[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6012 Introduced in House (IH)]
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116th CONGRESS
2d Session
H. R. 6012
To require the Director of the Bureau of Consumer Financial Protection
to establish a grant program to facilitate financial literacy programs,
and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 27, 2020
Mr. David Scott of Georgia (for himself, Mr. Stivers, Mrs. Beatty, Mr.
Hill of Arkansas, Ms. Dean, and Mr. Loudermilk) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To require the Director of the Bureau of Consumer Financial Protection
to establish a grant program to facilitate financial literacy programs,
and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Consumer Financial Education and
Empowerment Act''.
SEC. 2. FINANCIAL LITERACY GRANT PROGRAM.
(a) In General.--Not later than 1 year after the date of the
enactment of this Act, the Director of the Bureau of Consumer Financial
Protection shall establish a program to award grants on a competitive
basis to eligible entities to facilitate financial literacy programs as
described in subsection (d).
(b) Application Requirements.--To be eligible to be awarded a grant
under the program established under subsection (a), an eligible entity
shall submit an application to the Director at such time, in such
manner, and containing such information as the Director may require,
including information on--
(1) the curriculum and design of the financial literacy
program proposed by the eligible entity, including a
description of how such program meets the requirements of
subsection (d);
(2) expected participants in the proposed financial
literacy program;
(3) who is expected to be employed or otherwise involved
with the proposed financial literacy program, including--
(A) administrators;
(B) consultants; and
(C) financial advisors; and
(4) a prospective budget for the proposed financial
literacy program.
(c) Grants.--
(1) Amounts.--The Director shall determine the amount of
each grant awarded under the program established under
subsection (a).
(2) Term.--A grant awarded under the program established
under subsection (a) shall be for a term of 12 months.
(3) Considerations.--In awarding grants under the program
established under subsection (a), the Director may consider
whether the proposed financial literacy program of an applicant
would address the types of abuse that result in a penalty being
deposited into the Consumer Financial Civil Penalty Fund
established under section 1017(d) of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (12 U.S.C. 5497(d)).
(4) Renewal.--An eligible entity may apply to renew a grant
awarded under the program established under subsection (a) by
submitting to the Director a simplified renewal application
that shall receive expedited review.
(5) Bureau of consumer financial protection annual
financial literacy report.--In awarding grants under this
section, the Director shall consider information provided by
the annual report that is required under section 1013(d)(4) of
the Dodd-Frank Wall Street Reform and Consumer Protection Act
(12 U.S.C. 5493(d)(4)).
(d) Financial Literacy Program Described.--A financial literacy
program described in this subsection is a program that provides the
following:
(1) Instruction to participants, including individuals who
provide instruction with respect to financial literacy
education, on one or more of the following:
(A) Personal financial wellness.
(B) Credit and alternatives to credit.
(C) Management of student loan debt.
(D) Financial counseling for individuals who seek
to attend a college, university, or vocational school.
(E) Preparation for homeownership.
(F) Basic investing.
(G) Financial saving, planning, and management.
(H) Tax planning.
(I) Personal information security.
(J) Preparation for retirement.
(K) Entrepreneurship assistance or assistance in
starting a business.
(L) Other topics as determined by the Director.
(2) An in-person instruction component that--
(A) may be provided as a webinar, an in-classroom
experience, or one-on-one financial coaching;
(B) includes--
(i) live, real-time instruction; and
(ii) an opportunity for students to engage
with an instructor; and
(C) is not primarily comprised of self-taught
instruction.
(e) Funding.--
(1) In general.--The Director shall, in accordance with
section 1017(d) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (12 U.S.C. 5497(d)), use amounts in the
Consumer Financial Civil Penalty Fund to carry out this Act.
(2) Amounts.--To carry out this Act, the Director shall use
until expended not less than--
(A) in fiscal year 2021, $50,000,000; and
(B) in each allocation period starting after fiscal
year 2021, the lessor of--
(i) $25,000,000; or
(ii) after allocation to victims has been
determined for the prior allocation period, 50
percent of the remaining amounts collected
during the prior allocation period.
(3) Conforming amendment.--Section 1017(d)(2) of the Dodd-
Frank Wall Street Reform and Consumer Protection Act (12 U.S.C.
5497(d)(2)) is amended--
(A) by striking ``, the Bureau may use'' and
inserting ``, the Bureau--
``(A) may use'';
(B) by striking ``programs.'' and inserting
``programs; and''; and
(C) by adding at the end the following:
``(B) shall use such funds for the grant program
established by the Consumer Financial Education and
Empowerment Act.''.
(f) Financial Literacy and Education Commission Report.--Not later
than 2 years after the Director establishes the program under
subsection (a), and every 5 years thereafter, the Financial Literacy
and Education Commission shall submit to Congress and the Director a
report that provides recommendations on how to improve such program.
(g) Definitions.--In this section:
(1) Allocation period.--The term ``allocation period''
means the biannual allocation period of funds to a class of
victims that occurs according to the schedule established
pursuant to section 1075.105(b) of title 12, Code of Federal
Regulations (or any successor regulation).
(2) Commission.--The term ``Commission'' means the
Financial Literacy and Education Commission, established under
title V of the Fair and Accurate Credit Transactions Act of
2003 (20 U.S.C. 9701 et seq.).
(3) Director.--The term ``Director'' means the Director of
the Bureau of Consumer Financial Protection.
(4) Eligible entity.--The term ``eligible entity'' means--
(A) a State government, local government, or agency
of a State or local government; or
(B) a nonprofit organization that--
(i) has knowledge of personal financial
management;
(ii) has experience providing financial
education; and
(iii) has a history of achieving goals and
objectives of financial literacy programs.
(5) Nonprofit organization.--The term ``nonprofit
organization'' means an organization that is described in
section 501(c)(3) of the Internal Revenue Code of 1986 (26
U.S.C. 501(c)(3)) and is exempt from taxation under section
501(a) of such Code.
(6) State.--The term ``State'' means each State of the
United States, the District of Columbia, each territory or
possession of the United States, and each federally recognized
Indian Tribe.
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