[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1532 Introduced in Senate (IS)]
1st Session
S. 1532
To establish the Financial Literacy Commission, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 31 (legislative day, July 21), 2003
Ms. Stabenow (for herself, Mr. Enzi, Mr. Johnson, Mr. Hagel, Mr.
Schumer, Mr. Bayh, Mr. Carper, and Mr. Corzine) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To establish the Financial Literacy Commission, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Financial Literacy Community
Outreach Act''.
SEC. 2. FINDINGS.
Congress finds that--
(1) although the evolution of our financial system has
offered families in the United States many new opportunities to
build wealth and security, the ready availability of credit, an
overwhelming array of investment and savings options, and the
shifting of responsibility for retirement savings from employer
to employee has made the understanding of personal finance ever
more important;
(2) many young adults within the United States have
demonstrated difficulty understanding basic financial concepts;
(3) in surveys of high school seniors conducted by the
JumpStart Coalition for Personal Financial Literacy--
(A) in 1997 participants, on average, failed, and
answered only 57 percent of the questions correctly;
(B) in 2000, the average score fell to 51 percent;
and
(C) in 2002, disturbingly, on average, only 50
percent of the questions were answered correctly;
(4) in a survey of consumers 18 years and older conducted
by the American Association of Retired Persons in late 1998,
only 11 percent of respondents correctly answered 4 basic
financial questions;
(5) a similar survey of 800 defined benefit contribution
plan participants conducted by John Hancock in 2002 found that
50 percent of respondents said they spend half an hour or less
per month managing their retirement funds;
(6) households in the United States are not reaching their
full potential in financial management, and as a result--
(A) the personal savings rate fell to only 1.6
percent of disposable income in 2001;
(B) from 1990 to 2000, outstanding credit card debt
among households more than tripled from
$200,000,000,000 to $600,000,000,000;
(C) in 2001, the total household debt exceeded
total household disposable income by nearly 10 percent;
(D) less than half of all households hold stock in
any form, including mutual funds and 401(k)-style
pension plans; and
(E) almost half of all workers have accumulated
less than $50,000 for their retirement, and \1/3\ have
saved less than $10,000;
(7) many Government agencies recognize that the people of
the United States lack expertise in financial literacy and are
working to help them, including efforts by--
(A) the Department of Labor and the Federal Deposit
Insurance Corporation, which have joined together to
create ``Money Smart'', a training program to help
adults enhance their money-management skills;
(B) the Department of the Treasury, which has
formed the ``Financial Services Education Council'',
and has published a guide called ``Helping People in
Your Community Understand Basic Financial Services'';
(C) the Department of the Treasury in promoting a
middle school curriculum called ``Money Math: Lessons
for Life'';
(D) the Federal Trade Commission, which publishes
information about credit, including ``Credit Matters:
How to qualify for credit, keep a good credit history,
and protect your credit'';
(E) the Department of Agriculture, which runs the
``Family Economics Program'' to assist educators who
deliver basic consumer education and teach personal
financial management skills to young people;
(F) the Securities and Exchange Commission, which
has an Office of Investor Education and Assistance;
(G) the Board of Governors of the Federal Reserve
System, which has developed materials explaining how to
use credit responsibly, obtain a mortgage, build
wealth, and lease a car;
(H) the Department of Housing and Urban Development
in funding housing counseling agencies nationwide that
provide advice on how to save for and buy a home; and
(I) the Government Services Administration in
hosting the Federal Consumer Information Center, which
has an electronic catalogue of information about
Federal financial literacy programs;
(8) there is very little coordination among Federal
programs, resulting in duplication of effort and a confusing
array of information spread among many agencies;
(9) there is a serious problem with financial illiteracy
among many low-income consumers, who often--
(A) do not have a relationship with a mainstream
financial services provider;
(B) lack experience and information about personal
finance; and
(C) are ill-prepared to make informed financial
decisions;
(10) many people in the United States--
(A) are in a precarious financial position because
they lack an understanding of economic and financial
fundamentals and of financial planning;
(B) are forgoing opportunities to build wealth by
failing to target their investments to higher yielding,
yet secure savings vehicles; and
(C) are failing to adequately plan and save for
retirement; and
(11) financial literacy is the foundation that supports--
(A) economic independence for the citizens of the
United States; and
(B) the functioning of our free market economy.
SEC. 3. DEFINITIONS.
As used in this Act--
(1) the term ``Commission'' means the Financial Literacy
Commission established under section 101; and
(2) the term ``financial literacy'' means basic personal
income and household money management and planning skills,
including--
(A) saving and investing;
(B) building wealth;
(C) managing spending, credit, and debt
effectively;
(D) tax and estate planning;
(E) the ability to ascertain fair and favorable
credit terms and avoid abusive, predatory, or deceptive
credit offers;
(F) the ability to understand, evaluate, and
compare financial products, services, and
opportunities; and
(G) all other related skills.
