1     
FINANCIAL LITERACY AMENDMENTS

2     
2017 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: Raymond P. Ward

5     
Senate Sponsor: ____________

6     

7     LONG TITLE
8     General Description:
9          This bill amends provisions related to financial literacy in schools.
10     Highlighted Provisions:
11          This bill:
12          ▸     defines terms;
13          ▸     amends provisions related to an end-of-course assessment for a general financial
14     literacy course, including provisions related to:
15               •     the State Board of Education providing certain online resources a student may
16     access to prepare for the end-of-course assessment; and
17               •     local education agency administration of the end-of-course assessment;
18          ▸     enacts provisions related to an alternative assessment that evaluates a student's
19     knowledge of financial literacy, including provisions related to:
20               •     a local education agency's option to adopt an alternative assessment; and
21               •     the standards and objectives of an alternative assessment; and
22          ▸     makes technical and conforming changes.
23     Money Appropriated in this Bill:
24          None
25     Other Special Clauses:
26          None
27     Utah Code Sections Affected:
28     AMENDS:
29          53A-13-108, as last amended by Laws of Utah 2015, Chapter 415
30          53A-13-110, as last amended by Laws of Utah 2015, Chapter 415
31     

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 53A-13-108 is amended to read:
34          53A-13-108. Standards and graduation requirements -- Financial literacy.
35          (1) The State Board of Education shall establish rigorous core standards for Utah
36     public schools and graduation requirements under Section 53A-1-402 for grades 9 through 12
37     that:
38          (a) are consistent with state law and federal regulations; [and]
39          [(b) beginning no later than with the graduating class of 2008:]
40          [(i)] (b) use competency-based standards and assessments;
41          [(ii)] (c) include instruction that stresses general financial literacy from basic budgeting
42     to financial investments, including bankruptcy education and [a] general financial literacy
43     [test-out option] assessment options described in Section 53A-13-110; and
44          [(iii)] (d) [increase] include graduation requirements in language arts, mathematics,
45     and science [to exceed the existing] that exceed credit requirements of 3.0 units in language
46     arts, 2.0 units in mathematics, and 2.0 units in science.
47          (2) The State Board of Education shall [also] establish competency-based standards
48     and assessments for elective courses.
49          [(3) On or before July 1, 2014, the State Board of Education shall adopt revised course
50     standards and objectives for the course of instruction in general financial literacy described in
51     Subsection (1)(b) that address:]
52          [(a) the costs of going to college, student loans, scholarships, and the Free Application
53     for Federal Student Aid (FAFSA); and]
54          [(b) technology that relates to banking, savings, and financial products.]
55          [(4) The State Board of Education shall administer the course of instruction in general
56     financial literacy described in Subsection (1)(b) in the same manner as other core standards for
57     Utah public schools courses for grades 9 through 12 are administered.]
58          Section 2. Section 53A-13-110 is amended to read:
59          53A-13-110. Financial and economic literacy education.
60          (1) As used in this section:
61          (a) "Alternative assessment" means an assessment that evaluates a student's knowledge
62     of financial literacy that is adopted by an LEA under Subsection (5)(c).
63          (b) "End-of-course assessment" means the online, end-of-course assessment for the
64     general financial literacy course described in Subsection (4)(c).
65          [(a)] (c) "Financial and economic activities" include activities related to the topics
66     listed in Subsection [(1)(b)] (1)(d).
67          [(b)] (d) "Financial and economic literacy concepts" include concepts related to the
68     following topics:
69          (i) basic budgeting;
70          (ii) saving and financial investments;
71          (iii) banking and financial services, including balancing a checkbook or a bank account
72     and online banking services;
73          (iv) career management, including earning an income;
74          (v) rights and responsibilities of renting or buying a home;
75          (vi) retirement planning;
76          (vii) loans and borrowing money, including interest, credit card debt, predatory
77     lending, and payday loans;
78          (viii) insurance;
79          (ix) federal, state, and local taxes;
80          (x) charitable giving;
81          (xi) online commerce;
82          (xii) identity fraud and theft;
83          (xiii) negative financial consequences of gambling;
84          (xiv) bankruptcy;
85          (xv) free markets and prices;
86          (xvi) supply and demand;
87          (xvii) monetary and fiscal policy;
88          (xviii) effective business plan creation, including using economic analysis in creating a
89     business plan;
90          (xix) scarcity and choices;
91          (xx) opportunity cost and tradeoffs;
92          (xxi) productivity;
93          (xxii) entrepreneurism; and
94          (xxiii) economic reasoning.
95          [(c)] (e) "Financial and economic literacy passport" means a document that tracks
96     mastery of financial and economic literacy concepts and completion of financial and economic
