Financial Literacy 2012 Legislation

Last Updated: November 21, 2012

NCSL Staff Contact: Heather Morton, (303) 364-7700, Denver

The financial world in which consumers must navigate has changed significantly and grown more complex, increasing the need for financial literacy and raising questions regarding consumers’ financial capability. Financial literacy focuses on the specific knowledge and concepts consumers need to know to manage their money and build wealth, depending on an individual’s situation. It may mean learning how to create and manage a household budget, learning how to invest money for retirement, or participating in one-on-one coaching and counseling to determine how to buy a house or start a business. It also can be part of an overall strategy to increase economic security for lower-income families. Financial literacy is one factor in the larger analysis of the financial capability of consumers, which is the broader picture of how consumers manage their resources and how they use their financial literacy to make financial decisions. 

Twenty-seven states had legislation pending in the 2012 legislative session. Ten states—Delaware, Maryland, Michigan, Nebraska, New Jersey, Pennsylvania, Tennessee, Utah, Virginia and Washington—enacted legislation or passed resolutions regarding financial literacy. Delaware designated a week in May as Teen Financial Awareness Week. Michigan and Pennsylvania adopted resolutions declaring April as Financial Literacy Month. Nebraska created a fund to provide assistance to non-profits offering financial literacy to K-12 students. Maryland created a Financial Education and Capability Commission and required the state Department of Education to report specified information on the financial literacy COMAR certification process to the governor and the General Assembly. Tennessee extended its Financial Literacy Commission. Utah required an test-out option for its financial literacy requirement and set the fee for online financial literacy courses. Virginia included a requirement to complete an economics and personal finance course for its standard diploma. Washington established the Lifelong Learning Program at the Workforce Training and Education Coordinating Board to allow employees to create lifelong learning accounts and allowed the Board to work with financial institutions to encourage financial literacy training.

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STATE
BILL SUMMARY
Alabama
none
Alaska
none
Arizona

H.B. 2041
Requires each school district and charter school that provides instruction to high school pupils to provide a course in personal finance as part of the mathematics curriculum that includes information on the following: 1. The management of household living expenses. 2. Home financing, including residential lease agreements and mortgage financing. 3. Automobile financing and financial matters pertaining to other forms of transportation. 4. Various types of services offered by financial institutions, including debit cards, credit cards, checking accounts and savings accounts. 5. Retirement planning. Beginning in the 2013-2014 school year, a school district or charter school in this state shall not issue a high school diploma to A pupil unless that pupil completes and obtains a passing grade in a personal finance course as prescribed.

Arkansas
none
California

A.B. 32
Died pursuant to Art. IV, Sec. 10(c) of the Constitution 2/1/12
Require the Office of Small Business Advocate to establish a program that supports entrepreneurship as a form of economic development and job creation in communities throughout this state. The program shall accomplish the following objectives: (a) Provide for regional research and assessment of urban and suburban communities regarding their particular community assets, skills, and needs, and utilize that data to determine economic opportunities in individual communities. (b) Support access to capital for entrepreneurs in these communities, including, but not limited to, microfinance. (c) Provide information on financial literacy, including information that describes how to start a business and apply for licenses, as well as education on taxation and business structure, and ongoing support.

S.B. 696
Returned to secretary of Senate pursuant to Joint Rule 56 1/31/12
Existing law requires a school district, as part of its adopted course of study for grades 7 to 12, inclusive, to offer courses in specified areas of study, including, among others, social sciences, drawing upon the disciplines of anthropology, economics, geography, history, political science, psychology, and sociology. This bill encourages the instruction provided in economics to include instruction related to the understanding of personal finances, including, but not limited to, budgeting, savings, credit, and identity theft. The bill also makes several legislative findings and declarations.

S.B. 1080
Existing law requires a school district, as part of its adopted course of study for grades 7 to 12, inclusive, to offer courses in specified areas of study, including, among others, social sciences, drawing upon the disciplines of anthropology, economics, geography, history, political science, psychology, and sociology. This bill authorizes the instruction provided in economics to include instruction related to the understanding of personal finances, including, but not limited to, mathematics, budgeting, savings, credit, and identity theft. The bill requires the State Department of Education to develop a personal finances curriculum in the next cycle in which the mathematics and history-social science curricula frameworks are adopted. The bill also makes several legislative findings and declarations.

Colorado

S.B. 21
Postponed indefinitely 3/22/12
The bill creates a pilot program administered by the division of local government of the department of local affairs to distribute grants to counties to teach financial literacy classes to county residents.

