House File 43HOUSE FILE BY PETTENGILL, KRESSIG, HUNTER, HORBACH, and QUIRK Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act adding one=half unit of personal finance literacy to the 2 education program school districts and accredited nonpublic 3 schools must offer in grades nine through twelve and providing 4 a future effective date. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1152HH 82 7 kh/sh/8 PAG LIN 1 1 Section 1. Section 256.11, subsection 5, Code 2007, is 1 2 amended by adding the following new paragraph: 1 3 NEW PARAGRAPH. k. One=half unit of personal finance 1 4 literacy, the curriculum of which shall include but not be 1 5 limited to the use of common banking instruments such as 1 6 checking accounts; credit; debit cards; compound interest; 1 7 mortgage, auto, and personal loans; investment basics, 1 8 including stocks, bonds, and index funds; credit scores; 1 9 budgeting; saving and debt management; retirement planning and 1 10 savings; and insurance. All students shall complete at least 1 11 one=half unit of personal finance literacy as a condition of 1 12 graduation. 1 13 Sec. 2. STATE MANDATE FUNDING SPECIFIED. In accordance 1 14 with section 25B.2, subsection 3, the state cost of requiring 1 15 compliance with any state mandate included in this Act shall 1 16 be paid by a school district from state school foundation aid 1 17 received by the school district under section 257.16. This 1 18 specification of the payment of the state cost shall be deemed 1 19 to meet all the state funding=related requirements of section 1 20 25B.2, subsection 3, and no additional state funding shall be 1 21 necessary for the full implementation of this Act by and 1 22 enforcement of this Act against all affected school districts. 1 23 Sec. 3. EFFECTIVE DATE. This Act takes effect July 1, 1 24 2008. 1 25 EXPLANATION 1 26 This bill adds a one=half unit course in personal finance 1 27 literacy to the educational program each school district and 1 28 accredited nonpublic school is required to offer in grades 1 29 nine through 12, and requires all students to take the course 1 30 as a condition of graduation. The personal finance curriculum 1 31 includes the use of common banking instruments such as 1 32 checking accounts; credit; debit cards; compound interest; 1 33 mortgage, auto, and personal loans; investment basics 1 34 including stocks, bonds, and index funds; credit scores; 1 35 budgeting; saving and debt management; retirement planning and 2 1 savings; and insurance. 2 2 The bill may include a state mandate as defined in Code 2 3 section 25B.3. The bill requires that the state cost of any 2 4 state mandate included in the bill be paid by a school 2 5 district from state school foundation aid received by the 2 6 school district under Code section 257.16. The specification 2 7 is deemed to constitute state compliance with any state 2 8 mandate funding=related requirements of Code section 25B.2. 2 9 The inclusion of this specification is intended to reinstate 2 10 the requirement of political subdivisions to comply with any 2 11 state mandates included in the bill. 2 12 The bill takes effect July 1, 2008. 2 13 LSB 1152HH 82 2 14 kh:nh/sh/8