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January 2016 Committee of the Full Board Wednesday Item 5

Proposed New 19 TAC Chapter 113, Texas Essential Knowledge and Skills for Social Studies, Subchapter C, High School, §113.49, Personal Financial Literacy (One-Half Credit), Adopted 2016
(Second Reading and Final Adoption)

January 29, 2016

COMMITTEE OF THE FULL BOARD: ACTION
STATE BOARD OF EDUCATION: ACTION

SUMMARY:
This item presents for second reading and final adoption proposed new 19 TAC Chapter 113, Texas Essential Knowledge and Skills for Social Studies, Subchapter C, High School, §113.49, Personal Financial Literacy (One-Half Credit), Adopted 2016. The proposal would add Texas Essential Knowledge and Skills (TEKS) for a new personal financial literacy one-half credit elective course. No changes are recommended since approved for first reading.

STATUTORY AUTHORITY:
Texas Education Code (TEC), §§7.102(c)(4), 28.002, 28.0021, and 28.025.

TEC, §7.102(c)(4), requires the State Board of Education (SBOE) to establish curriculum and graduation requirements. TEC, §28.002, identifies the subjects of the required curriculum and requires the SBOE to by rule identify the essential knowledge and skills of each subject in the required curriculum that all students should be able to demonstrate and that will be used in evaluating instructional materials and addressed on the state assessment instruments. TEC, §28.0021, requires each school district and each open-enrollment charter school that offers a high school program to provide an elective course in personal financial literacy that meets the requirements for a one-half elective credit, using materials approved by the SBOE. TEC, §28.025, requires the SBOE by rule to determine the curriculum requirements for the foundation high school graduation program that are consistent with the required curriculum under §28.002.

EFFECTIVE DATE:
The proposed effective date of proposed new 19 TAC §113.49 is August 22, 2016.

PREVIOUS BOARD ACTION: At the January 2014 meeting, the SBOE approved the final adoption of new 19 TAC Chapter 74, Curriculum Requirements, Subchapter B, Graduation Requirements. During the January 2014 meeting the board also discussed future development of new courses. At the April 2014 meeting, the SBOE asked staff to move forward with the development of TEKS for two new mathematics courses, a one-half credit elective course in personal financial literacy, a one-credit career and technical education personal financial literacy course approved to satisfy a mathematics credit, and a one-credit combined world geography/world history course.

At the April 2014 meeting, the board approved the proposed revisions to 19 TAC Chapter 74, Subchapter A, for second reading and final adoption, adding personal financial literacy to the required enrichment education curriculum. Section 74.1 was last amended effective June 18, 2014, and §74.3 was last amended effective August 24, 2015.

A discussion item regarding proposed new TEKS for Personal Financial Literacy was presented to the Committee of the Full Board at the September 2015 meeting. At that time, the committee requested that the Texas Education Agency (TEA) share the draft TEKS with professional organizations. The SBOE approved proposed new 19 TAC §113.49 for first reading and filing authorization at the November 2015 meeting.

BACKGROUND INFORMATION AND SIGNIFICANT ISSUES:
The 83rd Texas Legislature, Regular Session, 2013, passed House Bill (HB) 5, amending the TEC, §28.025, to change the high school graduation programs from the minimum, recommended, and advanced high school programs to one foundation high school program with endorsements to increase flexibility in graduation requirements for students. The 83rd Texas Legislature also passed HB 2662, amending the TEC, §28.0021, to require school districts and open-enrollment charter schools offering a high school program to provide a one-half credit elective course in personal financial literacy. In August 2013, the SBOE held a work session to discuss changes to the graduation requirements in order to align with legislative requirements from the 83rd Texas Legislature, Regular Session, 2013, including a discussion of the new courses required by HB 5 and HB 2662. At the January 2014 meeting, the SBOE approved the final adoption of new 19 TAC Chapter 74, Curriculum Requirements, Subchapter B, Graduation Requirements. At that time, the SBOE also discussed new course development priorities.

