[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1532 Introduced in Senate (IS)]

  1st Session
                                S. 1532

To establish the Financial Literacy Commission, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 31 (legislative day, July 21), 2003

   Ms. Stabenow (for herself, Mr. Enzi, Mr. Johnson, Mr. Hagel, Mr. 
    Schumer, Mr. Bayh, Mr. Carper, and Mr. Corzine) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To establish the Financial Literacy Commission, 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 ``Financial Literacy Community 
Outreach Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) although the evolution of our financial system has 
        offered families in the United States many new opportunities to 
        build wealth and security, the ready availability of credit, an 
        overwhelming array of investment and savings options, and the 
        shifting of responsibility for retirement savings from employer 
        to employee has made the understanding of personal finance ever 
        more important;
            (2) many young adults within the United States have 
        demonstrated difficulty understanding basic financial concepts;
            (3) in surveys of high school seniors conducted by the 
        JumpStart Coalition for Personal Financial Literacy--
                    (A) in 1997 participants, on average, failed, and 
                answered only 57 percent of the questions correctly;
                    (B) in 2000, the average score fell to 51 percent; 
                and
                    (C) in 2002, disturbingly, on average, only 50 
                percent of the questions were answered correctly;
            (4) in a survey of consumers 18 years and older conducted 
        by the American Association of Retired Persons in late 1998, 
        only 11 percent of respondents correctly answered 4 basic 
        financial questions;
            (5) a similar survey of 800 defined benefit contribution 
        plan participants conducted by John Hancock in 2002 found that 
        50 percent of respondents said they spend half an hour or less 
        per month managing their retirement funds;
            (6) households in the United States are not reaching their 
        full potential in financial management, and as a result--
                    (A) the personal savings rate fell to only 1.6 
                percent of disposable income in 2001;
                    (B) from 1990 to 2000, outstanding credit card debt 
                among households more than tripled from 
                $200,000,000,000 to $600,000,000,000;
                    (C) in 2001, the total household debt exceeded 
                total household disposable income by nearly 10 percent;
                    (D) less than half of all households hold stock in 
                any form, including mutual funds and 401(k)-style 
                pension plans; and
                    (E) almost half of all workers have accumulated 
                less than $50,000 for their retirement, and \1/3\ have 
                saved less than $10,000;
            (7) many Government agencies recognize that the people of 
        the United States lack expertise in financial literacy and are 
        working to help them, including efforts by--
                    (A) the Department of Labor and the Federal Deposit 
                Insurance Corporation, which have joined together to 
                create ``Money Smart'', a training program to help 
                adults enhance their money-management skills;
                    (B) the Department of the Treasury, which has 
                formed the ``Financial Services Education Council'', 
                and has published a guide called ``Helping People in 
                Your Community Understand Basic Financial Services'';
                    (C) the Department of the Treasury in promoting a 
                middle school curriculum called ``Money Math: Lessons 
                for Life'';
                    (D) the Federal Trade Commission, which publishes 
                information about credit, including ``Credit Matters: 
                How to qualify for credit, keep a good credit history, 
                and protect your credit'';
                    (E) the Department of Agriculture, which runs the 
                ``Family Economics Program'' to assist educators who 
                deliver basic consumer education and teach personal 
                financial management skills to young people;
                    (F) the Securities and Exchange Commission, which 
                has an Office of Investor Education and Assistance;
                    (G) the Board of Governors of the Federal Reserve 
                System, which has developed materials explaining how to 
                use credit responsibly, obtain a mortgage, build 
                wealth, and lease a car;
                    (H) the Department of Housing and Urban Development 
                in funding housing counseling agencies nationwide that 
                provide advice on how to save for and buy a home; and
                    (I) the Government Services Administration in 
                hosting the Federal Consumer Information Center, which 
                has an electronic catalogue of information about 
                Federal financial literacy programs;
            (8) there is very little coordination among Federal 
        programs, resulting in duplication of effort and a confusing 
        array of information spread among many agencies;
            (9) there is a serious problem with financial illiteracy 
        among many low-income consumers, who often--
                    (A) do not have a relationship with a mainstream 
                financial services provider;
                    (B) lack experience and information about personal 
                finance; and
                    (C) are ill-prepared to make informed financial 
                decisions;
            (10) many people in the United States--
                    (A) are in a precarious financial position because 
                they lack an understanding of economic and financial 
                fundamentals and of financial planning;
                    (B) are forgoing opportunities to build wealth by 
                failing to target their investments to higher yielding, 
                yet secure savings vehicles; and
                    (C) are failing to adequately plan and save for 
                retirement; and
            (11) financial literacy is the foundation that supports--
                    (A) economic independence for the citizens of the 
                United States; and
                    (B) the functioning of our free market economy.

