SEC. 511. SHORT TITLE.
This title may be cited as the ‘‘Financial Literacy and Education
Improvement Act’’.
SEC. 512. DEFINITIONS.
As used in this title—
(1) the term ‘‘Chairperson’’ means the Chairperson of the
Financial Literacy and Education Commission; and
(2) the term ‘‘Commission’’ means the Financial Literacy
and Education Commission established under section 513.
SEC. 513. ESTABLISHMENT OF FINANCIAL LITERACY AND EDUCATION
COMMISSION.
(a) IN GENERAL.—There is established a commission to be
known as the ‘‘Financial Literacy and Education Commission’’.
(b) PURPOSE.—The Commission shall serve to improve the
financial literacy and education of persons in the United States
through development of a national strategy to promote financial
literacy and education.
(c) MEMBERSHIP.—
(1) COMPOSITION.—The Commission shall be composed of—
(A) the Secretary of the Treasury;
(B) the respective head of each of the Federal banking
agencies (as defined in section 3 of the Federal Deposit
Insurance Act), the National Credit Union Administration,
the Securities and Exchange Commission, each of the
Departments of Education, Agriculture, Defense, Health
and Human Services, Housing and Urban Development,
20 USC 9702.
20 USC 9701.
20 USC 9701
note.
Financial
Literacy and
Education
Improvement
Act.
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117 STAT. 2004 PUBLIC LAW 108–159—DEC. 4, 2003
Labor, and Veterans Affairs, the Federal Trade Commission,
the General Services Administration, the Small Business
Administration, the Social Security Administration,
the Commodity Futures Trading Commission, and the
Office of Personnel Management; and
(C) at the discretion of the President, not more than
5 individuals appointed by the President from among the
administrative heads of any other Federal agencies, departments,
or other Federal Government entities, whom the
President determines to be engaged in a serious effort
to improve financial literacy and education.
(2) ALTERNATES.—Each member of the Commission may
designate an alternate if the member is unable to attend a
meeting of the Commission. Such alternate shall be an individual
who exercises significant decisionmaking authority.
(d) CHAIRPERSON.—The Secretary of the Treasury shall serve
as the Chairperson.
(e) MEETINGS.—The Commission shall hold, at the call of the
Chairperson, at least 1 meeting every 4 months. All such meetings
shall be open to the public. The Commission may hold, at the
call of the Chairperson, such other meetings as the Chairperson
sees fit to carry out this title.
(f) QUORUM.—A majority of the members of the Commission
shall constitute a quorum, but a lesser number of members may
hold hearings.
(g) INITIAL MEETING.—The Commission shall hold its first
meeting not later than 60 days after the date of enactment of
this Act.
SEC. 514. DUTIES OF THE COMMISSION.
(a) DUTIES.—
(1) IN GENERAL.—The Commission, through the authority
of the members referred to in section 513(c), shall take such
actions as it deems necessary to streamline, improve, or augment
the financial literacy and education programs, grants,
and materials of the Federal Government, including curricula
for all Americans.
(2) AREAS OF EMPHASIS.—To improve financial literacy and
education, the Commission shall emphasize, among other elements,
basic personal income and household money management
and planning skills, including how to—
(A) create household budgets, initiate savings plans,
and make strategic investment decisions for education,
retirement, home ownership, wealth building, or other
savings goals;
(B) manage spending, credit, and debt, including credit
card debt, effectively;
(C) increase awareness of the availability and significance
of credit reports and credit scores in obtaining credit,
the importance of their accuracy (and how to correct inaccuracies),
their effect on credit terms, and the effect
common financial decisions may have on credit scores;
(D) ascertain fair and favorable credit terms;
(E) avoid abusive, predatory, or deceptive credit offers
and financial products;
(F) understand, evaluate, and compare financial products,
services, and opportunities;
20 USC 9703.
Deadline.
President.
