SRC-MSY S.B. 627 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 627
78R1987 RCJ-DBy: Shapleigh
State Affairs
3/13/2003
As Filed


DIGEST AND PURPOSE 

Currently, no state agency is charged with creating a coordinated program
designed to educate students and adults about the skills necessary to make
sound financial decisions regarding credit card debt, student loans, small
business ownership, debt management, and other relevant financial matters.
As proposed, S.B. 627 requires the Office of Consumer Credit Commissioner,
the State Securities Board, and the Texas Education Agency to work
together to develop such a program to be made available to students,
student loan recipients, and the general public. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Title 5, Finance Code, by adding Chapter 397, as
follows: 

CHAPTER 397.  CONSUMER EDUCATION PROGRAMS
SUBCHAPTER A.  FINANCIAL LITERACY EDUCATION PROGRAM

Sec.  397.001.  DEFINITION.  Defines "institution of higher education."

Sec.  397.002.  DUTY OF CERTAIN AGENCIES TO CREATE A FINANCIAL LITERACY
EDUCATION PROGRAM.  Requires certain agencies to work together to develop
a financial literacy education program for adults and children, with
materials for the use of students at appropriate grade levels and for the
public. 

Sec.  397.003.  CONTENT OF THE FINANCIAL LITERACY EDUCATION PROGRAM.
Requires the financial literacy education program to focus on teaching
adults and children to make informed financial decisions.  Requires the
agencies developing the program to develop educational material addressing
consumers' financial issues, including certain listed issues. 

Sec.  397.004.  DUTY TO CREATE FINANCIAL LITERACY MATERIAL RELATED TO
FINANCIAL AID FOR HIGHER EDUCATION.  Requires the agencies developing the
program and the Texas Higher Education Coordinating Board to work together
to develop financial literacy material concerning financial aid for higher
education and to provide those materials to financial aid officers at
institutions of higher education.  Requires such financial aid officers to
use the materials to educate students about financial aid options and debt
management. 

Sec.  397.005.  AVAILABILITY OF FINANCIAL LITERACY MATERIALS ON THE
INTERNET.  Requires the agencies developing the program to work with the
Department of Information Resources to make the financial literacy
materials available on the Internet through  the Texas Online portal or
any successor to that portal. 

Sec.  397.006.  FUNDING FOR FINANCIAL LITERACY EDUCATION PROGRAMS.
Requires the agencies developing the program to fund the program through
collaborations with and sponsorships by businesses and through federal
programs, private or public grants, or other sources. 

SECTION 2.  Requires the agencies developing the financial literacy
education program to submit a joint report to the legislature on the
results of the program and the agencies' recommendations for promoting
adult financial literacy in the state by December 1, 2005. 

SECTION 3.  Effective date:  September 1, 2003.