Bill Text: CA AB391 | 2013-2014 | Regular Session | Amended
Bill Title: Pupil instruction: personal finances.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB391 Detail]
Download: California-2013-AB391-Amended.html
BILL NUMBER: AB 391 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 9, 2013
AMENDED IN ASSEMBLY MARCH 14, 2013
INTRODUCED BY Assembly Member Wieckowski
FEBRUARY 15, 2013
An act to amend Sections 51220 and 51225.3
33540 and 51833 of , and to add Section 51226.9 to,
the Education Code, relating to pupil instruction.
LEGISLATIVE COUNSEL'S DIGEST
AB 391, as amended, Wieckowski. Pupil instruction: personal
finance finances .
(1) Existing law requires the adoption of a course of study for
grades 7 to 12, inclusive, including social studies instruction
providing a foundation for understanding the development of the
American economic system, including the role of the entrepreneur and
labor. Existing law also specifies coursework to be completed by
pupils in grades 9 to 12, inclusive, in order to receive a high
school diploma of graduation, including a one-semester course in
economics.
This bill would enact the Common Cents Curriculum Act of 2013 and
would require , commencing with the 2014-15 school year,
that the adopted course of study for social sciences for grades 7 to
12, inclusive, offer instruction providing a foundation for
that when the history-social science framework is revised as
required by law, the Instructional Quality Commission, as
appropriate and based on the subject matter of the course, to
encourage instruction related to the understanding of
personal finance finances ,
including, but not limited to, budgeting, savings, credit and loans,
identity theft, and paying for postsecondary education. The bill
would require the one-semester course in economics that is
required for high school graduation to include personal finance,
including, but not limited to, those subjects
commission to identify resources and curriculum to assist
educators in delivering this instruction . To the extent that
these requirements would impose new duties on local educational
agencies, the bill would impose a state-mandated local program.
The bill would require , no later than July 1, 2015,
the Superintendent of Public Instruction with the approval of
the State Department of Education to plan and
develop and adopt a personal financial literacy curriculum,
for use beginning with the 2014-15 school year, a
one-semester instructional program entitled consumer economics
that includes, but is not limited to among
other things , budgeting, savings and checking ,
credit and uses and costs of loans,
including student loans, identity theft and security
, and planning and paying for postsecondary
education.
(2) 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.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be known, and may be cited, as the
"Common Cents Curriculum Act of 2013."
SEC. 2. 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 and the
growing negative economic effects of financial illiteracy have
spurred the need for financial literacy education for all elementary
and secondary pupils.
(b) Americans 25 to 34, inclusive, years of age have the second
highest rate of bankruptcy, and the highest rate is Americans who are
35 to 44, inclusive, years of age, indicating that young adults
today are more likely to file bankruptcy than were "baby boomers" at
the same age.
(c) Improving financial literacy in secondary school will empower
students, and their families, to act as well-informed consumers.
(d) Financial illiteracy and the consequences for uninformed
financial decisions are a growing problem in the state, and in the
long run, educating Californians would result in benefits to the
economy by helping to prevent bankruptcy, foreclosure, and job loss.
(e) Providing access to financial literacy tools plays an
important role in preventing uninformed financial decisions.
(f) Recent research shows that students from states where a
financial education course is required are more likely to save, less
likely to max out their credit cards, less likely to make late credit
card payments, and more likely to take average financial risks.
(g) A college education is more important than ever in determining
future earnings, as the annual income of an employee with a bachelor'
s degree is about 80 percent higher than that of a person with a high
school diploma, which translates into more than one million
additional dollars over a lifetime. College graduates are also more
involved in community and philanthropic affairs, are healthier, and
require fewer state services than those without a degree.
(h) The number of undergraduate students with both credit card
debt and student loan debt is increasing. In 2009, the average
student credit card balance had risen to $3,000. Additionally, in
2011, undergraduate students had amassed an average of about $27,000
of student loan debt.
