I 111th CONGRESS 1st Session H. R. 3037 IN THE HOUSE OF REPRESENTATIVES June 25, 2009 Mr. Cleaver introduced the following bill; which was referred to the Committee on Education and Labor A BILL To require the Secretary of Education to establish a pilot program to award grants to State and local educational agencies to develop financial literacy programs in elementary and secondary schools, and for other purposes.

1.

Short title

This Act may be cited as the Financial Literacy for Youth Act of 2009 or the FLY Act of 2009.

2.

Requirement to establish a pilot program to award grants to State and local educational agencies to develop financial literacy programs in elementary and secondary schools

(a)

In general

(1)

Pilot Program

The Secretary of Education (referred to in this Act as the Secretary) shall establish a pilot program to award grants to State and local educational agencies to develop financial literacy programs in elementary and secondary schools. (2)

Grant awards

The Secretary shall award grants under the pilot program to 10 State or local education agencies. (b)

Application

(1)

In general

Each State or local educational agency that desires a grant under the pilot program shall submit an application to the Secretary at such time, in such manner, and accompanied by such information as the Secretary may reasonably require. (2)

Contents

Each grant application under the pilot program shall describe how— (A)funds will be used to incorporate financial literacy into the curriculum; (B)a local educational agency will work with State educational agencies to ensure that the curriculum is in compliance with State standards; (C)the funds will be used for professional development; (D)a local educational agency will coordinate its financial literacy program with local, State, and Federal programs (or other community initiatives, if applicable); and (E)a local educational agency will measure performance and evaluate the effectiveness of its program. (c)

Use of funds

A grant award under the pilot program shall be used to integrate financial literacy programs into elementary and secondary school curriculums; to carry out professional development, including fellowships for financial literacy instructors and personnel (including licensed teachers, education administrators, and bank personnel) involved in the education of financial literacy programs; to conduct program evaluations and surveys; and to collect, analyze, and develop information necessary to accomplish the pilot program. (d)

Maximum Grant

A grant award under the pilot program to any one State or local educational agency shall be not more than $250,000 for any fiscal year. (e)

Limitation on Administrative Costs

Not more than 4 percent of the amounts made available under the pilot program for any fiscal year may be used for administrative costs to carry out the pilot program. (f)

Reports

(1)

Report by a State or local education agency

Not later than 90 days after the conclusion of the pilot program, a State or local educational agency shall prepare and submit to the Secretary a report that details which curriculums and policies implemented in the financial literacy program were successful or unsuccessful, which curriculums and policies they would recommend to other education agencies, and such further guidelines for this report as the Secretary shall deem necessary. (2)

Report by the Secretary

Not later than 180 days after the conclusion of the pilot program, the Secretary shall submit to the Committee on Financial Services and the Committee on Education and Labor a report on the pilot program. (g)

Financial literacy defined

The term financial literacy means the acquisition of knowledge and understanding of all personal financial matters and transactions, from finance management and investment, to being able to make sound financial decisions, including but not limited to understanding— (1)how to balance a checkbook, read a credit card statement, and calculate interest rates; (2)what a pay stub is and why Federal and State taxes, Social Security, and Medicare are deducted from wages; (3)the differences between various types of bank accounts; (4)the significance of a credit score and how to read credit reports; (5)the marketing techniques frequently used by individuals and businesses to attract patrons; and (6)the importance of saving for college and retirement. (h)

Authorization of Appropriations

There are authorized to be appropriated such sums as are necessary for each of the fiscal years 2010 through 2015 to carry out the pilot program.