79R4295 SLO-D

By:  Chavez                                                       H.B. No. 763

relating to a financial literacy curriculum requirement in certain public high schools located in the Texas-Mexico border region. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 28, Education Code, is amended by adding Section 28.009 to read as follows: Sec. 28.009. FINANCIAL LITERACY CURRICULUM. (a) This section applies only to a school district that is located wholly or partly in the La Paz border area. In this section, "La Paz border area" means the area in this state that is located within 100 kilometers of the border between this state and the United Mexican States, as referred to in the definition of "border area" in the 1983 La Paz Agreement between the United States and the United Mexican States regarding environmental issues in the United States-Mexico border area. (b) The State Board of Education by rule shall adopt a high school financial literacy curriculum for use in school districts to which this section applies. (c) The financial literacy curriculum must focus on teaching high school students to make informed financial decisions. The curriculum must address common consumer financial issues and include information about: (1) avoiding and eliminating credit card debt; (2) managing money to make the transition from renting a home to home ownership; (3) starting a small business; (4) being a prudent investor and beginning a savings program; (5) bankruptcy; (6) the types of bank accounts available to consumers and the benefits of maintaining a bank account; (7) the types of loans available to consumers and becoming a low-risk borrower; and (8) credit scoring and the connection between credit scoring and consumer credit reports. (d) Each high school that is located in a school district to which this section applies shall offer a course in financial literacy as part of the high school's required curriculum. A student is required to perform satisfactorily in the course as a condition for high school graduation. SECTION 2. The State Board of Education shall adopt rules relating to financial literacy education in accordance with Section 28.009, Education Code, as added by this Act, not later than May 1, 2009. The rules shall require each school district to which that section applies to provide instruction in financial literacy to high school students beginning with the 2009-2010 school year. In addition, the rules shall provide a transition period for requiring financial literacy education as a condition for high school graduation in a manner that does not work an undue hardship on students who are in the junior or senior year of high school during the 2009-2010 school year. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005.