HB 1173

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Early Learning & K-12 Education, February 26, 2014

Title: An act relating to the financial education public-private partnership.

Brief Description: Regarding the financial education public-private partnership.

Sponsors: Representatives Santos, Ryu, Roberts, Maxwell and Bergquist.

Brief History: Passed House: 3/04/13, 93-4; 2/03/14, 89-6.

Committee Activity: Early Learning & K-12 Education: 3/15/13, 3/27/13 [DP]; 2/26/14 [DP].


Majority Report: Do pass.

Signed by Senators Litzow, Chair; Dammeier, Vice Chair; McAuliffe, Ranking Member; Rolfes, Assistant Ranking Member; Billig, Brown, Cleveland, Fain, Hill, Mullet and Rivers.

Staff: Eric Wolf (786-7405)

Background: The Financial Education Public-Private Partnership (Partnership) consists of four legislators, four representatives from the financial services sector, four educators, one designee from the Department of Financial Institutions, and two representatives from the Office of Superintendent of Public Instruction (OSPI).

The duties of the Partnership include the following:

Legislation enacted in 2007 established understanding the importance of work and finance as one of the goals of basic education. In 2008 financial literacy was included in Washington's seventh grade level expectations for social studies and economics. There are no separate Essential Academic Learning Requirements (EALRs) for financial education.

The JumpStart Coalition for Personal Financial Literacy (Coalition) is a nonprofit organization that promotes financial literacy among students from prekindergarten through college. The Coalition partners with corporate, nonprofit, academic, and government entities, including Washington. The Washington branch of the Coalition adopted financial literacy concepts that link with the EALRs, which school districts are encouraged to adopt.

Summary of Bill: The State Treasurer or the State Treasurer's designee is added as a member to the Partnership. Teachers who are members of the Partnership must be paid their travel expenses according to current law from funds available in the Partnership account. Funds from the Partnership account may also pay for a substitute teacher when member teachers attend official meetings of the Partnership. If the Partnership pays for these expenses, the school district must release a teacher to attend official Partnership meetings.

Online instructional materials and resources are added to the financial education curriculum that the Partnership reviews on an ongoing basis. The Partnership must work with OSPI for purposes of integrating financial education skills and content knowledge into the Common Core State Standards, and working with the State Board of Education to incorporate financial education into definitions and standards for career and college readiness.

The Partnership is no longer required to identify assessments and outcome measures for schools to determine whether students meet the financial education standards, or to create professional development that could lead to a certificate endorsement or other certification of competency.

OSPI must make curricula available to all districts for a course or courses in financial education. These courses must be selected with input from the Partnership. School districts must provide high school students the opportunity to complete financial education courses and publicize the availability of these courses to students and their families.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony:

Testimony From 2013 Regular Session.

PRO: The Partnership determines the best methods to educate students on making responsible financial decisions. The fact that students graduate without basic financial education is appalling, and it is essential to educate students on managing money to make them career competent and ready for adulthood.

Testimony From 2014 Regular Session.

PRO: The bill builds collaboration between the Partnership and education agencies. This bill will bring financial education into the classroom. The primary purpose of the Partnership is to educate children on how to make prudent financial decisions, and the bill will help the Partnership achieve that. Making a financial education curriculum for all students ensures that all students receive a basic financial education to move forward in their lives. This bill aligns with the Governor's goal to create a prosperous economy in Washington.

Persons Testifying:

Persons Testifying From 2013 Regular Session.

PRO: Linda Jekel, Dept. of Financial Institutions; Stephanie Bowman, WA ABC; Todd Pietszch, Boeing Employees Credit Union; Mark Minickiello, NW Credit Union Assn.; Gina Stark, WA State Treasurer's Office.

Persons Testifying From 2014 Regular Session.

PRO: Representative Santos, prime sponsor; Mark Minickiello, NW Credit Union Assn.; Linda Jekel, Dept. of Financial Institutions; Dan McGrady, PEMCO Insurance; Denny Eliason, WA Bankers Assn.; Marcie Maxwell, Office of the Governor; Todd Pietszch, Boeing Employees Credit Union; Stephanie Bowman, WA Asset Building Coalition.