SB 595, as amended, 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 Californiabegin insert,end insert to not enter into a contract withbegin delete a bank or financial institution that requires studentsend deletebegin insert
any entity, whether a specific depository institution or an entity that partners with one or more depository institutions, on or after January 1, 2014, that requires a studentend insert to open an account withbegin delete the bank or financial institutionend deletebegin insert that entityend insert 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 receivingbegin delete a check for, or direct deposit of,end delete his or her financial aid disbursementbegin delete in a timeframe that is similar to the timeframe for financial aid disbursement offered by a bank or financial institution that partners with theend deletebegin insert
via direct deposit into an account at a depository institution of the student’s choosing, and ensure that its contract or contracts for financial aid disbursement entered into on or after January 1, 2014, provide that the contracting entity shall initiate the direct deposit within one business day of receipt of the financial aid disbursement moneys from eachend insert 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 69505.5 is added to the Education Code,
2to read:
(a) (1) No campus of the California Community
4Colleges or the California State University shall enter into a
5contractbegin insert on or after January 1, 2014,end insert withbegin delete a bank or financial begin insert any entity, whether a specific
6institution that requires studentsend delete
7depository institution or an entity that partners with one or more
8depository institutions, that requires a student end insert to open an account
9withbegin delete the bank or financial institutionend deletebegin insert
that entityend insert
as a condition of
10the student receiving his or her financial aid disbursement.
11(2) Each campus of the University of California is requested to
12not enter into a contractbegin insert end insertbegin inserton or after January 1, 2014,end insert withbegin delete a bank begin insert any entity, whether
13or financial institution that requires studentsend delete
14a specific depository institution or an entity that partners with one
15or more depository institutions, that requires a studentend insert to open an
16account withbegin delete the bank or financial institutionend deletebegin insert
that entityend insert as a
P3 1condition of the student receiving his or her financial aid
2disbursement.
3(b) (1) Each campus of the California Community Colleges
4and the California State University shall offer a student the option
5of receivingbegin delete a check for, or direct deposit of,end delete his or her financial
6aid disbursementbegin delete in a timeframe that is similar to the timeframe begin insert via direct deposit into an
7for financial aid disbursement offered by a bank or financial
8institution that partners with a campus of the California Community
9Colleges or California State Universityend delete
10account at a
depository institution of the student’s choosing. Each
11campus of the California Community Colleges and the California
12State University shall ensure that its contract or contracts for
13financial aid disbursement entered into on or after January 1,
142014, provide that the contracting entity shall initiate the direct
15deposit within one business day of receipt of the financial aid
16disbursement moneys from each campus of the California
17Community Colleges and the California State Universityend insert.
18(2) Each campus of the University of California is requested to
19offer a student the option of receivingbegin delete a check for, or direct deposit his or her financial aid disbursement
20of,end deletebegin delete in a timeframe that is begin insert
via direct deposit into an account at a
21similar to the timeframe for financial aid disbursement offered by
22a bank or financial institution that partners with a campus of the
23University of Californiaend delete
24depository institution of the student’s choosing. Each campus of
25the University of California is requested to ensure that its contract
26or contracts for financial aid disbursement entered into on or after
27January 1, 2014, provide that the contracting entity shall initiate
28the direct deposit within one business day of receipt of the financial
29aid disbursement moneys from each campus of the University of
30Californiaend insert.
If the Commission on State Mandates determines that
32this act contains costs mandated by the state, reimbursement to
33local agencies and school districts for those costs shall be made
34pursuant to Part 7 (commencing with Section 17500) of Division
354 of Title 2 of the Government Code.
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