I 
109TH CONGRESS 
2D SESSION 
H. R. 4866 
To promote responsibility by improving development education. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 2, 2006 
Mr. FORD introduced the following bill; which was referred to the Committee 
on Ways and Means, and in addition to the Committees on Financial 
Services, Education and the Workforce, and Judiciary, for a period to be 
subsequently determined by the Speaker, in each case for consideration 
of such provisions as fall within the jurisdiction of the committee con-
cerned 
A BILL 
To promote responsibility by improving development 
education. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Promote Responsibility 
by Improving Development Education Act of 2006’’. 
SEC. 2. TABLE OF CONTENTS. 
Sec. 1. Short title. 
Sec. 2. Table of contents. 
TITLE I—CHARACTER EDUCATION 
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Sec. 101. Short title. 
Sec. 102. Increased funding for Partnerships in Character Education Program. 
Sec. 103. Model State character education curriculum. 
TITLE II—CHILDHOOD ADOPTION 
Sec. 201. Short title. 
Sec. 202. Increase in allowable expenses for adoption; adoption credit made re-
fundable. 
Sec. 203. Increase in adoption incentive payments. 
TITLE III—BORROWER’S BILL OF RIGHTS 
Sec. 301. Short title. 
Sec. 302. Assistant secretary of the treasury for financial education. 
Sec. 303. Financial literacy for middle and high school students. 
Sec. 304. ‘‘Plain language’’ disclosures. 
Sec. 305. Limitation on usurious interest rates and unfair practices. 
Sec. 306. Limitation on rollovers of payday loans. 
Sec. 307. Fair treatment of employee benefits. 
Sec. 308. Wage priority and employee benefit cap. 
Sec. 309. Subordination. 
TITLE I—CHARACTER 
EDUCATION 
SEC. 101. SHORT TITLE. 
This title may be cited as the ‘‘Character Education 
Act of 2006’’. 
SEC. 102. INCREASED FUNDING FOR PARTNERSHIPS IN 
CHARACTER EDUCATION PROGRAM. 
Section 5401 of the Elementary and Secondary Edu-
cation Act of 1965 (20 U.S.C. 7241) is amended— 
(1) in the matter preceding paragraph (1), by 
striking ‘‘There are’’ and inserting ‘‘(a) IN GEN-
ERAL.—There are’’; 
(2) 
in 
paragraph 
(6), 
by 
striking 
‘‘$675,000,000 for fiscal year 2007’’ and inserting 
‘‘$700,000,000 for fiscal year 2007’’; and 
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(3) by adding at the end the following: 
‘‘(b) PARTNERSHIPS IN CHARACTER EDUCATION.— 
From the amount appropriated to carry out this part for 
each of fiscal years 2007 and 2008, the Secretary shall 
reserve $50,000,000 to carry out subpart 3.’’. 
SEC. 103. MODEL STATE CHARACTER EDUCATION CUR-
RICULUM. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall— 
(1) conduct a study of best practices in the field 
of character education; and 
(2) develop a model State character education 
curriculum for kindergarten through grade 12. 
(b) MODEL STATE CHARACTER EDUCATION CUR-
RICULUM.— 
(1) PRINCIPLES OF CURRICULUM.—The model 
State character education curriculum developed 
under this section shall embody the principles that 
character education— 
(A) is premised on the notion that widely 
shared core ethical values, including honesty, 
fairness, justice, caring, responsibility, and re-
spect for self and others, form the basis of good 
character; 
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(B) by promoting the validity of these val-
ues and the responsibility to uphold them, af-
firms human dignity, promotes the development 
and welfare of the individual, serves the com-
mon good, and promotes the exercise of citizen-
ship in a democratic society; and 
(C) should be an integral part of the cur-
riculum at all grade levels, should be part of a 
comprehensive approach that integrates char-
acter development into every aspect of school 
life, and should reach out to families and in-
clude them in character-building efforts. 
(2) FOCUS ON ASPECTS OF CHARACTER.—The 
model State character education curriculum devel-
oped under this section shall focus on aspects of 
character including honesty, fairness, justice, caring, 
responsibility, and respect for self and others. 
(c) REPORT.—Not later than 1 year after the date 
of the enactment of this Act, the Comptroller General of 
the United States shall submit to the Congress a report 
containing— 
(1) the results of the study conducted under 
this section; and 
(2) the model State character education cur-
riculum developed under this section. 