TITLE I--FINANCIAL LITERACY COMMISSION
SEC. 101. ESTABLISHMENT OF FINANCIAL LITERACY COMMISSION.
(a) In General.--There is established a commission to be known as
the Financial Literacy Commission.
(b) Purpose.--The Commission shall serve to improve the financial
literacy of persons in the United States by overseeing, implementing,
and reporting upon the effects of the performance of the duties of the
Commission set forth in section 102.
(c) Membership.--
(1) Composition.--The Commission shall be composed of not
more than 19 members, including--
(A) the Comptroller of the Currency;
(B) the Secretary of Agriculture of the Department
of Agriculture;
(C) the Secretary of Education of the Department of
Education;
(D) the Secretary of Housing and Urban Development
of the Department of Housing and Urban Development;
(E) the Secretary of Labor of the Department of
Labor;
(F) the Secretary of the Treasury;
(G) the Chairman of the Federal Deposit Insurance
Corporation;
(H) the Chairman of the Board of Governors of the
Federal Reserve System;
(I) the Chairman of the Federal Trade Commission;
(J) the Administrator of General Services of the
General Services Administration;
(K) the Commissioner of the Internal Revenue
Service;
(L) the Chairman of the National Credit Union
Administration Board;
(M) the Director of the Office of Thrift
Supervision;
(N) the Chairman of the Securities and Exchange
Commission;
(O) the Administrator of the Small Business
Administration;
(P) the Commissioner of the Social Security
Administration; and
(Q) at the discretion of the President, not more
than 3 individuals appointed by the President from
among the administrative heads of any other Federal
agency, department, or other Government entity, whom
the President believes would be helpful in implementing
the purpose of the Commission.
(2) Designees.--The individuals referred to in paragraph
(1) may appoint a designee from within the department or agency
of that individual to serve as a member of the Commission.
(d) Federal Employee Requirement.--Each member of the Commission
shall be an officer or employee of the United States.
(e) Chairperson.--The Commission shall select a Chairperson from
among its members. The Secretary of the Treasury, or the designee
thereof under subsection (c)(2), shall chair the initial meeting of the
Commission.
(f) Vice Chairperson.--The Commission shall select a Vice
Chairperson from among its members.
(g) Vacancies.--Any vacancy in the Commission shall be filled in
the same manner as the original appointment or designation, as provided
under subsection (c).
(h) Initial Meeting.--The Commission shall hold its first meeting
not later than 60 days after the date of enactment of this Act.
(i) Meetings.--
(1) Semiannual meetings.--The Commission shall hold, at the
call of the Chairperson, 1 meeting every 6 months to conduct
necessary business. All such meetings shall be open to the
public.
(2) Discretionary meetings.--The Commission may hold, at
the call of the Chairperson, such other meetings as the
Chairperson sees fit to carry out this Act.
(j) Quorum.--A majority of the members of the Commission shall
constitute a quorum, but a lesser number of members may hold hearings.
(k) Executive Committee.--
(1) In general.--The Commission shall establish an
Executive Committee comprised of--
(A) the Chairperson;
(B) the Vice Chairperson; and
(C) 3 at-large members selected by the Commission
from among members appointed under subsection (c).
(2) Term.--Members of the Executive Committee selected
under paragraph (1)(C) shall serve for such time as determined
by the Commission.
(3) Meetings.--The Executive Committee shall hold, at the
call of the Chairperson, 1 meeting every 2 months to conduct
necessary administrative business.
(4) Quorum.--A majority of the members of the Executive
Committee shall constitute a quorum.
SEC. 102. DUTIES OF THE COMMISSION.
(a) In General.--The Commission, through the authority of the
members referred to in section 101(c), shall take such actions as it
deems necessary to streamline, improve, or augment the financial
literacy programs, materials, and grants of the Federal Government.
(b) Website.--
(1) In general.--The Commission shall establish and
maintain a website, and attempt to register the domain name
``FinancialLiteracy.gov'', or, if such domain name is not
available, a similar domain name.
(2) Purposes.--The website established under paragraph (1)
shall--
(A) serve as a clearinghouse of information about
Federal financial literacy programs;
(B) provide a coordinated entry point for accessing
information about all Federal publications, grants, and
materials promoting enhanced financial literacy;
(C) offer information on all Federal grants to
promote financial literacy, and offer information to
the public on how to target, apply for, and receive a
grant that is most appropriate under the circumstances;
(D) as the Commission considers appropriate,
feature website links to private sector efforts, such
as the JumpStart Coalition for Personal Financial
Literacy, and feature information about private sector
financial literacy programs, materials, or campaigns;
(E) highlight information about best practices for
teaching and promoting financial literacy; and
(F) offer such other information as the Commission
finds appropriate to share with the public in the
fulfillment of its purpose.
(c) Toll Free Hotline.--The Commission shall establish a toll-free
telephone number that shall be made available to members of the public
seeking information about issues pertaining to financial literacy.