S.B. 139
Postponed indefinitely 5/2/12
Currently, under the Colorado works program, the state board of human services defines "work activities" by rule. The bill expands the description of work activities to include financial education classes, participation in microenterprise training and self-employment, and time spent on agency appointments as well as travel to and from those appointments.

Connecticut

S.B. 305
Failed Joint Favorable deadline 3/28/12
Includes personal financial management in the prescribed courses of study in the public school curriculum.

S.B. 359
The bill requires the state Department of Education and the Board of Regents for Higher Education, in consultation with the Department of Banking, to (1) develop a plan to ensure that all students of public high schools, colleges, universities, and community technical colleges receive financial literacy instruction and (2) get any available federal, state, or private funds to implement the plan. They must present the plan to the Banks Committee by January 1, 2013.

Delaware

H.B. 273
This bill establishes a mandatory financial literacy program for high school seniors in all public schools, including charter schools. The secretary of the Department of Education and the state treasurer shall develop and agree upon the curriculum of the program.

H.C.R. 47
Adopted 5/16/12
This concurrent resolution proclaims the week of May 20 to May 26, 2012 as “Teen Financial Awareness Week” and requests school districts in the state to educate their students about financial awareness skills.

District of Columbia
none
Florida

H.B. 331
Died in Senate committee 3/9/12
S.B. 1010
Died on calendar 3/9/12
Requires the Next Generation Sunshine State Standards to include financial literacy in core curricular content of economics; includes study of financial literacy in public school required instruction; provides that credit requirement in economics for high school graduation includes instruction in financial literacy; replaces term "vocational-preparatory" instruction with term "applied academics for adult education" instruction with respect to adult general education; conforms provisions relating to career education programs; authorizes district school boards and Florida College System institution boards of trustees to vary certain intended learning outcomes; deletes certain courses as priorities in provision of adult education program academic services; requires students entering adult general education programs to complete "Action Steps to Employment" activities.

S.B. 2096
Died in committee 3/9/12
Includes substance abuse treatment, housing assistance, money management training, employment assistance, vocational education, and life skills training in the definition of community reentry services.

Georgia
none
Guam
not available
Hawaii

H.B. 2293
S.B. 2604
Creates the non-school-hour programs special fund as a dedicated source of funding for non-school-hour programs, including financial literacy programs. Makes appropriations from the non-school-hour programs special fund and the general fund for non-school-hour programs.

H.C.R. 7
Requests the addition of financial literacy education to the public school curriculum.

S.B. 2602
Directs the Department of Education to add a mandatory economic and financial management literacy course to the public high school curriculum.

S.C.R. 3
Requests the addition of financial literacy education to the public school curriculum.
Idaho

H.B. 424
Revises the duties of the state treasurer to allow the treasurer to promote financial literacy as appropriate.

Illinois
none
Indiana
none
Iowa

H.F. 2293
This bill requires the Division of Community Action Agencies of the Department of Human Rights to implement a financial literacy education program for clients of community action agencies. Code §216A.92, relating to the duties of the division, is amended to require the division to implement the program through the agencies for the clients of the agencies. The bill includes an FY 2012-2013 appropriation for purposes of the program. The appropriation has a nonreversion clause allowing unused funds to carry forward to be used for purposes of the program in the succeeding fiscal year.

H.F. 2456
The bill directs the Iowa Financial Literacy Program, which is a program within the office of the treasurer of state, to create a written informational and promotional pamphlet for the purpose of promoting the creation and use of Iowa educational savings plans. The pamphlet shall contain, at a minimum, a detailed explanation of an Iowa educational savings plan, instructions for opening a plan, and the tax and other benefits of a plan. The Iowa Financial Literacy Program is required to provide the pamphlet to the Department of Education. The Department of Education is required to provide a copy of the pamphlet to the parent or guardian of each child registering for kindergarten in this state.

Kansas

H.B. 2582
The bill allows the Securities commissioner to retain $250,000 in the Securities Act Fee Fund at the end of a fiscal year and eliminates the year end transfer to the State General Fund. The bill also authorizes new expenditures or transfers from the Securities Act Fee Fund for the following purpose: Provide additional funding for investor education programs by authorizing transfers up to $500,000 from the Securities Act Fee Fund to its Investor Education Fund. The State Finance Council would have the authority to increase the amount that is transferred to the Investor Education Fund, Securities Litigation Fund, or Securities Restitution Fund. The bill changes the focus of the Investor Education Program to inform the public about personal financial literacy and investments instead of the previous emphasis on prevention and detection of securities fraud. The bill also allows monies in the Investor Education Fund to be used for agency training expenses and for grants to public and private schools and universities located in Kansas for education in personal or business finance and related subjects.

