A Bill for an Act
Page 1, Line 101Concerning financial literacy requirements as a condition
Page 1, Line 102of high school graduation in public schools.
Bill Summary
(Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.)
Current law encourages each school district board of education or charter school to adopt successful completion of a course in financial literacy as a graduation requirement. The bill requires successful completion of a course in financial literacy as a condition of high school graduation.
The bill requires submission of a free application for federal student aid or a Colorado application for state financial aid as a condition of high school graduation unless an exception applies.
This Unofficial Version Includes Committee
Amendments Not Yet Adopted on Second Reading
Page 2, Line 1Be it enacted by the General Assembly of the State of Colorado:
Page 2, Line 2SECTION 1. Legislative declaration. (1) The general assembly finds and declares that:
Page 2, Line 3(a) Ensuring all Colorado high school students complete a
Page 2, Line 4dedicated course in financial literacy before graduation is essential to preparing students for modern adulthood;
Page 2, Line 5(b) In collaboration with educators, administrators, policymakers,
Page 2, Line 6and community leaders, the Colorado department of education has
Page 2, Line 7developed rigorous state personal financial literacy standards and has
Page 2, Line 8made robust resources available to advance high-quality instruction in this vital subject area;
Page 2, Line 9(c) Research confirms that required standalone financial literacy
Page 2, Line 10courses taught in the eleventh or twelfth grade deliver the greatest impact
Page 2, Line 11by empowering students with comprehensive financial management skills at a time when they are most ready to apply the skills;
Page 2, Line 12(d) Research shows that education and training culminating in
Page 2, Line 13credentials such as industry certificates, trade school certificates,
Page 2, Line 14apprenticeships, associate degrees, and bachelor degrees, among other business and industry-based experiences, are necessary to earn a living;
Page 2, Line 15(e) Completion of the federal or state financial aid applications is
Page 2, Line 16a key component to understanding how additional education beyond high
Page 2, Line 17school can be financially supported. Additionally, completion of the
Page 2, Line 18federal or state financial aid applications, especially while students are
Page 2, Line 19still in high school, supports access to different career pathway options
Page 2, Line 20because financial aid is often the vehicle students use to pay for tuition,
Page 3, Line 1fees, equipment, and other expenses associated with additional training beyond high school.
Page 3, Line 2(f) Understanding how to access career-aligned resources and
Page 3, Line 3supports is integral to the way students and families navigate training and
Page 3, Line 4educational resources, which is why the free application for federal
Page 3, Line 5student aid is a critical component of the state's financial literacy quality
Page 3, Line 6standards. Financial literacy education and Colorado's individual career
Page 3, Line 7and academic plan can help families understand how to obtain federal or
Page 3, Line 8state financial aid to support students in pursuing additional education and career training.
Page 3, Line 9(g) In 2023, through the federal "FAFSA Simplification Act", the
Page 3, Line 10free application for federal student aid was simplified, reducing the
Page 3, Line 11number of questions from 100 to 30 and reducing the financial information needed on the application;
Page 3, Line 12(h) In 2024, the Colorado general assembly passed the Colorado
Page 3, Line 13promise tax credit, which makes students who attend public institutions
Page 3, Line 14and have a family income of $90,000 or less eligible for a complete
Page 3, Line 15reimbursement of any out-of-pocket tuition and fees paid for the student's
Page 3, Line 16education; however, students must fill out a federal or state financial aid application in order to qualify for the tax credit; and
Page 3, Line 17(i) Colorado students can magnify the impact of state investments
Page 3, Line 18in higher education by accessing federal money to pursue postsecondary
Page 3, Line 19education and by earning credentials to enhance the student's
Page 3, Line 20income-earning potential. It is estimated that Colorado students who
Page 3, Line 21complete federal and state financial aid applications can leverage more than $30 million in resources.
Page 3, Line 22(2) Therefore, the general assembly declares it is essential to ensure that prior to graduation, Colorado high school students:
Page 4, Line 1(a) Complete a course in financial literacy; and
Page 4, Line 2(b) Submit federal and state financial aid applications if students intend to seek postsecondary education credentials.
Page 4, Line 3SECTION 2. In Colorado Revised Statutes, add 22-1-104.9 as follows:
Page 4, Line 422-1-104.9. Teaching of financial literacy.
Page 4, Line 5(1) (a) Satisfactory completion of a course on financial
Page 4, Line 6literacy, as defined in section 22-32-135, which incorporates the
Page 4, Line 7standards on financial literacy developed by the state board of
Page 4, Line 8education pursuant to section 22-7-1005 (2.8), is a condition of high school graduation in the public schools of this state.
Page 4, Line 9(b) School districts and charter schools shall teach a
Page 4, Line 10course on financial literacy in the ninth, tenth, eleventh, or
Page 4, Line 11twelfth grade but are encouraged to teach the course in the eleventh or twelfth grade.
Page 4, Line 12(2) A school district or charter school may utilize any
Page 4, Line 13curriculum the school district or charter school has adopted
Page 4, Line 14pursuant to section 22-32-135, the resource bank created
Page 4, Line 15pursuant to section 22-2-127, or any other alternative programs
Page 4, Line 16or materials. Any programs or materials used in teaching a
Page 4, Line 17course on financial literacy must represent best practices and
Page 4, Line 18be developed using input from experts in the area of personal finances.
