79R4247 SLO-F

By:  Hegar                                                        H.B. No. 1004



A BILL TO BE ENTITLED

AN ACT

relating to a debt finance curriculum requirement in public high 
schools.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 28.002, Education Code, is amended by 
adding Subsection (q) to read as follows:
	(q)  The State Board of Education by rule shall include a 
debt finance curriculum as part of the essential knowledge and 
skills of economics and require debt finance education as a 
condition for high school graduation.  The debt finance curriculum 
must address:
		(1)  the use of credit cards;                                          
		(2)  a comparison of different types of financing;                     
		(3)  interest rates associated with different types of 
financing; and
		(4)  hidden costs associated with debt financing, 
including the accumulation of interest.
	SECTION 2.  The State Board of Education shall adopt rules 
relating to debt finance education in accordance with Section 
28.002(q), Education Code, as added by this Act, not later than May 
1, 2006.  The rules shall require each school district to provide 
instruction in debt finance to high school students beginning with 
the 2006-2007 school year.  In addition, the rules shall provide a 
transition period for requiring debt finance 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 2006-2007 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.