Chief Sponsor: Raymond P. Ward

Senate Sponsor: ____________


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          53E-3-505, as renumbered and amended by Laws of Utah 2018, Chapter 1
30          53E-4-204, as renumbered and amended by Laws of Utah 2018, Chapter 1

32     Be it enacted by the Legislature of the state of Utah:
33          Section 1. Section 53E-3-505 is amended to read:
34          53E-3-505. Financial and economic literacy education.
35          (1) As used in this section:
36          (a) "Alternative assessment" means an assessment that evaluates a student's knowledge
37     of financial literacy that is adopted by an LEA under Subsection (4)(c).
38          (b) "End-of-course assessment" means the online, end-of-course assessment described
39     in Subsection (3).
40          [(a)] (c) "Financial and economic activities" include activities related to the topics
41     listed in Subsection (1)[(b)](d).
42          [(b)] (d) "Financial and economic literacy concepts" include concepts related to the
43     following topics:
44          (i) basic budgeting;
45          (ii) saving and financial investments;
46          (iii) banking and financial services, including balancing a checkbook or a bank account
47     and online banking services;
48          (iv) career management, including earning an income;
49          (v) rights and responsibilities of renting or buying a home;
50          (vi) retirement planning;
51          (vii) loans and borrowing money, including interest, credit card debt, predatory
52     lending, and payday loans;
53          (viii) insurance;
54          (ix) federal, state, and local taxes;
55          (x) charitable giving;
56          (xi) online commerce;
57          (xii) identity fraud and theft;
58          (xiii) negative financial consequences of gambling;

59          (xiv) bankruptcy;
60          (xv) free markets and prices;
61          (xvi) supply and demand;
62          (xvii) monetary and fiscal policy;
63          (xviii) effective business plan creation, including using economic analysis in creating a
64     business plan;
65          (xix) scarcity and choices;
66          (xx) opportunity cost and tradeoffs;
67          (xxi) productivity;
68          (xxii) entrepreneurism; and
69          (xxiii) economic reasoning.
70          [(c)] (e) "Financial and economic literacy passport" means a document that tracks
71     mastery of financial and economic literacy concepts and completion of financial and economic
72     activities in kindergarten through grade 12.
73          [(d)] (f) "General financial literacy course" means the course of instruction [described
74     in Section 53E-4-204] administered by the State Board of Education under Subsection (3).
75          (g) "Local education agency" or "LEA" means a school district, a charter school, or the
76     Utah Schools for the Deaf and the Blind.
77          (2) The State Board of Education shall:
78          (a) in cooperation with interested private and nonprofit entities:
79          (i) develop a financial and economic literacy passport that students may elect to
80     complete;
81          (ii) develop methods of encouraging parent and educator involvement in completion of
82     the financial and economic literacy passport; and
83          (iii) develop and implement appropriate recognition and incentives for students who
84     complete the financial and economic literacy passport, including:
85          (A) a financial and economic literacy endorsement on the student's diploma of
86     graduation;
87          (B) a specific designation on the student's official transcript; and
88          (C) any incentives offered by community partners;
89          (b) more fully integrate existing and new financial and economic literacy education

