S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4605--A
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             February 17, 2023
                                ___________
 
 Introduced  by  M.  of A. BICHOTTE HERMELYN -- read once and referred to
   the Committee on Banks -- recommitted to the  Committee  on  Banks  in
   accordance  with Assembly Rule 3, sec. 2 -- committee discharged, bill
   amended, ordered reprinted as amended and recommitted to said  commit-
   tee

 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:
 
   Section 1.  The state finance law is amended by adding a  new  section
 99-rr to read as follows:
   §  99-RR.  STATE FINANCIAL LITERACY FUND. 1. NOTWITHSTANDING ANY OTHER
 PROVISION OF LAW, RULE, REGULATION, OR PRACTICE TO THE  CONTRARY,  THERE
 IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER, THE
 ATTORNEY  GENERAL, AND COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE
 KNOWN AS THE "STATE FINANCIAL LITERACY FUND".
   2. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING  TERMS  SHALL  HAVE
 THE FOLLOWING MEANINGS:
   A.  "FINANCIAL CAPABILITY" MEANS: (I) FINANCIAL LITERACY AND ACCESS TO
 APPROPRIATE FINANCIAL PRODUCTS; AND
   (II)(A) THE ABILITY TO ACT, INCLUDING KNOWLEDGE,  SKILLS,  CONFIDENCE,
 AND MOTIVATION; AND
   (B)  THE  OPPORTUNITY  TO  ACT, THROUGH ACCESS TO BENEFICIAL FINANCIAL
 PRODUCTS AND INSTITUTIONS.
   B. "FINANCIAL LITERACY" MEANS THE ABILITY TO USE KNOWLEDGE AND  SKILLS
 TO  MANAGE  FINANCIAL  RESOURCES EFFECTIVELY FOR A LIFETIME OF FINANCIAL
 WELL-BEING.
   C. "ORGANIZATION" MEANS A STATE AGENCY, STATE AUTHORITY OR  AN  ORGAN-
 IZATION  THAT  POSSESSES A FEDERAL TAX EXEMPTION UNDER SECTION 501(C)(3)
 OF THE UNITED STATES INTERNAL REVENUE CODE.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02476-03-4
 A. 4605--A                          2
              

