HOUSE BILL REPORT
SSB 5100
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As Passed House - Amended:
April 12, 2017
Title: An act relating to financial literacy information for students at institutions of higher education.
Brief Description: Requiring financial literacy seminars for students at institutions of higher education.
Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Bailey, Wilson, Angel, Zeiger and Darneille).
Brief History:
Committee Activity:
Higher Education: 3/21/17, 3/29/17 [DP];
Appropriations: 4/1/17, 4/4/17 [DP].
Floor Activity:
Passed House - Amended: 4/12/17, 83-15.
Brief Summary of Substitute Bill (As Amended by House) |
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HOUSE COMMITTEE ON HIGHER EDUCATION |
Majority Report: Do pass. Signed by 8 members: Representatives Hansen, Chair; Pollet, Vice Chair; Holy, Ranking Minority Member; Van Werven, Assistant Ranking Minority Member; Haler, Orwall, Stambaugh and Tarleton.
Minority Report: Without recommendation. Signed by 1 member: Representative Sells.
Staff: Megan Mulvihill (786-7304).
HOUSE COMMITTEE ON APPROPRIATIONS |
Majority Report: Do pass. Signed by 27 members: Representatives Ormsby, Chair; Robinson, Vice Chair; Chandler, Ranking Minority Member; Stokesbary, Assistant Ranking Minority Member; Bergquist, Buys, Cody, Fitzgibbon, Haler, Hansen, Harris, Hudgins, Jinkins, Kagi, Lytton, Nealey, Pettigrew, Pollet, Sawyer, Schmick, Senn, Springer, Stanford, Sullivan, Tharinger, Volz and Wilcox.
Minority Report: Do not pass. Signed by 5 members: Representatives MacEwen, Assistant Ranking Minority Member; Condotta, Manweller, Taylor and Vick.
Staff: Lily Sobolik (786-7157).
Background:
In 2012 the Legislature directed the Office of Student Financial Assistance, within the Washington Student Achievement Council (Council), to provide online financial aid counseling curriculum to all higher education institutions participating in the State Need Grant (SNG) program. The curriculum must include, but is not limited to:
an explanation of SNG program rules;
information on campus and private scholarships and work-study opportunities;
an overview of student loan options, repayment obligations, consequences of default, and sample monthly repayment amounts;
an overview of financial literacy, including basic money management skills;
average salaries for a wide range of jobs;
perspectives from a diverse group of students who are, or were, recipients of financial aid, including student loans; and
the contact information for local financial aid resources and the Federal Student Aid Ombudsman's Office.
The higher education institutions are required to take reasonable steps to ensure that each SNG recipient receives information by directly referencing or linking to a website on the Conditions of Award statement provided to each recipient. Institutions may also require non-SNG students to participate in all, or portions, of the counseling. The curriculum is available on the Council's Ready, Set, Grad website. Additionally, students who use federal student loans must fulfill entrance and exit counseling requirements in person, by an audio-visual presentation, or electronically.
The Financial Education Public-Private Partnership (FEPPP), a committee created by the Legislature, provides financial education information, instructional materials, and professional development to public school districts. The FEPPP membership includes legislators, representatives from different state agencies, such as the Department of Financial Institutions and the Office of Superintendent of Public Instruction, K-12 educators, and representatives from the private sector, including the financial services industry and business organizations.
Summary of Bill:
The online financial aid counseling curriculum for SNG recipients must include financial education that meets the needs of a diverse group of students who are recipients of financial aid, and students providing their perspectives may be trained by the FEPPP. In addition, the curriculum must include an overview of "personal finance" rather than "financial literacy."
Subject to an appropriation, by the 2017-18 academic year, each institution of higher education must take reasonable steps to ensure that each institution presents, and each incoming student participates in, a financial education workshop. The institutions are encouraged to present these workshops during student orientation or as early as possible during the academic year. The scope of the workshop must include the curriculum provided to the SNG recipients, except for the explanation of SNG program rules, and recommendations by the FEPPP.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony (Higher Education):
(In support) Students should receive this kind of financial information in the most efficient manner, and financial literacy is very important. It is not only important for K-12 students, but also college students and adults. Today's college students are faced with new challenges. A student cannot work their way through college anymore, and students are bombarded with credit card offers and other solicitations for debt. These are often not the best options for students, so any financial literacy is helpful.
(Opposed) None.
Staff Summary of Public Testimony (Appropriations):
(In support) None.
(Opposed) None.
Persons Testifying (Higher Education): Senator Bailey, prime sponsor; Cody Eccles, Council of Presidents; and Duane Davidson, State Treasurer.
Persons Testifying (Appropriations): None.
Persons Signed In To Testify But Not Testifying (Higher Education): None.
Persons Signed In To Testify But Not Testifying (Appropriations): None.