(i) Increasing the financial literacy of all economic and ethnic
groups is documented to improve attitudes, lead to improved
decisionmaking, and provide for a more secure future for individuals
and their families who have been educated with regard to these
issues.
(j) Many groups are dedicated to increasing the financial literacy
of Americans, and a broad range of quality personal finance
instructional materials and curricula have been created for this
purpose, but California's pupils are not getting this vital
information.
(k) At this crucial economic time, it is imperative that
California continue to be a leader by setting a high standard of
financial literacy instruction for our pupils.
SEC. 3 . Section 33540 of
the Education Code is amended to read:
33540. (a) The State Board of Education and the department shall
request that the commission review and revise, as necessary, the
course requirements in the history-social science framework developed
by the History-Social Science Curriculum Framework and Criteria
Committee of the state board to ensure that minimum standards for
courses in American government and civics include sufficient
attention to teaching pupils how to interact, in a practical manner,
with state and local governmental agencies and representatives to
solve problems and to petition for changes in laws and procedures.
(b) When the history-social science framework is revised as
required by law, the commission shall ensure that the
following historical documents are incorporated into the framework
, as appropriate and based on the subject matter of
the course, do both of the following :
(1) Ensure that the following historical documents are
incorporated in the framework:
(1)
(A) The Declaration of Independence.
(2)
(B) The United States Constitution, including the Bill
of Rights.
(3)
(C) The Federalist Papers.
(4)
(D) The Emancipation Proclamation.
(5)
(E) The Gettysburg Address.
(6)
(F) George Washington's Farewell Address.
(2) Ensure that the framework encourages instruction related to
the understanding of personal finances, including, but not limited
to, budgeting, savings, credit and loans, identity theft, and paying
for postsecondary education and identify resources and curriculum to
assist educators in delivering this instruction.
SEC. 3. Section 51220 of the Education Code is
amended to read:
51220. The adopted course of study for grades 7 to 12, inclusive,
shall offer courses in the following areas of study:
(a) English, including knowledge of and appreciation for
literature, language, and composition, and the skills of reading,
listening, and speaking.
(b) Social sciences, drawing upon the disciplines of anthropology,
economics, geography, history, political science, psychology, and
sociology, designed to fit the maturity of the pupils. Instruction
shall provide a foundation for understanding the history, resources,
development, and government of California and the United States of
America; our American legal system, the operation of the juvenile and
adult criminal justice systems, and the rights and duties of
citizens under the criminal and civil law and the State and Federal
Constitutions; the development of the American economic system,
including the role of the entrepreneur and labor; commencing with the
2014-15 school year, personal finance, including, but not limited
to, budgeting, savings, credit and loans, identity theft, and paying
for postsecondary education; the relations of persons to their human
and natural environment; eastern and western cultures and
civilizations; human rights issues, with particular attention to the
study of the inhumanity of genocide, slavery, and the Holocaust; and
contemporary issues.
(c) Foreign language or languages, beginning not later than grade
7, designed to develop a facility for understanding, speaking,
reading, and writing the particular language.
(d) Physical education, with emphasis given to physical activities
that are conducive to health and to vigor of body and mind, as
required by Section 51222.
(e) Science, including the physical and biological aspects, with
emphasis on basic concepts, theories, and processes of scientific
investigation and on the place of humans in ecological systems, and
with appropriate applications of the interrelation and
interdependence of the sciences.
(f) Mathematics, including instruction designed to develop
mathematical understandings, operational skills, and insight into
problem-solving procedures.
(g) Visual and performing arts, including dance, music, theater,
and visual arts, with emphasis upon development of aesthetic
appreciation and the skills of creative expression.
(h) Applied arts, including instruction in the areas of consumer
and homemaking education, industrial arts, general business
education, or general agriculture.
(i) Career technical education designed and conducted for the
purpose of preparing youth for gainful employment in the occupations
and in the numbers that are appropriate to the personnel needs of the
state and the community served and relevant to the career desires
and needs of the pupils.
