House File 148 - Introduced HOUSE FILE 148 BY PETTENGILL , FISHER , ALONS , MAXWELL , HEIN , HESS , HEARTSILL , VANDER LINDEN , LANDON , SCHULTZ , and WATTS A BILL FOR An Act adding one-half unit of personal finance literacy to 1 the educational program standards established for school 2 districts and accredited nonpublic schools, making an 3 appropriation, and including effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1332YH (4) 85 kh/nh

H.F. 148 Section 1. Section 256.11, subsection 5, Code 2013, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . k. One-half unit of personal finance 3 literacy. All students shall complete at least one-half unit 4 of personal finance literacy as a condition of graduation. The 5 curriculum shall meet the national standards in kindergarten 6 through grade twelve personal finance education created and 7 maintained by a national nonprofit coalition for personal 8 financial literacy, and at a minimum shall address the 9 following: 10 (1) Savings, including emergency fund, purchases, and 11 wealth building. 12 (2) Understanding investments, including compound and 13 simple interest, liquidity, diversification, risk return 14 ratio, certificates of deposit, money market accounts, single 15 stocks, bonds, mutual funds, rental real estate, annuities, 16 commodities, and futures. 17 (3) Wealth building and college planning, including 18 long-term and short-term investing using tax-favored plans, 19 individual retirement accounts and payments from such accounts, 20 employer-sponsored retirement plans and investments, public and 21 private educational savings accounts, and uniform gifts and 22 transfers to minors. 23 (4) Credit and debt, including credit cards, payday 24 lending, rent-to-own transactions, debt consolidation, 25 automobile leasing, cosigning a loan, debt avoidance, and the 26 marketing of debt, especially to young people. 27 (5) Consumer awareness of the power of marketing on buying 28 decisions including zero percent interest offers; marketing 29 methods, including product positioning, advertising, brand 30 recognition, and personal selling; how to read a credit report 31 and correct inaccuracies; how to build a credit score; how to 32 develop a plan to deal with creditors and avoid bankruptcy; and 33 the federal Fair Debt Collection Practices Act. 34 (6) Financial responsibility and money management, 35 -1- LSB 1332YH (4) 85 kh/nh 1/ 4

H.F. 148 including creating and living on a written budget and balancing 1 a checkbook; basic rules of successful negotiating and 2 techniques; and personality and gender traits regarding money. 3 (7) Insurance, risk management, income, and career 4 decisions, including career choices that fit personality styles 5 and occupational goals, job search strategies, cover letters, 6 resumes, interview techniques, payroll taxes and other income 7 withholdings, and revenue sources for federal, state, and local 8 governments. 9 (8) Different types of insurance coverage including 10 renters, homeowners, automobile, health, disability, long-term 11 care, identity theft, and life insurance; term life, cash 12 value and whole life insurance; and insurance terms such 13 as deductible, stop loss, elimination period, replacement 14 coverage, liability, and out-of-pocket. 15 (9) Buying, selling, and renting advantages and 16 disadvantages relating to real estate, including adjustable 17 rate, balloon, conventional, government-backed, reverse, and 18 seller-financed mortgages. 19 Sec. 2. DEPARTMENT OF EDUCATION —— PERSONAL FINANCE 20 LITERACY COURSE BY IOWA LEARNING ONLINE INITIATIVE. There 21 is appropriated from the general fund of the state to the 22 department of education for the fiscal year beginning July 23 1, 2013, and ending June 30, 2014, the following amount, or 24 so much thereof as is necessary, to be used for the purposes 25 designated: 26 For purposes of implementing statewide online personal 27 finance literacy coursework to assist schools in meeting the 28 requirements of section 256.11, subsection 5, paragraph “k”, 29 if enacted, including but not limited to course curriculum, 30 assessments, materials, salaries, support, maintenance, and for 31 miscellaneous purposes: 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,400,000 33 Notwithstanding section 8.33, moneys appropriated in this 34 section that remain unencumbered or unobligated at the close of 35 -2- LSB 1332YH (4) 85 kh/nh 2/ 4

H.F. 148 the fiscal year shall not revert but shall remain available for 1 expenditure for the purposes designated until the close of the 2 succeeding fiscal year. 3 Sec. 3. EFFECTIVE DATE. The following provision or 4 provisions of this Act take effect July 1, 2014: 5 1. The section of this Act amending section 256.11. 6 EXPLANATION 7 This bill adds a one-half unit course in personal finance 8 literacy to the educational program each school district and 9 accredited nonpublic school is required to offer in grades 10 9-12, and requires all students to take the course as a 11 condition of graduation. 12 The bill appropriates $1.4 million from the general fund 13 of the state for FY 2013-2014 to the department of education 14 for implementing statewide online personal finance literacy 15 coursework under the department’s Iowa learning online 16 initiative to assist schools in meeting the requirement to add 17 one-half unit of personal finance literacy to the educational 18 program standards. 19 The curriculum must meet the national standards in K-12 20 personal finance education created and maintained by a national 21 nonprofit coalition for personal financial literacy, and at a 22 minimum must address areas described in the bill relating to 23 savings, understanding investments, wealth building and college 24 planning, credit and debt, consumer awareness of the power of 25 marketing on buying decisions, financial responsibility and 26 money management, insurance and risk management, income and 27 career decisions, different types of insurance coverage, and 28 real estate and mortgages. 29 The moneys appropriated do not revert at the end of the 30 fiscal year, but remain available for the purposes designated 31 until the end of FY 2014-2015. 32 The provision adding the one-half unit course in personal 33 finance literacy to the educational standards and requiring 34 students to take the course as a condition of graduation takes 35 -3- LSB 1332YH (4) 85 kh/nh 3/ 4