H.B. 2645
Includes personal financial literacy program as a requirement for high school graduation.

H.B. 2770
The bill allows the Securities commissioner to retain $250,000 in the Securities Act Fee Fund at the end of a fiscal year and eliminates the year end transfer to the State General Fund. The bill also authorizes new expenditures or transfers from the Securities Act Fee Fund for the following purpose: Provide additional funding for investor education programs by authorizing transfers up to $750,000 from the Securities Act Fee Fund to its Investor Education Fund. The State Finance Council would have the authority to increase the amount that is transferred to the Investor Education Fund, Securities Litigation Fund, or Securities Restitution Fund. The bill changes the focus of the Investor Education Program to inform the public about personal financial literacy and investments instead of the previous emphasis on prevention and detection of securities fraud. The bill also allows monies in the Investor Education Fund to be used for agency training expenses and for grants to public and private schools and universities located in Kansas for education in personal or business finance and related subjects.

S.B. 349
The bill allows the Securities commissioner to retain $250,000 in the Securities Act Fee Fund at the end of a fiscal year and eliminates the year end transfer to the State General Fund. The bill also authorizes new expenditures or transfers from the Securities Act Fee Fund for the following purpose: Provide additional funding for investor education programs by authorizing transfers up to $500,000 from the Securities Act Fee Fund to its Investor Education Fund. The State Finance Council would have the authority to increase the amount that is transferred to the Investor Education Fund, Securities Litigation Fund, or Securities Restitution Fund. The bill changes the focus of the Investor Education Program to inform the public about personal financial literacy and investments instead of the previous emphasis on prevention and detection of securities fraud. The bill also allows monies in the Investor Education Fund to be used for agency training expenses and for grants to public and private schools and universities located in Kansas for education in personal or business finance and related subjects.

Kentucky
none
Louisiana
none
Maine
none
Maryland

H.B. 9
Signed by governor 5/2/12, Chapter 347
Requires the state Department of Education, on or before December 1, 2015, and every five years thereafter, to report specified information on the financial literacy COMAR certification process to the governor and the General Assembly concerning matters relating to student growth, health, and well-being; and encourages county boards of education to incorporate specified lessons into the county boards' health education curriculum.

H.B. 191
S.B. 307
Withdrawn from further consideration 2/28/12
Requires the state Board of Education to develop curriculum content for a course in financial literacy; requires each county board of education to implement the financial literacy curriculum content developed by the state Board in every high school in the county; and requires students to complete a course in financial literacy in order to graduate from high school.

H.B. 515
Signed by governor 5/22/12, Chapter 520
S.B. 476
Signed by governor 5/22/12, Chapter 519
Establishes the Financial Education and Capability Commission; provides for the composition, co-chairs, and staffing of the Commission; prohibits a member of the Commission from receiving specified compensation, but authorizes the reimbursement of specified expenses; requires the Commission to meet at least two times each year; requires the Commission to monitor the implementation of specified public and private initiatives and make specified recommendations.

Massachusetts
none
Michigan

H.B. 4988
Requires as part of the math credit required for Michigan merit curriculum 1/2 credit of financial literacy.

H.R. 217
Adopted 3/31/12
Declares April 2012 as Junior Achievement Financial Literacy Month in the state of Michigan.

S.B. 647
Requires as part of the math credit required for Michigan merit curriculum 1/2 credit of financial literacy.

S.B. 997
Deletes financial literacy from the Michigan Merit Curriculum.

S.R. 136
Adopted 4/17/12
Recognizes April 2012 as National Financial Literacy Month in the state of Michigan.

Minnesota
H.F. 2730
S.F. 2318
Renames the Ladder Out of Poverty Task Force to the Asset Development and Financial Literacy Task Force.
Mississippi

H.B. 31
Died in committee 3/6/12
Expands the grades in which school boards are authorized to implement a financial literacy program from grades 10 and 11 to grades 9 through 12.

H.B. 490
Died in committee 3/6/12
Authorizes school boards to implement a financial literacy curriculum for students in high school.

S.B. 2133
Died in committee 3/6/12
Authorizes and directs school boards to implement a financial literacy curriculum for students in high school.

