BILL ANALYSIS
SENATE COMMITTEE ON EDUCATION
Jack Scott, Chair
2005-2006 Regular Session
BILL NO: AB 1492
AUTHOR: Evans
INTRODUCED: February 22, 2005
FISCAL COMM: No HEARING DATE: June 8, 2005
URGENCY: No CONSULTANT:Lynn Lorber
SUBJECT : Economics instruction
SUMMARY
This bill authorizes schools to offer instruction related
to personal finances as part of economics instruction.
BACKGROUND
Current law requires:
1) A student to complete a one-semester course in
economics, among other requirements, to be eligible
for a high school diploma.
2) The course of study for grades 7-12 to offer courses
in social sciences, including the development of the
American economic system.
3) The Superintendent of Public Instruction (SPI), with
the approval of the State Board of Education, 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.
4) The course to be available to all secondary schools.
ANALYSIS
This bill authorizes a school district, in providing
instruction in economics, to include instruction related to
the understanding of personal finances, including
budgeting, savings, and credit.
AB 1492
Page 2
STAFF COMMENTS
1) Is this bill necessary ? The Education Code is
permissive. Schools do not need statutory authority
to offer instruction in personal finances. A consumer
economics course for grades 7-12 developed by the
California Department of Education (CDE), which
includes personal banking, is currently available to
schools. Staff recommends this bill be amended to
direct the CDE, when reviewing consumer economics
course content, to add specific components to that
course, as appropriate.
2) Prior legislation . AB 2435 (Wiggins, 2004) was nearly
identical to this bill. AB 2435 was vetoed. The
Governor's veto message read, in pertinent part:
"Allowing school districts to teach middle school and high
school students about the importance of properly
maintaining their personal finances is a worthy
objective. However, this bill is unnecessary because
school districts already have the authority to teach
budgeting, savings, and credit, under current law."
AB 707 (Correa, 2003) required the SPI and the Department
of Consumer Affairs to establish a Personal Financial
Management Curriculum Task Force to develop curriculum
and educational programs for grades 7 to 12 in
comprehensive personal finance management, including
consumer education, debt management, and financial
management. AB 707 was held in the Assembly
Appropriations Committee.
SUPPORT
California State PTA
Coalition for Quality Credit Counseling
Junior League of San Diego
Junior Leagues of California State Public Affairs Committee
The Junior League of San Francisco, Inc.
OPPOSITION
Office of the Secretary for Education