 
   D. "UNBANKED" MEANS AN INDIVIDUAL NOT SERVED BY AN INSURED INSTITUTION
 IN ANY CAPACITY.
   E.  "UNDERBANKED"  MEANS  AN  INDIVIDUAL WITH AN ACCOUNT AT AN INSURED
 INSTITUTION  BUT  WHO  HAS  OBTAINED  ALTERNATIVE,  NONBANK,   FINANCIAL
 SERVICES IN THE PAST TWELVE MONTHS.
   3.  SUCH  FUND SHALL CONSIST OF ALL MONEYS COLLECTED BY THE STATE FROM
 COURTS OF THE UNIFIED COURT SYSTEM PURSUANT TO  ARTICLE  TWENTY-FOUR  OF
 THE INSURANCE LAW AND ALL OTHER MONEYS APPROPRIATED, CREDITED, OR TRANS-
 FERRED THERETO FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW. THE MONEYS
 IN  THE  STATE  FINANCIAL  LITERACY FUND SHALL BE KEPT SEPARATE FROM AND
 SHALL NOT BE COMMINGLED WITH ANY OTHER MONEYS  IN  THE  CUSTODY  OF  THE
 STATE COMPTROLLER.
   4.  BEGINNING ON APRIL FIRST, TWO THOUSAND TWENTY-FIVE AND ANNUALLY ON
 APRIL FIRST EACH YEAR THEREAFTER, THE ATTORNEY GENERAL SHALL TRANSFER  A
 SUM UP TO ONE MILLION DOLLARS, SUBJECT TO AVAILABLE FUNDING, FROM MONEYS
 PURSUANT TO SUBDIVISION THREE OF THIS SECTION.
   5. MONEYS OF SUCH FUND SHALL BE MADE AVAILABLE TO THE ATTORNEY GENERAL
 AND  SHALL  BE USED FOR PROJECT GRANTS TO DULY APPLYING ORGANIZATIONS TO
 ESTABLISH  FINANCIAL  CAPABILITY  AND   FINANCIAL   LITERACY   PROGRAMS,
 PRODUCTS,  CONTENT  AND/OR SERVICES FOR AT-RISK POPULATIONS IN NEW YORK.
 THE ATTORNEY GENERAL SHALL ESTABLISH THE APPLICATION CRITERIA  FOR  SUCH
 ORGANIZATIONS FOR THE PURPOSES OF THE FUND AS DEFINED IN THIS SECTION.
   6.  MONEYS  IN SUCH FUND SHALL ONLY BE EXPENDED FOR A GRANT TO PROVIDE
 THE FOLLOWING FINANCIAL  CAPABILITY  AND  FINANCIAL  LITERACY  PROGRAMS,
 PRODUCTS, CONTENT AND/OR SERVICES:
   A.  TO DESIGN, DEVELOP AND/OR OFFER FREE CLASSROOM OR WEB BASED FINAN-
 CIAL EDUCATION CONTENT INTENDED  TO  HELP  AN  UNBANKED  OR  UNDERBANKED
 CONSUMER  (I) ACHIEVE, IDENTIFY AND ACCESS LOWER COST FINANCIAL PRODUCTS
 AND SERVICES; (II) ESTABLISH OR IMPROVE  THEIR  CREDIT;  (III)  INCREASE
 THEIR SAVING OR RETIREMENT FUNDS; OR (IV) LOWER THEIR DEBT;
   B.  TO  PROVIDE INDIVIDUALIZED, FREE FINANCIAL COACHING TO AN UNBANKED
 OR UNDERBANKED CONSUMER;
   C. TO DESIGN, DEVELOP AND/OR  OFFER  FREE  FINANCIAL  PRODUCTS  AND/OR
 SERVICES  INTENDED TO HELP AN UNBANKED OR UNDERBANKED CONSUMER (I) IDEN-
 TIFY AND ACCESS RESPONSIBLE FINANCIAL PRODUCTS AND SERVICES; (II) ESTAB-
 LISH OR IMPROVE THEIR CREDIT; (III) INCREASE THEIR SAVING OR  RETIREMENT
 FUNDS; OR (IV) LOWER THEIR DEBT; OR
   D. TO DESIGN, DEVELOP AND/OR OFFER FREE CLASSROOM-BASED PROGRAMS TO BE
 IMPLEMENTED  IN  THE  STATE  EDUCATION  SYSTEM TO INCREASE THE FINANCIAL
 CAPABILITY AND FINANCIAL EDUCATION OF THE STATE'S YOUTH.
   7. A. EVERY ORGANIZATION AWARDED A  PROJECT  GRANT  PURSUANT  TO  THIS
 SECTION SHALL:
   (I) PROMOTE AND ENHANCE THE ECONOMIC SECURITY OF CONSUMERS;
   (II)  INCLUDE AN EVALUATION COMPONENT WHICH IS DESIGNED TO MEASURE AND
 DOCUMENT THE EXTENT TO WHICH SUCH PROJECT ACHIEVED ITS INTENDED  OUTCOME
 AND  INCREASED  FINANCIAL  WELL-BEING  OF  CONSUMERS  WHO  UTILIZED SUCH
 PROJECT; AND
   (III) SUBMIT AN ANNUAL REPORT TO THE ATTORNEY GENERAL DOCUMENTING:
   (A) THE SPECIFIC USES TO WHICH SUCH FUNDS WERE ALLOCATED;
   (B) THE NUMBER OF INDIVIDUAL CONSUMERS AIDED THROUGH THE USE  OF  SUCH
 FUNDS;
   (C)  THE  QUANTITATIVE  RESULTS  REGARDING  THE IMPACT OF SUCH PROJECT
 GRANT; AND
   (D) ANY OTHER INFORMATION REQUESTED BY THE ATTORNEY GENERAL.
 A. 4605--A                          3
 
