BILL NUMBER: SB 595	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Calderon

                        FEBRUARY 22, 2013

   An act to add Section 69505.5 to the Education Code, relating to
postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 595, as introduced, Calderon. Postsecondary education:
financial aid.
   Under existing law the Legislature declares that student
assistance programs have the primary purpose of providing equal
opportunity and access to postsecondary education for specified
groups of students and that student aid programs should assist
students to progress through the educational program in accordance
with the individual's educational objectives.
   This bill would require each campus of the California Community
Colleges and the California State University and, as to the
University of California, request each campus of the University of
California to not enter into a contract with a bank or financial
institution that requires students to open an account with the bank
or financial institution as a condition of the student receiving his
or her financial aid disbursement. The bill would also require each
campus of the California Community Colleges and the California State
University, or, as to the University of California, request each
campus of the University of California, to offer a student the option
of receiving a check for, or direct deposit of, his or her financial
aid disbursement in a timeframe that is similar to the timeframe for
financial aid disbursement offered by a bank or financial
institution that partners with the campus of the community college,
California State University, or University of California, as
applicable. By requiring each campus of the California Community
Colleges to offer this option to students, the bill would impose a
state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 69505.5 is added to the Education Code, to
read:
   69505.5.  (a) (1) No campus of the California Community Colleges
or the California State University shall enter into a contract with a
bank or financial institution that requires students to open an
account with the bank or financial institution as a condition of the
student receiving his or her financial aid disbursement.
   (2) Each campus of the University of California is requested to
not enter into a contract with a bank or financial institution that
requires students to open an account with the bank or financial
institution as a condition of the student receiving his or her
financial aid disbursement.
   (b) (1) Each campus of the California Community Colleges and the
California State University shall offer a student the option of
receiving a check for, or direct deposit of, his or her financial aid
disbursement in a timeframe that is similar to the timeframe for
financial aid disbursement offered by a bank or financial institution
that partners with a campus of the California Community Colleges or
California State University.
   (2) Each campus of the University of California is requested to
offer a student the option of receiving a check for, or direct
deposit of, his or her financial aid disbursement in a timeframe that
is similar to the timeframe for financial aid disbursement offered
by a bank or financial institution that partners with a campus of the
University of California.
  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.