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  MAY 1, 2013
	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
 to be used  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   card that 
best  serve   serves  the needs of the
 students, and   students. The bill  would
encourage  the policies    
postsecondary educational institutions  to  include
  consider  specified  requirements
  issues in adopting their policies  .
   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  to be
used  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   card that  best  serve 
 serves  the needs of the  students, and 
 students. Postsecondary educational institutions  are
encouraged to  include   consider  all of
the following  requirements   in adopting their
policies  :
   (a)  Provide   Whether to 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   Whether  to require
 at least one fee-free regularly replenished automated teller
machine to be placed on a participating campus or satellite campus,
and additional fee-free regularly replenished automated teller
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   Whether to 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   Whether   to 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   Whether to prohibit  the
debit cards, prepaid cards, or preloaded cards from being cobranded,
which means including the logo of the postsecondary educational
institution.
   (f)  Require   Whether   to 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   Whether to prohibit 
debit card, prepaid card, or preloaded card contracts from including
mandatory arbitration clauses.