HF 458 (LSB 2537YH (2) 87)

HOUSE FILE 458

BY  JACOBY

A BILL FOR

An Act requiring the offering and completion of a personal finance literacy curriculum for high school students.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 256.11, subsection 5, Code 2017, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  k.  One-half unit of personal finance literacy. All students shall complete at least one-half unit of personal finance literacy as a condition of graduation. The personal finance literacy curriculum shall prioritize involvement of community financial management experts and the parents or guardians of students. The curriculum shall include, at a minimum, the following components:
   (1)  Providing an introduction to the financial planning process.
   (2)  Explaining the relationship between career and work factors and earning potential.
   (3)  Developing a personal spending and savings plan.
   (4)  Using and managing credit effectively.
   (5)  Describing risk management techniques and explaining the importance of protecting assets.
   (6)  Explaining the importance of saving and investing and the benefits of considering the time value of money when preparing a savings plan.
   (7)  Completing a personal financial plan.
    Sec. 2.  STATE MANDATE FUNDING SPECIFIED.  In accordance with section 25B.2, subsection 3, the state cost of requiring compliance with any state mandate included in this Act shall be paid by a school district from state school foundation aid received by the school district under section 257.16. This specification of the payment of the state cost shall be deemed to meet all of the state funding-related requirements of section 25B.2, subsection 3, and no additional state funding shall be necessary for the full implementation of this Act by and enforcement of this Act against all affected school districts.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill adds a one-half unit course in personal finance literacy to the educational program each school district and accredited nonpublic school is required to offer in grades 9-12, and requires all students to take the course as a condition of graduation. The personal finance literacy curriculum must prioritize involvement of community financial management experts and the parents or guardians of students. The bill provides minimum components of the personal finance literacy curriculum.
   The bill may include a state mandate as defined in Code section 25B.3. The bill requires that the state cost of any state mandate included in the bill be paid by a school district from state school foundation aid received by the school district under Code section 257.16. The specification is deemed to constitute state compliance with any state mandate funding-related requirements of Code section 25B.2. The inclusion of this specification is intended to reinstate the requirement of political subdivisions to comply with any state mandates included in the bill.