BILL ANALYSIS Ó
AB 166
Page 1
ASSEMBLY THIRD READING
AB 166 (Roger Hernández)
As Amended April 1, 2013
Majority vote
EDUCATION 6-0 APPROPRIATIONS 17-0
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|Ayes:|Buchanan, Campos, Chávez, |Ayes:|Gatto, Harkey, Bigelow, |
| |Nazarian, Weber, Williams | |Bocanegra, Bradford, Ian |
| | | |Calderon, Campos, |
| | | |Donnelly, Eggman, Gomez, |
| | | |Hall, Holden, Linder, |
| | | |Pan, Quirk, Wagner, Weber |
| | | | |
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SUMMARY : Requires the State Board of Education (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.
EXISTING LAW : Requires the SBE and the Superintendent of Public
Instruction (SPI) to include financial preparedness in the
history-social science curriculum.
FISCAL EFFECT : According to the Assembly Appropriations Committee,
minor General Fund administrative costs, likely less than $75,000,
to the California Department of Education (CDE).
COMMENTS : According to the author, "The growing negative effects of
financial illiteracy, such as the housing mortgage crisis and a low
national savings rate, have spurred the need for financial literacy
education for California students." The Washington, DC-based
Jump$tart Coalition for Personal Financial Literacy reports that its
2008 survey of high school seniors revealed that "The financial
literacy of high school students has fallen to its lowest level
ever?" The survey covered issues ranging from savings and
investment to personal debt and credit. California Jump$tart
reports 46 states have personal finance standards in various forms,
but only 13 of those states include personal finance instruction as
part of their K-12 graduation requirements.
Model Curriculum Standards . Existing law establishes the minimum
coursework required to receive a high school diploma: three courses
AB 166
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in English, two courses in mathematics, two courses in science,
three courses in social studies (including a one-semester course in
economics), one course in visual or performing arts or a foreign
language, and two courses in physical education. Existing law also
requires the Superintendent of Public Instruction (SPI) to
coordinate the development, on a cyclical basis, of model curriculum
standards for the courses required for high school graduation. The
curriculum standards are developed by the Instructional Quality
Commission (IQC) and adopted by the SBE. The IQC is an 18-member
commission consisting of one member of the Assembly, one member of
the Senate, and 16 public members. At least seven of the public
members must have taught, written, or lectured on the subject areas
required for graduation.
This bill changes "financial preparedness" to "financial literacy"
in the history-social science frameworks requirement and provides
that financial literacy shall include, but not be limited to
budgeting and managing credit, student loans, and debt.
Analysis Prepared by : Rick Pratt / ED. / (916) 319-2087 FN:
0000157