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    AN ACT concerning education.

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


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



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



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


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understanding the roles of consumers
interacting with 
 


 






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agriculture, business, labor unions and government in

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

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

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

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sufficient proficiency in the area of consumer education as 
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shall excuse
such pupil from the necessity of receiving, as a 
 


 






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

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

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    (c)  The Financial Literacy Fund is created as a special 
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fund in the State treasury.  State funds and private 
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contributions for the promotion of financial literacy shall be 
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deposited into the Financial Literacy Fund.  All money in the 
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Financial Literacy Fund shall be used, subject to 
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appropriation, by the State Board of Education to award grants 
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to school districts for the following:
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        (1)    Defraying the costs of financial literacy training 
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    for teachers.
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        (2)    Rewarding a school or teacher who wins or achieves 
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    results at a certain level of success in a financial 
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    literacy competition.
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        (3)    Rewarding a student who wins or achieves results at 
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    a certain level of success in a financial literacy 
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    competition.
 


 






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