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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1487 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
                                S. 1487

    To provide for excellence in economic education, and for other 
                               purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             August 4, 1999

 Mr. Akaka (for himself, Mr. Cochran, Mrs. Murray, Mr. Inouye, and Mr. 
    Kerrey) introduced the following bill; which was read twice and 
  referred to the Committee on Health, Education, Labor, and Pensions

_______________________________________________________________________

                                 A BILL

 
    To provide for excellence in economic education, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCELLENCE IN ECONOMIC EDUCATION.

    (a) Amendment.--Title X of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 8001 et seq.) is amended by adding at the end 
the following:

               ``PART L--EXCELLENCE IN ECONOMIC EDUCATION

``SEC. 10995. SHORT TITLE; FINDINGS.

    ``(a) Short Title.--This part may be cited as the ``Excellence in 
Economic Education Act of 1999''.
    ``(b) Findings.--Congress makes the following findings:
            ``(1) The need for economic literacy in the United States 
        has grown exponentially in the 1990's as a result of rapid 
        technological advancements and increasing globalization, giving 
        individuals in the United States more numerous and complex 
        economic and financial choices than ever before as members of 
        the workforce, managers of their families' resources, and 
        voting citizens.
            ``(2) Individuals in the United States lack essential 
        economic knowledge, as demonstrated in a 1998-1999 test 
        conducted by the National Council on Economic Education, a 
        private nonprofit organization. The test results indicated the 
        following:
                    ``(A) Students and adults alike lack a basic 
                understanding of core economic concepts such as 
                scarcity of resources and inflation, with less than 
                half of those tested demonstrating knowledge of those 
                basic concepts.
                    ``(B) A little more than \1/3\ of those tested 
                realize that society must make choices about how to use 
                resources.
                    ``(C) Only \1/3\ of those tested understand that 
                active competition in the marketplace serves to lower 
                prices and improve product quality.
                    ``(D) Slightly more than \1/2\ of adults in the 
                United States and less than \1/4\ of students in the 
                United States know that a Federal budget deficit is 
                created when the Federal Government's expenditures 
                exceed its revenues in a year.
                    ``(E) Overall, adults received a grade of 57 
                percent on the test and secondary school students 
                received a grade of 48 percent on the test.
                    ``(F) Despite those poor results, the test pointed 
                out that individuals in the United States realize the 
                need for understanding basic economic concepts, with 96 
                percent of adults tested believing that basic economics 
                should be taught in secondary school.
            ``(3) A range of trends points to the need for individuals 
        in the United States to receive a practical economics education 
        that will give the individuals tools to make responsible 
        choices about their limited financial resources, choices which 
        face all people regardless of their financial circumstances. 
        Examples of the trends are the following:
                    ``(A) The number of personal bankruptcies in the 
                United States continued to rise and set new records in 
                the 1990's, despite the longest peacetime economic 
                expansion in United States history. One in every 70 
                United States households filed for bankruptcy in 1998. 
                Rising bankruptcies have an impact on the cost and 
                availability of consumer credit which in turn 
                negatively affect overall economic growth.
                    ``(B) Credit card delinquencies in the United 
                States rose to 1.83 percent in 1998, which is a 
                percentage not seen since 1992 when the effects of a 
                recession were still strong.
                    ``(C) The personal savings rate in the United 
                States over the 5 years ending in 1998 averaged only 
                4.5 percent. In the first quarter of 1999, the personal 
                savings rate dropped to negative 0.4 percent. A decline 
                in savings rates reduces potential investment and 
                economic growth.
                    ``(D) By 2030, the number of older persons in the 
                United States will grow to 70,000,000, more than twice 
                the number of older persons in the United States in 
                1997. The additional older persons will add 
                significantly to the population of retirees in the 
                United States and require a shift in private and public 
                resources to attend to their specific needs. The needs 
                will have dramatic, long-term economic consequences for 
                younger generations of individuals in the United States 
                workforce who will need to plan well in order to 
                support their families and ensure themselves a secure 
                retirement.
            ``(4) The third National Education Goal puts economics 
        forth as 1 of 9 core content areas in which teaching, learning, 
        and students' mastery of basic and advanced skills must 
        improve.
            ``(5) The National Council on Economic Education presents a 
        compelling case for doing more to meet the need for economic 
        literacy. While an understanding of economics is necessary to 
        help the next generation to think, choose, and function in a 
        changing global economy, economics has too often been neglected 
        in schools.
            ``(6) States' requirements for economic and personal 
        finance education are insufficient as evidenced by the fact 
        that, while 39 States have adopted educational standards 
        (including guidelines or proficiencies) in economics--
                    ``(A) only 13 of those States require all students 
                to take a course in economics before graduating from 
                secondary school;
                    ``(B) only 25 States administer tests to determine 
                whether students meet the standards; and
                    ``(C) only 27 States require that the standards be 
                implemented in schools.
            ``(7) Improved and enhanced national, State, and local 
        economic education efforts, conducted as part of the Campaign 
        for Economic Literacy led by the National Council on Economic 
        Education, will help individuals become informed consumers, 
        conscientious savers, prudent investors, productive workforce 
        members, responsible citizens, and effective participants in 
        the global economy.
            ``(8)(A) Founded in 1949, the National Council on Economic 
        Education is the preeminent economic education organization in 
        the United States, having a nationwide network that supports 
        economic education in the Nation's schools.
            ``(B) This network supports teacher preparedness in 
        economics through--
                    ``(i) inservice teacher education;
                    ``(ii) classroom-tested materials and appropriate 
                curricula;
                    ``(iii) evaluation, assessment, and research on 
                economics education; and
                    ``(iv) suggested content standards for economics.
            ``(9) The National Council on Economic Education network 
        includes affiliated State Councils on Economic Education and 
        more than 275 university or college-based Centers for Economic 
        Education. This network represents a unique partnership among 
        leaders in education, business, economics, and labor, the 
        purpose of which is to effectively deliver economic education 
        throughout the United States.
            ``(10) Each year the National Council on Economic Education 
        network trains 120,000 teachers, reaching more than 7,000,000 
        students. By strengthening the Council's nationwide network, 
        the Council can reach more of the Nation's 50,000,000 students.
            ``(11) The National Council on Economic Education conducts 
        an international economic education program that provides 
        information on market principles to the world (particularly 
        emerging democracies) through teacher training, materials 
        translation and development, study tours, conferences, and 
        research and evaluation. As a result of those activities, the 
        National Council on Economic Education is helping to support 
        educational reform and build economic education infrastructures 
        in emerging market economies, and reinforcing the national 
        interest of the United States.
            ``(12) Evaluation results of economics education activities 
        support the following conclusions:
                    ``(A) Inservice education in economics for teachers 
                contributes significantly to students' gains in 
                economic knowledge.
                    ``(B) Secondary school students who have taken 
                economics courses perform significantly better on tests 
                of economic literacy than do their counterparts who 
                have not taken economics.
                    ``(C) Economics courses contribute significantly 
                more to gains in economic knowledge than does 
                integration of economics into other subjects.
            ``(13) Through partnerships, the National Council on 
        Economic Education network leverages support for its mission by 
        raising $35,000,000 from the private sector, universities, and 
        States.

