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78R1987 RCJ-D

By:  Chavez                                                       H.B. No. 2972



A BILL TO BE ENTITLED

AN ACT

relating to financial literacy programs for consumers.                        
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Title 5, Finance Code, is amended by adding 
Chapter 397 to read as follows:

CHAPTER 397.  CONSUMER EDUCATION PROGRAMS

SUBCHAPTER A.  FINANCIAL LITERACY EDUCATION PROGRAM
	Sec. 397.001.  DEFINITION.  In this subchapter, "institution 
of higher education" means a public institution of higher education 
as defined by Section 61.003, Education Code, or a private college 
or university that issues degrees in this state and is accredited by 
a recognized accrediting agency as defined by Section 61.003, 
Education Code.
	Sec. 397.002.  DUTY OF CERTAIN AGENCIES TO CREATE A 
FINANCIAL LITERACY EDUCATION PROGRAM.  The Office of Consumer 
Credit Commissioner, the State Securities Board, and the Texas 
Education Agency shall collaborate to develop a financial literacy 
education program for adults and children.  The agencies shall 
develop materials for the use of students at appropriate grade 
levels and for the public.
	Sec. 397.003.  CONTENT OF THE FINANCIAL LITERACY EDUCATION 
PROGRAM.  The financial literacy education program must focus on 
teaching adults and children to make informed financial decisions.  
The agencies developing the program shall develop educational 
material addressing consumers' financial issues, including:
		(1)  how to eliminate credit card debt;                                
		(2)  how to manage money to make the transition from 
renting a home to home ownership;
		(3)  how to start a small business;                                    
		(4)  how to be a prudent investor and begin a savings 
program;       
		(5)  information about bankruptcy;                                     
		(6)  information about the types of bank accounts 
available to consumers and the benefits of maintaining a bank 
account; and
		(7)  information about the types of loans available to 
consumers and how to become a low-risk borrower.
	Sec. 397.004.  DUTY TO CREATE FINANCIAL LITERACY MATERIAL 
RELATED TO FINANCIAL AID FOR HIGHER EDUCATION.  The agencies 
developing the program and the Texas Higher Education Coordinating 
Board shall collaborate to develop financial literacy material 
concerning financial aid for higher education and provide these 
materials to financial aid officers at institutions of higher 
education.  Financial aid officers shall use these materials to 
educate students about financial aid options and debt management.
	Sec. 397.005.  AVAILABILITY OF FINANCIAL LITERACY MATERIALS 
ON THE INTERNET.  The agencies developing the program shall work 
with the Department of Information Resources to make the financial 
literacy materials created under this chapter available on the 
Internet through the Texas Online government portal or any 
successor to that portal.
	Sec. 397.006.  FUNDING FOR FINANCIAL LITERACY EDUCATION 
PROGRAMS.  The agencies developing the program shall fund the 
financial literacy education program through collaborations with 
and sponsorship by businesses and through federal programs, private 
or public grants, or other sources.
	SECTION 2.  Not later than December 1, 2005, the Office of 
Consumer Credit Commissioner, the State Securities Board, and the 
Texas Education Agency jointly shall submit a written report to the 
legislature on the results of the financial literacy education 
program and presenting the agencies' recommendations for promoting 
adult financial literacy in the state.
	SECTION 3.  This Act takes effect September 1, 2003.