BILL ANALYSIS �
SENATE BANKING & FINANCIAL INSTITUTIONS COMMITTEE
Senator Noreen Evans, Chair
2013-2014 Regular Session
AB 1927 (Frazier) Hearing Date: June 25,
2014
As Amended: June 19, 2014
Fiscal: Yes
Urgency: No
SUMMARY Would require the Board of Governors of the California
Community Colleges (CCCs) and the Trustees of the California
State University (CSU) and request the Regents of the University
of California (UC) and the governing bodies of accredited
private postsecondary educational institutions to adopt policies
to be used for negotiating contracts between their postsecondary
education institutions and banks and other financial
institutions to disburse students' financial aid awards and
other refunds onto debit, prepaid, or preloaded cards that best
serve the needs of students, as specified.
DESCRIPTION
1. Would require the CCCs and CSU and request UC and the
governing bodies of accredited private postsecondary
educational institutions to adopt policies to be used for
negotiating contracts between their postsecondary education
institutions and banks and other financial institutions to
disburse students' financial aid awards and other refunds
onto debit, prepaid, or preloaded cards that best serve the
needs of students.
2. Would require the policies developed by these institutions
to ensure that the debit/prepaid/preloaded card contracts do
all of the following:
a. Be consistent with federal law, including provisions
of federal law that require contracts to do all of the
following:
i. Ensure that the student does not incur
any cost to open the account or initially receive
the card (Section 668.164(c)(3)(iv) of the Code of
Federal Regulations, as that section read on July 1,
AB 1927 (Frazier), Page 2
2011).
ii. Ensure that the student has convenient
access to a branch office of the bank or an
automated teller machine (ATM) of the bank in which
the account was opened or of another bank, so that
the student does not incur any cost to make
withdrawals from that office or those ATMs. Further
ensure that the branch office or ATMs be located on
the postsecondary educational institution's campus,
in an institutionally owned or operated facility, or
immediately adjacent to and accessible from the
campus (Section 668.164(c)(3)(v) of the Code of
Federal Regulations, as that section read on July 1,
2011).
iii. Ensure that the debit card, prepaid card,
or preloaded card can be widely used (Section
668.164(c)(3)(vi) of the Code of Federal
Regulations, as that section read on July 1, 2011).
iv. Forbid the marketing or portrayal of the
account or debit card, prepaid card, or preloaded
card as a credit card or credit instrument, and the
subsequent conversion of the account or debit card,
prepaid card, or preloaded card to a credit card of
credit instrument (Section 668.164(c)(3)(vii) of the
Code of Federal Regulations, as that section read on
July 1, 2011).
b. Prohibit revenue sharing between a postsecondary
educational institution and banks or other financial
institutions.
c. Prohibit the sale or sharing of personal information
that the student or the postsecondary educational
institution provides the bank or other financial
institution, except as necessary for the purpose of
providing services related to the opening or maintenance
of a debit/prepaid/preloaded card account. Ensure that
the personal information disclosed by the postsecondary
educational institution or solicited by the bank or other
financial institution, and the treatment of that
information, is consistent with the federal Family
Educational Rights and Privacy Act of 2001 (20 USC
1232g).
AB 1927 (Frazier), Page 3
d. Prohibit the bank or other financial institution
from imposing a point-of-sale (POS) transaction fee on a
student for the use of the debit/prepaid/preloaded card.
e. Provide a clear and conspicuous disclosure to
students of all fees associated with the
debit/prepaid/preloaded card.
f. If the debit/prepaid/preloaded card is cobranded,
provide a clear and conspicuous disclosure to students
that the card is not endorsed by the postsecondary
education institution.
g. Require the postsecondary educational institution to
disclose to students the benefits and student
responsibilities of all financial aid disbursement
options offered by the postsecondary education
institution.
3. Would clarify that the policies which are the subject of
the bill shall only apply to negotiating contracts between a
bank or other financial institution and a postsecondary
educational institution for purposes of disbursing a
student's financial aid award and other refunds onto a
debit, prepaid, or preloaded card.
4. Would define a bank or other financial institution for
purposes of the bill as a depository institution or an
entity that partners with one or more depository
institutions.
