II 110th CONGRESS 2d Session S. 3053 IN THE SENATE OF THE UNITED STATES May 22, 2008 Mr. Smith (for himself and Ms. Cantwell) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XI of the Social Security Act to provide grants for eligible entities to provide services to improve financial literacy among older individuals.

1.

Financial literacy services

Part A of title XI of the Social Security Act (42 U.S.C. 1301 et seq.) is amended by adding at the end the following new section:

1150A.

Financial literacy services

(a)

Definitions

In this section: (1)

Area agency on aging

The term area agency on aging has the meaning given that term in section 102 of the Older Americans Act of 1965 (42 U.S.C. 3002). (2)

Financial literacy services

The term financial literacy services means the services described in subsection (b)(1). (3)

Older individual

The term older individual has the meaning given that term in such section 102. (b)

Grants for services

(1)

In general

The Secretary shall make grants to eligible entities and other entities determined appropriate by the Secretary to enable the entities to provide services to improve financial literacy among older individuals, including older individuals who are women, and the family members and legal representatives of such individuals. The Secretary shall make the grants on a competitive basis, and nationwide. (2)

Eligible entities

To be eligible to receive a grant under this subsection, an entity shall be an area agency on aging or another entity that meets such requirements as the Secretary may specify. (3)

Application

To be eligible to receive a grant under this subsection, an entity shall submit an application to the Secretary at such time, in such manner, and containing such information as the Secretary may require. In the case of an entity who intends to provide the financial literacy services jointly with other services as described in paragraph (4)(C), the application shall include information demonstrating that the entity has the capacity to provide the services jointly. (4)

Use of funds

(A)

In general

An entity that receives a grant under this subsection shall use the funds made available through the grant to provide financial literacy services, such as financial literacy education, training, and assistance. (B)

Provision through contracts

The entity may provide the services directly or by entering into a contract with an organization that provides counseling, advice, or representation to older individuals and the family members and legal representatives of such individuals in a community served by the entity. (C)

Provision with other services

The entity may provide the services alone or jointly with other services provided by or funded by the eligible entity, such as— (i)services provided through State Health Insurance Assistance Programs; (ii)services provided through a Long-Term Care Ombudsman program under section 307(a)(9) or 712 of the Older Americans Act of 1965 (42 U.S.C. 3027, 3058g); (iii)information and assistance services provided under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.); (iv)legal assistance services provided under the Older Americans Act of 1965 (42 U.S.C. 3001 et seq.); (v)services provided through Senior Medicare Patrol Projects conducted by the Administration on Aging; (vi)case management services; and (vii)services provided through Aging and Disability Resource Centers. (5)

Report

The Secretary shall submit to Congress an annual report on the activities carried out by entities under a grant under this subsection. (c)

National support center for financial literacy grant

(1)

In general

The Secretary may make a grant to an eligible center to coordinate the services provided through, and support the grant recipients under, the grant program carried out under subsection (b). (2)

Eligible center

To be eligible to receive a grant under this subsection, a center shall— (A)be an entity that is housed within an organization described in section 501(c) of the Internal Revenue Code of 1986 that is exempt from taxation under section 501(a) of such Code; (B)have a minimum of 10 years experience operating a national program and support center with a focus on financial literacy; and (C)be primarily engaged in outreach and training activities designed to provide financial education and retirement planning for low- and moderate-income individuals, particularly with respect to women; and (D)have a demonstrated record of collaboration with organizations that focus on the needs of low- and moderate-income individuals and with national organizations serving the elderly, including those working with area agencies on aging and women, as well as organizations with expertise in financial services and related fields. (3)

Use of funds

A center that receives a grant under this subsection shall use the funds made available through the grant to— (A)design and conduct training (which may include providing training for trainers) related to financial literacy services; (B)provide curricula for financial literacy services; (C)develop and disseminate relevant information about financial literacy services; (D)conduct outreach to national, State, and community organizations through a series of strategic partnerships in order to improve financial literacy among older individuals and the family members and legal representatives of such individuals; (E)provide technical assistance to the grant recipients under subsection (b) with respect to the program; and (F)collect data from such grant recipients about the services provided under this section, and the impact of those services. (4)

Addressing challenges to women in securing adequate retirement income

In addition to the activities described in paragraph (3), a center that receives a grant under this subsection shall use the funds made available through the grant to conduct activities that are focused on addressing the challenges faced by older women, women of color, single women, and women who are heads of households to securing an adequate retirement income. (d)

Coordination

The Secretary shall ensure that the activities carried out under the grant program under subsection (b) and under a grant made under subsection (c) are coordinated with the activities carried out by— (1)the Office of Financial Education of the Department of the Treasury; and (2)the Financial Literacy and Education Commission established under section 513 of the Financial Literacy and Education Improvement Act (20 U.S.C. 9702). (e)

Funding

The Secretary of the Treasury shall transfer to the Secretary of Health and Human Services from the Federal Old-Age and Survivors Insurance Trust Fund and Federal Disability Insurance Trust Fund established under section 201 such funds as are necessary for making grants under this section.

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