BILL NUMBER: SB 440	ENROLLED
	BILL TEXT

	PASSED THE SENATE  MAY 11, 2015
	PASSED THE ASSEMBLY  JUNE 29, 2015
	AMENDED IN SENATE  APRIL 13, 2015

INTRODUCED BY   Committee on Education (Senators Liu (Chair), Block,
Hancock, Huff, Leyva, Mendoza, Pan, and Vidak)

                        FEBRUARY 25, 2015

   An act to amend Section 70037 of the Education Code, relating to
postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 440, Committee on Education. Postsecondary education:
institutions.
   Existing law establishes the California DREAM Loan Program, which
provides a student attending a participating campus of the University
of California or California State University with a loan, referred
to as a DREAM loan, if the student satisfies specified requirements.
The program requires the trustees and requests the regents to adopt
regulations providing for the withholding of institutional services
from current and former students who have been notified in writing
that they are in default on DREAM loans. The program specifies that
registration privileges may not be withheld from students who are in
default on DREAM loans.
   This bill would authorize the withholding of registration
privileges from these students.


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

  SECTION 1.  Section 70037 of the Education Code is amended to read:

   70037.  (a) The Trustees of the California State University and
the Regents of the University of California shall adopt regulations
providing for the withholding of institutional services from students
or former students who have been notified in writing at the student'
s or former student's last known address that he or she is in default
on a loan or loans under the DREAM Program.
   (b) The regulations adopted pursuant to subdivision (a) shall
provide that the services withheld may be provided during a period
when the facts are in dispute or when the student or former student
demonstrates to either the Trustees of the California State
University or the Regents of the University of California, as
applicable, that reasonable progress has been made to repay the loan
or that there exists a reasonable justification for the delay as
determined by the institution. The regulations shall specify the
services to be withheld from the student, which may include, but are
not limited to, the following:
   (1) The provision of grades.
   (2) The provision of transcripts.
   (3) The provision of diplomas.
   (c) "Default," for purposes of this section, means the failure of
a borrower to make an installment payment when due, or to meet other
terms of the promissory note under circumstances where the
institution holding the loan finds it reasonable to conclude that the
borrower no longer intends to honor the obligation to repay,
provided that this failure persists for 180 days for a loan repayable
in monthly installments, or 240 days for a loan repayable in less
frequent installments.
   (d) This section shall not impose any requirement upon the
University of California unless the Regents of the University of
California, by resolution, makes this section applicable.