BILL ANALYSIS

Senate Research Center	S.B. 2137
88R13292 JTZ-D	By: Creighton
	Subcommittee on Higher Education
	4/4/2023
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

Texas institutions of higher education graduate their students with extensive knowledge in their given field of study and provide them with various skills to pursue different types of employment. However, many graduates lack the financial literacy skills needed to file their taxes, take out a loan, or simply balance a personal budget. Moreover, employers have communicated the need for "soft skills," such as problem solving, communication, time management, critical thinking, and persistence, in candidates seeking employment. Despite this demand, there is not currently a requirement of postsecondary students to take a soft skills or financial literacy course as part of their core curriculum in college.

S.B. 2137 requires institutions of higher education to offer an undergraduate elective course on personal financial literacy and soft skills. The course must be allowed to apply towards a student's core curriculum requirement in social and behavioral sciences.

As proposed, S.B. 2137 amends current law relating to requiring public institutions of higher education to offer an undergraduate course in financial literacy and soft skills.

RULEMAKING AUTHORITY

Rulemaking authority previously granted to the Texas Higher Education Coordinating Board is rescinded in SECTION 1 (Section 51.305, Education Code) of this bill.

Rulemaking authority previously granted to the Texas Higher Education Coordinating Board is modified in SECTION 1 (Section 51.305, Education Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 51.305, Education Code, as follows:

Sec. 51.305. New heading: PERSONAL FINANCIAL LITERACY AND SOFT SKILLS. (a) Defines "institution of higher education," rather than "general academic teaching institution."

(b) Requires each institution of higher education to offer an undergraduate elective course of three semester credit hours or the equivalent in personal financial literacy and soft skills. Requires that the course be offered for credit toward satisfaction of a student's core curriculum requirement in social and behavioral sciences.

(c) Provides that the personal financial literacy content provided under the course:

(1) is required to include instruction in the knowledge and skills necessary as a self-supporting adult to make critical decisions relating to personal financial matters; and

(2) is authorized to include instruction in budgeting, credit cards, spending, saving, loan repayment and consolidation, taxes, retirement planning, insurance, and financing of health care and other benefits.

Deletes existing text requiring the Texas Higher Education Coordinating Board (THECB) by rule to require a general academic teaching institution to offer training in personal financial literacy to provide students of the institution with the knowledge and skills necessary as self-supporting adults to make critical decisions relating to personal financial matters and to determine the topics to be covered by the training.

(d) Requires that the soft skills content provided under the course include instruction in:

(1) workplace ethics and etiquette;

(2) effective communication;

(3) leadership;

(4) organizational skills;

(5) time management;

(6) problem solving;

(7) critical thinking; and

(8) persistence.

(e) Authorizes THECB to adopt rules for the administration of this section. Deletes existing text authorizing THECB by rule to provide for the training required under this section to be offered in an online course.

SECTION 2. Provides that Section 51.305, Education Code, as amended by this Act, applies beginning with the 2024 fall semester.

SECTION 3. Effective date: upon passage or September 1, 2023.