BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 166| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- THIRD READING Bill No: AB 166 Author: Roger Hernández (D), et al. Amended: 6/5/13 in Senate Vote: 21 SENATE EDUCATION COMMITTEE : 9-0, 6/12/13 AYES: Liu, Wyland, Block, Correa, Hancock, Hueso, Huff, Monning, Torres SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8 ASSEMBLY FLOOR : 77-0, 4/15/13 - See last page for vote SUBJECT : Pupil Instruction: financial literacy: curriculum framework SOURCE : Author DIGEST : This bill requires the next revision of the curriculum frameworks for history-social science, mathematics, and health to include financial literacy. ANALYSIS : Academic content standards define the knowledge, concepts, and skills that pupils should acquire at each grade level. Curriculum frameworks are the blueprint for implementing the standards, and include criteria by which instructional materials are evaluated. The processes for reviewing frameworks and adopting instructional materials have been suspended since July 28, 2009. CONTINUED AB 166 Page 2 The State Board of Education (SBE) is specifically prohibited from reviewing curriculum frameworks and adopting instructional materials until the 2015-16 school year, except as provided. Notwithstanding the suspension, existing law: 1.Requires the SBE to adopt revised curriculum frameworks that are aligned to the common core standards in: A. Mathematics by November 30, 2013. B. English language arts by May 30, 2014. 1.Authorizes the SBE to adopt a revised curriculum framework for history-social science, but only after the Department of Education (CDE) has completed work related to the frameworks for the common core standards. 2.Requires the SBE, after January 1, 2003, to ensure that the next revision of textbooks or curriculum frameworks in the social sciences, health, and mathematics curricula integrate certain topics, including financial preparedness. This bill requires the next revision of the curriculum frameworks for history-social science, mathematics, and health to include financial literacy. Specifically, this bill: 1.Modifies the existing requirement that financial preparedness, among other topics, be included in the next revision of textbooks or curriculum frameworks in social sciences, health and mathematics to instead include financial literacy. 2.Specifies that financial literacy includes budgeting and managing credit, student loans, consumer debt, and identity theft security. Comments According to the author's office, "California does not have an official state policy or educational plan for the teaching of financial literacy. Existing law allows high schools the option of teaching personal finance within their required economics CONTINUED AB 166 Page 3 course. Unfortunately, most students graduate without receiving any education on personal finance. The growing negative effects of financial illiteracy, such as the housing mortgage crisis and a low national savings rate, have spurred the need for financial literacy education for California students. Prior Legislation SB 1080 (Lieu, 2012) would have required CDE to develop a personal finances curriculum in the next adoption cycle in which mathematics and history-social science curriculum frameworks are adopted. SB 1080 would have also authorized schools to include instruction related to personal finances in economics instruction. SB 1080 was held on the Senate Appropriations Committee's suspense file. SB 779 (Lieu, 2011) would have authorized a school district, as part of providing economics instruction in grades 7-12, to include instruction related to the understanding of personal finances, including, but not limited to, budget savings, credit, and identify theft. SB 779 would have also required CDE to consider developing a personal finances curriculum in the next cycle in which the history-social science curriculum framework is adopted. SB 779 was held on the Assembly Appropriations Committee's suspense file. SB 223 (Wyland, 2009) would have required that one-half of the economics course required for high school graduation focus on personal finance and financial literacy. SB 223 was held on the Assembly Appropriations Committee's suspense file. AB 1502 (Lieu, 2008) would have required the SBE and the Curriculum Commission to ensure that information about financial literacy is included in appropriate subject area frameworks and encourages school districts to include instruction relating to the understanding of personal finances. AB 1502 was vetoed by the Governor Schwarzenegger, whose veto message read: "While I acknowledge that teaching students the importance of financial literacy is meritorious, school districts already have the flexibility to incorporate money CONTINUED AB 166 Page 4 management into their lesson plans. Moreover, the SBE adopted content standards are developed by a diverse group of experts and are intentionally broad in order to allow coverage of various events, developments, and issues. I continue to believe that the state should establish rigorous academic standards and frameworks, but refrain from being overly prescriptive in specific school curriculum." FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes Local: No SUPPORT : (Verified 6/21/13) Associated Students of University of California, Davis California Bankers Association California Communities United Institute California Council on Economic Education California Credit Union League California Independent Bankers California Jump$tart Coalition for Personal Financial Literacy California Society of Certified Public Accountants Compton Unified School District El Monte Union High School District Salinas Union High School District San Joaquin County Hispanic Chamber of Commerce Sus Finanzas ASSEMBLY FLOOR : 77-0, 4/15/13 AYES: Achadjian, Alejo, Allen, Ammiano, Atkins, Bigelow, Bloom, Blumenfield, Bocanegra, Bonilla, Bonta, Bradford, Brown, Buchanan, Ian Calderon, Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier, Beth Gaines, Garcia, Gatto, Gomez, Gordon, Gorell, Gray, Grove, Hagman, Hall, Roger Hernández, Holden, Jones, Jones-Sawyer, Levine, Linder, Logue, Maienschein, Mansoor, Medina, Melendez, Mitchell, Morrell, Mullin, Muratsuchi, Nazarian, Nestande, Olsen, Pan, Patterson, Perea, V. Manuel Pérez, Quirk, Quirk-Silva, Rendon, Salas, Skinner, Stone, Ting, Torres, Wagner, Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, John A. Pérez NO VOTE RECORDED: Harkey, Lowenthal, Vacancy CONTINUED AB 166 Page 5 PQ:ej 6/25/13 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED