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.
                                                                   LBD01592-03-0

        A. 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.
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