CERTIFICATION OF ENROLLMENT

SUBSTITUTE HOUSE BILL 2455

Chapter 247, Laws of 2004

(partial veto)

58th Legislature
2004 Regular Session



FINANCIAL LITERACY



EFFECTIVE DATE: 6/10/04

Passed by the House March 10, 2004
  Yeas 96   Nays 1

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


Passed by the Senate March 4, 2004
  Yeas 45   Nays 1


BRAD OWEN
________________________________________    
President of the Senate
 
CERTIFICATE

I, Richard Nafziger, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is SUBSTITUTE HOUSE BILL 2455 as passed by the House of Representatives and the Senate on the dates hereon set forth.


RICHARD NAFZIGER
________________________________________    
Chief Clerk
Approved March 31, 2004, with the exception of section 4, which is vetoed.







GARY F. LOCKE
________________________________________    
Governor of the State of Washington
 
FILED
March 31, 2004 - 2:43 p.m.







Secretary of State
State of Washington


_____________________________________________ 

SUBSTITUTE HOUSE BILL 2455
_____________________________________________

AS AMENDED BY THE SENATE

Passed Legislature - 2004 Regular Session
State of Washington58th Legislature2004 Regular Session

By House Committee on Education (originally sponsored by Representatives Santos, Anderson and Simpson, G.)

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.
     *Sec. 4 was vetoed. See message at end of chapter.

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.


         Passed by the House March 10, 2004.
         Passed by the Senate March 4, 2004.
         Approved by the Governor March 31, 2004, with the exception of certain items that were vetoed.
         Filed in Office of Secretary of State March 31, 2004.

     Note: Governor's explanation of partial veto is as follows:

"I am returning herewith, without my approval as to section 4, Substitute House Bill No. 2455 entitled:

     "AN ACT Relating to financial literacy;"

This bill creates a public-private partnership to define skill and knowledge components of financial literacy for students, identify appropriate curriculum materials, develop appropriate assessments, and articulate other program outcomes.

Creating a financially literate citizenry is a worthy goal. However, we must keep in mind the significant challenges already underway in our schools and stay focused on ensuring our students achieve the academic requirements we have established in the basics of reading, writing, mathematics and science. Additionally, we must work to maintain strong programs in the social studies, arts, and health and fitness.

This bill sets forth an ambitious series of tasks for developing financial literacy. Section 4 would have directed the Office of the Superintendent of Public Instruction (OSPI) to perform certain duties, encouraged school districts to implement opportunities for students in financial literacy, and provided that the OSPI need not include financial literacy as an essential academic learning requirement or grade level expectation.

Before requiring a state agency to provide technical assistance to school districts and encouraging districts to teach and assess a new curricular topic, it is prudent for the development work to be completed and appropriately reviewed. I strongly believe this is a topic that could find a lasting place in our schools if it is incorporated into one of the already acknowledged subject areas. I would direct the work of the partnership to the language in section 3(2) that addresses this focus.

For these reasons, I have vetoed section 4 of Substitute House Bill No. 2455.

With the exception of section 4, Substitute House Bill No. 2455 is approved."