SEC. 3. DEFINITIONS.

    As used in this Act--
            (1) the term ``Commission'' means the Financial Literacy 
        Commission established under section 101; and
            (2) the term ``financial literacy'' means basic personal 
        income and household money management and planning skills, 
        including--
                    (A) saving and investing;
                    (B) building wealth;
                    (C) managing spending, credit, and debt 
                effectively;
                    (D) tax and estate planning;
                    (E) the ability to ascertain fair and favorable 
                credit terms and avoid abusive, predatory, or deceptive 
                credit offers;
                    (F) the ability to understand, evaluate, and 
                compare financial products, services, and 
                opportunities; and
                    (G) all other related skills.

                 TITLE I--FINANCIAL LITERACY COMMISSION

SEC. 101. ESTABLISHMENT OF FINANCIAL LITERACY COMMISSION.

    (a) In General.--There is established a commission to be known as 
the Financial Literacy Commission.
    (b) Purpose.--The Commission shall serve to improve the financial 
literacy of persons in the United States by overseeing, implementing, 
and reporting upon the effects of the performance of the duties of the 
Commission set forth in section 102.
    (c) Membership.--
            (1) Composition.--The Commission shall be composed of not 
        more than 19 members, including--
                    (A) the Comptroller of the Currency;
                    (B) the Secretary of Agriculture of the Department 
                of Agriculture;
                    (C) the Secretary of Education of the Department of 
                Education;
                    (D) the Secretary of Housing and Urban Development 
                of the Department of Housing and Urban Development;
                    (E) the Secretary of Labor of the Department of 
                Labor;
                    (F) the Secretary of the Treasury;
                    (G) the Chairman of the Federal Deposit Insurance 
                Corporation;
                    (H) the Chairman of the Board of Governors of the 
                Federal Reserve System;
                    (I) the Chairman of the Federal Trade Commission;
                    (J) the Administrator of General Services of the 
                General Services Administration;
                    (K) the Commissioner of the Internal Revenue 
                Service;
                    (L) the Chairman of the National Credit Union 
                Administration Board;
                    (M) the Director of the Office of Thrift 
                Supervision;
                    (N) the Chairman of the Securities and Exchange 
                Commission;
                    (O) the Administrator of the Small Business 
                Administration;
                    (P) the Commissioner of the Social Security 
                Administration; and
                    (Q) at the discretion of the President, not more 
                than 3 individuals appointed by the President from 
                among the administrative heads of any other Federal 
                agency, department, or other Government entity, whom 
                the President believes would be helpful in implementing 
                the purpose of the Commission.
            (2) Designees.--The individuals referred to in paragraph 
        (1) may appoint a designee from within the department or agency 
        of that individual to serve as a member of the Commission.
    (d) Federal Employee Requirement.--Each member of the Commission 
shall be an officer or employee of the United States.
    (e) Chairperson.--The Commission shall select a Chairperson from 
among its members. The Secretary of the Treasury, or the designee 
thereof under subsection (c)(2), shall chair the initial meeting of the 
Commission.
    (f) Vice Chairperson.--The Commission shall select a Vice 
Chairperson from among its members.
    (g) Vacancies.--Any vacancy in the Commission shall be filled in 
the same manner as the original appointment or designation, as provided 
under subsection (c).
    (h) Initial Meeting.--The Commission shall hold its first meeting 
not later than 60 days after the date of enactment of this Act.
    (i) Meetings.--
            (1) Semiannual meetings.--The Commission shall hold, at the 
        call of the Chairperson, 1 meeting every 6 months to conduct 
        necessary business. All such meetings shall be open to the 
        public.
            (2) Discretionary meetings.--The Commission may hold, at 
        the call of the Chairperson, such other meetings as the 
        Chairperson sees fit to carry out this Act.
    (j) Quorum.--A majority of the members of the Commission shall 
constitute a quorum, but a lesser number of members may hold hearings.
    (k) Executive Committee.--
            (1) In general.--The Commission shall establish an 
        Executive Committee comprised of--
                    (A) the Chairperson;
                    (B) the Vice Chairperson; and
                    (C) 3 at-large members selected by the Commission 
                from among members appointed under subsection (c).
            (2) Term.--Members of the Executive Committee selected 
        under paragraph (1)(C) shall serve for such time as determined 
        by the Commission.
            (3) Meetings.--The Executive Committee shall hold, at the 
        call of the Chairperson, 1 meeting every 2 months to conduct 
        necessary administrative business.
            (4) Quorum.--A majority of the members of the Executive 
        Committee shall constitute a quorum.