Page 4, Line 19(3) This section applies to students beginning ninth grade on or after September 1, 2026.
Page 5, Line 1SECTION 3. In Colorado Revised Statutes, 22-2-136, amend (2)(b) and (2)(c); and add (2)(d) as follows:
Page 5, Line 222-2-136. Additional duty - state board - individual career and
Page 5, Line 3academic plans - standards - rules. (2) In establishing the standards for
Page 5, Line 4individual career and academic plans, the state board shall ensure, at a minimum, that:
Page 5, Line 5(b) Each individual career and academic plan is accessible to educators, students, and parents;
andPage 5, Line 6(c) Each public school, in assisting students and parents in
Page 5, Line 7creating and maintaining the individual career and academic plans, is in
Page 5, Line 8compliance with the requirements of the federal "Family Educational Rights and Privacy Act of 1974", 20 U.S.C. sec. 1232g; and
Page 5, Line 9(d) (I) Beginning with the 2027-28 school year, each
Page 5, Line 10individual career and academic plan includes a requirement
Page 5, Line 11that, during the student's graduation year, the student
Page 5, Line 12completes a free application for federal student aid or the Colorado application for state financial aid.
Page 5, Line 13(II) Notwithstanding subsection (2)(d)(I), a student is not
Page 5, Line 14required to complete a free application for federal student aid or the Colorado application for state financial aid if:
Page 5, Line 15(A) The student affirmatively declines to complete the application; or
Page 5, Line 16(B) Authorized school personnel determines it is not feasible for the student to complete an application.
Page 5, Line 17(III) If a student has not completed the application or
Page 5, Line 18affirmatively declined to complete the application pursuant to
Page 5, Line 19subsection (2)(d)(II)(A) of this section by May 1 of the applicable
Page 6, Line 1school year, the public school must indicate on the student's
Page 6, Line 2individual career and academic plan that the student has declined to complete an application.
Page 6, Line 3SECTION 4. In Colorado Revised Statutes, 22-32-135, amend (4) as follows:
Page 6, Line 422-32-135. Financial literacy curriculum - definition.
Page 6, Line 5(4) Pursuant to section 22-1-104.9, each school district board of
Page 6, Line 6education is
further encouragedsuccessfulPage 6, Line 7satisfactory completion of a course in financial literacy as a graduation requirement.
Page 6, Line 8SECTION 5. In Colorado Revised Statutes, 23-3.3-106, amend
Page 6, Line 9(2)(a)(III), (2)(a)(IV), and (2)(b)(II); and add (2)(a)(V) and (5.5) as follows:
Page 6, Line 1023-3.3-106. Technology to support FAFSA and CASFA -
Page 6, Line 11definitions. (2) (a) The department shall use technology to assist in
Page 6, Line 12increasing the number of students who complete the FAFSA and CASFA
Page 6, Line 13forms. On or before September 15, 2023, the department shall develop a
Page 6, Line 14tool kit and training outlining web tools and resources for use by higher
Page 6, Line 15education administrators, middle and high schools, and nonprofit
Page 6, Line 16organizations that support the completion of FAFSA and CASFA forms. The tool kit must include free resources, including:
Page 6, Line 17(III) Information for students who are the first in their family to
Page 6, Line 18attend college and how to navigate financial aid resources and application processes;
andPage 6, Line 19(IV) Public information available through state or federal entities; and
Page 6, Line 20(V) A user guide and getting started guide.
(b) The information in the tool kit must be:
Page 7, Line 1(II) Updated annually for educators and nonprofit organizations
Page 7, Line 2to support students and families in submitting completed FAFSA or
Page 7, Line 3CASFA forms pursuant to section 22-1-148 and in developing
Page 7, Line 4individual career and
educationPage 7, Line 522-32-109 (1)(oo) and 22-30.5-525 and career-connected strategies, such
Page 7, Line 6as work-based learning in support of financial literacy education and completion of the financial aid forms.
Page 7, Line 7(5.5) Any money appropriated to the department for the
Page 7, Line 8implementation of this section may be used for the following purposes:
Page 7, Line 9(a) Maintenance of any financial aid resource bank and financial aid training programs;
Page 7, Line 10(b) Financial aid training for high school counselors,
Page 7, Line 11local education providers, students, and students' family members;
Page 7, Line 12(c) Maintenance of the web-based financial aid completion
Page 7, Line 13tool to track the satisfactory submission of a FAFSA or CASFA; and
Page 7, Line 14(d) Student outreach pursuant to this section.
Page 7, Line 15SECTION 6. Act subject to petition - effective date. This act
Page 7, Line 16takes effect at 12:01 a.m. on the day following the expiration of the
Page 7, Line 17ninety-day period after final adjournment of the general assembly; except
Page 7, Line 18that, if a referendum petition is filed pursuant to section 1 (3) of article V
Page 7, Line 19of the state constitution against this act or an item, section, or part of this
Page 7, Line 20act within such period, then the act, item, section, or part will not take
Page 7, Line 21effect unless approved by the people at the general election to be held in
Page 8, Line 1November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.