BILL ANALYSIS Ó
SENATE COMMITTEE ON EDUCATION
Carol Liu, Chair
2013-2014 Regular Session
BILL NO: AB 166
AUTHOR: Hernandez
AMENDED: June 5, 2013
FISCAL COMM: Yes HEARING DATE: June 12, 2013
URGENCY: No CONSULTANT: Lynn Lorber
SUBJECT : Financial literacy: curricular frameworks.
SUMMARY
This bill requires the next revision of the curricular
frameworks for history-social science, mathematics, and
health to include financial literacy.
BACKGROUND
Academic content standards define the knowledge, concepts,
and skills that pupils should acquire at each grade level
(the "what"). Curricular frameworks are the blueprint for
implementing the standards, and include criteria by which
instructional materials are evaluated (the "how").
The processes for reviewing frameworks and adopting
instructional materials have been suspended since July 28,
2009. The State Board of Education (SBE) is specifically
prohibited from reviewing frameworks and adopting
instructional materials until the 2015-16 school year,
except as provided below. (Education Code § 60200.7)
Notwithstanding the suspension, current law:
1) Requires the SBE to adopt revised frameworks that are
aligned to the common core standards in:
a) Mathematics by November 30, 2013.
b) English language arts by May 30, 2014. (EC
§ 60207)
2) Authorizes the SBE to adopt a revised framework for
history social science, but only after the California
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Department of Education has completed work related to
the frameworks for the common core standards. (EC §
60200.8)
Current law requires the SBE, after January 1, 2003, to
ensure that the next revision of textbooks or curriculum
frameworks in the social sciences, health, and mathematics
curricula integrate certain topics, including financial
preparedness. (EC § 51284)
ANALYSIS
This bill requires the next revision of the curricular
frameworks for history-social science, mathematics, and
health to include financial literacy. Specifically, this
bill:
1) Modifies the existing requirement that financial
preparedness, among other topics, be included in the
next revision of textbooks or curricular frameworks in
social sciences, health and mathematics to instead
include financial literacy.
2) Specifies that financial literacy includes budgeting
and managing credit, student loans, consumer debt and
identity theft security.
STAFF COMMENTS
1) Need for the bill . According to the author,
"California does not have an official state policy or
educational plan for the teaching of financial
literacy. Currently, law allows high schools the
option of teaching personal finance within their
required economics course. Unfortunately, most
students graduate without receiving any education on
personal finance. 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."
2) Curriculum . Current law prohibits the State Board of
Education from revising curricular frameworks or
criteria by which instructional materials are
evaluated, other than as follows:
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a) The SBE is required to adopt revised
frameworks that are aligned to the common core
standards in mathematics by November 30, 2013.
b) The SBE is authorized to adopt a revised
framework for history-social science, but only
after the California Department of Education has
completed work related to the frameworks for the
common core standards.
c) The SBE is authorized to adopt evaluation
criteria for instructional materials in
mathematics by March 31, 2013. The SBE adopted
the evaluation criteria at its January 16, 2013
meeting.
This bill requires the inclusion of financial literacy
in the next revision of textbooks or the frameworks
for mathematics, history-social science and health.
As indicated above, the revision of the mathematics
framework is currently underway and is scheduled to be
completed prior to the implementation of this bill.
Further, the SBE adopted new evaluation criteria for
instructional materials in mathematics in January
2013, and is authorized to adopt K-8 instructional
materials in mathematics by March 30, 2014. According
to the timeline adopted by the SBE, publishers will
submit instructional materials for review in May 2013,
the Instructional Quality Commission will make
recommendations to the SBE in January 2014, and the
SBE will adopt the materials in March 2014.
Therefore, this bill will not affect the next adoption
of mathematics instructional materials.
There does not appear to be a specific plan for the
resumption of the process of reviewing and updating
the health framework. Assuming the prior schedule is
resumed as it was upon suspension and the framework
for history-social science is completed first, the
health framework would likely be revisited in 2018 at
the earliest.
