110 HR 2840 IH: National Financial Literacy Act of U.S. House of Representatives 2007-06-22 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 2840 IN THE HOUSE OF REPRESENTATIVES June 22, 2007 Ms. Eddie Bernice Johnson of Texas (for herself, Mr. Ellison, and Ms. Carson) introduced the following bill; which was referred to the Committee on Financial Services A BILL To amend the Community Reinvestment Act of 1977 to allow the direct support by a financial institution of a qualified community-based financial literacy program provided to consumers and borrowers to be taken into account in assessing the institution’s record of meeting the credit needs of its entire community, and for other purposes.

1.

Short title

This Act may be cited as the National Financial Literacy Act of 2007.

2.

Financial literacy programs

Section 804 of the Community Reinvestment Act of 1977 (12 U.S.C. 2903) is amended by adding at the end the following new subsection: (d)

Direct support for financial literacy programs taken into account

(1)

Standards established for eligible programs

The appropriate Federal financial supervisory agencies shall jointly prescribe regulations establishing— (A)the minimum standards required to be met by a community-based financial literacy program in order to be eligible for consideration under paragraph (3) as a qualified community-based financial literacy program; (B)the procedures for financial institutions to apply to the appropriate Federal financial supervisory agency for approval of a financial literacy program as a qualified community-based financial literacy program; and (C)a requirement that financial institutions submit a regular report on how the institution supported and promoted financial literacy in its entire community, including low- and moderate-income neighborhoods. (2)

Factors

The regulations required under paragraph (1) shall require at a minimum that a qualified community-based financial literacy program— (A)be offered by a nonprofit budget and counseling agency which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1986; and (B)include adequate education to promote consumer understanding of consumer, economic, and personal finance issues and concepts, including saving for retirement, managing credit, long-term care, estate planning and education on predatory lending, identity theft, and financial abuse schemes. (3)

Programs taken into account

The direct support by a financial institution of a qualified community-based financial literacy program may be taken into account by the appropriate Federal financial supervisory agency under subsection (a) in assessing the institution’s record of meeting the credit needs of its entire community, including low- and moderate-income neighborhoods, in such amount and to such extent as may be provided in the joint regulations prescribed under paragraph (1). .