First Substitute S.B. 40

Senator Patricia W. Jones proposes the following substitute bill:


             1     
FINANCIAL AND ECONOMIC LITERACY AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Patricia W. Jones

             5     
House Sponsor: Rich Cunningham

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill modifies provisions relating to financial and economic literacy education.
             10      Highlighted Provisions:
             11          This bill:
             12          .    requires the State Board of Education to:
             13              .    contract with a provider to develop an online, end-of-course assessment for the
             14      general financial literacy course;
             15              .    require a school district or charter school to administer an online, end-of-course
             16      assessment to a student who takes the general financial literacy course;
             17              .    identify, and make available to teachers, online resources for financial and
             18      economic literacy education;
             19              .    in cooperation with school districts, charter schools, and interested private or
             20      nonprofit entities, provide professional development opportunities in financial
             21      and economic literacy to teachers;
             22              .    adopt course standards or objectives for the general financial literacy course that
             23      address certain topics;
             24              .    implement a teacher endorsement in general financial literacy; and
             25              .    administer the general financial literacy course in the same manner as other core


             26      curriculum courses for grades 9 through 12 are administered;
             27          .    modifies duties of a financial and economic literacy task force established by the
             28      State Board of Education; and
             29          .    makes technical amendments.
             30      Money Appropriated in this Bill:
             31          This bill appropriates in fiscal year 2015:
             32          .    to the State Board of Education - Utah State Office of Education - Initiative
             33      Programs as a one-time appropriation:
             34              .    from the Education Fund, $100,000;
             35          .    to the State Board of Education - Utah State Office of Education - Initiative
             36      Programs as an ongoing appropriation:
             37              .    from the Education Fund, $100,000;
             38          .    to the State Board of Education - State Office of Education as a one-time
             39      appropriation:
             40              .    from the Education Fund, $100,000; and
             41          .    to the State Board of Education - State Office of Education as an ongoing
             42      appropriation:
             43              .    from the Education Fund, $200,000.
             44      Other Special Clauses:
             45          This bill takes effect on July 1, 2014.
             46      Utah Code Sections Affected:
             47      AMENDS:
             48           53A-13-108 , as last amended by Laws of Utah 2012, Chapter 398
             49           53A-13-110 , as last amended by Laws of Utah 2013, Chapter 226
             50     
             51      Be it enacted by the Legislature of the state of Utah:
             52          Section 1. Section 53A-13-108 is amended to read:
             53           53A-13-108. Curriculum and graduation requirements.
             54          (1) The State Board of Education shall establish rigorous curriculum and graduation
             55      requirements under Section 53A-1-402 [, and consistent with state and federal regulations,] for
             56      grades 9 through 12 that[,]:


             57          (a) are consistent with state law and federal regulations; and
             58          (b) beginning no later than with the graduating class of 2008 [shall]:
             59          [(a)] (i) use competency-based standards and assessments;
             60          [(b)] (ii) include instruction that stresses general financial literacy from basic budgeting
             61      to financial investments, including bankruptcy education and a general financial literacy
             62      test-out option; and
             63          [(c)] (iii) increase graduation requirements in language arts, mathematics, and science
             64      to exceed the existing credit requirements of 3.0 units in language arts, 2.0 units in
             65      mathematics, and 2.0 units in science.
             66          (2) The State Board of Education shall also establish competency-based standards and
             67      assessments for elective courses.
             68          (3) On or before July 1, 2014, the State Board of Education shall adopt revised course
             69      standards and objectives for the course of instruction in general financial literacy described in
             70      Subsection (1)(b) that address:
             71          (a) the costs of going to college, student loans, scholarships, and the Free Application
             72      for Federal Student Aid (FAFSA); and
             73          (b) technology that relates to banking, savings, and financial products.
             74          (4) The State Board of Education shall administer the course of instruction in general
             75      financial literacy described in Subsection (1)(b) in the same manner as other core curriculum
             76      courses for grades 9 through 12 are administered.
             77          Section 2. Section 53A-13-110 is amended to read:
             78           53A-13-110. Financial and economic literacy education.
             79          (1) As used in this section:
             80          (a) "Financial and economic activities" include activities related to the topics listed in
             81      Subsection (1)(b).
             82          (b) "Financial and economic literacy concepts" include concepts related to the
             83      following topics:
             84          (i) basic budgeting;
             85          (ii) saving and financial investments;
             86          (iii) banking and financial services, including balancing a checkbook or a bank account
             87      and online banking services;