AB 1927 (Frazier), Page 4
EXISTING FEDERAL REGULATION
5. Implements Title IV of the federal Higher Education Act of
1965, as amended. Relevant regulations implementing Title
IV are contained in 34 Code of Federal Regulations (CFR)
Section 668. Two sections of 34 CFR Section 668, which are
particularly relevant to this bill, are summarized
immediately below. These regulations are enforced by the
Office of Federal Student Aid within the United States
Department of Education.
6. Provides that schools may contract with servicers to
administer any aspect of the school's participation in Title
IV (i.e., federal financial aid) programs. Requires
servicers that enter into written contracts with educational
institutions to administer any aspect of the school's
participation in any Title IV program to comply with all
statutory provisions of or applicable to Title IV and all
regulatory provisions prescribed under that statutory
authority (34 CFR Section 668.25)
7. Provides that an educational institution may establish a
policy requiring its students to provide bank account
information or open an account at a bank of their choosing,
as long as this policy does not delay the disbursement of
specified federal loan funds to students (30 CFR Section
668.164). Pursuant to 30 CFR Section 668.164, institutions
that open bank accounts on students' or parents' behalfs,
establish a process that students or parents follow to open
a bank account, or assist students or parents in opening
accounts, are required to do all of the following:
a. Obtain written consent from the student or parent to
open the account.
b. Inform the student or parent of the terms and
conditions associated with accepting and using the
account, before opening it.
c. Refrain from making any claims against the funds in
the account without the written permission of the student
or parent, except to correct an error in transferring the
funds.
d. Ensure that the student or parent does not incur any
cost to open the account or initially receive any type of
AB 1927 (Frazier), Page 5
debit card, stored-value card, other type of ATM card, or
similar transaction device used to access the funds in
that account.
e. Ensure that the student has convenient access to a
branch office of the bank or an ATM of the bank in which
the account was opened (or an ATM of another bank), so
that the student does not incur any cost to make cash
withdrawals from that office or those ATMs. This branch
office or these ATMs must be located on the institution's
campus, in institutionally-owned or operated facilities,
or on public property immediately adjacent to and
accessible from the campus.
f. Ensure that the debit, stored-value, ATM card, or
other device can be widely used (e.g., the institution
may not limit the use of the card or device to particular
vendors).
g. Refrain from marketing or portraying the account,
card, or device as a credit card or credit instrument, or
subsequently converting the account, card, or device to a
credit card or credit instrument.
EXISTING STATE LAW
1. Provides for a variety of student financial aid
programs, including the Cal Grant programs and the CCC
Board of Governors fee waiver program.
COMMENTS
1. Purpose: This bill is intended to ensure that colleges and
universities which outsource their financial aid
distribution ensure that the contracts they enter into with
financial institutions for this purpose best serve the needs
of students.
2. Background: Colleges and universities nationwide are
increasingly contracting with banks and other financial
institutions to disburse financial aid, scholarship aid, and
campus-based aid and to process credit balance refunds.
Contracting out for these services can save some schools
significant amounts of money relative to managing these
disbursement activities in-house. Student card contracts
negotiated by schools with financial institutions can also
AB 1927 (Frazier), Page 6
be part of larger, money-saving contracts that outsource
other financial services required by the schools, such as
faculty payroll.
For their part, financial institutions are often eager to take
on colleges and universities as clients, because of the
access it gives them to students who are just beginning to
enter the financial services marketplace. Colleges and
universities provide a potentially lucrative marketing
environment for financial institutions, because
relationships made with students when they are in college
often lead to financial relationships that survive long past
graduation.
However, as the use of banks and other financial institutions to
disburse financial aid and school refunds has increased, so,
too, has concern over the practices used by schools and
financial institutions to market these cards to students,
and over the extent to which students' financial aid and
school refunds are being siphoned away by financial
institutions through the imposition of fees on students'
card usage. More recently, privacy concerns have also
emerged.
This bill attempts to address concerns raised by students,
consumer advocates, and regulators, by requiring
California's systems of higher education to develop policies
that will be used by colleges and universities to negotiate
contracts with financial institutions for the disbursement
of aid on debit/prepaid/preloaded cards. Under the
provisions of this bill, these policies must ensure that the
contracts best serve the needs of students, comply with
specified federal regulations governing the disbursement of
financial aid, and go beyond these federal regulations with
the aim of better protecting students who opt to receive
their aid and refunds via a debit, prepaid, or preloaded
card.
3. Discussion: This bill takes a different approach to address
the same problem as a bill previously heard and passed by
this Committee (SB 845, Correa, currently pending on the
Assembly Floor). A summary of the two different approaches
taken by the bills is shown below.