SEC. 102. DUTIES OF THE COMMISSION.

    (a) In General.--The Commission, through the authority of the 
members referred to in section 101(c), shall take such actions as it 
deems necessary to streamline, improve, or augment the financial 
literacy programs, materials, and grants of the Federal Government.
    (b) Website.--
            (1) In general.--The Commission shall establish and 
        maintain a website, and attempt to register the domain name 
        ``FinancialLiteracy.gov'', or, if such domain name is not 
        available, a similar domain name.
            (2) Purposes.--The website established under paragraph (1) 
        shall--
                    (A) serve as a clearinghouse of information about 
                Federal financial literacy programs;
                    (B) provide a coordinated entry point for accessing 
                information about all Federal publications, grants, and 
                materials promoting enhanced financial literacy;
                    (C) offer information on all Federal grants to 
                promote financial literacy, and offer information to 
                the public on how to target, apply for, and receive a 
                grant that is most appropriate under the circumstances;
                    (D) as the Commission considers appropriate, 
                feature website links to private sector efforts, such 
                as the JumpStart Coalition for Personal Financial 
                Literacy, and feature information about private sector 
                financial literacy programs, materials, or campaigns;
                    (E) highlight information about best practices for 
                teaching and promoting financial literacy; and
                    (F) offer such other information as the Commission 
                finds appropriate to share with the public in the 
                fulfillment of its purpose.
    (c) Toll Free Hotline.--The Commission shall establish a toll-free 
telephone number that shall be made available to members of the public 
seeking information about issues pertaining to financial literacy.
    (d) Development and Dissemination of Materials.--The Commission 
shall--
            (1) develop materials to promote financial literacy; and
            (2) disseminate such materials to the general public.
    (e) Administration of Grant Programs.--
            (1) Authority.--The Commission shall be authorized to 
        establish and implement grant programs to promote financial 
        literacy.
            (2) Eligibility.--Grants awarded under paragraph (1) may be 
        awarded to schools, non-profit organizations, units of general 
        local government, faith-based organizations, and such other 
        entities as determined eligible by the Commission.
            (3) Preferences.--In awarding grants under paragraph (1), 
        the Commission shall--
                    (A) give preference to entities that have a 
                demonstrated record of serving communities with people 
                who have historically had either limited or no access 
                to financial literacy education; and
                    (B) to the extent practicable, award grants to as 
                many entities eligible under paragraph (2) as possible.
    (f) Initial and Annual Reports.--
            (1) Initial report.--
                    (A) In general.--Not later than 18 months after the 
                date of the first meeting of the Commission, the 
                Commission shall issue an initial report to the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Committee on Financial Services of the 
                House of Representatives on the progress of the 
                Commission in carrying out this Act.
                    (B) Contents.--The report required under 
                subparagraph (A) shall--
                            (i) identify all Federal programs, 
                        materials, and grants which seek to improve 
                        financial literacy, and assess the 
                        effectiveness of such programs; and
                            (ii) identify all actions that the 
                        Commission has taken to streamline, improve, or 
                        augment the financial literacy programs, 
                        materials, and grants of the Federal 
                        Government.
            (2) Annual report.--
                    (A) In general.--Not later than November 30 of each 
                year, the Commission shall submit to the Committee on 
                Banking, Housing, and Urban Affairs of the Senate and 
                the Committee on Financial Services of the House of 
                Representatives a report detailing the activities of 
                the Commission during the preceding fiscal year, and 
                making recommendations on ways to enhance financial 
                literacy in the United States.
                    (B) Contents.--The report required under 
                subparagraph (A) shall include--
                            (i) information concerning the content and 
                        public use of the website established under 
                        subsection (b);
                            (ii) information concerning the usage of 
                        the toll-free telephone number established 
                        under subsection (c);
                            (iii) summaries of the financial literacy 
                        materials developed under subsection (d), and 
                        data regarding the dissemination of such 
                        materials;
                            (iv) information about the activities of 
                        the Commission planned for the next fiscal 
                        year;
                            (v) a summary of all Federal efforts to 
                        reach out to communities that have historically 
                        lacked access to financial literacy materials 
                        and education; and
                            (vi) such other materials relating to the 
                        duties of the Commission as the Commission 
                        deems appropriate.
    (g) Periodic Studies.--The Commission may conduct periodic studies 
regarding the state of financial literacy in the United States, as the 
Commission determines appropriate.