3) Existing financial literacy initiative . The
Superintendent of Public Instruction has launched a
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financial literacy awareness campaign to provide
schools, teachers, students and parents with access to
supplemental resources that can help students develop
knowledge and understanding of money management. The
goal of this initiative is 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
CDE hosts an online resource library for grades K-12
that provides more than 30 Internet links to programs
that are appropriate for use in the classroom or at
home to increase financial literacy.
http://www.cde.ca.gov/eo/in/fl/finlitk12.asp
4) Fiscal impact . According to the Assembly
Appropriations Committee's analysis, "Under current
law, both the SBE and Superintendent of Public
Instruction are required to ensure financial
preparedness information is included in specified
curriculum. This measure would change the term to
"financial literacy" and require more specific
curriculum to be included. To the extent these
requirements would lead to additional workload, there
would be minor General Fund administrative costs,
likely less than $75,000, to the State Department of
Education."
5) Related legislation . AB 123 (Bonta) requires the SBE
to ensure the state curriculum, frameworks and
evaluation criteria include instruction on the
contributions of immigrants, including Filipino
Americans, to the farm labor movement in the United
States. AB 123 is pending in the Senate.
AB 137 (Buchanan) requires the inclusion of strategies to
increase instruction in civics whenever the
history-social science framework is updated. AB 137
is scheduled to be heard in this Committee on June 12.
AB 391 (Wieckowski) requires the history-social science
curriculum framework, when it is revised, to ensure it
encourages instruction related to the understanding of
personal finances, including budgeting, savings,
credit and loans, identity theft, and paying for
postsecondary education. AB 391 also requires
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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. AB 391 was held on the Assembly
Appropriations Committee's suspense file.
AB 424 (Donnelly) requires the Instructional Quality
Commission, when revising the history-social science
framework, to consider incorporating into the
framework the Magna Carta. Articles of Confederation,
and California Constitution. AB 424 also requires the
Commission to encourage instruction that promotes an
understanding of the governments of California and the
United States. AB 424 is pending in the Senate.
AB 700 (Gomez) requires the Instructional Quality
Commission, when revising the history-social science
framework, to include voter education information in
the high school American Government and civics
courses, including information on the importance of
registering to vote in local, state, and federal
elections, and where how to access the voter
information pamphlet and other materials to become an
informed voter, to be included. AB 700 is pending in
the Senate.
SB 330 (Padilla) requires the next revision of the Health
curriculum framework to include a distinct category on
mental health instruction. SB 330 is pending in the
Assembly.
SB 518 (Wyland) requires the Instructional Quality
Commission and the SBE to include the subjects of
engineering and robotics in the next adoption of
science and mathematics frameworks. SB 518 is pending
in this Committee.
SB 521 (Wyland) requires the SBE and California Department
of Education to request the Instructional Quality
Commission, when revising the history-social science
framework, to update the courses in American
Government and civics to include the comparative
differences between the rights of the citizens in
American and those in other countries, and the
connection of civics and American government to
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western civilizations. SB 521 is pending in this
Committee.
SB 552 (Calderon) authorizes social science instruction in
grades 7-12 to include instruction on violence
awareness. SB 552 is scheduled to be heard in the
Assembly Education Committee on June 12.
SB 696 (Block) requires the Superintendent of Public
Instruction to report to the Legislature and recommend
to the SBE for adoption a project-based assessment to
measure the civics learning objectives contained in
the history-social science framework for grades 6-12.
SB 696 was held on the Senate Appropriations
Committee's suspense file.
6) Prior legislation related to financial literacy . SB
1080 (Lieu, 2012) would have required CDE to develop a
personal finances curriculum in the next adoption
cycle in which mathematics and history-social science
curricula frameworks are adopted. SB 1080 would have
also authorized schools to include instruction related
to personal finances in economics instruction. SB
1080 was held on the Senate Appropriations Committee's
suspense file.