(j) Automobile driver education, designed to develop a knowledge
of the provisions of the Vehicle Code and other laws of this state
relating to the operation of motor vehicles, a proper acceptance of
personal responsibility in traffic, a true appreciation of the
causes, seriousness and consequences of traffic accidents, and to
develop the knowledge and attitudes necessary for the safe operation
of motor vehicles. A course in automobile driver education shall
include education in the safe operation of motorcycles.
(k) Other studies as may be prescribed by the governing board.
SEC. 4. Section 51225.3 of the Education Code,
as amended by Section 3 of Chapter 621 of the Statutes of 2011, is
amended to read:
51225.3. (a) A pupil shall complete all of the following while in
grades 9 to 12, inclusive, in order to receive a diploma of
graduation from high school:
(1) At least the following numbers of courses in the subjects
specified, each course having a duration of one year, unless
otherwise specified:
(A) Three courses in English.
(B) Two courses in mathematics.
(C) Two courses in science, including biological and physical
sciences.
(D) Three courses in social studies, including United States
history and geography; world history, culture, and geography; a
one-semester course in American government and civics; and a
one-semester course in economics, including, commencing with the
2014-15 school year, personal finance, as specified in Section
51226.9.
(E) One course in visual or performing arts, foreign language, or,
commencing with the 2012-13 school year, career technical education.
(i) For purposes of satisfying the requirement specified in this
subparagraph, a course in American Sign Language shall be deemed a
course in foreign language.
(ii) For purposes of this subparagraph, "a course in career
technical education" means a course in a district-operated career
technical education program that is aligned to the career technical
model curriculum standards and framework adopted by the state board,
including courses through a regional occupational center or program
operated by a county superintendent of schools or pursuant to a joint
powers agreement.
(iii) This subparagraph does not require a school or school
district that currently does not offer career technical education
courses to start new career technical education programs for purposes
of this section.
(iv) If a school district or county office of education elects to
allow a career technical education course to satisfy the requirement
imposed by this subparagraph, the governing board of the school
district or county office of education, prior to offering that
alternative to pupils, shall notify parents, teachers, pupils, and
the public at a regularly scheduled meeting of the governing board of
all of the following:
(I) The intent to offer career technical education courses to
fulfill the graduation requirement specified in this subparagraph.
(II) The impact that offering career technical education courses,
pursuant to this subparagraph, will have on the availability of
courses that meet the eligibility requirements for admission to the
California State University and the University of California, and
whether the career technical education courses to be offered pursuant
to this subparagraph are approved to satisfy those eligibility
requirements. If a school district elects to allow a career technical
education course to satisfy the requirement imposed by this
subparagraph, the school district shall comply with subdivision (m)
of Section 48980.
(III) The distinction, if any, between the high school graduation
requirements of the school district or county office of education,
and the eligibility requirements for admission to the California
State University and the University of California.
(F) Two courses in physical education, unless the pupil has been
exempted pursuant to the provisions of this code.
(2) Other coursework requirements adopted by the governing board
of the school district.
(b) The governing board, with the active involvement of parents,
administrators, teachers, and pupils, shall adopt alternative means
for pupils to complete the prescribed course of study that may
include practical demonstration of skills and competencies,
supervised work experience or other outside school experience, career
technical education classes offered in high schools, courses offered
by regional occupational centers or programs, interdisciplinary
study, independent study, and credit earned at a postsecondary
institution. Requirements for graduation and specified alternative
modes for completing the prescribed course of study shall be made
available to pupils, parents, and the public.
