101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
SB1661

 

Introduced 2/15/2019, by Sen. Dan McConchie

 

SYNOPSIS AS INTRODUCED:
 
105 ILCS 5/27-12.1  from Ch. 122, par. 27-12.1

    Amends the School Code. Provides that, beginning with the 2020-2021 school year, a school district required to offer a consumer education course may form a partnership with a local financial institution to establish a financial training program for all students in grade 12, regardless of the student's prior academic history; defines "financial institution". Provides that the program must be limited to one hour of financial training per week during the student's final semester before graduation and must be provided by a financial institution at no cost to the school district. Provides that the curriculum for the program must include, but is not limited to, (i) properly investing early, (ii) managing debt, including student loan debt, and (iii) saving for retirement.


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FISCAL NOTE ACT MAY APPLY
STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

 

 

A BILL FOR

 

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1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The School Code is amended by changing Section
527-12.1 as follows:
 
6    (105 ILCS 5/27-12.1)  (from Ch. 122, par. 27-12.1)
7    Sec. 27-12.1. Consumer education.
8    (a) Pupils in the public schools in grades 9 through 12
9shall be taught and be required to study courses which include
10instruction in the area of consumer education, including but
11not necessarily limited to (i) understanding the basic concepts
12of financial literacy, including consumer debt and installment
13purchasing (including credit scoring, managing credit debt,
14and completing a loan application), budgeting, savings and
15investing, banking (including balancing a checkbook, opening a
16deposit account, and the use of interest rates), understanding
17simple contracts, State and federal income taxes, personal
18insurance policies, the comparison of prices, higher education
19student loans, identity-theft security, and homeownership
20(including the basic process of obtaining a mortgage and the
21concepts of fixed and adjustable rate mortgages, subprime
22loans, and predatory lending), and (ii) understanding the roles
23of consumers interacting with agriculture, business, labor

 

 

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1unions and government in formulating and achieving the goals of
2the mixed free enterprise system. The State Board of Education
3shall devise or approve the consumer education curriculum for
4grades 9 through 12 and specify the minimum amount of
5instruction to be devoted thereto.
6    (b) (Blank).
7    (b-5) In this subsection, "financial institution" means
8any bank, savings and loan association or savings bank, or
9credit union established under the laws of this State or any
10other state or established under the laws of the United States
11or a licensee under the Consumer Installment Loan Act or the
12Sales Finance Agency Act.
13    Beginning with the 2020-2021 school year, a school district
14required to offer a consumer education course under this
15Section may form a partnership with a local financial
16institution to establish a financial training program for all
17students in grade 12, regardless of the student's prior
18academic history. After a student begins the program, a school
19district may impose conditions for his or her continued
20participation in the program. The program must be limited to
21one hour of financial training per week during the student's
22final semester before graduation and must be provided by a
23financial institution at no cost to the school district. The
24curriculum for the program must include, but is not limited to,
25(i) properly investing early, (ii) managing debt, including
26student loan debt, and (iii) saving for retirement. Nothing in

 

 

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1this subsection replaces the requirements of a consumer
2education course under subsection (a).
3    (c) The Financial Literacy Fund is created as a special
4fund in the State treasury. State funds and private
5contributions for the promotion of financial literacy shall be
6deposited into the Financial Literacy Fund. All money in the
7Financial Literacy Fund shall be used, subject to
8appropriation, by the State Board of Education to award grants
9to school districts for the following:
10        (1) Defraying the costs of financial literacy training
11    for teachers.
12        (2) Rewarding a school or teacher who wins or achieves
13    results at a certain level of success in a financial
14    literacy competition.
15        (3) Rewarding a student who wins or achieves results at
16    a certain level of success in a financial literacy
17    competition.
18        (4) Funding activities, including books, games, field
19    trips, computers, and other activities, related to
20    financial literacy education.
21    In awarding grants, every effort must be made to ensure
22that all geographic areas of the State are represented.
23    (d) A school board may establish a special fund in which to
24receive public funds and private contributions for the
25promotion of financial literacy. Money in the fund shall be
26used for the following:

 

 

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1        (1) Defraying the costs of financial literacy training
2    for teachers.
3        (2) Rewarding a school or teacher who wins or achieves
4    results at a certain level of success in a financial
5    literacy competition.
6        (3) Rewarding a student who wins or achieves results at
7    a certain level of success in a financial literacy
8    competition.
9        (4) Funding activities, including books, games, field
10    trips, computers, and other activities, related to
11    financial literacy education.
12    (e) The State Board of Education, upon the next
13comprehensive review of the Illinois Learning Standards, is
14urged to include the basic principles of personal insurance
15policies and understanding simple contracts.
16(Source: P.A. 99-284, eff. 8-5-15.)