other than the first transmission of any such strategy) pursuant to 
subsection (b), the Secretary shall submit a report containing an 
evaluation of the effectiveness of policies to enhance financial 
education and reach the goals outlined in subsection (c).
    (e) Consultations.--In addition to the consultations required under 
this section with the Secretary of Housing and Urban Development, in 
developing the national SAFE strategy for financial education, the 
Secretary shall consult with--
            (1) the Board of Governors of the Federal Reserve System 
        and other Federal banking agencies and the National Credit 
        Union Administration Board;
            (2) State and local officials, including State and local 
        regulators and educators;
            (3) the Securities and Exchange Commission;
            (4) the Commodities and Futures Trading Commission;
            (5) the Secretary of Education;
            (6) to the extent possible, the finance ministers of 
        foreign governments;
            (7) to the extent appropriate, State and local officials 
        responsible for financial institution and financial market 
        regulation;
            (8) any other State or local government authority, to the 
        extent appropriate;
            (9) any other Federal Government authority or 
        instrumentality, to the extent appropriate
            (10) representatives of the private financial services 
        sector, to the extent appropriate;
            (11) the Secretary of Agriculture;
            (12) the Secretary of Health and Human Services;
            (13) the Secretary of Defense;
            (14) the Secretary of Labor;
            (15) the Secretary of Veterans Affairs;
            (16) the Chairman of the Federal Trade Commission;
            (17) the Commissioner of Social Security, the Social 
        Security Administration;
            (18) the Administrator of the Small Business 
        Administration;
            (19) the Director of the Office of Personnel Management;
            (20) the Federal Housing Commissioner;
            (21) State insurance commissioners working through the 
        National Association of Insurance Commissioners;
            (22) the Advertising Council; and
            (23) the heads of Federal, State and local government 
        programs, and privately run programs, which have the purpose 
        of--
                    (A) getting the unbanked to participate in the 
                banking system; and
                    (B) encouraging recipients of State or Federal 
                assistance programs to move away from receiving their 
                programs via paper checks and towards receiving such 
                payments electronically.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of the Treasury for fiscal years 2004, 
2005, 2006, 2007, 2008, and 2009 such sums as may be necessary to carry 
out the requirements of this section.
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