             88          (iv) career management, including earning an income;
             89          (v) rights and responsibilities of renting or buying a home;
             90          (vi) retirement planning;
             91          (vii) loans and borrowing money, including interest, credit card debt, predatory
             92      lending, and payday loans;
             93          (viii) insurance;
             94          (ix) federal, state, and local taxes;
             95          (x) charitable giving;
             96          (xi) online commerce;
             97          (xii) identity fraud and theft;
             98          (xiii) negative financial consequences of gambling;
             99          (xiv) bankruptcy;
             100          (xv) free markets and prices;
             101          (xvi) supply and demand;
             102          (xvii) monetary and fiscal policy;
             103          (xviii) effective business plan creation, including using economic analysis in creating a
             104      plan;
             105          (xix) scarcity and choices;
             106          (xx) opportunity cost and tradeoffs;
             107          (xxi) productivity;
             108          (xxii) entrepreneurism; and
             109          (xxiii) economic reasoning.
             110          (c) "Financial and economic literacy passport" means a document that tracks mastery
             111      of financial and economic literacy concepts and completion of financial and economic
             112      activities in kindergarten through grade 12.
             113          (d) "General financial literacy course" means the course of instruction described in
             114      Section 53A-13-108 .
             115          (2) The State Board of Education shall:
             116          (a) in cooperation with interested private and nonprofit entities:
             117          (i) develop a financial and economic literacy passport that students may elect to
             118      complete;


             119          (ii) develop methods of encouraging parent and educator involvement in completion of
             120      the financial and economic literacy passport; and
             121          (iii) develop and implement appropriate recognition and incentives for students who
             122      complete the financial and economic literacy passport, including:
             123          (A) a financial and economic literacy endorsement on the student's diploma of
             124      graduation;
             125          (B) a specific designation on the student's official transcript; and
             126          (C) any incentives offered by community partners;
             127          (b) more fully integrate existing and new financial and economic literacy education
             128      into instruction in kindergarten through grade 12 by:
             129          (i) coordinating financial and economic literacy instruction with existing instruction in
             130      other core curriculum areas such as mathematics and social studies;
             131          (ii) using curriculum mapping;
             132          (iii) creating training materials and staff development programs that:
             133          (A) highlight areas of potential coordination between financial and economic literacy
             134      education and other core curriculum concepts; and
             135          (B) demonstrate specific examples of financial and economic literacy concepts as a
             136      way of teaching other core curriculum concepts; and
             137          (iv) using appropriate financial and economic literacy assessments to improve financial
             138      and economic literacy education and, if necessary, developing assessments;
             139          (c) work with interested public, private, and nonprofit entities to:
             140          (i) identify, and make available to teachers, online resources for financial and
             141      economic literacy education, including modules with interactive activities and turnkey
             142      instructor resources;
             143          [(i)] (ii) coordinate school use of existing financial and economic literacy education
             144      resources;
             145          [(ii)] (iii) develop simple, clear, and consistent messaging to reinforce and link existing
             146      financial literacy resources;
             147          [(iii)] (iv) coordinate the efforts of school, work, private, nonprofit, and other financial
             148      education providers in implementing methods of appropriately communicating to teachers,
             149      students, and parents key financial and economic literacy messages; and