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PUBLIC LAW 108–159—DEC. 4, 2003 117 STAT. 2005
(G) understand resources that ought to be easily accessible
and affordable, and that inform and educate investors
as to their rights and avenues of recourse when an investor
believes his or her rights have been violated by unprofessional
conduct of market intermediaries;
(H) increase awareness of the particular financial
needs and financial transactions (such as the sending of
remittances) of consumers who are targeted in multilingual
financial literacy and education programs and improve the
development and distribution of multilingual financial literacy
and education materials;
(I) promote bringing individuals who lack basic
banking services into the financial mainstream by opening
and maintaining an account with a financial institution;
and
(J) improve financial literacy and education through
all other related skills, including personal finance and
related economic education, with the primary goal of programs
not simply to improve knowledge, but rather to
improve consumers’ financial choices and outcomes.
(b) WEBSITE.—
(1) IN GENERAL.—The Commission shall establish and
maintain a website, such as the domain name
‘‘FinancialLiteracy.gov’’, or a similar domain name.
(2) PURPOSES.—The website established under paragraph
(1) shall—
(A) serve as a clearinghouse of information about Federal
financial literacy and education programs;
(B) provide a coordinated entry point for accessing
information about all Federal publications, grants, and
materials promoting enhanced financial literacy and education;
(C) offer information on all Federal grants to promote
financial literacy and education, and on how to target,
apply for, and receive a grant that is most appropriate
under the circumstances;
(D) as the Commission considers appropriate, feature
website links to efforts that have no commercial content
and that feature information about financial literacy and
education programs, materials, or campaigns; and
(E) offer such other information as the Commission
finds appropriate to share with the public in the fulfillment
of its purpose.
(c) TOLL-FREE HOTLINE.—The Commission shall establish a
toll-free telephone number that shall be made available to members
of the public seeking information about issues pertaining to financial
literacy and education.
(d) DEVELOPMENT AND DISSEMINATION OF MATERIALS.—The
Commission shall—
(1) develop materials to promote financial literacy and education;
and
(2) disseminate such materials to the general public.
(e) COORDINATION OF EFFORTS.—The Commission shall take
such steps as are necessary to coordinate and promote financial
literacy and education efforts at the State and local level, including
promoting partnerships among Federal, State, and local governments,
nonprofit organizations, and private enterprises.
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117 STAT. 2006 PUBLIC LAW 108–159—DEC. 4, 2003
(f) NATIONAL STRATEGY.—
(1) IN GENERAL.—The Commission shall—
(A) not later than 18 months after the date of enactment
of this Act, develop a national strategy to promote
basic financial literacy and education among all American
consumers; and
(B) coordinate Federal efforts to implement the
strategy developed under subparagraph (A).
(2) STRATEGY.—The strategy to promote basic financial literacy
and education required to be developed under paragraph
(1) shall provide for—
(A) participation by State and local governments and
private, nonprofit, and public institutions in the creation
and implementation of such strategy;
(B) the development of methods—
(i) to increase the general financial education level
of current and future consumers of financial services
and products; and
(ii) to enhance the general understanding of financial
services and products;
(C) review of Federal activities designed to promote
financial literacy and education, and development of a plan
to improve coordination of such activities; and
(D) the identification of areas of overlap and duplication
among Federal financial literacy and education activities
and proposed means of eliminating any such overlap
and duplication.
(3) NATIONAL STRATEGY REVIEW.—The Commission shall,
not less than annually, review the national strategy developed
under this subsection and make such changes and recommendations
as it deems necessary.
(g) CONSULTATION.—The Commission shall actively consult with
a variety of representatives from private and nonprofit organizations
and State and local agencies, as determined appropriate by
the Commission.
(h) REPORTS.—
(1) IN GENERAL.—Not later than 18 months after the date
of the first meeting of the Commission, and annually thereafter,
the Commission shall issue a report, the Strategy for Assuring
Financial Empowerment (‘‘SAFE Strategy’’), to the Committee
on Banking, Housing, and Urban Affairs of the Senate and
the Committee on Financial Services of the House of Representatives
on the progress of the Commission in carrying out this
title.
(2) CONTENTS.—The report required under paragraph (1)
shall include—
(A) the national strategy for financial literacy and education,
as described under subsection (f);
(B) information concerning the implementation of the
duties of the Commission under subsections (a) through
(g);
(C) an assessment of the success of the Commission
in implementing the national strategy developed under
subsection (f);
(D) an assessment of the availability, utilization, and
impact of Federal financial literacy and education materials;
Deadline.