(c) Notwithstanding any other law, a school district shall exempt
a pupil in foster care from all coursework and other requirements
adopted by the governing board of the district that are in addition
to the statewide coursework requirements specified in this section if
the pupil, while he or she is in grade 11 or 12, transfers into the
district from another school district or between high schools within
the district, unless the district makes a finding that the pupil is
reasonably able to complete the additional requirements in time to
graduate from high school while he or she remains eligible for foster
care benefits pursuant to state law. A school district shall notify
a pupil in foster care who is granted an exemption pursuant to this
subdivision, and, as appropriate, the person holding the right to
make educational decisions for the pupil, if any of the requirements
that are waived will affect the pupil's ability to gain admission to
a postsecondary educational institution and shall provide information
about transfer opportunities available through the California
Community Colleges.
(d) On or before July 1, 2017, the department shall submit a
comprehensive report to the appropriate policy committees of the
Legislature on the addition of career technical education courses to
satisfy the requirement specified in subparagraph (E) of paragraph
(1) of subdivision (a), including, but not limited to, the following
information:
(1) A comparison of the pupil enrollment in career technical
education courses, foreign language courses, and visual and
performing arts courses for the 2005-06 to 2011-12 school years,
inclusive, to the pupil enrollment in career technical education
courses, foreign language courses, and visual and performing arts
courses for the 2012-13 to 2016-17 school years, inclusive.
(2) The reasons, reported by school districts, that pupils give
for choosing to enroll in a career technical education course to
satisfy the requirement specified in subparagraph (E) of paragraph
(1) of subdivision (a).
(3) The type and number of career technical education courses that
were conducted for the 2005-06 to 2011-12 school years, inclusive,
compared to the type and number of career technical education courses
that were conducted for the 2012-13 to 2016-17 school years,
inclusive.
(4) The number of career technical education courses that
satisfied the subject matter requirements for admission to the
University of California or the California State University.
(5) The extent to which the career technical education courses
chosen by pupils are aligned with the California Career Technical
Education Standards, and prepare pupils for employment, advanced
training, and postsecondary education.
(6) The number of career technical education courses that also
satisfy the visual and performing arts requirement, and the number of
career technical education courses that also satisfy the foreign
language requirement.
(7) Annual pupil dropout and graduation rates for the 2011-12 to
2014-15 school years, inclusive.
(e) For purposes of completing the report described in subdivision
(d), the Superintendent may use existing state resources and federal
funds. If state or federal funds are not available or sufficient,
the Superintendent may apply for and accept grants, and receive
donations and other financial support from public or private sources
for purposes of this section.
(f) For purposes of completing the report described in subdivision
(d), the Superintendent may accept support, including, but not
limited to, financial and technical support, from high school reform
advocates, teachers, chamber organizations, industry representatives,
research centers, parents, and pupils.
(g) This section shall become inoperative on the earlier of the
following two dates:
(1) On July 1, immediately following the first fiscal year after
the enactment of the act that adds this paragraph in which the number
of career technical education courses that, as determined by the
department, satisfy the foreign language requirement for admission to
the California State University and the University of California is
at least twice the number of career technical education courses that
meet these admission requirements as of January 1, 2012. This section
shall be repealed on the following January 1, unless a later enacted
statute, that becomes operative on or before that date, deletes or
extends the dates on which it becomes inoperative and is repealed. It
is the intent of the Legislature that new career technical education
courses that satisfy the foreign language requirement for admission
to the California State University and the University of California
focus on world languages aligned with career preparation, emphasizing
real-world application and technical content in related career and
technical education courses.
(2) On July 1, 2017, and, as of January 1, 2018, is repealed,
unless a later enacted statute, that becomes operative on or before
January 1, 2018, deletes or extends the dates on which it becomes
inoperative and is repealed.
SEC. 5. Section 51225.3 of the Education Code,
as added by Section 4 of Chapter 621 of the Statutes of 2011, is
amended to read:
51225.3. (a) A pupil shall complete all of the following while in
grades 9 to 12, inclusive, in order to receive a diploma of
graduation from high school:
(1) At least the following numbers of courses in the subjects
specified, each course having a duration of one year, unless
otherwise specified:
(A) Three courses in English.
(B) Two courses in mathematics.
(C) Two courses in science, including biological and physical
sciences.