             150          [(iv)] (v) encourage parents and students to establish higher education savings,
             151      including a Utah Educational Savings Plan account; [and]
             152          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
             153      make rules to develop guidelines and methods for school districts and charter schools to more
             154      fully integrate financial and economic literacy education into other core curriculum courses[.];
             155          (e) (i) contract with a provider, through a request for proposals process, to develop an
             156      online, end-of-course assessment for the general financial literacy course;
             157          (ii) require a school district or charter school to administer an online, end-of-course
             158      assessment to a student who takes the general financial literacy course; and
             159          (iii) develop a plan, through the state superintendent of public instruction, to analyze
             160      the results of an online, end-of-course assessment in general financial literacy that includes:
             161          (A) an analysis of assessment results by standard; and
             162          (B) average scores statewide and by school district and school;
             163          (f) in cooperation with school districts, charter schools, and interested private and
             164      nonprofit entities, provide opportunities for professional development in financial and
             165      economic literacy to teachers, including:
             166          (i) a statewide learning community for financial and economic literacy;
             167          (ii) summer workshops; and
             168          (iii) online videos of experts in the field of financial and economic literacy education;
             169      and
             170          (g) implement a teacher endorsement in general financial literacy that includes course
             171      work in financial planning, credit and investing, consumer economics, personal budgeting, and
             172      family economics.
             173          (3) A public school shall provide the following to the parents or guardian of a
             174      kindergarten student during kindergarten enrollment:
             175          (a) a financial and economic literacy passport; and
             176          (b) information about higher education savings options, including information about
             177      opening a Utah Educational Savings Plan account.
             178          (4) (a) The State Board of Education shall establish a task force to study and make
             179      recommendations to the board on how to improve financial and economic literacy education in
             180      the public school system.


             181          (b) The task force membership shall include representatives of:
             182          (i) the State Board of Education;
             183          (ii) school districts and charter schools; and
             184          (iii) private or public entities that teach financial education and share a commitment to
             185      empower individuals and families to achieve economic stability, opportunity, and upward
             186      mobility.
             187          (c) In 2013, the task force shall:
             188          (i) review and recommend modifications to the course standards and objectives of the
             189      general financial literacy course described in Section 53A-13-108 to ensure the course
             190      standards and objectives reflect current and relevant content consistent with the financial and
             191      economic literacy concepts listed in Subsection (1)(b);
             192          (ii) study the development of an online assessment of students' competency in financial
             193      and economic literacy that may be used to:
             194          (A) measure student learning growth and proficiency in financial and economic
             195      literacy; and
             196          (B) assess the effectiveness of instruction in financial and economic literacy;
             197          (iii) consider the development of a rigorous, online only, course to fulfill the general
             198      financial literacy curriculum and graduation requirements specified in Section 53A-13-108 ;
             199          (iv) identify opportunities for teaching financial and economic literacy through an
             200      integrated school curriculum and in the regular course of school work;
             201          (v) study and make recommendations for educator license endorsements for teachers of
             202      financial and economic literacy;
             203          (vi) identify efficient and cost-effective methods of delivering professional
             204      development in financial and economic literacy content and instructional methods; and
             205          (vii) study how financial and economic literacy education may be enhanced through
             206      community partnerships.
             207          (d) The task force shall reconvene every [two] three years to review and recommend
             208      adjustments to the course standards and objectives of the general financial literacy course.
             209          (e) The State Board of Education shall make a report to the Education Interim
             210      Committee no later than the committee's November 2013 meeting summarizing the findings
             211      and recommendations of the task force and actions taken by the board in response to the task


             212      force's findings and recommendations.
             213          Section 3. Appropriation.
             214          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, for
             215      the fiscal year beginning July 1, 2014, and ending June 30, 2015, the following sums of money
             216      are appropriated from resources not otherwise appropriated, or reduced from amounts
             217      previously appropriated, out of the funds or accounts indicated. These sums of money are in
             218      addition to any amounts previously appropriated for fiscal year 2015.
             219          To State Board of Education - Utah State Office of Education - Initiative Programs
             220              From Education Fund, One-time
$100,000

             221              From Education Fund
$100,000

             222              Schedule of Programs:
             223                  Financial and Economic Literacy        $200,000
             224          The Legislature intends that the Utah State Office of Education use the appropriation
             225      for Financial and Economic Literacy for the development and delivery of an online test for the
             226      general financial literacy course.
             227          To State Board of Education - State Office of Education
             228              From Education Fund, One-time
$100,000

             229              From Education Fund
$200,000

             230              Schedule of Programs:
             231                  Teaching and Learning            $300,000
             232          The Legislature intends that the State Office of Education use the appropriation for
             233      Teaching and Learning for the improvement of financial and economic literacy education,
             234      including professional development for educators, the endorsement of teachers who teach the
             235      general financial literacy course, and the development of curriculum resources.
             236          Section 4. Effective date.
             237          This bill takes effect on July 1, 2014.


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