Short title

This Act may be cited as the Young Investor Financial Education Act.

Financial Education grants and subgrants

(a)

Grants to State educational agencies

From the sums allocated under section 4, the Secretary of Education shall award grants to State educational agencies to support the provision of financial education in high schools in accordance with sections 3 and 5. (b)

Subgrants to local educational agencies

From any of the grant funds awarded under subsection (a), a State educational agency may award a subgrant to a local educational agency to support the provision of financial education in high schools in accordance with sections 3 and 5.

Application

(a)

In general

To qualify to receive a grant under section 2(a), a State educational agency shall submit an application to the Secretary at such time and in such manner as the Secretary may require, and containing the information described in subsection (b). (b)

Contents

The application required by subsection (a) shall include a description of the financial education program that will be developed and implemented with the grant or subgrant funds received under this Act, including— (1)the classes and topics covered in the program; (2)certification that not later than the next school year after the receipt of the grant, financial education will be available in high schools under the jurisdiction of such State educational agency; and (3)any other information that the Secretary may require.

Reservation and Formula

(a)

Outlying areas

From the sums appropriated under section 8 for each fiscal year, the Secretary shall reserve not more than 0.5 percent of such sums for payments to outlying areas, to be allotted in accordance with their respective needs for assistance under this Act, as determined by the Secretary. (b)

States

(1)

Formula

From the sums appropriated under section 8 for each fiscal year and not reserved under subsection (a) of this section or section 7, the Secretary shall allot, and make available in accordance with this Act, to each State educational agency in a State with an approved application an amount that bears the same ratio to such sums as the number of individuals aged 14 through 17 in the State to the total number of individuals aged 14 through 17 in all States, except that no State educational agency shall receive less than an amount equal to one-half of 1 percent of such sums. (2)

Reallotment of unused funds

If a State educational agency does not submit an application or the Secretary does not approve a State educational agency’s application, the Secretary shall reallot any portion of the State educational agency’s allotment under paragraph (1) to the remaining State educational agencies in accordance with paragraph (1).

Uses of funds

A State educational agency or local educational agency that receives a grant or subgrant under this Act shall use the grant or subgrant funds— (1)to develop or to purchase financial education materials; (2)to train teachers in financial education course work, such as responsible money management, credit card use, saving, investing, and financial planning; and (3)to pay for other incidental costs related to establishing financial education programs in high schools.

Reporting

(a)

State educational agencies

Not later than 1 year after the date of enactment of this Act, and annually thereafter, each State educational agency receiving a grant under this Act shall prepare and submit a report to the Secretary containing information on the financial education programs and activities carried out by the State educational agency, and the effectiveness of such programs and activities in improving the financial education of high school students. (b)

Secretary

Not later than 18 months after the date of enactment of this Act, and annually thereafter, the Secretary shall prepare and submit to the Committee on Education and Labor of the House of Representatives and the Committee on Health, Education, Labor, and Pensions of the Senate a report on the financial education programs and activities carried out under this Act, and the effectiveness of such programs and activities in improving the financial education of high school students.

Clearinghouse

From the sums appropriated under section 8 for each fiscal year, the Secretary shall reserve $2,000,000 of such sums to establish and maintain, through grant or by contract, a central clearinghouse of information that— (1)provides information and technical assistance to State educational agencies and local educational agencies in developing content and curriculum materials for high school financial education; (2)maintains, coordinates, and disseminates information on effective financial education programs, including private and non-profit school-based financial education programs, that hold the potential for broad scale implementation and replication; and (3)publishes, on an annual basis, a list of State educational agencies or local educational agencies that are grant or subgrant recipients under this Act, and the amounts such State educational agencies or local educational agencies receive under this Act.

Appropriations

There are authorized to be appropriated $100,000,000 to carry out this Act for each of the fiscal years 2010 through 2014.

Definitions

The following definitions apply to this Act: (1)

Charter school

The term charter school has the meaning given such term in section 5210 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7221i); (2)

Financial education

The term financial education means course work for high school students that is aligned with State academic standards and promotes financial literacy, such as responsible money management, credit card use, saving, investing, and financial planning; (3)

High school

The term high school means a nonprofit institutional day or residential school, including a charter school, providing grade 9 through grade 12 education, as determined under State law. (4)

Local educational agency

The term local educational agency has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801). (5)

Outlying area

The term outlying area means the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands, and, until an agreement for the extension of United States education assistance under the Compact of Free Association for the Republic of Palau becomes effective after the date of enactment of this Act, includes the Republic of Palau. (6)

Secretary

The term Secretary means Secretary of Education. (7)

State

The term State means each of the 50 States, the District of Columbia, and the Commonwealth of Puerto Rico. (8)

State educational agency

The term State educational agency has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).