Public Act 095-0863
 		





SB2387 Enrolled
LRB095 19213 NHT 45464 b






    AN ACT concerning education.

 
    Be it enacted by the People of the State of Illinois,
 
represented in the General Assembly:


 
    Section 5. The School Code is amended  by changing Section 
27-12.1 as follows:
 



    (105 ILCS 5/27-12.1)  (from Ch. 122, par. 27-12.1)



    Sec. 27-12.1. Consumer education. 
    (a) Subject to the provisions of
subsection (b) of this 
Section, pupils in the public schools in
grades 9 through 12 
shall be taught and be required to study courses
which include 
instruction in the area of consumer education, including
but 
not necessarily limited to (i) understanding the basic concepts 
of financial literacy, including installment purchasing 
(including credit scoring, managing credit debt, and 
completing a loan application), budgeting, savings and 
investing, banking (including balancing a checkbook, opening a 
deposit account, and the use of interest rates), understanding 
simple contracts, State and federal income taxes, personal 
insurance policies, and the
comparison of prices, and 
homeownership (including the basic process of obtaining a 
mortgage and the concepts of fixed and adjustable rate 
mortgages, subprime loans, and predatory lending), and (ii)


understanding the roles of consumers
interacting with 
agriculture, business, labor unions and government in

formulating and achieving the goals of the mixed free 
enterprise system.
The State Board of Education shall devise or 
approve the
consumer education curriculum for grades 9 through 
12 and specify the
minimum amount of instruction to be devoted 
thereto.

    (b) Prior to the commencement of the 1986-1987 school year 
and prior to
the commencement of each school year thereafter, 
the State Board of
Education shall devise, develop and furnish 
to each school district within the
 State a uniform Annual 
Consumer Education Proficiency Test to be
administered by each 
school district to those pupils of the district in
grades 9 
through 12 who elect to take the same, provided that no pupil 
shall
be permitted to take the test more than once in any 
school year. Each year
the State Board of Education shall by 
rule prescribe the date or dates
during the school year on 
which school districts shall administer the test
devised and 
developed for that school year, together with the uniform

standards which all districts shall apply in scoring that test. 
The test shall
be devised and developed by the State Board of 
Education each year in a
standardized manner to allow any pupil 
who takes the same and who achieves
a score thereon which is 
not less than the minimum score established by the
State Board 
of Education for the test so taken to thereby demonstrate

sufficient proficiency in the area of consumer education as 
shall excuse
such pupil from the necessity of receiving, as a 
prerequisite to graduation
from high school and receipt of a 
high school diploma, the minimum amount
of instruction in a 
consumer education curriculum otherwise required by
subsection 
(a) and the rules
or regulations promulgated thereunder.  For 
purposes of this subsection,
"proficiency" is defined to mean 
that a pupil is competent in and has a
well advanced knowledge 
of consumer education so that study of the course
of 
instruction required by this Section would not be substantially

educationally beneficial as determined by the State Board of 
Education when
developing the uniform standards and minimum 
score requirements of this
Section.

    (c)  The Financial Literacy Fund is created as a special 
fund in the State treasury.  State funds and private 
contributions for the promotion of financial literacy shall be 
deposited into the Financial Literacy Fund.  All money in the 
Financial Literacy Fund shall be used, subject to 
appropriation, by the State Board of Education to award grants 
to school districts for the following:
        (1)    Defraying the costs of financial literacy training 
    for teachers.
        (2)    Rewarding a school or teacher who wins or achieves 
    results at a certain level of success in a financial 
    literacy competition.
        (3)    Rewarding a student who wins or achieves results at 
    a certain level of success in a financial literacy 
    competition.
        (4)    Funding activities, including books, games, field 
    trips, computers, and other activities, related to 
    financial literacy education.
    In awarding grants, every effort must be made to ensure 
that all geographic areas of the State are represented.
    (d)  A school board may establish a special fund in which to 
receive public funds and private contributions for the 
promotion of financial literacy.  Money in the fund shall be 
used for the following:
        (1)    Defraying the costs of financial literacy training 
    for teachers.
        (2)    Rewarding a school or teacher who wins or achieves 
    results at a certain level of success in a financial 
    literacy competition.
        (3)    Rewarding a student who wins or achieves results at 
    a certain level of success in a financial literacy 
    competition.
        (4)    Funding activities, including books, games, field 
    trips, computers, and other activities, related to 
    financial literacy education.
    (e)  The State Board of Education, upon the next 
comprehensive review of the  Illinois Learning Standards, is 
urged to include the basic principles of personal insurance 
policies and understanding simple contracts.
(Source: P.A. 94-929, eff. 6-26-06.)