READ FIRST TIME 02/02/04.   

     AN ACT Relating to financial literacy; adding a new section to chapter 28A.230 RCW; adding a new section to chapter 28A.300 RCW; and creating new sections.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The legislature recognizes that the average high school student lacks a basic knowledge of personal finance. In addition, the legislature recognizes the damaging effects of not properly preparing youth for the financial challenges of modern life, including bankruptcy, poor retirement planning, unmanageable debt, and a lower standard of living for Washington families.
     The legislature finds that the purpose of the state's system of public education is to help students acquire the skills and knowledge they will need to be productive and responsible 21st century citizens.      The legislature further finds that responsible citizenship includes an ability to make wise financial decisions. The legislature further finds that financial literacy could easily be included in lessons, courses, and projects that demonstrate each student's understanding of the state's four learning goals, including goal four: Understanding the importance of work and how performance, effort, and decisions directly affect future opportunities.
     The legislature intends to assist school districts in their efforts to ensure that students are financially literate through identifying critical financial literacy skills and knowledge, providing information on instructional materials, and creating a public-private partnership to help provide instructional tools and professional development to school districts that wish to increase the financial literacy of their students.

NEW SECTION.  Sec. 2   (1) A financial literacy public-private partnership is established, composed of up to four members representing the legislature, one from and appointed by the office of the superintendent of public instruction, one from and appointed by the department of financial institutions, up to four from the financial services sector, and four educators. One or two members of the senate, one of whom is a member of the senate committee on financial services, insurance and housing, shall be appointed by the president of the senate. One or two members of the house of representatives, one of whom is a member of the house committee on financial institutions and insurance, shall be appointed by the speaker of the house of representatives. The superintendent of public instruction shall appoint the members from the financial services sector and educator members. The chair of the partnership shall be selected by the members of the partnership.
     (2) To the extent funds are appropriated or are available for this purpose, technical and logistical support may be provided by the office of the superintendent of public instruction, the organizations composing the partnership, and other participants in the financial literacy public-private partnership. The superintendent of public instruction shall compile the initial list of members and convene the first meeting of the partnership.
     (3) The members of the committee shall be appointed by July 1, 2004.
     (4) Legislative members of the partnership shall receive per diem and travel under RCW 44.04.120.
     (5) Travel and other expenses of members of the partnership shall be provided by the agency, association, or organization that member represents.

NEW SECTION.  Sec. 3   (1) By September 30, 2004, the financial literacy public-private partnership shall adopt a definition of financial literacy to be used in educational efforts.
     (2) By June 30, 2005, the financial literacy public-private partnership shall identify strategies to increase the financial literacy of public school students in our state. To the extent funds are available, strategies to be considered by the partnership shall include, but not be limited to:
     (a) Identifying and making available to school districts:
     (i) Important financial literacy skills and knowledge;
     (ii) Ways in which teachers at different grade levels may integrate financial literacy in mathematics, social studies, and other course content areas;
     (iii) Instructional materials and programs, including schoolwide programs, that include the important financial literacy skills and knowledge;
     (iv) Assessments and other outcome measures that schools and communities may use to determine whether students are financially literate; and
     (v) Other strategies for expanding and increasing the quality of financial literacy instruction in public schools, including professional development for teachers;
     (b) Developing a structure and set of operating principles for the financial literacy public-private partnership to assist interested school districts in improving the financial literacy of their students by providing such things as financial literacy instructional materials and professional development; and
     (c) Providing a report to the governor, the house and senate financial institutions and education committees of the legislature, the superintendent of public instruction, the state board of education, and education stakeholder groups, on the results of work of the financial literacy public-private partnership. A final report shall be submitted to the same parties by June 30, 2007.

NEW SECTION.  Sec. 4   A new section is added to chapter 28A.230 RCW to read as follows:
     (1) To the extent funds are appropriated or are available for this purpose, the superintendent of public instruction and other members of the partnership created in section 2 of this act, shall make available to school districts the list of identified financial literacy skills and knowledge, instructional materials, assessments, and other relevant information.
     (2) Each school district is encouraged to provide its students with an opportunity to master the financial literacy skills and knowledge developed under section 3 of this act.
     (3) For the purposes of this act, it is unnecessary to evaluate and apply the office of the superintendent of public instruction essential academic learning requirements, or to develop grade level expectations.

NEW SECTION.  Sec. 5   The task of the financial literacy public-private partnership is to seek out and determine the best methods of equipping students with the knowledge and skills they need, before they become self-supporting, in order for them to make critical decisions regarding their personal finances. The components of personal financial literacy examined shall include, at a minimum, consumer financial education, personal finance, and personal credit. The partnership shall identify the types of outcome measures expected from participating students, in accordance with the definitions and outcomes developed under section 3 of this act.

NEW SECTION.  Sec. 6   A new section is added to chapter 28A.300 RCW to read as follows:
     The Washington financial literacy public-private partnership account is hereby created in the custody of the state treasurer. The purpose of the account is to support the financial literacy public-private partnership, and to provide financial literacy opportunities for students and financial literacy professional development opportunities for the teachers providing those educational opportunities. Revenues to the account may include gifts from the private sector, federal funds, and any appropriations made by the legislature or other sources. Grants and their administration shall be paid from the account. Only the superintendent of public instruction or the superintendent's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 7   The financial literacy public-private partnership expires June 30, 2007.