``SEC. 10996. EXCELLENCE IN ECONOMIC EDUCATION.

    ``(a) Purpose.--The purpose of this part is to promote economic 
literacy among all United States students in kindergarten through grade 
12 by enhancing national leadership in economic education through the 
strengthening of a nationwide economic education network and the 
provision of resources to appropriate State and local entities.
    ``(b) Goals.--The goals of this part are--
            ``(1) to increase students' knowledge of and achievement in 
        economics to enable the students to become more productive and 
        informed citizens;
            ``(2) to strengthen teachers' understanding of and 
        competency in economics to enable the teachers to increase 
        student mastery of economic principles and their practical 
        application;
            ``(3) to encourage economic education research and 
        development, to disseminate effective instructional materials, 
        and to promote replication of best practices and exemplary 
        programs that foster economic literacy;
            ``(4) to assist States in measuring the impact of education 
        in economics, which is 1 of 9 national core content areas 
        described in section 306(c) of the Goals 2000: Educate America 
        Act (20 U.S.C. 5886(c));
            ``(5) to extend strong economic education delivery systems 
        to every State; and
            ``(6) to leverage and expand private and public support for 
        economic education partnerships at national, State, and local 
        levels.

``SEC. 10997. GRANT PROGRAM AUTHORIZED.

    ``(a) Grants to the National Council on Economic Education.--
            ``(1) In general.--The Secretary is authorized to award a 
        grant to the National Council on Economic Education (referred 
        to in this section as the `grantee'), which is a nonprofit 
        educational organization that has as its primary purpose the 
        improvement of the quality of student understanding of 
        economics through effective teaching of economics in the 
        Nation's classrooms.
            ``(2) Use of grant funds.--
                    ``(A) One-quarter.--The grantee shall use \1/4\ of 
                the funds made available through the grant and not 
                reserved under subsection (f) for a fiscal year--
                            ``(i) to strengthen and expand the 
                        grantee's nationwide network on economic 
                        education;
                            ``(ii) to support and promote training, of 
                        teachers who teach a grade from kindergarten 
                        through grade 12, regarding economics, 
                        including the dissemination of information on 
                        effective practices and research findings 
                        regarding the teaching of economics;
                            ``(iii) to support research on effective 
                        teaching practices and the development of 
                        assessment instruments to document student 
                        performance;
                            ``(iv) to develop and disseminate 
                        appropriate materials to foster economic 
                        literacy; and
                            ``(v) to coordinate activities assisted 
                        under this section with activities assisted 
                        under title II.
                    ``(B) Three-quarters.--The grantee shall use \3/4\ 
                of the funds made available through the grant and not 
                reserved under subsection (f) for a fiscal year to 
                award grants to State economic education councils, or 
                in the case of a State that does not have a State 
                economic education council, a center for economic 
                education (which council or center shall be referred to 
                in this section as a `recipient'). The grantee shall 
                award such a grant to pay for the Federal share of the 
                cost of enabling the recipient to work in partnership 
                with 1 or more of the entities described in paragraph 
                (3) for 1 or more of the following purposes:
                            ``(i) Collaboratively establishing and 
                        conducting teacher training programs that use 
                        effective and innovative approaches to the 
                        teaching of economics.
                            ``(ii) Providing resources to school 
                        districts that want to incorporate economics 
                        into the curricula of the schools in the 
                        districts.
                            ``(iii) Conducting evaluations of the 
                        impact of economic education on students.
                            ``(iv) Conducting economic education 
                        research.
                            ``(v) Creating and conducting school-based 
                        student activities to promote consumer, 
                        economic, and personal finance education, such 
                        as saving, investing, and entrepreneurial 
                        education, and to encourage awareness and 
                        student achievement in economics.
                            ``(vi) Establishing interstate and 
                        international student and teacher exchanges to 
                        promote economic literacy.
                            ``(vii) Encouraging replication of best 
                        practices to encourage economic literacy.
                    ``(C) Additional requirements and technical 
                assistance.--The grantee shall--
                            ``(i) meet such other requirements as the 
                        Secretary determines to be necessary to assure 
                        compliance with this section; and
                            ``(ii) provide such technical assistance as 
                        may be necessary to carry out this section.
            ``(3) Partnership entities.--The entities referred to in 
        paragraph (2)(B) are the following:
                    ``(A) A private sector entity.
                    ``(B) A State educational agency.
                    ``(C) A local educational agency.
                    ``(D) An institution of higher education.
