Amended in Assembly April 9, 2013

Amended in Assembly March 14, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 391

Introduced by Assembly Member Wieckowski

February 15, 2013

An act to amend Sections begin delete 51220 and 51225.3 end delete begin insert 33540 and 51833 end insert of begin delete , and to add Section 51226.9 to, end delete the Education Code, relating to pupil instruction.

LEGISLATIVE COUNSEL’S DIGEST

AB 391, as amended, Wieckowski. Pupil instruction: personal begin delete finance end delete begin insert finances end insert .

(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 begin delete , 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 end delete begin insert that when the history-social science framework is revised as required by law, the Instructional Quality end insert begin insert Commission, as appropriate and based on the subject matter of the course, to encourage instruction related to the end insert understanding begin insert of end insert personal begin delete finance end delete begin insert finances end insert , including, but not limited to, budgeting, savings, credit and loans, identity theft, and paying for postsecondary education. The bill would require the begin delete one-semester course in economics that is required for high school graduation to include personal finance, including, but not limited to, those subjects end delete begin insert commission to end insert begin insert identify resources and curriculum to assist educators in delivering this instruction end insert . 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 begin insert , no later than July 1, 2015, end insert the begin insert Superintendent of Public Instruction with the approval of the end insert State Department of Education to begin insert plan and end insert develop begin delete and adopt a personal financial literacy curriculum, for use beginning with the 2014-15 school year, end delete begin insert a one-semester instructional program entitled consumer economics end insert that includes, begin delete but is not limited to end delete begin insert among other things end insert , budgeting, savings begin insert and checking end insert , begin delete credit and end delete begin insert uses and costs of end insert loans, begin insert including student loans, end insert identity theft begin insert and security end insert , and begin insert planning and end insert 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.

begin insert

begin insert SEC. end insert begin insert 3 end insert begin insert . end insert   

end insert

begin insert Section 33540 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

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 begin delete ensure that the following
historical documents are incorporated into the framework end delete , as
appropriate begin insert and based on the subject matter of the course, do both
of the following end insert :

begin insert

(1) Ensure that the following historical documents are
incorporated in the framework:

end insert begin delete

(1)

end delete

begin insert (A) end insert  The Declaration of Independence.

begin delete

(2)

end delete

begin insert (B) end insert  The United States Constitution, including the Bill of Rights.

begin delete

(3)

end delete

begin insert (C) end insert  The Federalist Papers.

begin delete

(4)

end delete

begin insert (D) end insert  The Emancipation Proclamation.

begin delete

(5)

end delete

begin insert (E) end insert  The Gettysburg Address.

begin delete

(6)

end delete

begin insert (F) end insert  George Washington’s Farewell Address.

begin insert

(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.

end insert

begin delete

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).

end delete

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 51833 of the end insert begin insert Education Code end insert begin insert is amended to
read: end insert

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 begin insert , including, but
not limited to, budgeting, savings, and checking end insert .

(2) Elementary contracts.

(3) Consumer guides to purchasing.

(4) Uses and costs of credit.

begin insert

(5) Uses and costs of loans, including student loans.

end insert begin delete

(5)

end delete

begin insert (6) end insert  Types and costs of insurance.

begin delete

(6)

end delete

begin insert (7) end insert  Forms of governmental taxation.

begin insert

(8) Identity theft and security.

end insert begin insert

(9) Planning and paying for postsecondary education.

end insert begin insert

(c) The Superintendent of Public Instruction shall make this
curriculum available no later than July 1, 2015.

end insert

begin delete SEC. 7. end delete
begin insert SEC. 5. end insert   

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.