Missouri

S.B. 791
This act creates the Small Loan Community Reinvestment Program to distribute grants to non-profits dedicated to community reinvestment in educational tutoring and development, financial literacy, early childhood development, youth mentoring, and senior services. The grants shall be used in geographic areas containing the highest concentration of payday and title loan lenders in the state as determined by the division of finance. The grants shall consist of moneys collected as a $1 surcharge on every payday and title loan which shall be deposited in the newly created Small Loan Community Reinvestment Fund. The director of the division of finance shall administer the program.

Montana
No Regular 2012 Session
Nebraska

L.B. 269
Signed by governor 3/7/12
Creates the Financial Literacy Cash Fund. Provides that the fund will be administered by the University of Nebraska and shall be used to provide assistance to nonprofit entities that offer financial literacy programs to students in grades kindergarten through 12. Any money in the fund available for investment shall be invested by the state investment officer pursuant to the Nebraska Capital Expansion Act and the Nebraska State Funds Investment Act.

Nevada
No Regular 2012 Session
New Hampshire

H.B. 1703
Failed to pass Senate 4/11/12
This bill requires the school board to develop and implement a policy that incorporates the foundations of financial literacy into the school curriculum and instruction.

New Jersey

A.B. 739
Establishes pilot program in Department of Education to provide instruction in personal finance to elementary school students.

A.B. 1746
Mandates education program for “at risk” mortgage borrowers as condition for residential purchase or refinance.

A.R. 59
Adopted 6/21/12
Urges institutions of higher education to offer a required undergraduate course on financial literacy.

New Mexico

S.B. 38
Makes an appropriation for foreclosure mitigation counseling for at-risk homeowners and creates and implements a home buyer education program.

New York

A.B. 9802
S.B. 1525
Provides that juniors and seniors at secondary schools and students at the state and city universities of New York must take a financial literacy course.

North Carolina
none
North Dakota
No Regular 2012 Session
Ohio
none
Oklahoma
none
Oregon
none
Pennsylvania

H.R. 581
Adopted 3/28/12
Designates the week of March 4 through 10, 2012, as "National Consumer Protection Week" in Pennsylvania and emphasizing the important role of consumer education in making smart financial decisions.

H.R. 653
Adopted 4/2/12
Recognizes the month of April 2012 as "Financial Literacy Month" in Pennsylvania.

Puerto Rico
none
Rhode Island
none
South Carolina
none
South Dakota
none
Tennessee

H.B. 1239
Withdrawn from further consideration 1/30/12
S.B. 824
Withdrawn from further consideration 1/25/12
Clarifies that any reserve balance remaining unexpended at the end of a fiscal year in the Tennessee financial literacy commission's account will not revert to the general fund but will remain available to be used by the commission for commission purposes.

H.B. 2530
Substituted 2/13/12
S.B. 2326
Signed by governor 2/28/12, Public Chapter 527
Extends the Tennessee financial literacy commission, June 30, 2017.

H.B. 3835
Signed by governor 5/15/12, Public Chapter 1029
S.B. 3768
Makes appropriations for fiscal years beginning July 1, 2011, and July 1, 2012, including for the financial literacy program.

Texas
No Regular 2012 Session
Utah

H.B. 156
Signed by governor 3/26/12, Chapter 398
This bill requires the state Board of Education to provide a general financial literacy test-out option.

S.B. 178
Signed by governor 3/20/12, Chapter 238
Sets the fee for online courses, including financial literacy.

Vermont
none
Virginia

H.B. 1061
Signed by governor 3/30/12, Chapter 454
S.B. 489
Signed by governor 4/5/12, Chapter 642
Directs the Board of Education to modify the credits necessary for a student to earn a standard or an advanced studies diploma. The advanced studies diploma shall be the recommended diploma for students pursuing baccalaureate study. The standard diploma shall include a concentration in career and technical education and a requirement to earn a career and technical education credential and complete an economics and personal finance course. Standard or advanced studies diploma will require the successful completion of one virtual course. The modified standard diploma is eliminated, but the Board shall make provisions in regulation for students with disabilities to earn a standard diploma. The Board shall promulgate regulations to implement the provisions of this act to be effective within 280 days of its enactment.

Washington

H.B. 2268
Tasks the state Board of Education with establishing financial literacy as a high school graduation requirement. Provides that the financial literacy one-half credit requirement be within, and not in addition to, the total number of credits already required.

H.B. 2580
S.B. 6141
Signed by governor 3/7/12, Chapter 33
Establishes the Lifelong Learning Program at the Workforce Training and Education Coordinating Board (Board) to allow employees to create lifelong learning accounts (LiLAs). The program is voluntary for employers and employees. The Board may partner with financial institutions and nonprofits to develop operating procedures, ensure adequate marketing, and coordinate career counseling services. The Board may work with financial institutions to encourage their full engagement in activities, such as management of accounts and the provision of financial literacy training, that make the program successful. The Board may also develop program policies and system options.

H.B. 2634
Encourages K-12 students to spend at least two hours per week during summer breaks between school years and other breaks within the school year using online learning to improve their mathematics, science, and financial literacy skills. Requires the office of the superintendent of public instruction to: (1) Identify up to three free, open access online instructional programs in mathematics, science, and financial literacy; and (2) Establish a web page with direct links to the selected online instructional programs. Requires school districts to publicize the availability of the online instructional programs. Requires school districts, public libraries, institutions of higher education, the employment security department, and workforce development councils to post on the default homepage of their web site direct links to the identified online instructional programs.

H.B. 2802
Creates the Washington works corps program within the employment security department to provide unemployed individuals with the opportunity to perform needed services in communities throughout the state, including addressing unmet needs related to opportunities for economically disadvantaged individuals within communities including financial literacy, housing assistance, job training, and nutritional assistance. Authorizes the state finance committee to issue general obligation bonds to finance the Washington works corps program and all costs incidental thereto. Prohibits certain farmers from exempting more than $200,000 of business and occupation taxes in any calendar year. Requires the department of revenue to annually estimate the increase in state revenue for the prior calendar year resulting from the narrowing of the exemption mentioned above and certify the estimated amount to the state treasurer. Creates the debt-limit Washington works corps bond retirement account.

West Virginia

H.B. 4248
S.B. 337
Signed by governor 4/2/12, Chapter 17
Creates a special revenue account to be known as the "Consumer Education Fund", which may be expended by the commissioner to promote consumer awareness and understanding of issues related to residential mortgage lending; provides that 10 percent of all civil administrative penalties collected by the Division of Banking during each fiscal year shall be deposited into that account, which may be invested and retain all earnings and interest; and provides that at the end of each fiscal year, any remaining balance less than $500,000, including accrued interest, shall remain in the account and that any balance exceeding $500,000 shall revert to the General Revenue Fund.

Wisconsin

A.B. 340
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
This bill requires the Department of Financial Institutions (DFI) to promulgate rules prohibiting credit card issuers from doing the following: 1) offering a student at an institution of higher education (institution) any tangible item to induce the student to apply for a credit card or participate in an open-end credit plan offered by the issuer; or 2) engaging in any marketing of a credit card involving the physical presence of a representative of the issuer offering anything of value on the campus of an institution. Under the bill, “institution” has the same meaning as under a federal law dealing with similar issues as the bill, which includes public universities, private nonprofit universities, postsecondary proprietary schools, and postsecondary vocational schools. Before promulgating any of the foregoing rules, the bill requires DFI to consult with the Board of Regents of the University of Wisconsin (UW) System, the Technical College System Board, the Educational Approval Board, and representatives of private institutions. In addition, the bill requires each institution to provide information about financial literacy to its students on its Internet Web site and, if the institution offers an on-campus orientation program to new students, to provide the information to students during the orientation.

A.B. 631
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
This bill directs each school board to incorporate the state’s model academic standards for financial literacy into the curriculum in grades kindergarten to 12. The bill also requires the statewide standardized examinations to assess a pupil’s financial literacy to the same extent that they assess a pupil’s knowledge of mathematics, science, reading and writing, geography, or history. Finally, the bill requires that each institution and campus within the University of Wisconsin System, and each technical college district board, incorporate in its orientation program for newly entering students information on financial literacy.

S.B. 258
Failed to pass pursuant to Senate Joint Resolution 1 3/23/12
This bill requires the Department of Financial Institutions (DFI) to promulgate rules prohibiting credit card issuers from doing the following: 1) offering a student at an institution of higher education (institution) any tangible item to induce the student to apply for a credit card or participate in an open-end credit plan offered by the issuer; or 2) engaging in any marketing of a credit card involving the physical presence of a representative of the issuer offering anything of value on the campus of an institution. Under the bill, “institution” has the same meaning as under a federal law dealing with similar issues as the bill, which includes public universities, private nonprofit universities, postsecondary proprietary schools, and postsecondary vocational schools. Before promulgating any of the foregoing rules, the bill requires DFI to consult with the Board of Regents of the University of Wisconsin (UW) System, the Technical College System Board, the Educational Approval Board, and representatives of private institutions. In addition, the bill requires each institution to provide information about financial literacy to its students on its Internet Web site and, if the institution offers an on-campus orientation program to new students, to provide the information to students during the orientation.

Wyoming
none

 

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