-------------------------------------------------------------
| | AB 1927 (Frazier) | SB 845 (Correa) |
AB 1927 (Frazier), Page 7
|-------------------+--------------------+--------------------|
|Entities Subject |CCCs and CSU are |CCCs and CSU are |
|To The Bill |required to comply; |required to comply; |
| |UC and accredited |UC and accredited |
| |private |private |
| |postsecondary |postsecondary |
| |educational |educational |
| |institutions are |institutions are |
| |requested to |requested to |
| |comply. |comply. |
|-------------------+--------------------+--------------------|
|Services Covered |Disbursement of |Disbursement of |
| |student financial |student financial |
| |aid and other |aid, scholarship |
| |refunds onto |aid, campus-based |
| |debit/prepaid/preloa|aid, and school |
| |ded cards. |refunds onto |
| | |debit/prepaid/preloa|
| | |ded cards. |
|-------------------+--------------------+--------------------|
|What is Required |Development of |Development of |
| |policies, which |model contracts for |
| |ensure that |use by campuses |
| |contracts between |when negotiating |
| |campuses and |binding contracts |
| |financial |with financial |
| |institutions |institutions. |
| |contain certain | |
| |provisions. | |
|-------------------+--------------------+--------------------|
|Minimum Contract |Consistency with |Compliance with |
|Requirements |federal law, |federal regulations |
| |including |governing the |
| |compliance with 30 |disbursement of |
| |CFR Section |federal financial |
| |668.164(c)(3)(iv) |aid. |
| |through (vii), as | |
| |those regulations | |
| |read on July 1, | |
| |2011. | |
| | | |
| |Prohibitions | |
| |against revenue | |
| |sharing, the sale | |
| |or sharing of | |
| |students' personal | |
AB 1927 (Frazier), Page 8
| |information, and | |
| |the imposition of | |
| |POS fees; required | |
| |disclosures | |
| |regarding card | |
| |fees, the meaning | |
| |of cobranding, and | |
| |the benefits and | |
| |student | |
| |responsibilities | |
| |associated with | |
| |other financial aid | |
| |disbursement | |
| |options. | |
|-------------------+--------------------+--------------------|
|Additional Topics |None |Number and |
|That Must Be | |proximity to campus |
|Considered When | |of locations where |
|Schools Are | |fee-free |
|Developing | |withdrawals can be |
|Policies/Model | |made using the |
|Contracts | |debit/prepaid/preloa|
| | |ded card; types and |
| | |sizes of fees a |
| | |student could incur |
| | |through use of |
| | |their |
| | |debit/prepaid/preloa|
| | |ded card; whether |
| | |provisions of the |
| | |contract ensure |
| | |that the education |
| | |institution is |
| | |provided |
| | |information by the |
| | |card-issuer to |
| | |evaluate the costs |
| | |of card fees to |
| | |students; the |
| | |impact on students, |
| | |a campus, and an |
| | |educational system |
| | |of offering a |
| | |co-branded |
| | |debit/prepaid/preloa|
| | |ded card; whether |
AB 1927 (Frazier), Page 9
| | |the contract |
| | |ensures that the |
| | |educational |
| | |institution will |
| | |monitor compliance |
| | |by the financial |
| | |institution with |
| | |federal Title IV |
| | |requirements |
| | |governing the |
| | |disbursement of |
| | |financial aid; |
| | |whether the model |
| | |contract ensures a |
| | |process to track |
| | |and resolve student |
| | |complaints about |
| | |the card; the |
| | |impact of the |
| | |content of a |
| | |dispute resolution |
| | |clause on students, |
| | |their campus, and |
| | |their educational |
| | |system; whether the |
| | |contract ensures |
| | |that the |
| | |educational |
| | |institution does |
| | |not disclose, and |
| | |the financial |
| | |institution does |
| | |not request, |
| | |student information |
| | |beyond what is |
| | |necessary for the |
| | |financial |
| | |institution to |
| | |perform its |
| | |contracted aid and |
| | |refund disbursement |
| | |functions. |
|-------------------+--------------------+--------------------|
|Involvement of |No |Yes |
|Stakeholders | | |
|Required? | | |
AB 1927 (Frazier), Page 10
|-------------------+--------------------+--------------------|
|Public Comment |No (though |Yes |
|Required When |amendments will be | |
|Institution is |offered to require | |
|Developing Its |public comment) | |
|Policies/Model | | |
|Contracts? | | |
|-------------------+--------------------+--------------------|
|Requirement to |No (though |Yes |
|Post |amendments will be | |
|Policies/Contracts |offered to require | |
|Online? |online posting) | |
-------------------------------------------------------------
4. Changing Federal Regulations: In November 2013, in
recognition of increasing concern around the disbursement of
federal financial aid onto debit, prepaid, and preloaded
cards, the U.S. Department of Education (USDOE) announced
its intent to revise its federal financial aid disbursement
regulations as part of a negotiated rulemaking.
