[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 813 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 813
To amend part A of title IV of the Social Security Act to require a
State to promote financial education under the temporary assistance to
needy families program and to allow financial education to count as a
work activity under that program.
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IN THE SENATE OF THE UNITED STATES
April 8, 2003
Mr. Corzine introduced the following bill; which was read twice and
referred to the Committee on FinanceYYYYYYYYYYYYYYYYYYYYYYYYYYY
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A BILL
To amend part A of title IV of the Social Security Act to require a
State to promote financial education under the temporary assistance to
needy families program and to allow financial education to count as a
work activity under that program.
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 ``TANF Financial Education Promotion
Act of 2003''.
SEC. 2. FINDINGS.
Congress makes the following findings:
(1) Most recipients of assistance under the temporary
assistance to needy families program established under part A
of title IV of the Social Security Act (42 U.S.C. 601 et seq.)
and individuals moving toward self-sufficiency operate outside
the financial mainstream, paying high costs to handle their
finances and saving little for emergencies or the future.
(2) Currently, personal debt levels and bankruptcy filing
rates are high and savings rates are at their lowest levels in
70 years. The inability of many households to budget, save, and
invest prevents them from laying the foundation for a secure
financial future.
(3) Financial planning can help families meet near-term
obligations and maximize their longer-term well being,
especially valuable for populations that have traditionally
been underserved by our financial system.
(4) Financial education can give individuals the necessary
financial tools to create household budgets, initiate savings
plans, and acquire assets.
(5) Financial education can prevent vulnerable customers
from becoming entangled in financially devastating credit
arrangements.
(6) Financial education that addresses abusive lending
practices targeted at specific neighborhoods or vulnerable
segments of the population can prevent unaffordable payments,
equity stripping, and foreclosure.
(7) Financial education speaks to the broader purpose of
the temporary assistance to needy families program to equip
individuals with the tools to succeed and support themselves
and their families in self-sufficiency.
SEC. 3. REQUIREMENT TO PROMOTE FINANCIAL EDUCATION UNDER TANF.
(a) State Plan.--Section 402(a)(1)(A) of the Social Security Act
(42 U.S.C. 602(a)(1)(A)) is amended by adding at the end the following:
``(vii) Establish goals and take action to
promote financial education, as defined in
section 407(j), among parents and caretakers
receiving assistance under the program through
collaboration with community-based
organizations, financial institutions, and the
Cooperative State Research, Education, and
Extension Service of the Department of
Agriculture.''.
(b) Inclusion of Financial Education as a Work Activity.--Section
407 of the Social Security Act (42 U.S.C 607) is amended--
(1) in subsection (c)(1)--
(A) in subparagraph (A), by striking ``or (12)''
and inserting ``(12), or (13)''; and
(B) in subparagraph (B), by striking ``or (12)''
each place it appears and inserting ``(12), or (13)'';
(2) in subsection (d)--
(A) in paragraph (11), by striking ``and'' at the
end;
(B) in paragraph (12), by striking the period and
inserting ``; and''; and
(C) by adding at the end the following:
``(13) financial education, as defined in subsection
(j).''; and
(3) by adding at the end the following:
``(j) Definition of Financial Education.--In this part, the term
`financial education' means education that promotes an understanding of
consumer, economic, and personal finance concepts, including the basic
principles involved with earning, budgeting, spending, saving,
investing, and taxation.''.
(c) Effective Date.--The amendments made by this section take
effect on October 1, 2003.
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