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TITLE II—CHILDHOOD 
ADOPTION 
SEC. 201. SHORT TITLE. 
This title may be cited as the ‘‘Childhood Adoption 
Act of 2006’’. 
SEC. 202. INCREASE IN ALLOWABLE EXPENSES FOR ADOP-
TION; ADOPTION CREDIT MADE REFUND-
ABLE. 
(a) INCREASE IN DOLLAR LIMITATION.— 
(1) ADOPTION CREDIT.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 23(b) of the Internal Revenue Code of 
1986 (relating to dollar limitation) is amended 
by striking ‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(B) CHILD WITH SPECIAL NEEDS.—Para-
graph (3) of section 23(a) of such Code (relat-
ing to $10,000 credit for adoption of child with 
special needs regardless of expenses) is amend-
ed— 
(i) in the text by striking ‘‘$10,000’’ 
and inserting ‘‘$15,000’’, and 
(ii) 
in 
the 
heading 
by 
striking 
‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(C) CONFORMING AMENDMENT TO INFLA-
TION ADJUSTMENT.—Subsection (h) of section 
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23 of such Code (relating to adjustments for in-
flation) is amended to read as follows: 
‘‘(h) ADJUSTMENTS FOR INFLATION.— 
‘‘(1) DOLLAR LIMITATIONS.—In the case of a 
taxable year beginning after December 31, 2006, 
each of the dollar amounts in subsections (a)(3) and 
(b)(1) shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2005’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10. 
‘‘(2) INCOME LIMITATION.—In the case of a 
taxable year beginning after December 31, 2002, the 
dollar amount in subsection (b)(2)(A)(i) shall be in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
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mined by substituting ‘calendar year 2001’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10.’’. 
(2) ADOPTION ASSISTANCE PROGRAMS.— 
(A) IN GENERAL.—Paragraph (1) of sec-
tion 137(b) of the Internal Revenue Code of 
1986 (relating to dollar limitation) is amended 
by striking ‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(B) CHILD WITH SPECIAL NEEDS.—Para-
graph (2) of section 137(a) of such Code (relat-
ing to $10,000 exclusion for adoption of child 
with special needs regardless of expenses) is 
amended— 
(i) in the text by striking ‘‘$10,000’’ 
and inserting ‘‘$15,000’’, and 
(ii) 
in 
the 
heading 
by 
striking 
‘‘$10,000’’ and inserting ‘‘$15,000’’. 
(C) CONFORMING AMENDMENT TO INFLA-
TION ADJUSTMENT.—Subsection (f) of section 
137 of such Code (relating to adjustments for 
inflation) is amended to read as follows: 
‘‘(f) ADJUSTMENTS FOR INFLATION.— 
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‘‘(1) DOLLAR LIMITATIONS.—In the case of a 
taxable year beginning after December 31, 2006, 
each of the dollar amounts in subsections (a)(2) and 
(b)(1) shall be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2005’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10. 
‘‘(2) INCOME LIMITATION.—In the case of a 
taxable year beginning after December 31, 2002, the 
dollar amount in subsection (b)(2)(A)(i) shall be in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2001’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
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If any amount as increased under the preceding sen-
tence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10.’’. 
(b) CREDIT MADE REFUNDABLE.— 
(1) CREDIT MOVED TO SUBPART RELATING TO 
REFUNDABLE
CREDITS.—The 
Internal 
Revenue 
Code of 1986 is amended— 
(A) by redesignating section 36 as section 
37, 
(B) by redesignating section 23, as amend-
ed by subsection (a), as section 36, and 
(C) by moving section 36 (as so redesig-
nated) from subpart A of part IV of subchapter 
A of chapter 1 to the location immediately be-
fore section 37 (as so redesignated) in subpart 
C of part IV of subchapter A of chapter 1. 
(2) CONFORMING AMENDMENTS.— 
(A) Section 24(b)(3)(B) of such Code is 
amended by striking ‘‘and sections 23’’ and in-
serting ‘‘section’’. 
(B) Section 25(e)(1)(C) of such Code is 
amended by striking ‘‘23,’’. 
(C) Section 25B(g)(2) of such Code is 
amended by striking ‘‘and section 23’’. 
