Amended in Assembly April 1, 2013

Amended in Assembly March 11, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 166


Introduced by Assembly Member Roger Hernández

(Coauthors: Assembly Members Ian Calderon, Mullin, and Ting)

January 23, 2013


An act tobegin delete add Section 51220.7 toend deletebegin insert 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,end insert the Education Code, relating to pupil instruction.

LEGISLATIVE COUNSEL’S DIGEST

AB 166, as amended, Roger Hernández. Pupil instruction:begin delete economics: personal financesend deletebegin insert financial literacyend insert.

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.begin insert 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.end insert

This bill wouldbegin delete 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 adoptedend deletebegin insert 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 changesend insert.

begin delete

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.

end delete
begin delete

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.

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: begin deleteyes end deletebegin insertnoend insert.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) California does not have an official statewide policy or
4educational plan for the teaching of financial literacy.

5(b) According to the 2011 Consumer Financial Literacy Survey
6Final Report of the National Foundation for Credit Counseling,
7one in three adults in the United States reported that they had no
8savings.

9(c) Two in five adults give themselves a grade of C, D, or F on
10their knowledge of personal finance.

11(d) Ninety-three percent of Americans indicated in a 2010 Visa
12survey that they believe all high school students should be required
13to take a class in financial literacy.

14(e) A biennial survey by Jump$tart Coalition for Personal
15Financial Literacy, conducted from 1997 to 2008, inclusive,
16showed that financial literacy of high school seniors had fallen
17from 57 percent in 1997 to a record low of 48 percent in 2008.

P3    1(f) A 2011 Junior Achievement and Allstate Foundation survey
2revealed nearly 50 percent of American teenagers are unsure how
3to use a credit card effectively, yet 24 percent believe high school
4or younger is when they should get their first credit card.

5(g) According to a 2011 Capitol One survey of the students
6planning to take out student loans, 44 percent of the students said
7that they have either not discussed with their parents how student
8loans work, or they have had a brief conversation with little detail.

9(h) Financial literacy education is an essential component of
10preparing individuals to manage money, credit, and debt, and of
11becoming responsible workers, heads of households, investors,
12entrepreneurs, business leaders, and citizens.

13(i) The teaching of financial literacy skills empowers young
14Californians with the tools they need to enter a globally competitive
15workforce.

16(j) In recognition of the importance of teaching financial literacy,
1746 states report having personal finance standards in various forms,
18while 13 of those states include personal finance instruction as
19part of their graduation requirement.

20(k) At this crucial economic time, it is imperative that California
21encourage the provision of financial literacy instruction for all
22students.

begin delete23

SEC. 2.  

Section 51220.7 is added to the Education Code, to
24read:

25

51220.7.  

(a) The instruction provided in economics pursuant
26to subdivision (b) of Section 51220 shall include instruction related
27to personal finances, including, but not limited to, budgeting and
28managing credit, student loans, and debt.

29(b) The department shall develop a personal finances curriculum
30in the next cycle in which the history-social science curriculum
31framework is adopted.

end delete
begin delete
32

SEC. 3.  

If the Commission on State Mandates determines that
33this act contains costs mandated by the state, reimbursement to
34local agencies and school districts for those costs shall be made
35pursuant to Part 7 (commencing with Section 17500) of Division
364 of Title 2 of the Government Code.

end delete
37begin insert

begin insertSEC. 2.end insert  

end insert

begin insertThe heading of Article 6 (commencing with Section
3851280) of Chapter 2 of Part 28 of Division 4 of Title 2 of the end insert
begin insert39Education Codeend insertbegin insert is amended to read:end insert

 

P4    1Article 6.  Primary Education Model Curriculum for Lifelong
2Health, Aging, and Financialbegin delete Preparednessend deletebegin insert Literacyend insert
3

 

4begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 51282 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
5read:end insert

6

51282.  

(a) It is the intent of the Legislature to enact legislation
7to establish educational requirements in order to instill in
8California’s youth a sense of importance about lifelong financial
9planning and preparation, including, among other things, the costs
10of health care, in a much-extended later life.

11(b) Educational institutions have developed a model curriculum
12in lifelong healthy aging and financialbegin delete preparednessend deletebegin insert literacyend insert, with
13materials, free of charge, for the Superintendentbegin delete of Public
14Instructionend delete
to disseminate to school teachers at the local level.

15(c) The Superintendent begin delete of Public Instructionend delete shall make this
16existing curriculum available to teachers, using materials that are
17currently available at no cost, with information and links provided
18through the Internet, in order to provide tobegin delete studentsend deletebegin insert pupilsend insert in grades
197 to 12, inclusive, instruction on human growth, human
20development, and financialbegin delete preparednessend deletebegin insert literacy, including, but
21not limited to, budgeting and managing credit, student loans, and
22debtend insert
.

23begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 51284 of the end insertbegin insertEducation Codeend insertbegin insert is amended to
24read:end insert

25

51284.  

begin deleteAfter January 1, 2003, and concurrently end deletebegin insertConcurrently end insert
26with, but not prior to, the next revision of text books or curriculum
27frameworks in the social sciences, health, and mathematics
28curricula, thebegin delete State Board of Educationend deletebegin insert state boardend insert shall ensure
29that these academic areas integrate components of human growth,
30human development, and human contribution to society, across
31the life course, and also financialbegin delete preparednessend deletebegin insert literacy, including,
32but not limited to, budgeting and managing credit, student loans,
33and debtend insert
.



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