Deadline.
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PUBLIC LAW 108–159—DEC. 4, 2003 117 STAT. 2007
(E) information concerning the content and public use
of—
(i) the website established under subsection (b);
and
(ii) the toll-free telephone number established
under subsection (c);
(F) a brief survey of the financial literacy and education
materials developed under subsection (d), and data
regarding the dissemination and impact of such materials,
as measured by improved financial decisionmaking;
(G) a brief summary of any hearings conducted by
the Commission, including a list of witnesses who testified
at such hearings;
(H) information about the activities of the Commission
planned for the next fiscal year;
(I) a summary of all Federal financial literacy and
education activities targeted to communities that have
historically lacked access to financial literacy materials
and education, and have been underserved by the mainstream
financial systems; and
(J) such other materials relating to the duties of the
Commission as the Commission deems appropriate.
(3) INITIAL REPORT.—The initial report under paragraph
(1) shall include information regarding all Federal programs,
materials, and grants which seek to improve financial literacy,
and assess the effectiveness of such programs.
(i) TESTIMONY.—The Commission shall annually provide testimony
by the Chairperson to the Committee on Banking, Housing,
and Urban Affairs of the Senate and the Committee on Financial
Services of the House of Representatives.
SEC. 515. POWERS OF THE COMMISSION.
(a) HEARINGS.—
(1) IN GENERAL.—The Commission shall hold such hearings,
sit and act at such times and places, take such testimony,
and receive such evidence as the Commission deems appropriate
to carry out this title.
(2) PARTICIPATION.—In hearings held under this subsection,
the Commission shall consider inviting witnesses from, among
other groups—
(A) other Federal Government officials;
(B) State and local government officials;
(C) consumer and community groups;
(D) nonprofit financial literacy and education groups
(such as those involved in personal finance and economic
education); and
(E) the financial services industry.
(b) INFORMATION FROM FEDERAL AGENCIES.—The Commission
may secure directly from any Federal department or agency such
information as the Commission considers necessary to carry out
this title. Upon request of the Chairperson, the head of such department
or agency shall furnish such information to the Commission.
(c) PERIODIC STUDIES.—The Commission may conduct periodic
studies regarding the state of financial literacy and education in
the United States, as the Commission determines appropriate.
(d) MULTILINGUAL.—The Commission may take any action to
develop and promote financial literacy and education materials
20 USC 9704.
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117 STAT. 2008 PUBLIC LAW 108–159—DEC. 4, 2003
in languages other than English, as the Commission deems appropriate,
including for the website established under section 514(b),
at the toll-free number established under section 514(c), and in
the materials developed and disseminated under section 514(d).
SEC. 516. COMMISSION PERSONNEL MATTERS.
(a) COMPENSATION OF MEMBERS.—Each member of the Commission
shall serve without compensation in addition to that received
for their service as an officer or employee of the United States.
(b) TRAVEL EXPENSES.—The members of the Commission shall
be allowed travel expenses, including per diem in lieu of subsistence,
at rates authorized for employees of agencies under subchapter
I of chapter 57 of title 5, United States Code, while away from
their homes or regular places of business in the performance of
services for the Commission.
(c) ASSISTANCE.—
(1) IN GENERAL.—The Director of the Office of Financial
Education of the Department of the Treasury shall provide
assistance to the Commission, upon request of the Commission,
without reimbursement.
(2) DETAIL OF GOVERNMENT EMPLOYEES.—Any Federal
Government employee may be detailed to the Commission without
reimbursement, and such detail shall be without interruption
or loss of civil service status or privilege.
SEC. 517. STUDIES BY THE COMPTROLLER GENERAL.
(a) EFFECTIVENESS STUDY.—Not later than 3 years after the
date of enactment of this Act, the Comptroller General of the
United States shall submit a report to Congress assessing the
effectiveness of the Commission in promoting financial literacy and
education.
