Bill Text: IA HF28 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act adding one-half unit of personal finance literacy to the educational program standards established for school districts and accredited nonpublic schools, and including effective date provisions.
Spectrum: Partisan Bill (Republican 18-0)
Status: (Introduced - Dead) 2017-01-24 - Subcommittee: Carlin, Mommsen and Staed. H.J. 116. [HF28 Detail]
Download: Iowa-2017-HF28-Introduced.html
House File 28 - Introduced HOUSE FILE BY PETTENGILL, HIGHFILL, MAXWELL, FISHER, BACON, KOESTER, RIZER, R. TAYLOR, WILLS, BAUDLER, PAUSTIAN, HEARTSILL, COWNIE, WATTS, KLEIN, HINSON, ZUMBACH, and LANDON A BILL FOR 1 An Act adding one=half unit of personal finance literacy to 2 the educational program standards established for school 3 districts and accredited nonpublic schools, and including 4 effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1414YH (5) 87 kh/nh PAG LIN 1 1 Section 1. Section 256.11, subsection 5, Code 2017, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. k. One=half unit of personal finance 1 4 literacy. All students shall complete at least one=half unit 1 5 of personal finance literacy as a condition of graduation. The 1 6 curriculum shall meet the national standards in kindergarten 1 7 through grade twelve personal finance education created and 1 8 maintained by a national nonprofit coalition for personal 1 9 financial literacy, and at a minimum shall address the 1 10 following: 1 11 (1) Savings, including emergency fund, purchases, and 1 12 wealth building. 1 13 (2) Understanding investments, including compound and 1 14 simple interest, liquidity, diversification, risk return 1 15 ratio, certificates of deposit, money market accounts, single 1 16 stocks, bonds, mutual funds, rental real estate, annuities, 1 17 commodities, and futures. 1 18 (3) Wealth building and college planning, including 1 19 long=term and short=term investing using tax=favored plans, 1 20 individual retirement accounts and payments from such accounts, 1 21 employer=sponsored retirement plans and investments, public and 1 22 private educational savings accounts, and uniform gifts and 1 23 transfers to minors. 1 24 (4) Credit and debt, including credit cards, payday 1 25 lending, rent=to=own transactions, debt consolidation, 1 26 automobile leasing, cosigning a loan, debt avoidance, and the 1 27 marketing of debt, especially to young people. 1 28 (5) Consumer awareness of the power of marketing on buying 1 29 decisions including zero percent interest offers; marketing 1 30 methods, including product positioning, advertising, brand 1 31 recognition, and personal selling; how to read a credit report 1 32 and correct inaccuracies; how to build a credit score; how to 1 33 develop a plan to deal with creditors and avoid bankruptcy; and 1 34 the federal Fair Debt Collection Practices Act. 1 35 (6) Financial responsibility and money management, 2 1 including creating and living on a written budget and balancing 2 2 a checkbook; basic rules of successful negotiating and 2 3 techniques; and personality or other traits regarding money. 2 4 (7) Insurance, risk management, income, and career 2 5 decisions, including career choices that fit personality styles 2 6 and occupational goals, job search strategies, cover letters, 2 7 resumes, interview techniques, payroll taxes and other income 2 8 withholdings, and revenue sources for federal, state, and local 2 9 governments. 2 10 (8) Different types of insurance coverage including 2 11 renters, homeowners, automobile, health, disability, long=term 2 12 care, identity theft, and life insurance; term life, cash 2 13 value and whole life insurance; and insurance terms such 2 14 as deductible, stop loss, elimination period, replacement 2 15 coverage, liability, and out=of=pocket. 2 16 (9) Buying, selling, and renting advantages and 2 17 disadvantages relating to real estate, including adjustable 2 18 rate, balloon, conventional, government=backed, reverse, and 2 19 seller=financed mortgages. 2 20 Sec. 2. STATE MANDATE FUNDING SPECIFIED. In accordance 2 21 with section 25B.2, subsection 3, the state cost of requiring 2 22 compliance with any state mandate included in this Act shall 2 23 be paid by a school district from state school foundation aid 2 24 received by the school district under section 257.16. This 2 25 specification of the payment of the state cost shall be deemed 2 26 to meet all of the state funding=related requirements of 2 27 section 25B.2, subsection 3, and no additional state funding 2 28 shall be necessary for the full implementation of this Act 2 29 by and enforcement of this Act against all affected school 2 30 districts. 2 31 Sec. 3. EFFECTIVE DATE. This Act takes effect July 1, 2018. 2 32 EXPLANATION 2 33 The inclusion of this explanation does not constitute agreement with 2 34 the explanation's substance by the members of the general assembly. 2 35 This bill adds a one=half unit course in personal finance 3 1 literacy to the educational program each school district and 3 2 accredited nonpublic school is required to offer in grades 3 3 9=12, and requires all students to take the course as a 3 4 condition of graduation. 3 5 The curriculum must meet the national standards in K=12 3 6 personal finance education created and maintained by a national 3 7 nonprofit coalition for personal financial literacy, and at a 3 8 minimum must address areas described in the bill relating to 3 9 savings, understanding investments, wealth building and college 3 10 planning, credit and debt, consumer awareness of the power of 3 11 marketing on buying decisions, financial responsibility and 3 12 money management, insurance and risk management, income and 3 13 career decisions, different types of insurance coverage, and 3 14 real estate and mortgages. 3 15 The bill may include a state mandate as defined in Code 3 16 section 25B.3. The bill requires that the state cost of 3 17 any state mandate included in the bill be paid by a school 3 18 district from state school foundation aid received by the 3 19 school district under Code section 257.16. The specification 3 20 is deemed to constitute state compliance with any state mandate 3 21 funding=related requirements of Code section 25B.2. The 3 22 inclusion of this specification is intended to reinstate the 3 23 requirement of political subdivisions to comply with any state 3 24 mandates included in the bill. 3 25 The bill takes effect July 1, 2018. LSB 1414YH (5) 87 kh/nh