97     activities in kindergarten through grade 12.
98          [(d)] (f) "General financial literacy course" means the course of instruction [described
99     in Section 53A-13-108] administered by the State Board of Education described in Subsection
100     (4)(a).
101          (g) "Local education agency" or "LEA" means a school district, a charter school, or the
102     Utah Schools for the Deaf and the Blind.
103          (2) The State Board of Education shall:
104          (a) in cooperation with interested private and nonprofit entities:
105          (i) develop a financial and economic literacy passport that students may elect to
106     complete;
107          (ii) develop methods of encouraging parent and educator involvement in completion of
108     the financial and economic literacy passport; and
109          (iii) develop and implement appropriate recognition and incentives for students who
110     complete the financial and economic literacy passport, including:
111          (A) a financial and economic literacy endorsement on the student's diploma of
112     graduation;
113          (B) a specific designation on the student's official transcript; and
114          (C) any incentives offered by community partners;
115          (b) more fully integrate existing and new financial and economic literacy education
116     into instruction in kindergarten through grade 12 by:
117          (i) coordinating financial and economic literacy instruction with existing instruction in
118     other areas of the core standards for Utah public schools, such as mathematics and social
119     studies;
120          (ii) using curriculum mapping;
121          (iii) creating training materials and staff development programs that:
122          (A) highlight areas of potential coordination between financial and economic literacy
123     education and other core standards for Utah public schools concepts; and
124          (B) demonstrate specific examples of financial and economic literacy concepts as a
125     way of teaching other core standards for Utah public schools concepts; and
126          (iv) using appropriate financial and economic literacy assessments to improve financial
127     and economic literacy education and, if necessary, developing assessments;
128          (c) work with interested public, private, and nonprofit entities to:
129          (i) identify, and make available to teachers, online resources for financial and
130     economic literacy education, including modules with interactive activities and turnkey
131     instructor resources;
132          (ii) coordinate school use of existing financial and economic literacy education
133     resources;
134          (iii) develop simple, clear, and consistent messaging to reinforce and link existing
135     financial literacy resources;
136          (iv) coordinate the efforts of school, work, private, nonprofit, and other financial
137     education providers in implementing methods of appropriately communicating to teachers,
138     students, and parents key financial and economic literacy messages; and
139          (v) encourage parents and students to establish higher education savings, including a
140     Utah Educational Savings Plan account;
141          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
142     make rules to develop guidelines and methods for school districts and charter schools to more
143     fully integrate financial and economic literacy education into other core standards for Utah
144     public schools courses;
145          [(e) (i) contract with a provider, through a request for proposals process, to develop an
146     online, end-of-course assessment for the general financial literacy course;]
147          [(ii) require a school district or charter school to administer an online, end-of-course
148     assessment to a student who takes the general financial literacy course; and]
149          [(iii) develop a plan, through the state superintendent of public instruction, to analyze
150     the results of an online, end-of-course assessment in general financial literacy that includes:]
151          [(A) an analysis of assessment results by standard; and]
152          [(B) average scores statewide and by school district and school;]
153          [(f)] (e) in cooperation with school districts, charter schools, and interested private and
154     nonprofit entities, provide opportunities for professional development in financial and
155     economic literacy to teachers, including:
156          (i) a statewide learning community for financial and economic literacy;
157          (ii) summer workshops; and
158          (iii) online videos of experts in the field of financial and economic literacy education;
159     and
160          [(g)] (f) implement a teacher endorsement in general financial literacy that includes
161     course work in financial planning, credit and investing, consumer economics, personal
162     budgeting, and family economics.
163          (3) A public school shall provide the following to the parents or guardian of a
164     kindergarten student during kindergarten enrollment:
165          (a) a financial and economic literacy passport; and
166          (b) information about higher education savings options, including information about
167     opening a Utah Educational Savings Plan account.
168          (4) The State Board of Education shall:
169          (a) administer a general financial literacy course in the same manner that other core
170     standards for Utah public school courses for grades 9 through 12 are administered;
171          (b) adopt standards and objectives for the general financial literacy course that address:
172          (i) the costs of going to college, student loans, scholarships, and the Free Application
173     for Federal Student Aid; and
174          (ii) technology that relates to banking, savings, and financial products;
175          (c) contract with a provider, in accordance with Title 63G, Chapter 6a, Utah
176     Procurement Code, to develop and maintain an online, end-of-course assessment for the
177     general financial literacy course;
178          (d) ensure that the end-of-course assessment:
179          (i) is aligned with the standards and objectives described in Subsection (4)(b); and
180          (ii) establishes the minimum standards that demonstrate proficiency on the
181     end-of-course assessment;
182          (e) develop, in coordination with the state superintendent of public instruction, a plan
183     to analyze the results of the end-of-course assessment that includes:
184          (i) an analysis of the end-of-course assessment results by standard; and
185          (ii) average scores statewide and by LEA and school; and
186          (f) provide the following online resources a student may access to prepare to take the
187     end-of-course assessment:
188          (i) the standards and objectives for the end-of-course assessment;
189          (ii) information on resources from which the student can learn about financial literacy
190     concepts; and
191          (iii) a practice test for the end-of-course assessment.
192          (5) (a) Except as provided in Subsection (5)(c), an LEA shall administer the
193     end-of-course assessment to a student who:
194          (i) takes the general financial literacy course; or
195          (ii) elects to demonstrate proficiency on the end-of-course assessment without taking
196     the general financial literacy course.
197          (b) An LEA shall award a student described in Subsection (5)(a)(ii) credit for
198     demonstrating proficiency on the end-of-course assessment.
199          (c) An LEA may:
200          (i) adopt an alternative assessment that evaluates a student's knowledge of financial
201     literacy; and
202          (ii) administer the alternative assessment instead of the end-of-course assessment.
203          (d) An LEA that adopts an alternative assessment shall:
204          (i) ensure that the alternative assessment:
205          (A) is aligned with the standards and objectives described in Subsection (4)(b);
206          (B) evaluates the student's knowledge of the same concepts included in the
207     end-of-course assessment; and
208          (C) is equally as rigorous as the end-of-course assessment;
209          (ii) establish policies that govern the use of the alternative assessment; and
210          (iii) award a student credit for demonstrating proficiency on the alternative assessment.
211          [(4)] (6) (a) The State Board of Education shall establish a task force to study and make
212     recommendations to the [board] State Board of Education on how to improve financial and
213     economic literacy education in the public school system.
214          (b) The task force membership shall include representatives of:
215          (i) the State Board of Education;
216          (ii) school districts and charter schools; and
217          (iii) private or public entities that teach financial education and share a commitment to
218     empower individuals and families to achieve economic stability, opportunity, and upward
219     mobility.
220          (c) In 2013, the task force shall:
221          (i) review and recommend modifications to the [course] standards and objectives of the
222     general financial literacy course described in [Section 53A-13-108] Subsection (4)(a) to ensure
223     the [course] standards and objectives reflect current and relevant content consistent with the
224     financial and economic literacy concepts listed in Subsection (1)[(b)](d);
225          (ii) study the development of an online assessment of students' competency in financial
226     and economic literacy that may be used to:
227          (A) measure student learning growth and proficiency in financial and economic
228     literacy; and
229          (B) assess the effectiveness of instruction in financial and economic literacy;
230          (iii) consider the development of a rigorous, online only, course to fulfill the general
231     financial literacy curriculum and graduation requirements [specified in] described in this
232     section and Section 53A-13-108;
233          (iv) identify opportunities for teaching financial and economic literacy through an
234     integrated school curriculum and in the regular course of school work;
235          (v) study and make recommendations for educator license endorsements for teachers of
236     financial and economic literacy;
237          (vi) identify efficient and cost-effective methods of delivering professional
238     development in financial and economic literacy content and instructional methods; and
239          (vii) study how financial and economic literacy education may be enhanced through
240     community partnerships.
241          (d) The task force shall reconvene every three years to review and recommend
242     adjustments to the standards and objectives of the general financial literacy course.
243          [(e) The State Board of Education shall make a report to the Education Interim
244     Committee no later than the committee's November 2013 meeting summarizing the findings
245     and recommendations of the task force and actions taken by the board in response to the task
246     force's findings and recommendations.]




Legislative Review Note
Office of Legislative Research and General Counsel