BILL NUMBER: AB 166	AMENDED
	BILL TEXT

	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 the Education Code, relating to
pupil instruction.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 166, as amended, Roger Hernández. Pupil instruction: economics:
personal finances.
   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.
   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 
mathematics and  history-social science  curricula
frameworks are   curriculum framework is  adopted.
   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.    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. 
   SECTION 1.   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  mathematics and 
history-social science  curricula frameworks are
 curriculum framework is  adopted.
   SEC. 2.   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.