BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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          |SENATE RULES COMMITTEE            |                  AB 1492|
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                                 THIRD READING


          Bill No:  AB 1492
          Author:   Evans (D)
          Amended:  6/14/05 in Senate
          Vote:     21

           
           SENATE EDUCATION COMMITTEE  :  10-0, 6/8/05
          AYES:  Scott, Alquist, Denham, Dutton, Lowenthal, Romero,  
            Simitian, Soto, Speier, Torlakson
          NO VOTE RECORDED:  Maldonado, Morrow

           ASSEMBLY FLOOR  :  55-14, 5/5/05 - See last page for vote


           SUBJECT  :    Instruction:  economics

           SOURCE  :     Author


           DIGEST  :    This bill authorizes schools to offer  
          instruction related to personal finances as part of  
          economics instruction.  The bill also directs the  
          California Department of Education to consider developing a  
          personal finances curriculum, as specified.

           ANALYSIS  :    

          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.

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                                                               AB 1492
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          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.

          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.

          This bill directs the California Department of Education to  
          consider developing a personal finances curriculum in the  
          next cycle in which the history-social science curriculum  
          framework and its accompanying instructional materials are  
          adopted.

           Prior Legislation

           AB 2435 (Wiggins) of the 2003-04 Session, was similar 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), 2003-04 Session, 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 7-12 in  
          comprehensive personal finance management, including  
          consumer education, debt management, and financial  
          management.  AB 707 was held in the Assembly Appropriations  
          Committee.







                                                               AB 1492
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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  No    
          Local:  No

           SUPPORT  :   (Verified  6/14/05)

          California State PTA
          Coalition for Quality Credit Counseling
          Junior League of San Diego
          Junior League of California State Public Affairs Committee
          The Junior League of San Francisco, Inc.

           OPPOSITION  :    (Verified  6/14/05)

          Office of the Secretarty for Education


           ASSEMBLY FLOOR  : 
          AYES:  Arambula, Baca, Bass, Berg, Bermudez, Blakeslee,  
            Bogh, Calderon, Canciamilla, Chan, Chavez, Chu, Cohn,  
            Coto, De La Torre, Dymally, Evans, Frommer, Garcia,  
            Goldberg, Hancock, Shirley Horton, Huff, Jones, Karnette,  
            Klehs, Koretz, Laird, Leno, Lieber, Liu, Matthews,  
            Montanez, Mullin, Nakanishi, Nation, Nava, Negrete  
            McLeod, Oropeza, Parra, Pavley, Richman, Ridley-Thomas,  
            Ruskin, Saldana, Salinas, Strickland, Torrico, Tran,  
            Umberg, Vargas, Walters, Wyland, Yee, Nunez
          NOES:  Aghazarian, Daucher, DeVore, Harman, Haynes,  
            Houston, Keene, La Malfa, La Suer, Mountjoy, Niello,  
            Plescia, Spitzer, Villines
          NO VOTE RECORDED:  Benoit, Cogdill, Emmerson, Gordon,  
            Jerome Horton, Leslie, Levine, Maze, McCarthy, Sharon  
            Runner, Wolk


          NC:cm  6/14/05   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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