Negotiated rulemakings overseen by USDOE differ from the
traditional rulemaking process followed by California state
government entities. Under the rules followed by USDOE,
consensus is defined as the lack of dissent by any member of
the negotiating committee. If a negotiated rulemaking
results in consensus, USDOE publishes the consensus work
product in the Federal Register as part of a Notice of
Proposed Rulemaking. If consensus is not achieved through a
negotiated rulemaking process, UDDOE uses a different,
longer process to promulgate final rules.
First, the Department take a step back and considers whether it
should continue to proceed with regulations. If the
Department decides to move forward, it may use some portion
of the regulatory language developed during the negotiated
rulemaking as the basis for its Notice of Proposed
Rulemaking, or may develop new regulatory language for all
or a portion of its proposed regulations.
Despite four lengthy negotiating sessions conducted as part
of the USDOE negotiated rulemaking, negotiators failed to
reach consensus. For that reason, the content and timing of
future changes to federal Title IV regulations are
uncertain.
AB 1927 (Frazier), Page 11
5. What Are The Key Issues? The federal rulemaking was
intended to address key concerns which have been raised
about aid and refund disbursement onto debit, prepaid, and
preloaded cards. Two recent federal reports highlight those
concerns, including a February, 2014 report issued by the US
Government Accountability Office (GAO) to the US Senate
Committee on Health, Education, Labor, and Pensions titled,
"College Debit Cards: Actions Needed to Address ATM Access,
Student Choice, and Transparency," and a March, 2014 letter
report issued by the USDOE's Office of the Inspector General
(OIG) to the Office of Postsecondary Education and the
Office of Federal Student Aid within USDOE, titled,
"Third-Party Servicer Use of Debit Cards to Deliver Title IV
Funds."
The GAO and OIG reports focused on subjects that both this bill
and SB 845 attempt to address: the provision of clear,
objective, and neutral information to students about their
choices for receiving financial aid; ensuring that fees
imposed on students who opt to receive their aid and refunds
via a debit/prepaid/preloaded card are reasonable;
protection of the personal identification information of
students who opt to receive their aid and refunds via a
debit/prepaid/preloaded card; and improved transparency
around the agreements entered into between schools and
financial institutions for the disbursement of aid and
refunds onto debit/prepaid/preloaded cards
6. Summary of Arguments in Support:
a. Consumer advocacy groups, including Consumers Union
and the California Public Interest Research Group
(CALPIRG) support provisions of the bill that prohibit
revenue sharing and POS fees, limit the sharing of
students' private information, and require the provision
of clear disclosures to students regarding the fees,
terms, and conditions associated with debit, prepaid, and
preloaded cards containing financial aid and school
refunds. Both organizations also like the fact that AB
1927 goes beyond existing federal regulations in certain
areas. "AB 1927 would ensure that California colleges
and universities enter into contracts that are better for
students, not just their bottom lines."
b. Organizations representing students, including the
California State Student Association, Student Senate for
AB 1927 (Frazier), Page 12
California Community Colleges, and University of
California Student Association, as well as the Faculty
Association of California Community Colleges, support the
bill because of its focus on students' financial
interests.
7. Summary of Arguments in Opposition:
a. The California Bankers Association (CBA) is opposed
to AB 1927 on three grounds. First, CBA is concerned
that the bill may conflict with federal regulations, once
those regulations are updated by the USDOE. CBA is also
concerned that the bill will impose contract conditions,
such as the ban on POS fees, which cannot be enforced for
national banks. The National Bank Act gives
federally-chartered banks the ability to price their
services, something with which this bill would interfere
through its prohibition against POS fees.