(b) STUDY AND REPORT ON THE NEED AND MEANS FOR
IMPROVING FINANCIAL LITERACY AMONG CONSUMERS.—
(1) STUDY REQUIRED.—The Comptroller General of the
United States shall conduct a study to assess the extent of
consumers’ knowledge and awareness of credit reports, credit
scores, and the dispute resolution process, and on methods
for improving financial literacy among consumers.
(2) FACTORS TO BE INCLUDED.—The study required under
paragraph (1) shall include the following issues:
(A) The number of consumers who view their credit
reports.
(B) Under what conditions and for what purposes do
consumers primarily obtain a copy of their consumer report
(such as for the purpose of ensuring the completeness and
accuracy of the contents, to protect against fraud, in
response to an adverse action based on the report, or in
response to suspected identity theft) and approximately
what percentage of the total number of consumers who
obtain a copy of their consumer report do so for each
such primary purpose.
(C) The extent of consumers’ knowledge of the data
collection process.
(D) The extent to which consumers know how to get
a copy of a consumer report.
(E) The extent to which consumers know and understand
the factors that positively or negatively impact credit
scores.
Deadline.
Reports.
20 USC 9706.
20 USC 9705.
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PUBLIC LAW 108–159—DEC. 4, 2003 117 STAT. 2009
(3) REPORT REQUIRED.—Before the end of the 12-month
period beginning on the date of enactment of this Act, the
Comptroller General shall submit a report to Congress on the
findings and conclusions of the Comptroller General pursuant
to the study conducted under this subsection, together with
such recommendations for legislative or administrative action
as the Comptroller General may determine to be appropriate,
including recommendations on methods for improving financial
literacy among consumers.
SEC. 518. THE NATIONAL PUBLIC SERVICE MULTIMEDIA CAMPAIGN
TO ENHANCE THE STATE OF FINANCIAL LITERACY.
(a) IN GENERAL.—The Secretary of the Treasury (in this section
referred to as the ‘‘Secretary’’), after review of the recommendations
of the Commission, as part of the national strategy, shall develop,
implement, and conduct a pilot national public service multimedia
campaign to enhance the state of financial literacy and education
in the United States.
(b) PROGRAM REQUIREMENTS.—
(1) PUBLIC SERVICE CAMPAIGN.—The Secretary, after review
of the recommendations of the Commission, shall select and
work with a nonprofit organization or organizations that are
especially well-qualified in the distribution of public service
campaigns, and have secured private sector funds to produce
the pilot national public service multimedia campaign.
(2) DEVELOPMENT OF MULTIMEDIA CAMPAIGN.—The Secretary,
after review of the recommendations of the Commission,
shall develop, in consultation with nonprofit, public, or private
organizations, especially those that are well qualified by virtue
of their experience in the field of financial literacy and education,
to develop the financial literacy national public service
multimedia campaign.
(3) FOCUS OF CAMPAIGN.—The pilot national public service
multimedia campaign shall be consistent with the national
strategy, and shall promote the toll-free telephone number and
the website developed under this title.
(c) MULTILINGUAL.—The Secretary may develop the multimedia
campaign in languages other than English, as the Secretary deems
appropriate.
(d) PERFORMANCE MEASURES.—The Secretary shall develop
measures to evaluate the effectiveness of the pilot national public
service multimedia campaign, as measured by improved financial
decision making among individuals.
(e) REPORT.—For each fiscal year for which there are appropriations
pursuant to the authorization in subsection (e), the Secretary
shall submit a report to the Committee on Banking, Housing, and
Urban Affairs and the Committee on Appropriations of the Senate
and the Committee on Financial Services and the Committee on
Appropriations of the House of Representatives, describing the
status and implementation of the provisions of this section and
the state of financial literacy and education in the United States.
(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized
to be appropriated to the Secretary, not to exceed $3,000,000 for
fiscal years 2004, 2005, and 2006, for the development, production,
and distribution of a pilot national public service multimedia campaign
under this section.
20 USC 9707.
Deadline.
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117 STAT. 2010 PUBLIC LAW 108–159—DEC. 4, 2003
SEC. 519. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Commission
such sums as may be necessary to carry out this title, including
administrative expenses of the Commission.