SEC. 103. POWERS OF THE COMMISSION.

    (a) Hearings.--The Commission may hold such hearings, sit and act 
at such times and places, take such testimony, and receive such 
evidence as the Commission considers advisable to carry out this Act.
    (b) Advisory Committees.--The Commission shall establish not fewer 
than 1 advisory committee, consisting of representatives of lending 
institutions, financial literacy nonprofit organizations, consumer 
advocates, State and local governments, and such other individuals that 
the Commission believes could contribute to the work of the Commission.
    (c) Information From Federal Agencies.--The Commission may secure 
directly from any Federal department or agency such information as the 
Commission considers necessary to carry out this Act. Upon the request 
of the Chairman, the head of such department or agency shall furnish 
such information to the Commission.
    (d) Gifts.--The Commission may accept, use, and dispose of gifts or 
donations of services or property.

SEC. 104. COMMISSION PERSONNEL MATTERS.

    (a) Compensation of Members.--Each member of the Commission shall 
serve without compensation in addition to that received for their 
service as an officer or employee of the United States.
    (b) Travel Expenses.--The members of the Commission shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of services for the 
Commission.
    (c) Staff.--
            (1) In general.--The Chairperson of the Commission may, 
        without regard to civil service laws and regulations, appoint 
        and terminate an executive director and such other additional 
        personnel as may be necessary to enable the Commission to 
        perform its duties. The employment of an executive director 
        shall be subject to confirmation by members of the Commission.
            (2) Compensation.--The Chairperson of the Commission may 
        fix the compensation of the executive director and other 
        personnel without regard to the provisions of chapter 51 and 
        subchapter III of chapter 53 of title 5, United States Code, 
        relating to classification of positions and General Schedule 
        pay rates, except that the rate of pay for the executive 
        director and other personnel may not exceed the rate payable 
        for level V of the Executive Schedule under section 5316 of 
        title 5, United States Code.
            (3) Detail of government employees.--Any Federal Government 
        employee may be detailed to the Commission without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service status or privilege.
            (4) Temporary and intermittent services.--The Chairperson 
        of the Commission may procure temporary and intermittent 
        services under section 3109(b) of title 5, United States Code, 
        at rates for individuals which do not exceed the daily 
        equivalent of the annual rate of basic pay prescribed for level 
        V of the Executive Schedule under section 5316 of title 5, 
        United States Code.

SEC. 105. TERMINATION.

    The Commission shall terminate on September 30, 2013.

SEC. 106. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Commission such sums 
as may be necessary to carry out this Act, including administrative 
expenses of the Commission.
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