Bill Text: CA SB845 | 2013-2014 | Regular Session | Chaptered
Bill Title: Postsecondary education: electronic disbursement of student financial aid.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Passed) 2014-07-10 - Chaptered by Secretary of State. Chapter 120, Statutes of 2014. [SB845 Detail]
Download: California-2013-SB845-Chaptered.html
BILL NUMBER: SB 845 CHAPTERED
BILL TEXT
CHAPTER 120
FILED WITH SECRETARY OF STATE JULY 10, 2014
APPROVED BY GOVERNOR JULY 10, 2014
PASSED THE SENATE MAY 23, 2014
PASSED THE ASSEMBLY JUNE 26, 2014
AMENDED IN SENATE MAY 7, 2014
AMENDED IN SENATE APRIL 3, 2014
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, 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 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, and to make these model contracts, and
all binding contracts of this nature, publicly available on their
respective Internet Web sites.
The bill would also require that each model contract consider the
best interests of students and contain provisions that reflect
conditions required for compliance with federal regulations governing
the disbursement of federal financial aid.
The bill would also require the board of governors and the
trustees, and would additionally request the regents and each
governing body of an accredited private postsecondary educational
institution, when developing each of their respective model
contracts, to consider specified information.
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 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
associations, individual campuses, and financial institutions that
issue debit cards, prepaid cards, and preloaded cards and shall not
be finalized before public comment is sought and considered.
(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 every model contract
developed under subdivision (a), 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 a financial aid award, scholarship, campus-based aid
award, or school refund onto a debit card, prepaid card, or preloaded
card, 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 provisions that reflect conditions required for compliance
with federal regulations governing the disbursement of federal
financial aid.
(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 and whether provisions of the model
contract ensure that the educational institution is provided
information by the card-issuing financial institution to evaluate the
costs of these fees to students.
(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) Whether provisions of the model contract ensure that the
educational institution monitors compliance by the financial
institution with federal Title IV requirements governing the
disbursement of financial aid.
(5) Whether provisions of the model contract ensure a process for
the tracking and resolution of student complaints about the
card-issuing financial institution's credit delivery, customer
service, and debit, prepaid, or preloaded cards.
(6) 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.
(7) Whether provisions of the model contract ensure that the
educational institution does not disclose student information to the
card-issuing financial institution beyond what is necessary to
perform the contracted financial aid award, scholarship, campus-based
aid award, or school refund disbursement function.
(8) Whether provisions of the model contract ensure that the
card-issuing financial institution does not solicit or collect
information from a student that is not necessary to perform the
contracted financial aid award, scholarship, campus-based aid award,
or school refund disbursement function as a condition of allowing the
student to access a financial aid award, scholarship, campus-based
aid award, or school refund through a debit card, prepaid card, or
preloaded card.