Finally, the bill inadvertently discourages student choice
by applying the bill to banks and financial institutions
that are not parties to financial aid disbursement
contracts. For example, as currently drafted, AB 1927
will apply to a checking account debit card that is
issued to a student who elects to have his or her
financial aid or school refund deposited into a checking
account.
b. Similar to CBA, Higher One is concerned that the
bill may conflict with federal regulations, once those
regulations are updated by the USDOE. Higher One also
dislikes the provision of the bill that would prohibit
card-issuing financial institutions from charging
students a POS transaction fee. "In evaluating and
negotiating with a disbursement vendor, higher education
institutions and their respective students would be
better served by determining the aggregate cost
associated with products; not the exclusion of a
particular fee." Higher One prefers the following
language in lieu of the language that currently prohibits
POS transaction fees: "When considered in combination
with other fees and charges, any fee or charge assessed
for use of the debit card, prepaid card, or preloaded
card is reasonable. Fees and charges are reasonable if
they are comparable to, or less than, fees and charges
commonly assessed in the financial services industry."
AB 1927 (Frazier), Page 13
Higher One would also like the author to delete bill
language requiring schools to disclose "the benefits and
student responsibilities for all financial aid
disbursement options offered by the postsecondary
educational institution" (which Higher One believes is
both vague and overly broad) and language requiring
schools to inform students that cobranding does not
represent an endorsement of the card by the school (which
Higher One believes is confusing due to its use of the
word "endorse"). Higher One suggests replacing those
provisions with a requirement that "the options for
receiving financial aid disbursements must be described
and presented in a clear, fact-based, neutral manner."
8. Amendments: The author has agreed to take several
clarifying amendments, which are shown below in mock-up
form. Representatives of the opposition were still
reviewing the amendments at the time this analysis was
finalized.
SECTION 1. Section 69505.7 is added to the Education Code,
to read:
69505.7. (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 the governing bodies of accredited private
nonprofit and for-profit postsecondary educational
institutions are requested to, adopt policies to be used for
negotiating contracts between their postsecondary
educational institutions and banks and other financial
institutions for the disbursement of students' financial aid
awards and other funds onto debit cards, prepaid cards, or
preloaded cards issued by those banks or other financial
institutions. to disburse a student's financial aid award
and other refunds onto a debit card, prepaid card, or
preloaded card that best serves the needs of the students.
These policies shall not be finalized before public comment
is sought and considered.
(b) The policies adopted pursuant to subdivision (a) shall
best serve the needs of students and ensure that contracts
between postsecondary educational institutions and banks or
other financial institutions to disburse a student's
financial aid award and other refunds onto a debit card,
prepaid card, or preloaded card meet both of the following
sets of requirements:
AB 1927 (Frazier), Page 14
(1) The policies shall ensure that those contracts are
consistent with federal law, including, but not limited
to, provisions in federal law that require these contracts
to do all of the following:
(A) Ensure that the student does not incur any cost
to open in opening the account or initially receive
receiving the debit card, prepaid card, or preloaded
card, as provided in Section 668.164(c)(3)(iv) of the
Code of Federal Regulations, as that section read on
July 1, 2011.
(B) Ensure that the student has convenient access to
a branch office of the bank or an automated teller
machine of the bank in which the account was opened or
of another bank, so that the student does not incur any
cost to make in making withdrawals from that office or
those automated teller machines, and that the branch
office or automated teller machines be located on the
postsecondary educational institution's campus, in an
institutionally owned or operated facility, or
immediately adjacent to and accessible from the campus,
as provided in Section 668.164(c)(3)(v) of the Code of
Federal Regulations, as that section read on July 1,
2011.
(C) Ensure that the debit card, prepaid card, or
preloaded card can be widely used (e.g., the
institution may not limit the use of the card to
particular vendors ), as provided in Section
668.164(c)(3)(vi) of the Code of Federal Regulations,
as that section read on July 1, 2011.
(D) Forbid the marketing or portrayal of the account
or debit card, prepaid card, or preloaded card as a
credit card or credit instrument, or and the subsequent
conversion of the account or debit card, prepaid card,
or preloaded card to a credit card or credit
instrument, as provided in Section 668.164(c)(3)(vii)
of the Code of Federal Regulations, as that section
read on July 1, 2011.