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(D) Section 137 of such Code is amend-
ed— 
(i) in subsection (d) by striking ‘‘sec-
tion 23(d)’’ and inserting ‘‘section 36(d)’’, 
and 
(ii) in subsection (e) by striking ‘‘sec-
tion 23’’ and inserting ‘‘section 36’’. 
(E) Section 1400C(d) of such Code is 
amended by striking ‘‘23, 24,’’ and inserting 
‘‘24’’. 
(F) The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such 
Code of 1986 is amended by striking the item 
relating to section 23. 
(G) Paragraph (2) of section 1324(b) of 
title 31, United States Code, is amended by in-
serting ‘‘or 36’’ after ‘‘section 35’’. 
(H) The table of sections for subpart C of 
part IV of subchapter A of chapter 1 of the In-
ternal Revenue Code of 1986 is amended by 
striking the last item and inserting the fol-
lowing new items: 
‘‘Sec. 36. Adoption expenses. 
‘‘Sec. 37. Overpayments of tax.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2005. 
SEC. 203. INCREASE IN ADOPTION INCENTIVE PAYMENTS. 
(a) IN GENERAL.—Section 473A(d)(1) of the Social 
Security Act (42 U.S.C. 673a(d)(1)) is amended— 
(1) in subparagraph (A), by striking ‘‘$4,000’’ 
and inserting ‘‘$8,000’’; 
(2) in subparagraph (B), by striking ‘‘$2,000’’ 
and inserting ‘‘$8,000’’; and 
(3) in subparagraph (C), by striking ‘‘$4,000’’ 
and inserting ‘‘$8,000’’. 
(b) 
INCREASED
PROGRAM
FUNDING.—Section 
473A(h)(1) of such Act (42 U.S.C. 673a(h)(1)) is amend-
ed— 
(1) in subparagraph (C), by striking ‘‘and’’; 
(2) in subparagraph (D), by striking ‘‘through 
2008.’’ and inserting ‘‘and 2005; and’’; and 
(3) by adding at the end the following: 
‘‘(E) $86,000,000 for each of fiscal years 
2006 through 2008.’’. 
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TITLE III—BORROWER’S BILL OF 
RIGHTS 
SEC. 301. SHORT TITLE. 
This title may be cited as the ‘‘Borrower’s Bill of 
Rights Act’’. 
SEC. 302. ASSISTANT SECRETARY OF THE TREASURY FOR 
FINANCIAL EDUCATION. 
Section 301(e) of title 31, United States Code, is 
amended— 
(1) by striking ‘‘7 Assistant Secretaries’’ and 
inserting ‘‘8 Assistant Secretaries’’; and 
(2) by inserting after the 2nd sentence the fol-
lowing new sentence: ‘‘One of the Assistant Secre-
taries shall be the Assistant Secretary for Financial 
Education.’’. 
SEC. 303. FINANCIAL LITERACY FOR MIDDLE AND HIGH 
SCHOOL STUDENTS. 
The Financial Literacy and Education Improvement 
Act (20 U.S.C. 9701, et seq.) is amended— 
(1) by redesignating section 519 as section 520; 
and 
(2) by inserting after section 518 the following 
new section: 
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‘‘SEC. 519. FINANCIAL LITERACY FOR MIDDLE AND HIGH 
SCHOOL STUDENTS. 
‘‘(a) PILOT PROGRAM.—The Assistant Secretary for 
Financial Education (hereafter in this section referred to 
as the ‘Assistant Secretary’ shall establish a 2-year pilot 
financial literacy pilot program for middle and high school 
students. 
‘‘(b) REQUIREMENTS.—The pilot program estab-
lished by the Assistant Secretary shall comply with the 
following requirements: 
‘‘(1) The pilot program shall be implemented in 
10 middle schools and 10 high schools, selected by 
the Assistant Secretary based on such criteria as the 
Assistant Secretary may determine to be appro-
priate, in 10 different school systems and provided 
to 8th grade students at the middle schools selected 
and 12th grade students at the high schools selected. 
‘‘(2) The program shall use as guidance the fi-
nancial education program in the secondary schools 
of the State of Delaware called the ‘Keys to Finan-
cial Success’. 
‘‘(3) The program shall be funded by the Sec-
retary of the Treasury, out of funds appropriated to 
the Secretary, and administered by the State and 
the local school administration of each school se-
lected, based on criteria established by the Assistant 
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