90     into instruction in kindergarten through grade 12 by:
91          (i) coordinating financial and economic literacy instruction with existing instruction in
92     other areas of the core standards for Utah public schools, such as mathematics and social
93     studies;
94          (ii) using curriculum mapping;
95          (iii) creating training materials and staff development programs that:
96          (A) highlight areas of potential coordination between financial and economic literacy
97     education and other core standards for Utah public schools concepts; and
98          (B) demonstrate specific examples of financial and economic literacy concepts as a
99     way of teaching other core standards for Utah public schools concepts; and
100          (iv) using appropriate financial and economic literacy assessments to improve financial
101     and economic literacy education and, if necessary, developing assessments;
102          (c) work with interested public, private, and nonprofit entities to:
103          (i) identify, and make available to teachers, online resources for financial and
104     economic literacy education, including modules with interactive activities and turnkey
105     instructor resources;
106          (ii) coordinate school use of existing financial and economic literacy education
107     resources;
108          (iii) develop simple, clear, and consistent messaging to reinforce and link existing
109     financial literacy resources;
110          (iv) coordinate the efforts of school, work, private, nonprofit, and other financial
111     education providers in implementing methods of appropriately communicating to teachers,
112     students, and parents key financial and economic literacy messages; and
113          (v) encourage parents and students to establish higher education savings, including a
114     Utah Educational Savings Plan account;
115          (d) in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act,
116     make rules to develop guidelines and methods for school districts and charter schools to more
117     fully integrate financial and economic literacy education into other core standards for Utah
118     public schools courses;
119          [(e) (i) contract with a provider, through a request for proposals process, to develop an
120     online, end-of-course assessment for the general financial literacy course;]

121          [(ii) require a school district or charter school to administer an online, end-of-course
122     assessment to a student who takes the general financial literacy course; and]
123          [(iii) develop a plan, through the state superintendent of public instruction, to analyze
124     the results of an online, end-of-course assessment in general financial literacy that includes:]
125          [(A) an analysis of assessment results by standard; and]
126          [(B) average scores statewide and by school district and school;]
127          [(f)] (e) in cooperation with school districts, charter schools, and interested private and
128     nonprofit entities, provide opportunities for professional development in financial and
129     economic literacy to teachers, including:
130          (i) a statewide learning community for financial and economic literacy;
131          (ii) summer workshops; and
132          (iii) online videos of experts in the field of financial and economic literacy education;
133     and
134          [(g)] (f) implement a teacher endorsement in general financial literacy that includes
135     course work in financial planning, credit and investing, consumer economics, personal
136     budgeting, and family economics.
137          (3) The State Board of Education shall:
138          (a) administer a general financial literacy course in the same manner that other core
139     standards for Utah public school courses for grades 9 through 12 are administered;
140          (b) adopt standards and objectives for the general financial literacy course that address:
141          (i) the costs of going to college, student loans, scholarships, and the Free Application
142     for Federal Student Aid; and
143          (ii) technology that relates to banking, savings, and financial products;
144          (c) contract with a provider, in accordance with Title 63G, Chapter 6a, Utah
145     Procurement Code, to develop and maintain an online, end-of-course assessment for the
146     general financial literacy course;
147          (d) ensure that the end-of-course assessment:
148          (i) is aligned with the standards and objectives described in Subsection (3)(b); and
149          (ii) establishes the minimum standards that demonstrate proficiency on the
150     end-of-course assessment;
151          (e) develop, in coordination with the state superintendent of public instruction, a plan

152     to analyze the results of the end-of-course assessment that includes:
153          (i) an analysis of the end-of-course assessment results by standard; and
154          (ii) average scores statewide and by LEA and school; and
155          (f) provide the following online resources a student may access to prepare to take the
156     end-of-course assessment:
157          (i) the standards and objectives for the end-of-course assessment;
158          (ii) information on resources from which the student can learn about financial literacy
159     concepts; and
160          (iii) a practice test for the end-of-course assessment.
161          (4) (a) Except as provided in Subsection (4)(c), an LEA shall administer the
162     end-of-course assessment to a student who:
163          (i) takes the general financial literacy course; or
164          (ii) elects to demonstrate proficiency on the end-of-course assessment without taking
165     the general financial literacy course.
166          (b) An LEA shall award a student described in Subsection (4)(a)(ii) credit for
167     demonstrating proficiency on the end-of-course assessment.
168          (c) An LEA may:
169          (i) adopt an alternative assessment that evaluates a student's knowledge of financial
170     literacy; and
171          (ii) administer the alternative assessment instead of the end-of-course assessment.
172          (d) An LEA that adopts an alternative assessment shall:
173          (i) ensure that the alternative assessment:
174          (A) is aligned with the standards and objectives described in Subsection (3)(b);
175          (B) evaluates the student's knowledge of the same concepts included in the
176     end-of-course assessment; and
177          (C) is equally as rigorous as the end-of-course assessment;
178          (ii) establish policies that govern the use of the alternative assessment; and
179          (iii) award a student credit for demonstrating proficiency on the alternative assessment.
180          [(3)] (5) (a) The State Board of Education shall establish a task force to study and make
181     recommendations to the [board] State Board of Education on how to improve financial and
182     economic literacy education in the public school system.

