Bill Text: CA AB1927 | 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: (Vetoed) 2014-09-29 - Vetoed by Governor. [AB1927 Detail]

Download: California-2013-AB1927-Introduced.html

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BILL NUMBER: AB 1927	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Frazier

                        FEBRUARY 19, 2014

   An act to add Section 69505.7 to the Education Code, relating to
student financial aid.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1927, 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
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 that best serves the
needs of the students. The bill would require the policies adopted to
ensure that contracts between postsecondary educational institutions
and banks or other financials institutions to disburse a student's
financial aid award to do certain things, including, among other
things, prohibit the sale of private information that the student or
the postsecondary educational institution provides the bank or other
financial institution, prohibit the debit card, prepaid card, or
preloaded card use from imposing fees; prohibit the card from being
cobranded; ensure that a student does not incur any cost in opening
the account or initially receiving the card; and not market or
portray the account or card as a credit card or credit instrument, or
subsequently convert the card to a credit card or credit instrument.

   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 69505.7 is added to the Education Code, to
read:
   69505.7.  (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 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 that best serves the needs of the
students.
   (b) The policies adopted pursuant to subdivision (a) shall,
consistent with federal law, ensure that contracts between
postsecondary educational institutions and banks or other financial
institutions to disburse a student's financial aid award and other
refunds onto a debit card, prepaid card, or preloaded card do at
least all of the following:
   (1) Prohibit revenue sharing between a postsecondary educational
institution and banks or other financial institutions.
   (2) Prohibit the sale of private information that the student or
the postsecondary educational institution provides the bank or other
financial institution.
   (3) Prohibit the debit card, prepaid card, or preloaded card use
from imposing fees.
   (4) Prohibit the debit card, prepaid card, or preloaded card from
being cobranded, which means including the logo of the postsecondary
educational institution.
   (5) Ensure that the student does not incur any cost in opening the
account or initially receiving the debit card, prepaid card, or
preloaded card.
   (6) (A) Ensure that the student has convenient access to a branch
office of the bank or an automated teller machine of the bank in
which the account was opened or of another bank, so that the student
does not incur any cost in making withdrawals from that office or
those automated teller machines.
   (B) The branch office or automated teller machines must be located
on the postsecondary educational institution's campus, in an
institutionally owned or operated facility, or immediately adjacent
to and accessible from the campus.
   (7) Ensure that the debit card, prepaid card, or preloaded card
can be widely used.
   (8) Not market or portray the account or debit card, prepaid card,
or preloaded card as a credit card or credit instrument, or
subsequently convert the account or debit card, prepaid card, or
preloaded card to a credit card or credit instrument.