At the April 2014 meeting, the board prioritized the new courses to be developed and requested that TEA staff move forward with the development of TEKS for two new mathematics courses, the one-half credit elective course in personal financial literacy, a one-credit career and technical education personal financial literacy course approved to satisfy a mathematics credit, and a one-credit combined world geography/world history course. In April 2014, the board approved for second reading and final adoption proposed revisions to 19 TAC Chapter 74, Curriculum Requirements, Subchapter A, Required Curriculum, to align rules for the required secondary curriculum with requirements from the 83rd Texas Legislature, Regular Session, 2013.

A committee of secondary and postsecondary educators and business and industry representatives was convened in Austin in May 2015 for a face-to-face meeting to begin working on recommendations for the personal financial literacy elective course. The committee conducted three additional virtual meetings to finalize its first draft recommendations. The course development committee also made additional recommendations to its proposal in response to feedback from the Texas Council on Economic Education and the Texas Social Studies Supervisors Association. The recommendations of the course development committee were presented to and approved by the SBOE at its November 2015 meeting. This item provides the opportunity for the board to consider and take final action on TEKS for the proposed new personal financial literacy course in accordance with statutory requirements that the SBOE adopt TEKS for a new personal financial literacy one-half credit elective course.

Attachment II reflects the text of proposed new 19 TAC Chapter 113, Texas Essential Knowledge and Skills for Social Studies, Subchapter C, High School, §113.49, Personal Financial Literacy, (One-Half Credit), Adopted 2016, for consideration by the SBOE for second reading and final adoption. No changes are recommended since approved for first reading.

FISCAL IMPACT: There are fiscal implications for the TEA in fiscal year 2015 to reimburse committee members for travel to develop TEKS for the new course. There are also implications for the TEA if the state develops professional development to help teachers and administrators understand the new course. For fiscal year 2015, the estimated cost to the TEA for the development of the new Personal Financial Literacy course is $2,500. Any professional development that is created would be based on whether the TEA received an appropriation for professional development in the next biennium.

There are anticipated fiscal implications for school districts and charter schools to implement the new course. These may include the need for professional development and revisions to district-developed databases, curriculum, and scope and sequence documents. Since curriculum and instruction decisions are made at the local district level, it is difficult to estimate the fiscal impact on any given district.

The TEA has determined that there is no direct adverse economic impact for small businesses or microbusinesses; therefore, no regulatory flexibility analysis, specified in Texas Government Code, §2006.002, is required.

PUBLIC AND STUDENT BENEFIT: Benefits include additional course options for students.

PROCEDURAL AND REPORTING IMPLICATIONS: The proposed new rule would have no new procedural and reporting requirements.

LOCALLY MAINTAINED PAPERWORK REQUIREMENTS:
The proposed new rule would have no new locally maintained paperwork requirements.

PUBLIC COMMENTS: Following the November 2015 SBOE meeting, notice of the proposed new 19 TAC Chapter 113, Texas Essential Knowledge and Skills for Social Studies, Subchapter C, High School, §113.49, Personal Financial Literacy (One-Half Credit), Adopted 2016, was filed with the Texas Register, initiating the official public comment period. No comments had been received at the time this item was prepared. A summary of any public comments received regarding the proposal will be provided to the SBOE prior to and during the January 2016 meeting.

ALTERNATIVES: None.

OTHER COMMENTS AND RELATED ISSUES: None.

MOTION TO BE CONSIDERED:
The State Board of Education:

Approve for second reading and final adoption proposed new 19 TAC Chapter 113, Texas Essential Knowledge and Skills for Social Studies, Subchapter C, High School, §113.49, Personal Financial Literacy (One-Half Credit), Adopted 2016.

Staff Members Responsible:
Monica Martinez, Associate Commissioner
Standards and Programs

Shelly Ramos, Division Director
Curriculum

Attachments:

I. Statutory Citations (PDF, 27KB)
II. Text of Proposed New 19 TAC Chapter 113, Texas Essential Knowledge and Skills for Social Studies, Subchapter C, High School, §113.49, Personal Financial Literacy (One-Half Credit), Adopted 2016 (PDF, 45KB)