BILL NUMBER: SB 845	AMENDED
	BILL TEXT

	AMENDED IN SENATE  FEBRUARY 25, 2014

INTRODUCED BY   Senator Correa

                        JANUARY 8, 2014

   An act to add Section 69505.8 to the Education Code, relating to
postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 845, as amended, Correa. Postsecondary education: electronic
disbursement of student financial aid.
   Existing law provides for the missions and functions of the
private and public segments of postsecondary education in the state.
Existing law establishes various student financial aid programs for
students attending segments of postsecondary education.
   This bill would require the Board of Governors of the California
Community Colleges and the Trustees of the California State
University, and would request the Regents of the University of
California and each governing body of an accredited private
postsecondary educational institution, to develop, in consultation
with stakeholders, one or more model contracts  that would
govern at each campus within their respective systems  
for use   at their respective systems for  the
disbursement of a financial aid award, scholarship, campus-based aid
award, or school refund on a debit, prepaid, or preloaded card.
   The bill would also require that each model contract consider the
best interests of students and contain certain provisions.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  Section 69505.8 is added to the Education Code, to
read:
   69505.8.  (a) The Board of Governors of the California Community
Colleges and the Trustees of the California State University shall,
and the Regents of the University of California and each governing
body of an accredited private postsecondary educational institution
are requested to, develop one or more model contracts that
would govern, at each campus within their respective systems,
  for use at their respective systems for  the
disbursement of a financial aid award, scholarship, campus-based aid
award, or school refund onto a debit card, prepaid card, or other
preloaded card issued by a financial institution. Each model contract
shall be developed in consultation with stakeholders including
statewide  student  organizations  
associations  , individual campuses, and financial institutions
that issue debit cards, prepaid cards, and preloaded cards.
   (b) The board of governors and the trustees shall, and the regents
and each governing body of an accredited private postsecondary
educational institution are requested to, make  a 
 every  model contract developed under subdivision (a)
publicly available on its Internet Web site.
   (c) Every model contract developed under subdivision (a) shall
consider the best interests of students and shall, at a minimum,
contain all of the following provisions:
   (1) The campus, educational system, or card-issuing financial
institution shall not represent a debit card, prepaid card, or
preloaded card as the only disbursement option available for a
student to receive a financial aid award, scholarship, campus-based
aid award, or school refund.
   (2) A card-issuing financial institution shall provide a list of
all debit card, prepaid card, or preloaded card fees to a student
before that student may elect to receive a financial aid award,
scholarship, campus-based aid award, or school refund on a debit
card, prepaid card, or preloaded card. A card-issuing financial
institution shall also provide a readily accessible link to a
printable version of this fee list from the homepage on its Internet
Web site.
   (3) A student who receives a financial aid award, scholarship,
campus-based aid award, or school refund on a debit card, prepaid
card, or preloaded card shall not be charged for any of the
following:
   (A) Opening a debit card, prepaid card, or preloaded card account.

   (B) Receiving an initial debit card, prepaid card, or preloaded
card.
   (C) Having a financial aid award, scholarship, campus-based aid
award, or school refund deposited on a debit card, prepaid card, or
preloaded card.
   (4) A card-issuing financial institution shall locate at least one
branch office or automated teller machine on or immediately adjacent
to the contracting campus, at which fee-free withdrawals may be made
using the card.
   (5) A card-issuing financial institution, campus, or educational
system shall not market a debit card, prepaid card, preloaded card,
or card account as a credit card or credit instrument or convert the
card or account into a credit card or credit instrument.
   (6) A card-issuing financial institution, campus, or educational
system shall not represent placement of the name or mascot of a
campus or educational system on a debit card, prepaid card, or
preloaded card as an endorsement of that card by the campus or
educational system.
   (d) When developing each model contract, the board of governors
and the trustees shall, and the regents and each governing body of an
accredited private postsecondary educational institution are
requested to, consider all of the following:
   (1) The number of on-campus locations and proximity of off-campus
locations where a fee-free withdrawal could be made by a student
using a debit card, prepaid card, or preloaded card.
   (2) The type and size of fees a student would incur from debit,
prepaid, or preloaded card use.
   (3) The impact, if any, that offering a card displaying the name
or mascot of a campus or educational system would have on students,
that campus, or that educational system.
   (4) The impact, if any, of the content of a dispute resolution
clause on students, their campus, and their educational system, if a
conflict were to arise between a student and the card-issuing
financial institution.