BILL ANALYSIS Ó
AB 391
Page 1
Date of Hearing: May 1, 2013
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 391 (Wieckowski) - As Amended: April 9, 2013
Policy Committee: Education
Vote:7-0
Urgency: No State Mandated Local Program:
Yes Reimbursable: Yes
SUMMARY
This bill makes the following changes to K-12 curriculum for the
purpose of including instruction in personal finances:
1)Requires the history-social science curriculum framework, when
it is revised, to ensure it 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. Further
specifies the framework to identify resources and curriculum
to assist educators in delivering this instruction.
2)Requires information on budgeting, savings, loans, identity
theft/security, and planning for postsecondary education to be
included in a one semester instructional program entitled
consumer economics for use in grades 7-12. This measure also
requires the Superintendent of Public Instruction (SPI) to
make this curriculum available no later than July 1, 2015.
FISCAL EFFECT
1)GF administrative costs, of approximately $300,000, to SDE to
develop curriculum on consumer economics by July 1, 2015, as
specified.
2)Minor absorbable GF administrative costs to SDE to meet the
requirements related to including personal finance information
in the history-social science curriculum framework.
COMMENTS
AB 391
Page 2
1)Purpose . According to the author, "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 risk. The growing
negative economic effects of financial illiteracy have spurred
the need for financial literacy education for all elementary
and secondary pupils." This bill adds financial literacy
information to K-12 curriculum, as specified.
2)Existing law requires the SPI to make existing financial
preparedness curriculum available to teachers in grades 7-12,
using materials that are currently available at no cost. In
April 2012, the SPI launched an initiative to "provide
schools, teachers, students and parents with access to
supplemental resources that can help students develop a keen
understanding of responsible money management and increase
their overall financial literacy." The SDE is partnering with
financial institutions, consumer groups, and other government
agencies in this effort."
Specifically, SDE has provided links to various websites that
offer financial literacy information, including curriculum, to
be used in K-12 schools. The information is accessible by the
public and can be accessed by teachers.
Statute also requires the SPI with the approval of the SBE, to
develop a one-semester consumer economics course for grades
7-12. The course must include personal banking, basic
contracts, using consumer purchasing guides, uses and costs of
credit, types and costs of insurance, and types of taxation.
Statute also requires a student to complete a one-semester
course in economics, among other requirements, to be eligible
for a high school diploma.
Furthermore, existing law requires the SBE to ensure
curriculum frameworks in the social sciences, health, and
mathematics to include information on financial preparedness.
The majority of the financial information required under this
measure is currently included in the history-social science
framework or other curriculum.
3)Current law establishes a moratorium on the SBE's ability to
adopt curriculum frameworks until 2015, with exception for
those related to the Common Core Standards. Prior to the this
AB 391
Page 3
moratorium, the next history-social science curriculum
framework was scheduled for adoption in May 2010 and the
Instructional Quality Commission (IQC) had completed all of
the necessary work, including approval to conduct a 60 day
comment period. With the passage of SB 1540 (Hancock),
Chapter 288, Statutes of 2012, the IQC is expected to complete
the framework process within the next year and a half. The
inclusion of personal finance information in the
history-social science framework, as required in this measure,
has been met within the draft framework.
4)Related legislation .
a) AB 137 (Buchanan), pending in this committee, requires
the Instructional Quality Commission to include specified
information related to civics whenever it revised the
history-social science curriculum framework
b) AB 166 (Hernández), pending in the Senate, requires the
SBE to ensure financial literacy, including, but not
limited to, budgeting and managing credit, student loans,
and debt, is integrated into the history-social science
curriculum frameworks at its next revision.
Analysis Prepared by : Kimberly Rodriguez / APPR. / (916)
319-2081