   B. FAILURE TO SUBMIT A REPORT PURSUANT TO SUBPARAGRAPH (III) OF  PARA-
 GRAPH  A  OF  THIS SUBDIVISION SHALL RENDER SUCH ORGANIZATION INELIGIBLE
 FOR PROJECT GRANT FUNDING DURING THE SUBSEQUENT FISCAL YEAR.
   C. THE ATTORNEY GENERAL SHALL POST ANNUALLY ON THEIR WEBSITE A SUMMARY
 OF  THE  ANNUAL REPORTS RECEIVED PURSUANT TO SUBPARAGRAPH (III) OF PARA-
 GRAPH A OF THIS SUBDIVISION.
   8. THE MONEYS SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT
 OF THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSION-
 ER OF THE DIVISION OF HUMAN RIGHTS.
   §  2.  The  education  law is amended by adding a new section 803-c to
 read as follows:
   § 803-C. INSTRUCTION RELATING TO FINANCIAL LITERACY. 1. THE DEPARTMENT
 SHALL REQUIRE THAT A SCHOOL DISTRICT INCORPORATE INTO THE SOCIAL STUDIES
 CURRICULUM FOR EACH OF THE GRADES KINDERGARTEN THROUGH  EIGHT  FINANCIAL
 LITERACY INSTRUCTION FOR PUPILS ENROLLED IN SUCH GRADES.  THE PURPOSE OF
 SUCH  INSTRUCTION  SHALL BE TO PROVIDE STUDENTS WITH THE BASIC FINANCIAL
 LITERACY NECESSARY FOR SOUND FINANCIAL DECISION-MAKING.
   2. THE INSTRUCTION SHALL MEET  THE  REQUIREMENTS  ESTABLISHED  BY  THE
 DEPARTMENT AND SHALL:
   A.  BE  APPROPRIATE  TO, AND REFLECT THE AGE AND COMPREHENSION OF, THE
 STUDENTS ENROLLED IN THE PARTICULAR GRADE LEVEL; AND
   B. INCLUDE CONTENT ASSOCIATED WITH PERSONAL  FINANCIAL  RESPONSIBILITY
 AS DETERMINED BY THE DEPARTMENT.
   3.  THE  COMMISSIONER  SHALL  PROVIDE  SCHOOL  DISTRICTS  WITH  SAMPLE
 INSTRUCTIONAL MATERIALS AND RESOURCES THAT MAY BE USED  TO  SUPPORT  THE
 IMPLEMENTATION OF THE FINANCIAL LITERACY INSTRUCTION REQUIREMENT.
   §  3.  Section  305  of  the  education law is amended by adding a new
 subdivision 57 to read as follows:
   57. THE COMMISSIONER IS AUTHORIZED TO  DEVELOP  A  CONCISE  COURSE  OF
 INSTRUCTION  IN FINANCIAL LITERACY AND PERSONAL FINANCIAL MANAGEMENT AND
 REQUIRE THAT SUCH COURSE BE COMPLETED BY STUDENTS  PRIOR  TO  GRADUATION
 FROM  HIGH  SCHOOL.  SUCH COURSE OF INSTRUCTION MAY BE INCORPORATED INTO
 OTHER CLASS WORK OR COURSES OF INSTRUCTION PROVIDED  TO  SUCH  STUDENTS.
 THE  FINANCIAL  LITERACY  COURSE  SHALL  INCLUDE CONTENT ASSOCIATED WITH
 PERSONAL  FINANCIAL  RESPONSIBILITY,  FINANCIAL  LITERACY  AND  PERSONAL
 FINANCIAL MANAGEMENT AS DETERMINED BY THE COMMISSIONER.
   § 4. This act shall take effect immediately.