SB1661 101ST GENERAL ASSEMBLY

LRB101 09815 AXK 54917 b

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.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 5. The School Code is amended by changing Section 27-12.1 as follows:

(105 ILCS 5/27-12.1) (from Ch. 122, par. 27-12.1)

Sec. 27-12.1. Consumer education.

(a) Pupils in the public schools in grades 9 through 12 shall be taught and be required to study courses which include instruction in the area of consumer education, including but not necessarily limited to (i) understanding the basic concepts of financial literacy, including consumer debt and installment purchasing (including credit scoring, managing credit debt, and completing a loan application), budgeting, savings and investing, banking (including balancing a checkbook, opening a deposit account, and the use of interest rates), understanding simple contracts, State and federal income taxes, personal insurance policies, the comparison of prices, higher education student loans, identity-theft security, and homeownership (including the basic process of obtaining a mortgage and the concepts of fixed and adjustable rate mortgages, subprime loans, and predatory lending), and (ii) understanding the roles of consumers interacting with agriculture, business, labor unions and government in formulating and achieving the goals of the mixed free enterprise system. The State Board of Education shall devise or approve the consumer education curriculum for grades 9 through 12 and specify the minimum amount of instruction to be devoted thereto.

(b) (Blank).

(b-5) In this subsection, "financial institution" means any bank, savings and loan association or savings bank, or credit union established under the laws of this State or any other state or established under the laws of the United States or a licensee under the Consumer Installment Loan Act or the Sales Finance Agency Act.

Beginning with the 2020-2021 school year, a school district required to offer a consumer education course under this Section 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. After a student begins the program, a school district may impose conditions for his or her continued participation in the program. 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. 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. Nothing in this subsection replaces the requirements of a consumer education course under subsection (a).

(c) The Financial Literacy Fund is created as a special fund in the State treasury. State funds and private contributions for the promotion of financial literacy shall be deposited into the Financial Literacy Fund. All money in the Financial Literacy Fund shall be used, subject to appropriation, by the State Board of Education to award grants to school districts for the following:

(1) Defraying the costs of financial literacy training for teachers.

(2) Rewarding a school or teacher who wins or achieves results at a certain level of success in a financial literacy competition.

(3) Rewarding a student who wins or achieves results at a certain level of success in a financial literacy competition.

(4) Funding activities, including books, games, field trips, computers, and other activities, related to financial literacy education.

In awarding grants, every effort must be made to ensure that all geographic areas of the State are represented.

(d) A school board may establish a special fund in which to receive public funds and private contributions for the promotion of financial literacy. Money in the fund shall be used for the following:

(1) Defraying the costs of financial literacy training for teachers.

(2) Rewarding a school or teacher who wins or achieves results at a certain level of success in a financial literacy competition.

(3) Rewarding a student who wins or achieves results at a certain level of success in a financial literacy competition.

(4) Funding activities, including books, games, field trips, computers, and other activities, related to financial literacy education.

(e) The State Board of Education, upon the next comprehensive review of the Illinois Learning Standards, is urged to include the basic principles of personal insurance policies and understanding simple contracts.

(Source: P.A. 99-284, eff. 8-5-15.)