Bill Text: CA AB166 | 2013-2014 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Pupil instruction: financial literacy.

Spectrum: Moderate Partisan Bill (Democrat 6-1)

Status: (Passed) 2013-08-26 - Chaptered by Secretary of State - Chapter 135, Statutes of 2013. [AB166 Detail]

Download: California-2013-AB166-Amended.html

---

BILL NUMBER: AB 166	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 1, 2013
	AMENDED IN ASSEMBLY  MARCH 11, 2013

INTRODUCED BY   Assembly Member Roger Hernández
   (Coauthors: Assembly Members Ian Calderon, Mullin, and Ting)

                        JANUARY 23, 2013

   An act to  add Section 51220.7 to   amend
Sections 51282 and 51824 of, and to amend the heading of Article 6
(commencing with Section 51280) of Chapter 2 of Part 28 of Division 4
of Title 2 of,  the Education Code, relating to pupil
instruction.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 166, as amended, Roger Hernández. Pupil instruction: 
economics: personal finances   financial literacy 
.
   Existing law requires a school district, as part of its adopted
course of study for grades 7 to 12, inclusive, to offer courses in
specified areas of study, including, among others, social sciences,
drawing upon the disciplines of anthropology, economics, geography,
history, political science, psychology, and sociology.  Existing
law requires the Superintendent of Public Instruction to make
available to teachers a curriculum, as specified, on, among other
things, financial preparedness. Existing law also requires the State
Board of Education to integrate, among other things, financial
preparedness with specified academic areas, as specified. 
   This bill would  require the instruction provided in
economics to include instruction related to personal finances,
including, but not limited to, budgeting and managing credit, student
loans, and debt, thereby imposing a state-mandated local program.
The bill would require the State Department of Education to develop a
personal finances curriculum in the next cycle in which the
history-social science curriculum framework is adopted  
revise the curriculum that is required to be made available, to
instead require the Superintendent to make available a curriculum
that includes instruction on financial literacy, including, but not
limited to, budgeting and managing credit, student loans, and debt.
The bill would also require the state board to integrate financial
literacy, as specified, with those specified academic areas. The bill
would also make conforming changes  . 
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.  
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program:  yes   no  .


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) California does not have an official statewide policy or
educational plan for the teaching of financial literacy.
   (b) According to the 2011 Consumer Financial Literacy Survey Final
Report of the National Foundation for Credit Counseling, one in
three adults in the United States reported that they had no savings.
   (c) Two in five adults give themselves a grade of C, D, or F on
their knowledge of personal finance.
   (d) Ninety-three percent of Americans indicated in a 2010 Visa
survey that they believe all high school students should be required
to take a class in financial literacy.
   (e) A biennial survey by Jump$tart Coalition for Personal
Financial Literacy, conducted from 1997 to 2008, inclusive, showed
that financial literacy of high school seniors had fallen from 57
percent in 1997 to a record low of 48 percent in 2008.
   (f) A 2011 Junior Achievement and Allstate Foundation survey
revealed nearly 50 percent of American teenagers are unsure how to
use a credit card effectively, yet 24 percent believe high school or
younger is when they should get their first credit card.
   (g) According to a 2011 Capitol One survey of the students
planning to take out student loans, 44 percent of the students said
that they have either not discussed with their parents how student
loans work, or they have had a brief conversation with little detail.

   (h) Financial literacy education is an essential component of
preparing individuals to manage money, credit, and debt, and of
becoming responsible workers, heads of households, investors,
entrepreneurs, business leaders, and citizens.
   (i) The teaching of financial literacy skills empowers young
Californians with the tools they need to enter a globally competitive
workforce.
   (j) In recognition of the importance of teaching financial
literacy, 46 states report having personal finance standards in
various forms, while 13 of those states include personal finance
instruction as part of their graduation requirement.
   (k) At this crucial economic time, it is imperative that
California encourage the provision of financial literacy instruction
for all students. 
  SEC. 2.    Section 51220.7 is added to the
Education Code, to read:
   51220.7.  (a) The instruction provided in economics pursuant to
subdivision (b) of Section 51220 shall include instruction related to
personal finances, including, but not limited to, budgeting and
managing credit, student loans, and debt.
   (b) The department shall develop a personal finances curriculum in
the next cycle in which the history-social science curriculum
framework is adopted.  
  SEC. 3.    If the Commission on State Mandates
determines that this act contains costs mandated by the state,
reimbursement to local agencies and school districts for those costs
shall be made pursuant to Part 7 (commencing with Section 17500) of
Division 4 of Title 2 of the Government Code. 
   SEC. 2.    The heading of Articl   e 6
(commencing with Section 51280) of Chapter 2 of Part 28   of
Division 4 of Title 2 of the   Education Code   is
amended to read: 

      Article 6.  Primary Education Model Curriculum for Lifelong
Health, Aging, and Financial  Preparedness  
Literacy 


   SEC. 3.    Section 51282 of the   Education
Code   is amended to read: 
   51282.  (a) It is the intent of the Legislature to enact
legislation to establish educational requirements in order to instill
in California's youth a sense of importance about lifelong financial
planning and preparation, including, among other things, the costs
of health care, in a much-extended later life.
   (b) Educational institutions have developed a model curriculum in
lifelong healthy aging and financial  preparedness 
 literacy  , with materials, free of charge, for the
Superintendent  of Public Instruction  to
disseminate to school teachers at the local level.
   (c) The Superintendent  of Public Instruction 
shall make this existing curriculum available to teachers, using
materials that are currently available at no cost, with information
and links provided through the Internet, in order to provide to
 students   pupils  in grades 7 to 12,
inclusive, instruction on human growth, human development, and
financial  preparedness   lite   racy,
including, but not limited to, budgeting and managing credit, student
loans, and debt  .
   SEC. 4.    Section 51284 of the   Education
Code   is amended to read: 
   51284.   After January 1, 2003, and concurrently 
 Concurrently  with, but not prior to, the next revision of
text books or curriculum frameworks in the social sciences, health,
and mathematics curricula, the  State Board of Education
  state board  shall ensure that these academic
areas integrate components of human growth, human development, and
human contribution to society, across the life course, and also
financial  preparedness   literacy, including,
but not limited to, budgeting and managing credit, student loans, and
debt  .