SB 779 (Lieu, 2011) would have authorized a school
district, as part of providing economics instruction
in grades 7-12, to include instruction related to the
understanding of personal finances, including, but not
limited to, budget savings, credit, and identify
theft. SB 779 would have also required the Department
of Education to consider developing a personal
finances curriculum in the next cycle in which the
history/social science curriculum framework is
adopted. SB 779 was held on the Assembly
Appropriations Committee's suspense file.
SB 223 (Wyland, 2009) would have required that one-half of
the economics course required for high school
graduation focus on personal finance and financial
literacy. SB 223 was held on the Assembly
Appropriations Committee's suspense file.
AB 1502 (Lieu, 2008) would have required the SBE and the
Curriculum Commission to ensure that information about
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financial literacy is included in appropriate subject
area frameworks and encourages school districts to
include instruction relating to the understanding of
personal finances. AB 1502 was vetoed by the
Governor, whose veto message read:
While I acknowledge that teaching students the
importance of financial literacy is meritorious,
school districts already have the flexibility to
incorporate money management into their lesson
plans. Moreover, the State Board of Education
adopted content standards are developed by a
diverse group of experts and are intentionally
broad in order to allow coverage of various
events, developments, and issues. I continue to
believe that the State should establish rigorous
academic standards and frameworks, but refrain
from being overly prescriptive in specific school
curriculum.
AB 150 (Lieu, 2007) would have established the
California Financial Literacy Initiative to, among
other things, provide an online library of financial
literacy resources and materials to be made available
to schools, teachers, parents and pupils. AB 150 was
vetoed by the Governor, whose veto message read:
Teaching students the principles of money
management is a worthy goal. However, this bill
would merely authorize the Superintendent of
Public Instruction (SPI) to convene an advisory
committee and make financial literacy resources
and materials that are grade-level appropriate
available online. Superintendent O'Connell
already has the authority to do these things, if
he so chooses. In addition, many financial
institutions and services providers already
provide an abundance of information on financial
literacy that is readily available on the
Internet.
AB 1950 (Lieu, 2006) would have permitted school
districts to provide instruction in economics courses
related to the understanding of personal finances,
including budgeting, savings, credit, and identity
theft. AB 1950 was vetoed by the Governor, whose veto
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message read:
I vetoed a substantially similar bill, AB 2435
(Wiggins, 2004). As I previously stated, the
bill is unnecessary because school districts
already have the authority to teach budgeting,
savings, and credit, under current law. Thus, my
veto message remains applicable.
AB 2435 (Wiggins, 2004) would have authorized school
districts to include instruction related to the
understanding of personal finances, including
budgeting, savings, and credit. AB 2435 was vetoed by
the Governor, whose veto message read:
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.
Although I am unable to support this legislation,
I agree with the importance of learning to spend
wisely and properly managing finances. Learning
to balance a checkbook, saving money for a rainy
day, and understanding the dangers of too much
credit card debt are all vital skills for kids to
learn in order to become responsible adults.
While teaching financial responsibility is
important for our children, I would welcome
future legislation that requires all members of
the State Legislature to complete a course in
financial management and responsibility.
Requiring legislators to take a refresher course
on managing finances may be the wisest investment
the State could ever make. California may never
have found itself in the deep fiscal crisis that
it has had to endure, if such a requirement were
signed into law earlier.
One of the best lessons we can offer to our
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children, is to practice sound financial
principles, and I believe the Legislature should
begin teaching kids by example.
SUPPORT
Associated Students of University of California, Davis
California Bankers Association
California Communities United Institute
California Council on Economic Education
California Credit Union League
California Independent Bankers
California Jump$tart Coalition for Personal Financial
Literacy
California Society of CPAs
Compton Unified School District
El Monte Union High School District
Salinas Union High School District
San Joaquin County Hispanic Chamber of Commerce
Sus Finanzas
OPPOSITION
None on file.