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

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-Amended.html

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BILL NUMBER: AB 1162	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 16, 2013
	AMENDED IN ASSEMBLY  APRIL 1, 2013

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 amended, 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,
prepaid card, or preloaded 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,
prepaid card, or preloaded 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 at least one fee-free regularly replenished automated
teller machine to be placed on a participating campus or satellite
campus, and  an  additional  fee-free 
regularly replenished automated teller  machine for every
3,000 students enrolled,   machines placed on campuses
in high enough concentration to avoid students having to use multiple
automated teller machines,  with which a student may use his or
her debit card, prepaid card, or preloaded card to access his or her
financial aid award and other refunds.
   (c) Prohibit debit card, prepaid card, or preloaded card use from
imposing fees common to students, including, but not limited to:
   (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, prepaid card, or preloaded 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, prepaid cards, or preloaded cards
from being cobranded, which means including the logo of the
postsecondary educational institution.
   (f) Require the debit cards, prepaid cards, or preloaded cards and
their contracts 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.) as
its exists on January 1, 2014.
   (g) Prohibit debit card, prepaid card, or preloaded card contracts
from including mandatory arbitration clauses.