183          (b) The task force membership shall include representatives of:
184          (i) the State Board of Education;
185          (ii) school districts and charter schools;
186          (iii) the State Board of Regents; and
187          (iv) private or public entities that teach financial education and share a commitment to
188     empower individuals and families to achieve economic stability, opportunity, and upward
189     mobility.
190          (c) In 2013, the task force shall:
191          (i) review and recommend modifications to the [course] standards and objectives of the
192     general financial literacy course [described in Section 53E-4-204] to ensure the [course]
193     standards and objectives reflect current and relevant content consistent with the financial and
194     economic literacy concepts listed in Subsection (1)[(b)](d);
195          (ii) study the development of an online assessment of students' competency in financial
196     and economic literacy that may be used to:
197          (A) measure student learning growth and proficiency in financial and economic
198     literacy; and
199          (B) assess the effectiveness of instruction in financial and economic literacy;
200          (iii) consider the development of a rigorous, online only, course to fulfill the general
201     financial literacy curriculum and graduation requirements [specified in] described in this
202     section and Section 53E-4-204;
203          (iv) identify opportunities for teaching financial and economic literacy through an
204     integrated school curriculum and in the regular course of school work;
205          (v) study and make recommendations for educator license endorsements for teachers of
206     financial and economic literacy;
207          (vi) identify efficient and cost-effective methods of delivering professional
208     development in financial and economic literacy content and instructional methods; and
209          (vii) study how financial and economic literacy education may be enhanced through
210     community partnerships.
211          (d) The task force shall reconvene every three years to review and recommend
212     adjustments to the standards and objectives of the general financial literacy course.
213          [(e) The State Board of Education shall make a report to the Education Interim

214     Committee no later than the committee's November 2013 meeting summarizing the findings
215     and recommendations of the task force and actions taken by the board in response to the task
216     force's findings and recommendations.]
217          Section 2. Section 53E-4-204 is amended to read:
218          53E-4-204. Standards and graduation requirements.
219          (1) The State Board of Education shall establish rigorous core standards for Utah
220     public schools and graduation requirements under Section 53E-3-501 for grades 9 through 12
221     that:
222          (a) are consistent with state law and federal regulations; [and]
223          [(b) beginning no later than with the graduating class of 2008:]
224          [(i)] (b) use competency-based standards and assessments;
225          [(ii)] (c) include instruction that stresses general financial literacy from basic budgeting
226     to financial investments, including bankruptcy education and [a] general financial literacy
227     [test-out option] assessment options described in Section 53E-3-505; and
228          [(iii) increase] (d) include graduation requirements in language arts, mathematics, and
229     science [to exceed the existing] that exceed credit requirements of 3.0 units in language arts,
230     2.0 units in mathematics, and 2.0 units in science.
231          (2) The State Board of Education shall [also] establish competency-based standards
232     and assessments for elective courses.
233          [(3) On or before July 1, 2014, the State Board of Education shall adopt revised course
234     standards and objectives for the course of instruction in general financial literacy described in
235     Subsection (1)(b) that address:]
236          [(a) the costs of going to college, student loans, scholarships, and the Free Application
237     for Federal Student Aid (FAFSA); and]
238          [(b) technology that relates to banking, savings, and financial products.]
239          [(4) The State Board of Education shall administer the course of instruction in general
240     financial literacy described in Subsection (1)(b) in the same manner as other core standards for
241     Utah public schools courses for grades 9 through 12 are administered.]

Legislative Review Note
Office of Legislative Research and General Counsel