(d) Development and Dissemination of Materials.--The Commission
shall--
(1) develop materials to promote financial literacy; and
(2) disseminate such materials to the general public.
(e) Administration of Grant Programs.--
(1) Authority.--The Commission shall be authorized to
establish and implement grant programs to promote financial
literacy.
(2) Eligibility.--Grants awarded under paragraph (1) may be
awarded to schools, non-profit organizations, units of general
local government, faith-based organizations, and such other
entities as determined eligible by the Commission.
(3) Preferences.--In awarding grants under paragraph (1),
the Commission shall--
(A) give preference to entities that have a
demonstrated record of serving communities with people
who have historically had either limited or no access
to financial literacy education; and
(B) to the extent practicable, award grants to as
many entities eligible under paragraph (2) as possible.
(f) Initial and Annual Reports.--
(1) Initial report.--
(A) In general.--Not later than 18 months after the
date of the first meeting of the Commission, the
Commission shall issue an initial report to the
Committee on Banking, Housing, and Urban Affairs of the
Senate and the Committee on Financial Services of the
House of Representatives on the progress of the
Commission in carrying out this Act.
(B) Contents.--The report required under
subparagraph (A) shall--
(i) identify all Federal programs,
materials, and grants which seek to improve
financial literacy, and assess the
effectiveness of such programs; and
(ii) identify all actions that the
Commission has taken to streamline, improve, or
augment the financial literacy programs,
materials, and grants of the Federal
Government.
(2) Annual report.--
(A) In general.--Not later than November 30 of each
year, the Commission shall submit to the Committee on
Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of
Representatives a report detailing the activities of
the Commission during the preceding fiscal year, and
making recommendations on ways to enhance financial
literacy in the United States.
(B) Contents.--The report required under
subparagraph (A) shall include--
(i) information concerning the content and
public use of the website established under
subsection (b);
(ii) information concerning the usage of
the toll-free telephone number established
under subsection (c);
(iii) summaries of the financial literacy
materials developed under subsection (d), and
data regarding the dissemination of such
materials;
(iv) information about the activities of
the Commission planned for the next fiscal
year;
(v) a summary of all Federal efforts to
reach out to communities that have historically
lacked access to financial literacy materials
and education; and
(vi) such other materials relating to the
duties of the Commission as the Commission
deems appropriate.
(g) Periodic Studies.--The Commission may conduct periodic studies
regarding the state of financial literacy in the United States, as the
Commission determines appropriate.
SEC. 103. POWERS OF THE COMMISSION.
(a) Hearings.--The Commission may hold such hearings, sit and act
at such times and places, take such testimony, and receive such
evidence as the Commission considers advisable to carry out this Act.
(b) Advisory Committees.--The Commission shall establish not fewer
than 1 advisory committee, consisting of representatives of lending
institutions, financial literacy nonprofit organizations, consumer
advocates, State and local governments, and such other individuals that
the Commission believes could contribute to the work of the Commission.
(c) Information From Federal Agencies.--The Commission may secure
directly from any Federal department or agency such information as the
Commission considers necessary to carry out this Act. Upon the request
of the Chairman, the head of such department or agency shall furnish
such information to the Commission.
(d) Gifts.--The Commission may accept, use, and dispose of gifts or
donations of services or property.
SEC. 104. COMMISSION PERSONNEL MATTERS.
(a) Compensation of Members.--Each member of the Commission shall
serve without compensation in addition to that received for their
service as an officer or employee of the United States.
(b) Travel Expenses.--The members of the Commission shall be
allowed travel expenses, including per diem in lieu of subsistence, at
rates authorized for employees of agencies under subchapter I of
chapter 57 of title 5, United States Code, while away from their homes
or regular places of business in the performance of services for the
Commission.
(c) Staff.--
(1) In general.--The Chairperson of the Commission may,
without regard to civil service laws and regulations, appoint
and terminate an executive director and such other additional
personnel as may be necessary to enable the Commission to
perform its duties. The employment of an executive director
shall be subject to confirmation by members of the Commission.
(2) Compensation.--The Chairperson of the Commission may
fix the compensation of the executive director and other
personnel without regard to the provisions of chapter 51 and
subchapter III of chapter 53 of title 5, United States Code,
relating to classification of positions and General Schedule
pay rates, except that the rate of pay for the executive
director and other personnel may not exceed the rate payable
for level V of the Executive Schedule under section 5316 of
title 5, United States Code.
(3) Detail of government employees.--Any Federal Government
employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption or
loss of civil service status or privilege.
(4) Temporary and intermittent services.--The Chairperson
of the Commission may procure temporary and intermittent
services under section 3109(b) of title 5, United States Code,
at rates for individuals which do not exceed the daily
equivalent of the annual rate of basic pay prescribed for level
V of the Executive Schedule under section 5316 of title 5,
United States Code.
SEC. 105. TERMINATION.
The Commission shall terminate on September 30, 2013.
SEC. 106. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission such sums
as may be necessary to carry out this Act, including administrative
expenses of the Commission.
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