By Hinojosa                                          H.C.R. No. 225

         75R12680 JLZ-D                           

                             HOUSE CONCURRENT RESOLUTION

 1-1           WHEREAS, In 1996, more than 1.2 million individuals filed for

 1-2     bankruptcy nationwide, with Texans contributing over 65,000

 1-3     bankruptcy cases to this record total; these figures represent

 1-4     increases of approximately 35 percent and 56 percent, respectively,

 1-5     over the 1995 national and state totals; and

 1-6           WHEREAS, The growing number of bankruptcy cases has negative

 1-7     repercussions not only on the individuals involved but on the

 1-8     business community and on the state's long-term financial

 1-9     well-being as a record level of personal debt precipitates a

1-10     cooling of the state's economy; and

1-11           WHEREAS, A significant factor in these dramatic increases is

1-12     the growing number of young adults who incur large amounts of

1-13     personal debt on completion of their high school careers, when they

1-14     assume significant financial responsibilities for the first time;

1-15     many of them are undertaking credit card debt, student loans,

1-16     automobile and housing financing, and a myriad of personal expenses

1-17     without the benefit of sound financial planning and budgeting; and

1-18           WHEREAS, The lack of awareness and experience among young

1-19     adults regarding the importance of long-term financial planning

1-20     creates an environment where future citizens are reactive rather

1-21     than proactive in their financial decision-making, increasing the

1-22     likelihood that they will become financially dependent and default

1-23     on their financial obligations; and

1-24           WHEREAS, Most high school students are leaving school without

 2-1     sufficient practical knowledge of or instruction in such basics as

 2-2     personal budgeting, opening and maintaining savings and checking

 2-3     accounts, obtaining financial aid for postsecondary education,

 2-4     housing and transportation costs, and the importance of planning

 2-5     for future family and retirement obligations because there is no

 2-6     comprehensive kindergarten through 12th grade educational program

 2-7     to address these issues in our public schools; and

 2-8           WHEREAS, Numerous consumer and commercial entities have

 2-9     expressed support for the creation of a more systematic approach to

2-10     this problem, an approach that would involve a uniform,

2-11     comprehensive personal finance educational program for all Texans;

2-12     however, opportunities for these entities to come together to

2-13     coordinate and use their resources to resolve this issue have been

2-14     limited; now, therefore, be it

2-15           RESOLVED, That the 75th Legislature of the State of Texas

2-16     hereby direct the commissioner of education to conduct a

2-17     coordinated study on the need for and the best methodology to

2-18     develop and implement a comprehensive statewide course on personal

2-19     finance as part of the enrichment curriculum; and, be it further

2-20           RESOLVED, That the commissioner convene a resource committee

2-21     to provide technical expertise and advice in developing the study's

2-22     findings and recommendations; and, be it further

2-23           RESOLVED, That the commissioner invite any such persons or

2-24     organizations as he deems necessary to participate in the resource

2-25     committee, but that the commissioner be directed to invite the

2-26     following organizations:

2-27           Consumer Credit Counseling Services;

 3-1           Texas Bankers Association;

 3-2           Texas Independent Bankers Association;

 3-3           Texas Automobile Dealers Association;

 3-4           Texas Association of Realtors;

 3-5           Texas Credit Union League;

 3-6           The Association of Texas Lenders for Education; and

 3-7           Texas Guaranteed Student Loan Corporation; and, be it further

 3-8           RESOLVED, That the commissioner submit a full report of the

 3-9     study's findings and recommendations to the House Public Education

3-10     Committee and Senate Education Committee by September 30, 1998;

3-11     and, be it further

3-12           RESOLVED, That the secretary of state forward an official

3-13     copy of this resolution to the commissioner of education.