                    ``(E) Another organization promoting economic 
                development.
                    ``(F) Another organization promoting educational 
                excellence.
            ``(4) Administrative costs.--The grantee and each recipient 
        receiving a grant under this section for a fiscal year may use 
        not more than 25 percent of the funds made available through 
        the grant for administrative costs.
    ``(b) Teacher Training Programs.--
            ``(1) In general.--In carrying out the teacher training 
        programs described in subsection (a)(2)(B) a recipient shall--
                    ``(A) train teachers who teach a grade from 
                kindergarten through grade 12;
                    ``(B) conduct programs taught by qualified teacher 
                trainers who can tap the expertise, knowledge, and 
                experience of classroom teachers, private sector 
                leaders, and other members of the community involved, 
                for the training; and
                    ``(C) encourage teachers from disciplines other 
                than economics to participate in such teacher training 
programs, if the training will promote the economic understanding of 
their students.
            ``(2) Release time.--Funds made available under this 
        section for the teacher training programs described in 
        subparagraphs (A) and (B) of subsection (a)(2) may be used to 
        pay for release time for teachers and teacher trainers who 
        participate in the training.
    ``(c) Involvement of Business Community.--In carrying out the 
activities assisted under this part the grantee and recipients are 
encouraged to--
            ``(1) include interactions with the local business 
        community to the fullest extent possible, to reinforce the 
        connection between economic education and economic development; 
        and
            ``(2) work with private businesses to obtain matching 
        contributions for Federal funds and assist recipients in 
        working toward self-sufficiency.
    ``(d) Federal Share.--
            ``(1) In general.--The Federal share of the cost described 
        in subsection (a)(2)(B) shall be 50 percent. The Federal share 
        of the cost of establishing a State council on economic 
        education or a center for economic education under subsection 
        (f), for 1 fiscal year only, shall be 75 percent.
            ``(2) Non-federal share.--The non-Federal share may be paid 
        in cash or in kind, fairly evaluated, including plant, 
        equipment, or services.
    ``(e) Applications.--
            ``(1) Grantee.--To be eligible to receive a grant under 
        this section, the grantee shall submit to the Secretary an 
        application at such time, in such manner, and accompanied by 
        such information as the Secretary may require.
            ``(2) Recipients.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this section, a recipient shall submit an 
                application to the grantee at such time, in such 
                manner, and accompanied by such information as the 
                grantee may require.
                    ``(B) Review.--The grantee shall invite the 
                individuals described in subparagraph (C) to review all 
                applications from recipients for a grant under this 
                section and to make recommendations to the grantee 
                regarding the funding of the applications.
                    ``(C) Individuals.--The individuals referred to in 
                subparagraph (B) are the following:
                            ``(i) Leaders in the fields of economics 
                        and education.
                            ``(ii) Such other individuals as the 
                        grantee determines to be necessary.
    ``(f) Special Rule.--For each State that does not have a recipient 
in the State, as determined by the grantee, not less than the greater 
of 1.5 percent or $100,000 of the total amount appropriated under 
subsection (i), for 1 fiscal year, shall be made available to the State 
to pay for the Federal share of the cost of establishing a State 
council on economic education or a center for economic education in 
partnership with a private sector entity, an institution of higher 
education, the State educational agency, and other organizations.
    ``(g) Supplement and Not Supplant.--Funds appropriated under this 
section shall be used to supplement and not supplant other Federal, 
State, and local funds expended for the purpose described in section 
10996(a).
    ``(h) Report.--The Secretary shall prepare and submit to the 
appropriate committees of Congress a report regarding activities 
assisted under this section not later than 2 years after the date funds 
are first appropriated under subsection (i) and every 2 years 
thereafter.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part $10,000,000 for fiscal year 2000, 
and such sums as may be necessary for each of the 4 succeeding fiscal 
years.''.
    (b) Related Amendments.--The Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 6301 et seq.) is amended--
            (1) in section 2103(a)(2)(I) (20 U.S.C. 6623(a)(2)(I)), by 
        inserting ``economics,'' after ``civics and government,'';
            (2) in section 3206(b)(4) (20 U.S.C. 6896(b)(4)), by 
        inserting ``economics,'' after ``history,'';
            (3) in section 5108(b) (20 U.S.C. 7208(b)), by inserting 
        ``economics,'' after ``history,'';
            (4) in section 10101(b)(1)(A)(iii) (20 U.S.C. 
        8001(b)(1)(A)(iii)), by striking ``and social studies'' and 
        inserting ``social studies, and economics,'';
            (5) in section 10963(b)(4) (20 U.S.C. 8283(b)(4))--
                    (A) in subparagraph (E), by striking ``and'' after 
                the semicolon;
                    (B) in subparagraph (F), by inserting ``and'' after 
                the semicolon; and
                    (C) by adding at the end the following:
                    ``(G) economic education and other programs 
                designed to enhance economic literacy and personal 
                financial responsibility;''; and
            (6) in section 10974(a)(8)(H) (20 U.S.C. 8294(a)(8)(H)), by 
        striking ``local rural entrepreneurship'' and inserting 
        ``promoting economic literacy, local rural entrepreneurship,''.
                                 <all>
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