House File 28 - Introduced HOUSE FILE 28 BY PETTENGILL , HIGHFILL , MAXWELL , FISHER , BACON , KOESTER , RIZER , R. TAYLOR , WILLS , BAUDLER , PAUSTIAN , HEARTSILL , COWNIE , WATTS , KLEIN , HINSON , ZUMBACH , and LANDON 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, and including 3 effective date provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1414YH (5) 87 kh/nh

H.F. 28 Section 1. Section 256.11, subsection 5, Code 2017, 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 1414YH (5) 87 kh/nh 1/ 3

H.F. 28 including creating and living on a written budget and balancing 1 a checkbook; basic rules of successful negotiating and 2 techniques; and personality or other 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. STATE MANDATE FUNDING SPECIFIED. In accordance 20 with section 25B.2, subsection 3, the state cost of requiring 21 compliance with any state mandate included in this Act shall 22 be paid by a school district from state school foundation aid 23 received by the school district under section 257.16. This 24 specification of the payment of the state cost shall be deemed 25 to meet all of the state funding-related requirements of 26 section 25B.2, subsection 3, and no additional state funding 27 shall be necessary for the full implementation of this Act 28 by and enforcement of this Act against all affected school 29 districts. 30 Sec. 3. EFFECTIVE DATE. This Act takes effect July 1, 2018. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill adds a one-half unit course in personal finance 35 -2- LSB 1414YH (5) 87 kh/nh 2/ 3

H.F. 28 literacy to the educational program each school district and 1 accredited nonpublic school is required to offer in grades 2 9-12, and requires all students to take the course as a 3 condition of graduation. 4 The curriculum must meet the national standards in K-12 5 personal finance education created and maintained by a national 6 nonprofit coalition for personal financial literacy, and at a 7 minimum must address areas described in the bill relating to 8 savings, understanding investments, wealth building and college 9 planning, credit and debt, consumer awareness of the power of 10 marketing on buying decisions, financial responsibility and 11 money management, insurance and risk management, income and 12 career decisions, different types of insurance coverage, and 13 real estate and mortgages. 14 The bill may include a state mandate as defined in Code 15 section 25B.3. The bill requires that the state cost of 16 any state mandate included in the bill be paid by a school 17 district from state school foundation aid received by the 18 school district under Code section 257.16. The specification 19 is deemed to constitute state compliance with any state mandate 20 funding-related requirements of Code section 25B.2. The 21 inclusion of this specification is intended to reinstate the 22 requirement of political subdivisions to comply with any state 23 mandates included in the bill. 24 The bill takes effect July 1, 2018. 25 -3- LSB 1414YH (5) 87 kh/nh 3/ 3