Bill Text: CA AB1162 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Student financial aid: debit cards.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed - Dead) 2013-07-03 - In committee: Set first hearing. Failed passage. Reconsideration granted. [AB1162 Detail]

Download: California-2013-AB1162-Introduced.html

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BILL NUMBER: AB 1162	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Frazier

                        FEBRUARY 22, 2013

   An act to add Section 69505.6 to the Education Code, relating to
student financial aid.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1162, as introduced, Frazier. Student financial aid: debit
cards.
   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 all 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 request the Regents of the University of California
and the governing bodies of accredited private nonprofit and
for-profit postsecondary educational institutions, to adopt policies
for negotiating contracts between their postsecondary educational
institutions and banks and other financial institutions to disburse a
student's financial aid award and other refunds onto a debit card.
The bill would require the policies to best serve the needs of the
students, and would encourage the policies to include specified
requirements.
   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 69505.6 is added to the Education Code, to
read:
   69505.6.  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 for
negotiating contracts between their postsecondary educational
institutions and banks and other financial institutions to disburse a
student's financial aid award and other refunds onto a debit card.
The policies shall best serve the needs of the students, and are
encouraged to include all of the following requirements:
   (a) Provide students a clear and unbiased choice of where to bank
by ensuring that students can elect to receive their financial aid
award and other refunds through their own bank account or on a check
and that students not be subjected to paperwork that attempts to
direct them to banking options favored by the bank or financial
institution with which the institution is partnering.
   (b) Require an adequate number of regularly replenished automated
teller machines to be placed on a participating campus with which a
student may use his or her debit card to access his or her financial
aid award and other refunds.
   (c) Prohibit the debit cards from imposing the following fees on
students:
   (1) Insufficient fund fees at automated teller machines or point
of sale.
   (2) Account balance inquiry fees.
   (3) PIN-based transaction fees.
   (4) Inactive account fees.
   (5) Replacement card fees.
   (6) Transfer or wire fees.
   (7) Dispute fees.
   (8) Account closure fees.
   (d) Require all debit card fees to be prominently displayed on the
partnering bank or financial institution's Internet Web site or
information mailed to students.
   (e) Prohibit the debit cards from being cobranded, which means
including the logo of the postsecondary educational institution.
   (f) Require the debit cards to include the same level of consumer
protections that are provided to automated teller machine customers
under the federal Electronic Fund Transfer Act (15 U.S.C. Sec. 1601
et seq.).
   (g) Prohibit debit card contracts from including mandatory
arbitration clauses.