By: Shapleigh S.B. No. 627
(In the Senate - Filed February 20, 2003; February 27, 2003,
read first time and referred to Committee on State Affairs;
May 20, 2003, reported favorably by the following vote: Yeas 6,
Nays 0; May 20, 2003, sent to printer.)
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 financial literacy education 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 at public
institutions of higher education 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 financial literacy
education 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 TexasOnline
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.
* * * * *