(1) In addition to the requirements specified in paragraph
(1), the policies shall do at least all of the following:
(A) Prohibit revenue sharing between a postsecondary
educational institution and banks or other financial
institutions. For the purpose of this subparagraph, the
term revenue sharing means an arrangement between a
postsecondary educational institution and bank or
financial institution in which the postsecondary
educational institution recommends, promotes, utilizes,
AB 1927 (Frazier), Page 15
sponsors, or otherwise endorses the bank or financial
institution or the debit card, prepaid card, or
preloaded card issued by the bank or financial
institution, and in exchange, the bank or financial
institution pays a fee or provides other material
benefits, including revenue or profit sharing, to the
postsecondary educational institution or an officer,
employee, or agent of the postsecondary educational
institution.
(B) Prohibit the sale or sharing of personal
information, as defined in paragraph (1) of subdivision
(d) of Section 1798.81.5 of the Civil Code, that the
student or the postsecondary educational institution
provides the bank or other financial institution,
unless it is necessary for the purpose of providing
services related to the opening or maintenance of a
debit card, prepaid card, or preloaded card account.
The personal information disclosed by the postsecondary
educational institution or solicited by the bank or
other financial institution, and the treatment of that
information, shall be consistent with the federal
Family Educational Rights and Privacy Act of 2001 (20
USC Section 1232g).
(C) Prohibit the bank or other financial institution from
imposing a point-of-sale transaction fee on a student
for the use of the debit card, prepaid card, or
preloaded card.
(D) Require the card-issuing bank or financial
institution to provide Provide a clear and conspicuous
disclosure to students of all fees associated with the
debit card, prepaid card, or preloaded card, in no less
than 10 point font, before they opt to open an account
or receive a debit card, prepaid, or preloaded card
issued by that bank or financial institution, and
provide a readily accessible link to a printable
version of this fee list from the homepage of its
Internet Web site.
(E) If the debit card, prepaid card, or preloaded card is
cobranded, require the card-issuing bank or financial
institution to provide a clear and conspicuous
disclosure to students, in no less than 10 point font,
before they opt to open an account or receive a debit
card, prepaid card, or preloaded card issued by that
bank or financial institution, that the card is not
endorsed by the postsecondary educational institution.
(F) Require the postsecondary educational institution to
AB 1927 (Frazier), Page 16
disclose to students the benefits and student
responsibilities associated with for all financial aid
disbursement options offered by the postsecondary
educational institution.
(c) The policies adopted pursuant to subdivision (a) shall
only apply to negotiating contracts between a bank or other
financial institution and a postsecondary educational
institution for purposes of disbursing a student's financial
aid award and other refunds onto a debit card, prepaid card,
or preloaded card.
(d) For purposes of this section, a "bank or other
financial institution" includes, but is not limited to, a
depository institution or an entity that partners with one
or more depository institutions.
(c) 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
the governing bodies of accredited private nonprofit and
for-profit postsecondary educational institutions are
requested to, make every policy developed pursuant to
subdivisions (a) and (b), and every binding contract
negotiated by an educational institution under the
jurisdiction of one of these governing bodies with a
financial institution for the disbursement of students'
financial aid awards and other funds onto debit cards,
prepaid cards, or preloaded cards, publicly available on its
Internet Web site.
1. Prior and Related Legislation:
a. SB 845 (Correa), 2013-14 Legislative Session: Would
require the CCCs and CSU and request UC and the governing
bodies of accredited private postsecondary educational
institutions to negotiate one or more model contracts for
use by campuses within their respective systems to govern
the disbursement of financial aid, scholarship aid,
campus-based aid, and school refunds onto debit, prepaid,
or preloaded cards issued by financial institutions.
Pending on the Assembly Floor.
b. AB 1162 (Frazier), 2013-14 Legislative Session:
Would have required the CCCs and CSU and request UC and
the governing bodies of accredited private postsecondary
educational institutions to adopt policies to be used for
negotiating contracts between their institutions and
banks and other financial institutions to disburse
AB 1927 (Frazier), Page 17
students' aid awards and other refunds onto
debit/prepaid/preloaded cards. Failed passage in the
Senate Banking and Financial Institutions Committee.
AB 1927 (Frazier), Page 18
LIST OF REGISTERED SUPPORT/OPPOSITION
Support
California Communities United Institute
California State University Student Association
CALPIRG
Consumers Union
Faculty Association of California Community Colleges
Student Senate for California Community Colleges
University of California Student Association
Veterans Caucus of the California Democratic Party
Opposition
California Bankers Association
Higher One
Consultant: Eileen Newhall (916) 651-4102