BILL REQ. #:  H-4585.1 

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 financial illiteracy has reached record proportions, and that the average high school student lacks even a basic knowledge of personal finance. In addition, the legislature recognizes the damaging effects of not properly preparing youth for the financial realities of modern life, including bankruptcy, poor retirement planning, mounting 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. To help students acquire the essential skills and knowledge needed for 21st century citizenship, the state has adopted four learning goals and defined the basic gateway skills students need in reading, writing, mathematics, and science. It is in the process of defining the essential academic learning requirements and grade level expectations for social studies, the arts, and health and fitness. The legislature finds that other 21st century skills needed by students, including financial literacy, should be embedded in the essential academic learning requirements adopted for other content areas, including social studies and mathematics. The legislature further finds that financial literacy could easily be included in projects that demonstrate each student's understanding of learning 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 creating a set of financial literacy learning guidelines, providing information on instructional materials that help students meet the learning guidelines, data collection, 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) The legislative ad hoc committee on financial literacy is established composed of members representing the legislature, the governor, the superintendent of public instruction, the department of financial institutions, the financial institutions and credit industries, school directors, school principals and administrators, educators, including career and technical educators, and higher education. Four members of the senate, two from each major caucus of the committees on education and financial services, insurance and housing, shall be appointed by the president of the senate. Four members of the house of representatives, two from each major caucus of the committees on education and financial institutions and insurance, shall be selected by the speaker of the house of representatives. The other committee members shall be selected by their applicable agencies or associations, or, in the case of the financial institutions and credit industries, by appointment of two members by the governor.
     (2) Staff support for the committee shall be provided by senate committee services and the office of program research. Technical and logistical support may be provided by the office of the superintendent of public instruction and the organizations selecting committee members.
     (3) The members of the committee shall be appointed by July 1, 2004.
     (4) Legislative members of the ad hoc committee shall receive per diem and travel under RCW 44.04.120.
     (5) Travel and other expenses of nonlegislative members of the ad hoc committee shall be provided by the agency, association, or organization that appointed the member.

NEW SECTION.  Sec. 3   The legislative ad hoc committee on financial literacy shall:
     (1) By September 30, 2004, adopt a definition of financial literacy that is aligned with and may be embedded in the essential academic learning requirements for other content areas;
     (2) By September 30, 2005, develop a set of recommended financial literacy learning guidelines that may be used in elementary, middle, and high schools by interested school districts. The guidelines shall include measurable student outcomes;
     (3) By November 30, 2005, recommend a structure and set of operating principles for a public-private partnership to work with interested school districts to assist the districts in selecting or developing financial literacy instructional materials and providing professional development on the learning guidelines;
     (4) By July 15, 2006, subject to funding, select school districts in which to pilot the financial literacy learning guidelines, instructional materials, and professional development;
     (5) Collect and analyze available information on the costs and benefits to individual students and society of ensuring that students are financially literate by the time they graduate from high school;
     (6) Recommend outcome measures or other demonstrations that schools and communities may use to determine whether students are financially literate;
     (7) Recommend a system that could be used to follow the educational opportunities a district's student has to become financially literate as the student progresses from elementary school, to middle school, and to high school; and
     (8) Provide annual reports to the education committees of the house of representatives and senate, and, by November 15, 2008, provide a report to the governor, the legislature, the superintendent of public instruction, the state board of education, and education stakeholder groups, on the results of work of the ad hoc committee and of the pilots.

NEW SECTION.  Sec. 4   A new section is added to chapter 28A.230 RCW to read as follows:
     (1) The superintendent of public instruction shall make available to school districts the learning guidelines, instructional materials, and other relevant information provided by the legislative ad hoc committee on financial literacy under sections 2 and 3 of this act and those provided by the public-private partnership created under section 3 of this act.
     (2) Each school district is encouraged to provide its students with an opportunity to master the financial literacy learning guidelines developed under section 3 of this act.

NEW SECTION.  Sec. 5   The legislative ad hoc committee on financial literacy shall establish a series of pilots to assist interested school districts in the implementation of financial literacy instructional programs. The purpose of the pilots is to determine the best methods of equipping students with the knowledge and skills they need, before they become self-supporting, to make critical decisions regarding their personal finances. The components of personal financial literacy covered in the pilot program shall include, at a minimum, consumer financial education, personal finance, and personal credit. The pilots shall include an evaluation that describes and monitors the measurable outcomes 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 education partnership account is hereby created in the custody of the state treasurer. The purpose of the account is to provide financial literacy educational 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 legislative ad hoc committee on financial literacy expires on June 30, 2009.