Bill Text: NY A09141 | 2019-2020 | General Assembly | Amended
Bill Title: Establishes the state financial literacy fund.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-07-24 - print number 9141a [A09141 Detail]
Download: New_York-2019-A09141-Amended.html
STATE OF NEW YORK ________________________________________________________________________ 9141--A IN ASSEMBLY January 23, 2020 ___________ Introduced by M. of A. ABINANTI -- read once and referred to the Commit- tee on Banks -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the state finance law and the education law, in relation to establishing the state financial literacy fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The state finance law is amended by adding a new section 2 99-hh to read as follows: 3 § 99-hh. State financial literacy fund. 1. Notwithstanding any other 4 provision of law, rule, regulation, or practice to the contrary, there 5 is hereby established in the joint custody of the state comptroller, the 6 attorney general, and commissioner of taxation and finance a fund to be 7 known as the "state financial literacy fund". 8 2. For the purposes of this section, the following terms shall have 9 the following meanings: 10 a. "Financial capability" means: (i) financial literacy and access to 11 appropriate financial products; and 12 (ii)(A) the ability to act, including knowledge, skills, confidence, 13 and motivation; and 14 (B) the opportunity to act, through access to beneficial financial 15 products and institutions. 16 b. "Financial literacy" means the ability to use knowledge and skills 17 to manage financial resources effectively for a lifetime of financial 18 well-being. 19 c. "Organization" means a state agency, state authority or an organ- 20 ization that possesses a federal tax exemption under section 501(c)(3) 21 of the United States internal revenue code. 22 d. "Unbanked" means an individual not served by an insured institution 23 in any capacity. 24 e. "Underbanked" means an individual with an account at an insured 25 institution but who has obtained alternative, nonbank, financial 26 services in the past twelve months. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD01592-03-0A. 9141--A 2 1 3. Such fund shall consist of all moneys collected by the state from 2 courts of the unified court system pursuant to article twenty-four of 3 the insurance law and all other moneys appropriated, credited, or trans- 4 ferred thereto from any other fund or source pursuant to law. The moneys 5 in the state financial literacy fund shall be kept separate from and 6 shall not be commingled with any other moneys in the custody of the 7 state comptroller. 8 4. Beginning on April first, two thousand twenty-one and annually on 9 April first each year thereafter, the attorney general shall transfer a 10 sum up to one million dollars, subject to available funding, from moneys 11 pursuant to subdivision three of this section. 12 5. Moneys of such fund shall be made available to the attorney general 13 and shall be used for project grants to duly applying organizations to 14 establish financial capability and financial literacy programs, 15 products, content and/or services for at-risk populations in New York. 16 The attorney general shall establish the application criteria for such 17 organizations for the purposes of the fund as defined in this section. 18 6. Moneys in such fund shall only be expended for a grant to provide 19 the following financial capability and financial literacy programs, 20 products, content and/or services: 21 a. to design, develop and/or offer free classroom or web based finan- 22 cial education content intended to help an unbanked or underbanked 23 consumer (i) achieve, identify and access lower cost financial products 24 and services; (ii) establish or improve their credit; (iii) increase 25 their saving or retirement funds; or (iv) lower their debt; 26 b. to provide individualized, free financial coaching to an unbanked 27 or underbanked consumer; 28 c. to design, develop and/or offer free financial products and/or 29 services intended to help an unbanked or underbanked consumer (i) iden- 30 tify and access responsible financial products and services; (ii) estab- 31 lish or improve their credit; (iii) increase their saving or retirement 32 funds; or (iv) lower their debt; or 33 d. to design, develop and/or offer free classroom-based programs to be 34 implemented in the state education system to increase the financial 35 capability and financial education of the state's youth. 36 7. a. Every organization awarded a project grant pursuant to this 37 section shall: 38 (i) promote and enhance the economic security of consumers; 39 (ii) include an evaluation component which is designed to measure and 40 document the extent to which such project achieved its intended outcome 41 and increased financial well-being of consumers who utilized such 42 project; and 43 (iii) submit an annual report to the attorney general documenting: 44 (A) the specific uses to which such funds were allocated; 45 (B) the number of individual consumers aided through the use of such 46 funds; 47 (C) the quantitative results regarding the impact of such project 48 grant; and 49 (D) any other information requested by the attorney general. 50 b. Failure to submit a report pursuant to subparagraph (iii) of para- 51 graph a of this subdivision shall render such organization ineligible 52 for project grant funding during the subsequent fiscal year. 53 c. The attorney general shall post annually on their website a summary 54 of the annual reports received pursuant to subparagraph (iii) of para- 55 graph a of this subdivision.A. 9141--A 3 1 8. The moneys shall be payable from the fund on the audit and warrant 2 of the comptroller on vouchers approved and certified by the commission- 3 er of the division of human rights. 4 § 2. The education law is amended by adding a new section 803-c to 5 read as follows: 6 § 803-c. Instruction relating to financial literacy. 1. The department 7 shall require that a school district incorporate into the social studies 8 curriculum for each of the grades kindergarten through eight financial 9 literacy instruction for pupils enrolled in such grades. The purpose of 10 such instruction shall be to provide students with the basic financial 11 literacy necessary for sound financial decision-making. 12 2. The instruction shall meet the requirements established by the 13 department and shall: 14 a. be appropriate to, and reflect the age and comprehension of, the 15 students enrolled in the particular grade level; and 16 b. include content associated with personal financial responsibility 17 as determined by the department. 18 3. The commissioner shall provide school districts with sample 19 instructional materials and resources that may be used to support the 20 implementation of the financial literacy instruction requirement. 21 § 3. Section 305 of the education law is amended by adding a new 22 subdivision 57 to read as follows: 23 57. The commissioner is authorized to develop a concise course of 24 instruction in financial literacy and personal financial management and 25 require that such course be completed by students prior to graduation 26 from high school. Such course of instruction may be incorporated into 27 other class work or courses of instruction provided to such students. 28 The financial literacy course shall include content associated with 29 personal financial responsibility, financial literacy and personal 30 financial management as determined by the commissioner. 31 § 4. This act shall take effect immediately.