(D) Three courses in social studies, including United States
history and geography; world history, culture, and geography; a
one-semester course in American government and civics; and a
one-semester course in economics, including, commencing with the
2014-15 school year, personal finance, as specified in Section
51226.9.
(E) One course in visual or performing arts or foreign language.
For purposes of satisfying the requirement specified in this
subparagraph, a course in American Sign Language shall be deemed a
course in foreign language.
(F) Two courses in physical education, unless the pupil has been
exempted pursuant to the provisions of this code.
(2) Other coursework requirements adopted by the governing board
of the school district.
(b) The governing board, with the active involvement of parents,
administrators, teachers, and pupils, shall adopt alternative means
for pupils to complete the prescribed course of study that may
include practical demonstration of skills and competencies,
supervised work experience or other outside school experience, career
technical education classes offered in high schools, courses offered
by regional occupational centers or programs, interdisciplinary
study, independent study, and credit earned at a postsecondary
institution. Requirements for graduation and specified alternative
modes for completing the prescribed course of study shall be made
available to pupils, parents, and the public.
(c) Notwithstanding any other law, a school district shall exempt
a pupil in foster care from all coursework and other requirements
adopted by the governing board of the district that are in addition
to the statewide coursework requirements specified in this section if
the pupil, while he or she is in grade 11 or 12, transfers into the
district from another school district or between high schools within
the district, unless the district makes a finding that the pupil is
reasonably able to complete the additional requirements in time to
graduate from high school while he or she remains eligible for foster
care benefits pursuant to state law. A school district shall notify
a pupil in foster care who is granted an exemption pursuant to this
subdivision, and, as appropriate, the person holding the right to
make educational decisions for the pupil, if any of the requirements
that are waived will affect the pupil's ability to gain admission to
a postsecondary educational institution and shall provide information
about transfer opportunities available through the California
Community Colleges.
(d) If a pupil completed a career technical education course that
met the requirements of subparagraph (E) of paragraph (1) of
subdivision (a) of Section 51225.3, as amended by the act adding this
section, prior to the inoperative date of that section, that course
shall be deemed to fulfill the requirements of subparagraph (E) of
paragraph (1) of subdivision (a) of this section.
(e) This section shall become operative upon the date that Section
51225.3, as amended by the act adding this section, becomes
inoperative.
SEC. 6. Section 51226.9 is added to the
Education Code, to read:
51226.9. (a) The department shall develop and adopt a personal
financial literacy curriculum for purposes of the social studies
curriculum framework required by subdivision (b) of Section 51220,
for use beginning with the 2014-15 school year, that includes, but is
not limited to, budgeting, savings, credit and loans, identity
theft, and paying for postsecondary education.
(b) The course in economics required pursuant to subparagraph (D)
of paragraph (1) of subdivision (a) of Section 51225.3 shall include
instruction related to the understanding of personal finances, as
specified in the curriculum adopted pursuant to subdivision (a).
SEC. 4. Section 51833 of the Education
Code is amended to read :
51833. (a) The Superintendent of Public Instruction shall, with
the approval of the State Board of Education, plan and develop a
one-semester instructional program entitled consumer economics for
use in schools maintaining any of grades 7 to 12, inclusive. When
completed, the program shall be made available to all school
districts and schools with grades 7 to 12, inclusive.
(b) The instructional program shall include, but not be limited
to, the following elements:
(1) Fundamentals of banking for personal use , including, but
not limited to, budgeting, savings, and checking .
(2) Elementary contracts.
(3) Consumer guides to purchasing.
(4) Uses and costs of credit.
(5) Uses and costs of loans, including student loans.
(5)
(6) Types and costs of insurance.
(6)
(7) Forms of governmental taxation.
(8) Identity theft and security.
(9) Planning and paying for postsecondary education.
(c) The Superintendent of Public Instruction shall make this
curriculum available no later than July 1, 2015.
SEC. 7. SEC. 5. 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.
